New Zealand Energy Corp. ("NZEC" or the "Company") is pleased to provide an operational update regarding recent production activity in the area covered by NZEC's 50% interest in PML 38140 and PML 38141, and ongoing Tariki Gas Storage Project development initiatives, located in onshore Taranaki, New Zealand.
Ngaere-1 Initial Production
NZEC, together with its joint venture partner L&M Energy Ltd. ("L&M") and in partnership with Monumental Energy Corp. ("Monumental"), recently completed perforation operations at the Ngaere-1 well targeting the Mount Messenger Formation. The well immediately flowed oil and gas following perforation, producing approximately 580 barrels of oil within the first six hours of operation and approximately 3,000 barrels of oil to date. Production is currently stabilizing at approximately 120 barrels of oil per day without additional stimulation or optimization. Oil sales in New Zealand generally occur at local prices equivalent to Brent crude, which is currently at approximately US$85 per barrel.
The encouraging initial results demonstrate the potential of previously bypassed hydrocarbon zones within existing wells and support further workover and optimization activities. Initial production revenues have already recovered the workover costs within the first weeks of operation.
Additional Workover Opportunities
Following the strong results at Ngaere-1, the partnership plans to proceed with similar perforation operations at the Waihapa H1 and Ngaere-2 wells. These programs are expected to represent low-cost opportunities to unlock additional production from the Mount Messenger Formation across the permit areas. Activities are due to commence in the next few days with flow results expected in the next 2-3 weeks.
Tariki Gas Storage Project and Outlook for 2026
Separately, the joint venture between NZEC and L&M continues to advance the Tariki Gas Storage Project in collaboration with Genesis Energy. Significant progress has been made on engineering and pre-FEED due diligence activities, and the project continues to move forward as planned. The joint venture is on track to begin flowback operations at the Tariki-5A well in the coming weeks.
In addition, the recent commitment by the Government of New Zealand to support a liquefied natural gas ("LNG") import facility further strengthens the business case for the Tariki Gas Storage Project. NZEC believes the facility will play an important role in stabilizing the country's energy supply and enhancing long-term energy security. The Company's existing pipeline and infrastructure assets also have significant potential strategic value in an LNG import and gas storage build-out scenario, where domestic storage capacity and interconnections are expected to play an important role in balancing gas supply. NZEC looks forward to providing a stable long-term gas storage platform to benefit the people of New Zealand.
NZEC remains focused on optimizing production from existing wells with partners L&M and Monumental while advancing strategic gas storage infrastructure initiatives in the Taranaki Basin. The Company believes these initiatives position NZEC to contribute to addressing New Zealand's natural gas supply challenges while generating value for shareholders.