New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) is pleased to announce
that six wells on the TWN Licenses have been reactivated and are currently
flowing into the Waihapa Production Station. New Zealand Energy Corp., through
its subsidiaries (collectively "NZEC" or the "Company"), holds a 50% interest in
the TWN Licenses, with L&M Energy and its related entities (collectively "L&M")
holding the other 50%. NZEC and L&M have formed the TWN Joint Arrangement ("TWN
JA"), with NZEC as the operator, to explore and develop the TWN Licenses and
operate the Waihapa Production Station and associated infrastructure. 


Highlights



--  Six wells reactivated and currently flowing to the Waihapa Production
    Station 
--  The initial two wells were reactivated sequentially 
    --  The first well flowed for 19 days, produced 4,797 barrels ("bbl")
        oil, 6.0 million cubic feet ("mmcf") natural gas, average water cut
        35%, with average daily production of 252 bbl/day (126 bbl/day net
        to NZEC) 
    --  The second well flowed for 4 days, produced 730 bbl oil, 0.9 mmcf
        natural gas, average water cut 35%, average daily production of 182
        bbl/day (91 bbl/day net to NZEC) 
    --  Total production (100% basis): 5,528 bbl oil, 6.9 mmcf natural gas
        and 3,052 bbl water 
    --  Net NZEC production: 2,764 bbl oil, 3.45 mmcf natural gas and 1,526
        bbl water 
    --  The final four wells have commenced production within the last 24
        hours, following installation of wellhead metering  
    --  All six wells are equipped with gas lift; however, four are flowing
        from natural formation pressure and two are using the installed gas
        lift 
--  TWN JA oil and natural gas production is delivered directly to the
    Waihapa Production Station using existing pipelines. Following
    processing: 
    --  Oil is delivered by pipeline to the Shell-operated Omata Tank Farm
        and sold at Brent pricing 
    --  Natural gas from the reactivated wells (less fuel gas) is sold to
        Contact Energy 
--  TWN JA is actively pursuing third-party processing opportunities for the
    Waihapa Production Station that will further increase revenue for the
    midstream business. In the month of November, TWN JA has processed and
    transported over 35,016 bbl of third-party oil and water, which has
    generated additional cash flow. TWN JA continues to pursue other third-
    party opportunities 



"Initial oil production from the first reactivated wells in the Tikorangi
Formation has exceeded our expectations," said John Proust, Chief Executive
Officer and Director of NZEC. "The reactivation process is proceeding as
planned, confirming that NZEC's team, as operator, has both the insight and
skills required to successfully assess, develop and revitalize the TWN Licenses
and Waihapa Production Station. We will continue to report production and
development activities to our shareholders on a monthly basis, through to our
next quarterly report, as TWN development proceeds." 


The reactivated wells had been drilled to the Tikorangi Formation by previous
operators and were produced intermittently using a gas lift system, but had been
effectively shut-in for a number of years. Current production rates exceed the
40 bbl/day/well (20 bbl/day/well net to NZEC) contemplated in the Company's
2013/2014 development plan. The first two wells are currently choked back
because of higher than expected pressures and lower water cut than anticipated. 


Well head metering has been installed at each of the six wells. The metering
includes turbine meters, local totalizers and proportional samplers and will
allow NZEC to monitor flow rates on a well-by-well basis. Gas lift is available
for each well and will be activated when required. 


NZEC also intends to install high-volume electric submersible pumps ("ESPs") to
further increase production rates. ESPs will be installed on two wells, with
potential for installation of additional ESPs on the remaining four wells. The
Company will begin ESP installation once initial productivity has declined, with
the expectation of installing the first ESP in Q1-2014.


A number of additional wells on the TWN Licenses, with previous production from
the Tikorangi Formation, have uphole completion potential in the Mt. Messenger
Formation. Recompletion of these wells will be significantly less expensive and
faster than drilling new wells, and economic discoveries could be tied in to the
Waihapa Production Station using existing oil and gas gathering pipelines.
Existing well logs and recently completed pressure surveys on two wells confirm
uphole completion potential in the Mt. Messenger Formation. The first uphole
completion will be initiated before year end, with the second to follow in early
2014.


"NZEC is focused on increasing production and cash flow in the very near term,"
continued Mr. Proust. "With an exceptional property portfolio, a skilled and
dedicated team, and a comprehensive development plan, NZEC has established a
clear path for long-term growth. We look forward to building value for our
shareholders as our 2014 exploration and development program unfolds." 


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 2.2 million acres
(including permits pending) 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 experience exploring and developing oil and
natural gas fields in New Zealand and Canada. NZEC plans to add shareholder
value by executing a technically disciplined exploration and development program
focused on the onshore 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.


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", "will be",
"anticipates", "intends", "expectation", "would be", "could be", 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; 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: 
New Zealand Energy Contacts
John Proust
Chief Executive Officer & Director
North American toll-free: 1-855-630-8997


Bruce McIntyre
Executive Director, Acting General Manager Exploration
North American toll-free: 1-855-630-8997


Rhylin Bailie
Vice President Communications & Investor Relations
North American toll-free: 1-855-630-8997


Chris Bush
New Zealand Country Manager
New Zealand: 64-6-757-4470
info@newzealandenergy.com
www.newzealandenergy.com
New Zealand Energy (TSXV:NZ)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more New Zealand Energy Charts.
New Zealand Energy (TSXV:NZ)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more New Zealand Energy Charts.