Police were told that the chopper took off from Cessnock at about 8.50am yesterday.
It was headed for Wallis Island at Forster, with a 54-year-old man and a dog on board.
However, they did not arrive.
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Police are carrying out “an extensive land and sea search” around Port Stephens, they said.
Anybody with information is urged to contact Crime Stoppers on 1800 333 000.