New Zealand Energy Corp. Provides Update on Tariki-5

Rhea-AI Summary

New Zealand Energy Corp. (TSXV: NZ) has provided updates on its Tariki-5 gas production and storage project. The Tariki Joint Venture has signed a gas handling agreement with Cheal Petroleum , allowing for processing of up to 8.5 TJ/D of gas. A Gas Sales Agreement with Genesis Energy includes a NZ$2 million upfront payment upon well spudding, expected around September 23, 2024. All necessary contractual arrangements for gas transportation and delivery are complete. Drilling operations are scheduled for completion and tie-in by November 11, 2024. The project aims to address New Zealand's domestic gas shortage by delivering critical and reliable energy resources.

Positive

• Secured gas handling and processing agreement with Cheal Petroleum for up to 8.5 TJ/D capacity
• Executed Gas Sales Agreement with Genesis Energy, including NZ$2 million upfront payment
• Completed all contractual arrangements for gas transportation and delivery
• Well spudding expected on September 23, 2024, with completion by November 11, 2024
• Project positioned to address domestic gas shortage in New Zealand

Negative

• None.

Wellington, New Zealand--(Newsfile Corp. - September 5, 2024) - New Zealand Energy Corp. (TSXV: NZ) ("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.

On behalf of the Board of Directors
‎"James Willis"‎
Chairman
}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 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: 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/222349

FAQ

When is the Tariki-5 well spudding expected for NZERF?

The Tariki-5 well spudding is expected on or about September 23, 2024.

What is the processing capacity of the Cheal Facility for NZERF's Tariki-5 project?

The Cheal Facility 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.

How much is the upfront payment from Genesis Energy for NZERF's Tariki-5 project?

Genesis Energy will provide an upfront payment of NZ$2 million upon spudding of the Tariki-5 well.

When is the expected completion date for NZERF's Tariki-5 drilling operations?

The drilling operations for Tariki-5 are scheduled for completion and tie-in by November 11, 2024.