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
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...