New Zealand Energy Corp. ("NZEC" or the "Company") is pleased to announce that that the Tariki-5 well drilling operations suspended in late October 2024 will resume on Monday, November 18, 2024.
The new wellbore will be designated Tariki-5A and has a target location based predominantly upon additional control points gained from drilling the primary Tariki-5 well. The well data and the planned location have been extensively reviewed and is endorsed by external experts.
As discussed in the Company's October 25, 2024 release, Tariki-5 was plugged back to 2432m, which is inside the 7" casing. The new sidetrack well will be drilled from immediately above this depth by milling a window in the casing and then directional drilling to the new target. This will also provide a second test of the prospective oil reservoir Tikorangi Formation before drilling ahead to the target Tariki sandstone reservoir. The well is anticipated to reach the planned depth, undergo evaluation and be cased for production by December 1, 2024.
Management of the Company expects that all production facilities will be on schedule and will be ready to commence production soon after completion of the well. Production is nominally expected to start by December 18, 2024 and is contracted primarily to Genesis Energy, with the possibility of additional spot market sales.
Frank Jacobs, Chairman and largest shareholder comments, "with the knowledge of the location of the thrust fault identified by the Tariki-5 wellbore, the sidetrack (Tariki-5A) is decidedly on-track to deliver a viable penetration of the gas reservoir."
Further to the Company's news releases dated October 31, 2024, and November 7, 2024, the Company expects to close the previously announced private placement offering (the "Offering") on or before November 20, 2024, subject to approval of the TSX Venture Exchange. The Company is no longer accepting any additional subscriptions under the Offering. ?