New Zealand Energy Corp. ("NZEC" or the "Company") is pleased to provide the following updates with respect to the upcoming drilling operations targeting the Company's flagship gas production and storage project at Tariki-5.
The Tariki Joint Venture ("TJV"), comprised of the Company's wholly owned subsidiary, NZEC Tariki Limited (as to 50%) and L&M Energy Limited (as to 50%), has executed a gas handling and processing agreement with Cheal Petroleum Limited ("Cheal") for the export of gas to be produced from Tariki-5. The Cheal Facility, owned by Cheal, has the capacity to process up to 8.5 Terajoules/Day ("TJ/D") (or approximately 8 million cubic feet per day) of gas sourced from Tariki. The Company is investigating further upgrades in order to be able to process increased volumes of gas should the well prove to be capable of doing so.
As previously announced, a Gas Sales Agreement with Genesis Energy has been executed by the TJV which provides for an upfront payment of NZ$2 million payable upon spudding of the well which is expected on or about 23 September 2024.
All other contractual arrangements necessary to allow gas to be transported through the main New Zealand gas network and to allow gas to be delivered to Gensis have also been completed.
All long-lead items, except the wellhead, are in the country with the wellhead expected to be available by 9 September 2024. The drilling operations contemplate completion and tie-in of the well by 11 November 2024.
"The Tariki-5 gas production and gas storage opportunity is positioned to deliver critical and reliable energy to New Zealand that directly addresses the pressing domestic gas shortage. We look forward to the safe and successful completion of operations bringing online these badly needed resources," said James Willis, Chairman of NZEC.
