Monumental Energy Corp. is pleased to announce that it will be doing site visits and due diligence on multiple conventional oil and gas opportunities in the Taranaki region located on the north island of New Zealand with New Zealand Energy Corp. ("NZEC").
Potential opportunities include the farm-in on several oil workover wells, royalty or streaming arrangements, exploration of new oil and gas targets on NZEC concessions and a bid to acquire new tender blocks. Monumental intends to collaborate with NZEC on these opportunities through Monumental Energy Corp NZ Limited, the Company's recently incorporated wholly-owned subsidiary. Additionally, NZEC owns 50% of the Waihapa production facility, which allows for any oil workover production or new discoveries to be either trucked less than 3 km or directly tied into the facility, ensuring a fast route to market for New Zealand's supply. Any potential transaction with NZEC is subject to, among other things, due diligence, negotiation, execution of definitive agreements and TSX Venture Exchange approval.
Monumental will also visit the site of the Tariki-5 gas well that NZEC plans to drill in the near future. NZEC has contracts to sell gas from Tariki-5 to Genesis Energy, a large New Zealand gas and electricity utility.
Monumental is a significant shareholder of NZEC, owning 1.3M shares or 8.63% at an average cost base of $0.46 cents.
Monumental will be doing site visits, due diligence and meetings in New Zealand during the week of September 24th and will be meeting with drillers, contractors, legal counsel, government officials and other individuals.
Maximilian Sali, VP Corporate Development, director and founder comments, "As a significant shareholder of NZEC and having built a strong relationship with the team, it seemed only natural for us to take another step farther into oil and gas in this prolific basin in New Zealand and begin assessing opportunities for Monumental to generate its own revenue by partnering on certain assets and potentially bidding on new blocks with NZEC. We are excited about our upcoming site visits in New Zealand. We are also very excited that NZEC is soon to begin drilling its highly anticipated Tariki-5 gas well into a market where the prices range from 15-25 dollars NZ an MCF due to the extreme gas shortages that the country has from the lack of new wells to come online over the last decade. We look forward to seeing the progress and results made by NZEC with the drilling of Tariki-5 gas."