September 05, 2024 8:44 PM EDT | Source: New Zealand Energy Corp.
Wellington, New Zealand–(Newsfile Corp. – September 5, 2024) – New Zealand Energy Corp. (TSXV: NZ) (“NZEC” or the “Company”) is pleased to announce updates regarding the upcoming drilling operations for its flagship gas production and storage project at Tariki-5.
The Tariki Joint Venture (“TJV”), consisting of the Company’s wholly owned subsidiary, NZEC Tariki Limited (50%), and L&M Energy Limited (50%), has established a gas handling and processing agreement with Cheal Petroleum Limited (“Cheal”) for the transportation of gas to be extracted from Tariki-5. The Cheal Facility owned by Cheal has the capability to process up to 8.5 Terajoules/Day (“TJ/D”) of gas sourced from Tariki, which is around 8 million cubic feet per day. The Company is also exploring potential upgrades to increase gas processing capacity in case the well demonstrates the ability to produce more gas.
Furthermore, a Gas Sales Agreement with Genesis Energy has been signed by the TJV, entailing an upfront payment of NZ$2 million to be made upon the commencement of drilling the well, expected around September 23, 2024.
All essential contractual agreements to enable gas transportation through the primary New Zealand gas network and delivery to Genesis have been finalized. Except for the wellhead, all long-lead items are already in the country, with the wellhead projected to be available by September 9, 2024. The drilling operations are set to be completed, and the well tied-in by November 11, 2024.
James Willis, Chairman of NZEC, expressed optimism about the Tariki-5 gas production and storage project, highlighting its potential to address New Zealand’s gas shortage and provide much-needed energy resources. He emphasized the importance of ensuring the safe and successful completion of operations.
On behalf of the Board of Directors,
James Willis
Chairman
New Zealand Energy Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider 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. 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. This forward-looking information reflects NZEC’s current beliefs and is based on information available to NZEC and reasonable assumptions made by the Company. However, forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ. The Company’s disclosure documents on the SEDAR website outline additional risk factors. NZEC disclaims any intention or obligation to update or revise any forward-looking information.
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