Vancouver, British Columbia--(Newsfile Corp. - November 14, 2024) - New Zealand Energy Corp. (TSX-V: NZ) ("NZEC" or the "Company") is pleased to announce that that the Tariki-5 well drilling operations suspended in late October 2024 will resume on Monday, November 18, 2024.
The new wellbore will be designated Tariki-5A and has a target location based predominantly upon additional control points gained from drilling the primary Tariki-5 well. The well data and the planned location have been extensively reviewed and is endorsed by external experts.
As discussed in the Company's October 25, 2024 release, Tariki-5 was plugged back to 2432m, which is inside the 7" casing. The new sidetrack well will be drilled from immediately above this depth by milling a window in the casing and then directional drilling to the new target. This will also provide a second test of the prospective oil reservoir Tikorangi Formation before drilling ahead to the target Tariki sandstone reservoir. The well is anticipated to reach the planned depth, undergo evaluation and be cased for production by December 1, 2024.
Management of the Company expects that all production facilities will be on schedule and will be ready to commence production soon after completion of the well. Production is nominally expected to start by December 18, 2024 and is contracted primarily to Genesis Energy, with the possibility of additional spot market sales.
Frank Jacobs, Chairman and largest shareholder comments, "with the knowledge of the location of the thrust fault identified by the Tariki-5 wellbore, the sidetrack (Tariki-5A) is decidedly on-track to deliver a viable penetration of the gas reservoir."
Further to the Company's news releases dated October 31, 2024, and November 7, 2024, the Company expects to close the previously announced private placement offering (the "Offering") on or before November 20, 2024, subject to approval of the TSX Venture Exchange. The Company is no longer accepting any additional subscriptions under the Offering.
On behalf of the Board of Directors
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 Offering, the potential use of proceeds of the Offering, the closing date for the Offering, the business of the Company and the Tariki Joint Venture, including future plans and objectives, the gas sales agreement, and the Tariki-5 well. 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: the underlying value of NZEC and its Common Shares, TSX Venture Exchange approval of the Offering; 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.
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