ESP Brompton Energy Split Corp

New Zealand Energy Corp. ("NZEC" or the "Company") (TSX VENTURE:NZ)(OTCQX:NZERF)
today provided an update on production and development activities on the
Company's properties in the Taranaki Basin of New Zealand's North Island.


To date the Company has advanced 12 wells to production: four wells on the
Eltham Permit and eight wells on the TWN Licenses. Total corporate production
during June 2014 averaged 231 barrels of oil per day ("bbl/d") net to NZEC, up
from an average of 201 bbl/d during May. The production increase was largely the
result of flush production from the Ngaere wells on the TWN Licenses, which had
been shut-in during May to allow the Company to test the Toko-2B well.
Production from NZEC's Copper Moki-1 and Copper Moki-2 wells also increased
slightly during June.


The Toko-2B well recommenced production on June 28, following a number of
workover activities during June. The high-volume lift ("ESP") is pumping at the
maximum rate of 9,000 boe/d, with current production of approximately 50 bbl/d
(25 bbl/d net to NZEC). Since water continued to flow into the well when it was
shut-in, it will take a number of weeks for the ESP to pump through the water to
allow the well to begin producing oil at optimal rates. The operations team is
encouraged by Toko-2B's performance over the first few days at the increased
pumping rate, and is optimistic that oil production will continue to increase. 


In June, the operations team was expanded to include David Hoke, a Petroleum
Engineer with 38 years of experience encompassing all aspects of petroleum
engineering, including drilling, production, reservoir and facilities. Most
recently, Mr. Hoke has focused on reservoir management, production optimization
and new field exploitation. Mr. Hoke has worked with NZEC's Operations and G&G
teams to complete an extensive analysis of the Waihapa-2 well, which determined
that this well provides the perfect opportunity to individually test two
separate Mt. Messenger zones. In many areas on NZEC's Taranaki permits, the
Miocene sands of the Mt. Messenger formation separate into an upper and lower
zone. Historically NZEC has focused on the lower zone, but Mr. Hoke and NZEC's
G&G team believe that the upper Mt. Messenger zone holds additional potential.
In the Waihapa-2 well, the TWN JA (the 50/50 NZEC/L&M Energy partnership that
owns the TWN Licenses) has already perforated both zones. The engineering and
reservoir work is nearly complete, at which point NZEC's team will submit a
proposal to the TWN JA to install a packer to separate the two zones and then
produce the well using a jet pump. This would allow the two zones to be tested
and produced both separately and collectively, providing production flexibility
and allowing the TWN JA to gain valuable information about both Mt. Messenger
zones, which would guide the Company's exploration and development efforts
across all of its Taranaki permits. 


For the near-term, NZEC will leverage Mr. Hoke's experience and insight to focus
on optimizing production from existing wells. While the Company does see a
number of additional opportunities that could add to production, including
advancing the Waihapa-2 well, installing a new pump in the Copper Moki-3 well,
advancing the Waihapa-1B well and additional uphole completion opportunities,
these activities will be deferred until the Company has additional capital. The
Company is advancing a number of options to increase its financial capacity,
which could include increasing cash flow from oil production, credit facilities,
joint arrangements, commercial arrangements or other financing alternatives. 


Third-party revenue from the Waihapa Production Station since closing the TWN
Acquisition totals approximately NZ$1.15 million to NZEC. In addition, during
February 2014 the TWN JA entered into an agreement with a gas marketing
counterparty to transport gas along a section of the TAW gas pipeline for a term
of four years, with a five-year right of renewal. The arrangement is expected to
generate between NZ$250,000 and NZ$1 million revenue per year (net to NZEC).
First gas commenced flowing on May 5, 2014, with revenue earned since that date
being applied as the TWN JA's contribution to the capital cost originally
incurred by the counterparty. The TWN JA expects that its capital contribution
will be paid up by the end of July 2014, from which point forward the TWN JA
will receive the proceeds from the revenue associated with this arrangement.


To view Figure 1 - NZEC's Production & Development Wells - Status at July 2,
2014, please visit the following link:


http://media3.marketwire.com/docs/955622.pdf



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 1.15 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
oil and gas exploration and operations experience in New Zealand. NZEC plans to
execute 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
info@newzealandenergy.com.


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", "optimistic",
"would", "expected", 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
North American toll-free: 1-855-630-8997
John Proust - Chief Executive Officer & Director
Rhylin Bailie - Vice President Communications &
Investor Relations
Email: info@newzealandenergy.com
Website: www.newzealandenergy.com

Brompton Energy Split (TSX:ESP)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024

Brompton Energy Split (TSX:ESP)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024