New Plymouth, New Zealand--(Newsfile Corp. - October 28, 2024) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") is pleased to announce that it's wholly-owned subsidiary has entered into a farmout agreement (the "Agreement") with a wholly-owned subsidiary of Monumental Energy Corp. ("Monumental").
Pursuant to the Agreement, Monumental is entitled to participate in the repair and workover of two wells, Copper Moki 1 & 2 ("CM 1 & 2") in order to restart production. The wells are located in a permitted block in the Taranaki Basin, New Zealand in which NZEC holds a 100% interest.
In exchange for paying for the workovers, which are estimated to cost approximately NZ$800,000, Monumental will be entitled to 75% of the oil and gas revenue, net of production costs, until its investment is recovered after which it will have a 25% net revenue interest, or royalty, in the permit.
Monumental and NZEC expect the workovers will begin within Q4 2024, subject to the satisfaction of the condition's precedent under the Agreement, which include the final approval of the TSX Venture Exchange (the "Exchange") of the Agreement, the applicable consent of the Minister in New Zealand in accordance with the New Zealand Crown Minerals Act 1991, and the availability of the requisite equipment and personnel to carry out the workovers. Monumental is a Non-Arm's Length Party under the policies of the Exchange, as Frank Jacobs is a director of Monumental and NZEC, and Bill Treuren is a director of Monumental's subsidiary and NZEC.
The Company and Monumental are evaluating other opportunities in the New Zealand oil and gas industry for collaboration. Monumental holds approximately 8.0% of the issued and outstanding capital of NZEC.
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 Agreement, Exchange approval of the Agreement, the business of the Company, including future plans and objectives, , and the CM 1 & 2 wells. 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: 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228126
