New Zealand Energy Announces New Oil Discovery
VANCOUVER, BRITISH COLUMBIA, Nov 26, 2012 (Menafn - MARKETWIRE via COMTEX) --New Zealand Energy Corp. (otcqx:NZERF) ("NZEC" orthe "Company") today announced that the Company has made its fifthoil discovery in the Taranaki Basin of New Zealand's North Island.
The Waitapu-2 well was drilled to a total measured depth of 2,085metres, encountering approximately 6.2 metres of net pay in the Mt.Messenger Formation, a thick sequence of turbidite sandstones in NewZealand's Taranaki Basin. The Waitapu-2 well is currently flowing ata rate of 325 barrels of oil per day and 800 thousand cubic feet ofnatural gas per day through a 24/64th inch choke. The well isproducing sweet, high-quality 40 degrees API oil that is beingtrucked to the Shell-operated Omata Tank Farm, approximately 45 kmnorth of the site, and sold at Brent pricing. To date the Waitapu-2well has produced 1,880 barrels of oil. The well will be flowed forapproximately two weeks and then shut-in for pressure build-up.Subject to assessment of ongoing production, a decision will be madeto lay 1.3 kilometres of new pipeline to tie-in to the WaihapaProduction Station through the existing Copper Moki pipeline.
"The fact that the Waitapu-2 well is flowing from natural reservoirpressure, as the Copper Moki wells did, further confirms NZEC'sgeological model," said Bruce McIntyre, Executive Director of NZEC."Most Mt. Messenger wells in the region have required artificial liftalmost immediately. We are continuing to refine our geological modelbased on drilling success to date and interpretation of the recentlycompleted 3D seismic survey, and have many more prospects to drillthat we feel are comparable to the Copper Moki and Waitapudiscoveries."
The Company's first well drilled at the Waitapu site, the Waitapu-1well, was drilled to a measured depth of 2,213 metres, then cased andcompleted across a gross interval of 30 metres in the Mt. MessengerFormation. While a significant sand interval was identified with oiland natural gas shows, the permeability and porosity was such thatthe well did not yield economic production. The well has beensuspended pending further evaluation and/or sidetrack to an alternatetarget.
NZEC has reached target depth on the third well in its currenteight-well program. The Arakamu-2 well, NZEC's first well at theArakamu site, has reached target depth at a measured depth of 2,380metres. NZEC has commenced casing the well, with completion tofollow. The well encountered 8.1 metres of net pay in two potentiallyproductive zones in the Mt. Messenger Formation. The lower zone willbe completed first with the second zone to follow. The Company willannounce results from the Arakamu-2 well once testing has yieldedenough information for the Company to estimate the well's productivepotential, with testing expected to commence in late November.Following completion of the Arakamu-2 well, NZEC will move the rig tospud Arakamu-1A, which is targeting the deeper Moki formation.
NZEC will drill four more wells after Arakamu-1A with the objectiveof completing its eight-well program and increasing production to3,000 boe/d(1) by the end of Q1-2013.
NZEC will report its third quarter financial results on November 30,2012, including a full update on exploration activities and theresults of production optimization of the three Copper Moki wells,which are now producing under artificial lift.
On behalf of the Board of Directors
Bruce McIntyre, Executive 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 inNew Zealand. NZEC's property portfolio collectively coversapproximately 2.25 million acres (including pending permits) ofconventional and unconventional prospects in the Taranaki Basin andEast Coast Basin of New Zealand's North Island. The Company'smanagement team has extensive experience exploring and developing oiland natural gas fields in New Zealand and Canada, and takes amulti-disciplinary approach to value creation with a track record ofsuccessful discoveries. NZEC plans to add shareholder value byexecuting a technically disciplined exploration and developmentprogram focused on the onshore and offshore oil and natural gasresources in the politically and fiscally stable country of NewZealand. NZEC is listed on the TSX Venture Exchange under the symbol"NZ" and on the OTCQX International under the symbol "NZERF". Moreinformation is available at www.newzealandenergy.com or by emailinginfo@newzealandenergy.com.
Forward-looking Statements
This news release contains certain forward-looking information andforward-looking statements within the meaning of applicablesecurities legislation (collectively "forward-looking statements").The use of any of the words "will", "will be", "pending","commenced", "estimate", "expected", "targeting", "objective","increasing" and similar expressions are intended to identifyforward-looking statements. These statements involve known andunknown risks, uncertainties and other factors that may cause actualresults or events to differ materially from those anticipated in suchforward-looking statements, including without limitation, thespeculative nature of exploration, appraisal and development of oiland natural gas properties; uncertainties associated with estimatingoil and natural gas resources; uncertainties in both daily andlong-term production rates and resulting cash flow; volatility inmarket prices for oil and natural gas; changes in the cost ofoperations, including costs of extracting and delivering oil andnatural gas to market, that affect potential profitability of oil andnatural gas exploration; the need to obtain various approvals beforeexploring and producing oil and natural gas resources; the need toobtain government approval of work programs before exploring ordeveloping properties; uncertainty in the timing of receipt ofpermits and the Company's ability to extend the permits if required;exploration hazards and risks inherent in oil and natural gasexploration; operating hazards and risks inherent in oil and naturalgas operations; market conditions that prevent the Company fromraising the funds necessary for exploration and development onacceptable terms or at all; global financial market events that causesignificant volatility in commodity prices; unexpected costs orliabilities for environmental matters; competition for, among otherthings, capital, acquisitions of resources, skilled personnel, andaccess to equipment and services required for exploration,development and production; changes in exchange rates, laws of NewZealand or laws of Canada affecting foreign trade, taxation andinvestment; failure to realize the anticipated benefits ofacquisitions; and other factors as disclosed in documents released byNZEC as part of its continuous disclosure obligations. Informationconcerning reserves may also be deemed to be forward looking asestimates imply that the reserves described can be profitablyproduced in the future. NZEC believes the expectations reflected inthose forward-looking statements are reasonable, but no assurance canbe given that these expectations will prove to be correct. Suchforward-looking statements included in this news release should notbe unduly relied upon. These statements speak only as of the date ofthis news release and NZEC does not undertake to update anyforward-looking statements that are contained in this news release,except in accordance with applicable securities laws.
(1) Barrels of oil equivalent (boe) may be misleading, particularlyif used in isolation. A boe conversion ratio of 6 Mcf: 1bbl is basedon an energy equivalency conversion method primarily applicable atthe burner tip and does not represent a value equivalency at thewellhead.
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
Bruce McIntyre
Executive Director
North American toll-free: 1-855-630-8997
New Zealand Energy
John Proust
Chief Executive Officer and Director
North American toll-free: 1-855-630-8997
New Zealand Energy
Rhylin Bailie
Vice President Communications & Investor Relations
North American toll-free: 1-855-630-8997
info@newzealandenergy.com
www.newzealandenergy.com
SOURCE: New Zealand Energy Corp.
mailto:info@newzealandenergy.com
http://www.newzealandenergy.com
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