PPL 38116 is located offshore in the south-eastern portion of the Taranaki Graben, immediately south of the onshore Kapuni Field. The major structural feature of PPL 38116 is a northwards plunging anticline known as the Kupe Structure. It is bounded to the west by the Manaia Fault, to the east by the Taranaki Fault Zone, and to the south by a basement high. Rocks within the structure range in age from Upper Cretaceous to Miocene. The end of structural development is marked by a Pliocene unconformity which truncates the uppermost Miocene rocks. Overlying that unconformity is a flat-lying sequence of Pliocene to Recent sediments.