New Zealand Energy Corp. ("NZEC" or the "Company") is pleased to announce strong initial production results from the Ngaere-2 well, located in the onshore Taranaki Basin, New Zealand. The Ngaere-2 well has delivered an initial flush production of approximately 2,500 barrels of oil and is currently exhibiting a stable, unstimulated flow rate of approximately 300 barrels of oil per day.
Ngaere-2 is situated within a four-kilometre radius of existing producing wells and in close proximity to the Waihapa production facility, supporting efficient tie-in and ongoing field development. The well forms part of NZEC's 50% interest in PML 38140 and PML 38141 (the "Petroleum Mining Licences"). The Company's activities at the Ngaere-2 well are conducted in conjunction with its co-venturer L&M Energy Ltd. and pursuant to its funding and development arrangement with Monumental Energy Corp., which is participating in appraisal and workover activities across the Petroleum Mining Licences.
Current production levels are primarily constrained by oil transportation capacity from the Waihapa Production Station to downstream infrastructure. The Company and its partners are actively working to debottleneck existing infrastructure to support increased production volumes. With multiple wells now online in the broader Waihapa and Ngaere area, including Ngaere-2, NZEC continues to focus on optimizing production through low-cost workover and recompletion opportunities. The Company has identified several behind-pipe and bypassed pay intervals in existing wells that present near-term production upside.
The ongoing workover program continues to demonstrate a scalable pathway to increasing production while leveraging existing infrastructure and maintaining disciplined capital deployment.