Welcome!

News Feed Item

New Zealand Energy Production and Operational Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/04/14 -- Editors note: There is a photo associated with this release.

New Zealand Energy Corp. (TSX VENTURE: NZ)(OTCQX: NZERF) is currently producing light, high-quality oil from nine wells in the Taranaki Basin of New Zealand's North Island, with five further wells expected to add to production over the next four months. NZEC's Waitapu-2 well on its 100%-owned Eltham Permit and the Waihapa-1B well on NZEC's 50%-owned TWN Licenses are expected to recommence production in Q1-2014. A high-volume electric submersible pump ("ESP") is scheduled to be installed on Toko-2B in Q1-2014 in order to realize a further increase to production in April, followed by additional production from the Waihapa-2 and Waihapa-8 wells later in Q2-2014.

Production Highlights


--  Total corporate production (net to NZEC)
    --  February 2014 first three days average: 284 barrels per day
        ("bbl/d") oil
    --  January 2014 average: 202 bbl/d oil
    --  December 2013 average: 236 bbl/d oil
--  Commenced delivery of Copper Moki natural gas to the Waihapa Production
    Station in early January
    --  All gas required for compressor fuel at the Waihapa Production
        Station and for gas lift of the TWN JA reactivated wells is
        currently provided from corporate production (TWN JA purchased
        external lift gas in Dec 2013), resulting in savings of approx
        NZ$100,000 net to NZEC in January (Company estimate)
--  Third-party revenue at the Waihapa Production Station during January of
    approx NZ$155,000 (net to NZEC)

Upcoming Catalysts


--  Additional production opportunities identified
    --  Waitapu-2 well expected to resume production in Q1-2014
    --  Waihapa-1B: Testing the production potential of the Tikorangi
        Formation. If successful, the well should recommence production in
        Q1-2014
--  Toko-2B ESP installation targeted for Q1-2014, with a production
    increase anticipated in April 2014
    --  Waihapa-2: Existing Tikorangi well successfully recompleted uphole
        to access bypassed Mt. Messenger production. Well shut-in for
        installation of artificial lift, production expected in Q2-2014
    --  Waihapa-8: Mt. Messenger Formation production potential confirmed by
        short flow test. Well shut-in for installation of artificial lift,
        production anticipated in Q2-2014

Production fluctuations are the result of ongoing work at the TWN Joint Arrangement ("TWN JA") reactivated wells to optimize oil production. Two TWN JA wells were shut-in at the end of December for optimization activities and resumed production in the second week of January. Likewise, NZEC's Copper Moki-3 well remained shut-in for the first half of January, resuming production on January 17.

During January, NZEC commenced delivery of Copper Moki natural gas to the Waihapa Production Station. As a result, the Company is currently able to internally generate all of the natural gas required to lift the TWN JA reactivated wells and run the Waihapa Production Station compressors, significantly reducing operating costs at the Waihapa Production Station and bringing modest natural gas revenue to the Company.

"NZEC continues to focus on near-term, low-cost opportunities to increase production and cash flow," said John Proust, Chief Executive Officer and Director of NZEC. "During a strategic planning session held in mid-January, NZEC directors and management agreed on two key things: the Company needs to increase production, and reduce costs. We are focused on delivering these two objectives. Further, a review of the cash flow projections concluded that the shift in closing the acquisition of the TWN assets from August to October 2013, and the resulting delay to commencement of production, will result in lower cumulative cash flow for 2014 than originally announced. NZEC will provide updated cash flow guidance as its 2014 development program unfolds.

"The better we understand the TWN assets, the more opportunities we see that could further enhance production with minimal cost. Likewise, we continue to optimize production from existing wells, as evidenced by the production increase in the early part of February. The timing and sequence of each development activity may change as we continue to optimize production and enhance our understanding of the oil fields' potential. NZEC's operations team reviews planned activities daily to ensure resources are deployed on activities that will most quickly add to production, in a sequence that ensures the most effective use of support services. NZEC will continue to provide monthly updates so that shareholders can track the Company's progress as we incrementally add to production and cash flow with each development activity."

Table 1 - NZEC's Production & Development Wells


Well Name                Permit      Target   Notes
                           Name   Formation
Copper Moki-1            Eltham       Mt. M   Producing since Dec 2011
Copper Moki-2            Eltham       Mt. M   Producing since Apr 2012
Copper Moki-3            Eltham       Mt. M   Producing since Jul 2012

Waitapu-2                Eltham       Mt. M   Produced Dec 2012 - May 2013
                                              Expected to recommence in Q1-
                                              2014

Reactivated Tikorangi       TWN   Tikorangi   Existing wells drilled by
 Wells                                        previous operator
Toko-2B, Ngaere-3,                            Oil production reactivated in
Ngaere-2A, Ngaere-1,                          Nov 2013
Waihapa-H1, Waihapa-6A                        Installation of high-volume
                                              lift on Toko-2B targeted for
                                              Q1-2014

Potential Tikorangi Well    TWN   Tikorangi   Tikorangi flow test scheduled
Waihapa-1B                                    for Feb 2014
                                              Production targeted for Q1-
                                              2014
                                              Additional upside from Mt. M
                                              formation

Uphole Recompletions        TWN       Mt. M   Waihapa-2 production targeted
Waihapa-2                                     for Q2-2014
Waihapa-1B                                    Waihapa-1B Mt. M recompletion
                                              contingent on results of
                                              Tikorangi production test

Reactivated Mt. M Well      TWN       Mt. M   Production targeted for Q2-
Waihapa-8                                     2014

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 1.97 million acres of conventional and unconventional prospects in the Taranaki Basin and East Coast Basin of New Zealand's North Island. The Company's management team has extensive experience exploring and developing oil and natural gas fields in New Zealand and Canada, and takes a multi-disciplinary approach to value creation with a track record of successful discoveries. NZEC plans to add shareholder value by executing 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 at www.newzealandenergy.com or by emailing [email protected].

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", "anticipated", "expected", "scheduled", "may", "should", "could", "continue", "enhance", "optimize" 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.

To view the photo associated with this release, please visit the following link: http://www.marketwire.com/library/20140204-NZEC-lg.jpg

Contacts:
New Zealand Energy Corp.
John Proust
Chief Executive Officer & Director
North American toll-free: 1-855-630-8997

New Zealand Energy Corp.
Bruce McIntyre
Acting General Manager Exploration & Director
North American toll-free: 1-855-630-8997

New Zealand Energy Corp.
Rhylin Bailie
Vice President Communications & Investor Relations
North American toll-free: 1-855-630-8997
[email protected]
www.newzealandenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...