New Zealand Energy Update
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New Zealand Energy Production and Operational Update
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 6, 2014) – New Zealand Energy Corp. (“NZEC” or the “Company”) (TSX VENTURE:NZ)(OTCQX:NZERF) today provided an update on production and development activities on the Company’s properties in theTaranaki Basin of New Zealand’s North Island.
Total corporate production during July 2014 averaged 202 barrels of oil per day (“bbl/d”) net to NZEC. Production from wells on the Company’s 100%-owned Copper Moki Mining Permit increased slightly during July, while field production from the TWN Licenses declined in the second half of the month as the result of a compressor failure, which curtailed gas lift for three days. In addition, the TWN wells (with the exception of Toko-2B, which is on high-volume lift) are now operating on a rest and recovery mode rotation, which is intended to optimize production by allowing wells to build up pressure and yield flush production. The TWN JA (the 50/50 NZEC/L&M Energy partnership that owns the TWN Licenses) is currently running well gradient surveys on all of the reactivated wells to help determine the optimum flow period for each well.
The Toko-2B well high-volume lift is pumping at the maximum rate of 9,000 boe/d and is still pumping through a high water load. Currently the well is producing approximately 35 bbl/d (100%), but the operations team is optimistic that oil production could still increase from this well.
The TWN JA has appointed an engineering firm to design and prepare a cost estimate for the installation of surface jet pumping facilities to artificially lift the Waihapa-2 well. NZEC has recommended to the TWN JA that the upper and lower Mt. Messenger zones in Waihapa-2 be segregated during the recompletion. This will allow the zones to be tested both separately and collectively, providing production flexibility and allowing the TWN JA to gain valuable information about both Mt. Messenger zones. Workover of the well and installation of a jet pump will be subject to a final investment decision once the design and costs have been received, which is targeted for mid-August.
Third-party revenue from the Waihapa Production Station since closing the TWN Acquisition totals approximately NZ$1.31 million to NZEC. In addition, during July NZEC sold four terrajoules of Copper Moki natural gas production.
Figure 1 – NZEC’s Production & Development Wells – Status at August 4, 2014 is available at the following address: http://media3.marketwire.com/docs/NZ_Figure-1.pdf
On behalf of the Board of Directors
John Proust, Chief Executive Officer & Director
About New Zealand Energy Corp.
NZEC is an oil and natural gas company engaged in the production, development and exploration of petroleum and natural gas assets in New Zealand. NZEC’s property portfolio collectively covers approximately 1.15 million acres of conventional and unconventional prospects in the Taranaki Basin and East Coast Basin of New Zealand’sNorth Island. The Company’s management team has extensive oil and gas exploration and operations experience in New Zealand. NZEC plans to execute a technically disciplined exploration and development program focused on the onshore and offshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. NZEC is listed on the TSX Venture Exchange under the symbol NZ and on the OTCQX International under the symbol NZERF. More information is available atwww.newzealandenergy.com or by emailing firstname.lastname@example.org.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the word “will”, “optimistic”, “would”, “expected”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas reserves and resources; uncertainties in both daily and long-term production rates and resulting cash flow; volatility in market prices for oil and natural gas; changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration and production; the need to obtain various approvals before exploring and producing oil and natural gas resources; exploration hazards and risks inherent in oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; the Company’s ability to generate sufficient cash flow from production to fund future development activities; market conditions that prevent the Company from raising the funds necessary for exploration and development on acceptable terms or at all; global financial market events that cause significant volatility in commodity prices; unexpected costs or liabilities for environmental matters; competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production; changes in exchange rates, laws of New Zealand or laws of Canada affecting foreign trade, taxation and investment; failure to realize the anticipated benefits of acquisitions; and other factors as disclosed in documents released by NZEC as part of its continuous disclosure obligations. Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Actual results could differ materially from those anticipated in these forward-looking statements. The forward-looking statements contained in the document are expressly qualified by this cautionary statement. These statements speak only as of the date of this document and the Company does not undertake to update any forward-looking statements that are contained in this document, except in accordance with applicable securities laws.
New Zealand Energy Corp.
John Proust, Chief Executive Officer & Director
Rhylin Bailie, Vice President Communications &
North American toll-free: 1-855-630-8997