New Zealand Energy Provides Update on Copper Moki-1 Production Test and Exploration Activities
12 October 2011 - 11:21PM
Marketwired
New Zealand Energy Corp. ("NZEC" or the "Company") (TSX
VENTURE:NZ), an oil and natural gas company that is developing and
exploring prospects in New Zealand, is pleased to provide an update
on its activities in the Taranaki and East Coast Basins on New
Zealand's North Island. NZEC has placed its discovery well on a
long-term production test and expects to achieve commercial
production in Q4-2011.
Taranaki Basin Update
-- Commenced a long-term production test on Copper Moki-1 at a restricted
rate
-- Finalizing approval to drill Copper Moki-2 and Copper Moki-3
-- Initiated planning of a 100-km2 3D seismic survey to define future
drilling targets on both the Eltham and Alton Permits
The Taranaki Basin is situated on the west coast of the North
Island and is currently New Zealand's only oil and gas producing
basin, producing approx. 130,000 boe/day from 18 fields. Within the
Taranaki Basin, NZEC holds and is the operator of two permits
covering 152,066 net acres. NZEC completed its previously announced
Copper Moki-1 discovery well in August 2011. The well flowed 1,100
barrels of 41.8 API(1) oil per day along with 855 mcf(2) of natural
gas per day from the Mt. Messenger Formation over a 48-hour
production test through a 28/64th inch choke.
The Copper Moki-1 well has been placed on a long-term production
test at a restricted rate of approximately 500 barrels of oil per
day and 500 mcf per day of natural gas. The well has been flowing
for six days through a 20/64th inch choke. The well will be
produced until it has recovered between 5,000 and 6,000 barrels of
oil and will then be shut-in for a three-week pressure build-up.
The production test and subsequent build-up will allow NZEC to
determine the optimal production rate for the well when it is
placed on permanent production later in Q4-2011. Oil is being
trucked and sold to the Shell-operated Omata Tank Farm, which is
approximately 45 km north of the Copper Moki well site. The oil is
sweet and high quality and fetches a premium to the Brent reference
price(3).
Resource consent and surface access approvals are underway for
the Copper Moki-2 and Copper Moki-3 wells, which NZEC expects to
drill in December 2011. The Copper Moki-2 well will be drilled
directionally from the same pad as the Copper Moki-1 well to target
both the Urenui and Mt. Messenger formations. The Copper Moki-3
well will be drilled approximately 1.3 km south of the Copper
Moki-1 site and will target multi-zone potential in the Mt.
Messenger, Urenui and Moki formations. The Copper Moki-2 and Copper
Moki-3 targets were identified using 3D seismic and are analogous
to the Mt. Messenger Formation in Copper Moki-1.
NZEC has identified at least 6 features similar to Copper Moki-1
on 3D seismic and another 12 have been identified with the
Company's extensive 2D seismic database. NZEC is planning a 100-km2
3D seismic program, which will cover the northern region of the
Eltham and Alton permits, to more accurately define drilling
targets and significantly reduce drilling risk. The 3D seismic
survey will also further define the Horoi, Maata and Morea features
identified on the Alton Permit and define additional exploration
targets for 2012.
NZEC's exploration strategy is to prioritize wells that have a
well-defined, lower-risk Mt. Messenger target coupled with deeper
exploration targets such as the Moki Formation and the Kapuni
Group.
East Coast Basin Update
-- Cored two test holes on the Castlepoint Permit to test the Waipawa
Formation
-- Plan to re-drill and core the Ranui-1 well in Q4-2011 to test the
Whangai Formation
The East Coast Basin of New Zealand's North Island hosts two
highly prospective shale formations, the Waipawa and Whangai, which
are the source of more than 300 oil and gas seeps. NZEC has two
granted permits and one pending permit in the East Coast Basin,
covering more than 1.8 million acres.
NZEC has completed the coring of two test holes on its 100%
working interest Castlepoint Permit. The Orui (125 metres total
depth) and Te Mai (195 metres total depth) test holes were cored in
the Waipawa Shale. The cores are being analysed to determine the
production potential of the Waipawa Shale, with results expected by
year-end.
NZEC has a rig commitment to re-drill the Ranui-1 well, located
on its 100% working interest Ranui Permit. The Ranui-1 well was
drilled in 2008 by the previous owner and encountered 224 metres of
prospective Whangai Shale before reaching total depth of 1,134
metres, but did not penetrate the base of the Whangai Shale. NZEC's
Ranui-2 test well will core the Whangai Shale across several
intervals to determine the production potential of the Whangai
Shale, and will drill though the base of the Whangai Shale and into
the underlying conventional reservoir sands.
NZEC looks forward to reporting additional results as
exploration, development and production activities continue to
advance its portfolio of properties.
On behalf of the Board of New Zealand Energy Corp.
Bruce McIntyre, President & Director
About New Zealand Energy
NZEC is an oil and natural gas company engaged in the
development and exploration of petroleum and natural gas assets in
New Zealand. NZEC's property portfolio collectively covers nearly
two 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.
Forward-looking Statements
This news release contains certain forward-looking information
and forward-looking statements within the meaning of applicable
securities legislation (collectively "forward-looking statements").
The use of any of the words "initiate", "will be", "will", "plan",
"expect" 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 resources; changes
in the cost of operations, including cots of extracting and
delivering oil and natural gas to market, that affect potential
profitability of oil and natural gas exploration; operating hazards
and risks inherent in oil and natural gas operations; volatility in
market prices for oil and natural gas; 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
discussed under "Risk Factors" in NZEC's Prospectus dated July 19,
2011. NZEC 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. Such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the date
of this news release and NZEC does not undertake to update any
forward-looking statements that are contained in this news release,
except in accordance with applicable securities laws. In addition,
this news release may contain forward-looking statements attributed
to third-party industry sources.
------------------------------------
(1) American Petroleum Institute.
(2) Thousand cubic feet.
(3) The reference against which two thirds of the world's internationally
traded crude oil supplies are priced.
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.
Contacts: New Zealand Energy Corp. Rhylin Bailie Vice President,
Communications & Investor Relations +1 604-601-2010 New Zealand
Energy Corp. John Proust Chief Executive Officer & Director +1
604-601-2010info@newzealandenergy.comwww.newzealandenergy.com
New Zealand Energy (TSXV:NZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
New Zealand Energy (TSXV:NZ)
Historical Stock Chart
From Jul 2023 to Jul 2024