Wellington, New Zealand--(Newsfile Corp. - August 25, 2021) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today it has filed with Canadian regulatory authorities its Q2 2021 consolidated financial results and management discussion and analysis report, which documents are available on the Company's website at www.newzealandenergy.com and on SEDAR at www.sedar.com.
Commenting on the Company's second quarter 2021 results, Chairman James Willis said "The results saw a total comprehensive income of $117,125. (2020: loss of $391,152). There was a $734,764 decrease in cash held ($285,321 was held at the end of the quarter) with $1,525,000 expended during the quarter on the Tariki 3D seismic project. Cash provided in operating activities for the quarter was $1,142,557 (2020: used $989,081). The Company achieved average net daily production of ~101 boe/d (90% oil) through Q2."
On the subject of current business, Mr Willis stated: "The Company completed acquisition of the 71 sq km Tariki 3D Seismic project on time and on budget and expects the processed data to be ready for interpretation in Q4, 2021. The Convertible Loan transaction announced on 20 July 2021 enabled the funding and execution of this project."
The Company (with its Joint Venturer in the Tariki, Waihapa and Ngaere (TWN) properties) has concluded an agreement, effective from August 1st, 2021, cancelling all future obligations in respect of the Over-Riding Royalty held by Beach Energy Resources NZ (Tawn) Limited (formerly Origin etc etc). The Over Riding Royalty was granted to the former Grantee when the Company purchased the TWN licences in 2013. Mr Willis stated: "Cancellation of this Royalty has been a key objective and a necessary precursor to the Tariki work programme which lies ahead. It is great to have this one behind us."
Projects focussing on increasing oil and associated gas production are well underway. Subject to there being no on-going operations restrictions from New Zealand's latest COVID-19 lockdown, the company should be able to return to continuous oil and gas production at the Waihapa-Ngaere Field by year end."
The Company also advises that the Annual General and Special meeting of New Zealand Energy Corp. will be held at the offices of Straterra, 1st Floor 93 The Terrace, Wellington, New Zealand on 8 October 2021 at 10:00 a.m. (New Zealand Time). The close of business on 7 September 2021 is the record date for determining shareholders entitled to receive notice of, and to vote at, the Meeting.
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.
FORWARD-LOOKING INFORMATION AND CAUTIONARY NOTE REGARDING RESERVE ESTIMATES
This document, the consolidated financial statements for the quarter ended 30 June 2021 and the Management's Discussion and Analysis contain certain forward-looking information, forward-looking statements ("forward-looking statements"). The reader's attention is specifically drawn to the qualifications, disclosure and cautionary statements in these documents regarding forward-looking statements and reserve and resource estimates.
The Company notes that such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond NZEC's control, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information.
As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to future results, levels of activity or achievements. All forward-looking statements are made as of the date of this document or the date of the documents referenced above, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.
