New Zealand Energy Corp. Enters into a Farmout Agreement for Copper Moki Wells
New Zealand Energy Corp (TSXV: NZ) has entered into a farmout agreement with Monumental Energy Corp for the repair and workover of two wells, Copper Moki 1 & 2, in the Taranaki Basin, New Zealand. Under the agreement, Monumental will invest approximately NZ$800,000 in exchange for 75% of oil and gas revenue until investment recovery, followed by a 25% net revenue interest. The workovers are expected to begin in Q4 2024, subject to regulatory approvals and equipment availability. Monumental currently holds approximately 8.0% of NZEC's outstanding shares.
New Zealand Energy Corp (TSXV: NZ) ha stipulato un accordo di farmout con Monumental Energy Corp per la riparazione e il lavoro su due pozzi, Copper Moki 1 e 2, nella Taranaki Basin, Nuova Zelanda. Ai sensi dell'accordo, Monumental investirà circa NZ$800,000 in cambio del 75% delle entrate da petrolio e gas fino al recupero dell'investimento, seguito da un interesse netto del 25%. I lavori sono previsti per iniziare nel Q4 2024, soggetti ad approvazioni normative e disponibilità delle attrezzature. Attualmente, Monumental detiene circa l'8.0% delle azioni in circolazione di NZEC.
New Zealand Energy Corp (TSXV: NZ) ha firmado un acuerdo de farmout con Monumental Energy Corp para la reparación y el trabajo en dos pozos, Copper Moki 1 y 2, en la Cuenca de Taranaki, Nueva Zelanda. Según el acuerdo, Monumental invertirá aproximadamente NZ$800,000 a cambio del 75% de los ingresos por petróleo y gas hasta recuperar la inversión, seguido de un interés neto del 25%. Se espera que los trabajos comiencen en el cuarto trimestre de 2024, sujeto a aprobaciones regulatorias y disponibilidad de equipos. Actualmente, Monumental posee aproximadamente el 8.0% de las acciones en circulación de NZEC.
뉴질랜드 에너지 코퍼레이션 (TSXV: NZ)은 모뉴멘탈 에너지 코퍼레이션과 함께 뉴질랜드 타라나키 분지에서 두 개의 우물인 코퍼 모키 1과 2의 수리 및 작업을 위한 파우마웃 계약을 체결했습니다. 계약에 따라 모뉴멘탈은 투자 회수 시까지 석유 및 가스 수익의 75%와 교환하여 약 NZ$800,000를 투자하고, 이후 25%의 순수익 지분을 보유하게 됩니다. 작업은 2024년 4분기에 시작될 것으로 예상되며, 규제 승인 및 장비 사용 가능 여부에 따라 달라집니다. 현재 모뉴멘탈은 NZEC의 발행 주식의 약 8.0%를 보유하고 있습니다.
New Zealand Energy Corp (TSXV: NZ) a conclu un accord de farmout avec Monumental Energy Corp pour la réparation et le réaménagement de deux puits, Copper Moki 1 et 2, dans le bassin de Taranaki, en Nouvelle-Zélande. En vertu de cet accord, Monumental investira environ NZ$800,000 en échange de 75% des revenus pétroliers et gaziers jusqu’à recouvrement de l’investissement, suivi d’un intérêt net de 25%. Les travaux devraient commencer au quatrième trimestre 2024, sous réserve des approbations réglementaires et de la disponibilité des équipements. Monumental détient actuellement environ 8,0% des actions en circulation de NZEC.
New Zealand Energy Corp (TSXV: NZ) hat eine Farmout-Vereinbarung mit Monumental Energy Corp für die Reparatur und Überarbeitung von zwei Brunnen, Copper Moki 1 und 2, im Taranaki-Becken, Neuseeland, getroffen. Im Rahmen der Vereinbarung wird Monumental etwa NZ$800.000 investieren, um 75% der Öl- und Gasverträge bis zur Investitionsrückgewinnung zu erhalten, gefolgt von einem Nettoertragsanteil von 25%. Die Arbeiten sollen im vierten Quartal 2024 beginnen, vorbehaltlich regulatorischer Genehmigungen und Verfügbarkeit von Ausrüstungen. Monumental hält derzeit etwa 8,0% der ausgegebenen Aktien von NZEC.
- Agreement secures NZ$800,000 external funding for well repairs
- Potential restart of production from two existing wells
- No upfront capital required from NZEC for well workovers
- NZEC will receive only 25% of net revenue after investment recovery
- Non-arm's length transaction due to shared directors
- Project execution dependent on multiple regulatory approvals
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
In exchange for paying for the workovers, which are estimated to cost approximately NZ
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
On behalf of the Board of Directors
Mike Adams, Chief Executive Officer
New Zealand Energy Corp.
Tel: +64-6-757-4470
New Zealand Energy Corp. Contacts
Email: info@newzealandenergy.com
Website: www.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.
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
FAQ
What is the revenue sharing agreement between NZERF and Monumental Energy for the Copper Moki wells?
How much is Monumental Energy investing in the Copper Moki wells workover?
When will the Copper Moki wells workover begin?
What is Monumental Energy's ownership stake in NZERF?
