Vancouver, British Columbia--(Newsfile Corp. - December 30, 2024) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") is pleased to provide the preliminary results of the Tariki-5A gas development well.
Management of NZEC are delighted to report that the Tariki-5A well has successfully been perforated and the production route to market commissioned. Gas sales commenced late on December 30th, 2024.
Tariki-5A has been perforated over the top 8m of the 20m of gas bearing sand intersected and was opened to flow on the 28th of December. Limited by wellsite equipment and whilst unloading completion fluids, the well initially flowed at estimated rates increasing from 2 to 5.5 mmscf/d. After ~ 4 hours of cleanup flow the well flow was directed into the ~35km pipeline to Waihapa Production Station. A full maximum flow test couldn't be conducted with the wellsite limitations.
Tariki gas arrived at Waihapa mid-morning on December 29th and after further commissioning work to test the production equipment, separator gas was sent through to Cheal production station for dehydration and hydrocarbon dew point control prior to commencing gas sales.
The Tariki-5A startup and commissioning program has been designed to minimize flaring and hence the full well testing program has only just commenced. While a maximum flow rate test has not yet been carried out, the wellhead pressures, temperatures, flow rates and back pressures provide sufficient information for preliminary estimates. On this basis Tariki-5A is estimated to be able to deliver up to 12 mmscf/d of gas and associated condensate to market. Note that this estimate should be treated with caution until further testing has taken place to confirm the well's behavior and the associated condensate yield.
With respect to the well results, CEO Mr. Adams commented: "The Tariki-5A gas well has successfully been drilled, completed, and placed on production. Early indications are that the well is performing towards the upper end of our predrill expectations and testing is underway to fully characterize the well's productivity and reserves.
The commencement of gas sales from Tariki-5A marks the successful completion of the Company's 2024 highest priority project and the first stage in the redevelopment of the Tariki field into New Zealand's second gas storage field. The Company will now focus on both the evaluation of Tariki gas reserves ahead of its conversion to gas storage, and the redevelopment of its other producing and non-producing assets through 2025."
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: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information regarding: the business of the Company, including future plans and objectives, the gas sales agreement, and the Tariki-5A well. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects NZEC's current beliefs and is based on information currently available to NZEC and on assumptions NZEC believes are reasonable. These assumptions include, but are not limited to: the underlying value of NZEC and its Common Shares, TSX Venture Exchange approval of the Offering; NZEC's current and initial understanding and analysis of its projects and the development required for such projects; the costs of NZEC's projects; NZEC's general and administrative costs remaining constant; and the market acceptance of NZEC's business strategy. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of NZEC to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; industry condition; volatility of commodity prices; imprecision of reserve estimates; environmental risks; operational risks in exploration and development; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting NZEC; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in NZEC's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although NZEC has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of NZEC as of the date of this news release and, accordingly, is subject to change after such date. However, NZEC expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law
