SYS-CON MEDIA Authors: Elizabeth White, Liz McMillan, Pat Romanski, Esmeralda Swartz, Kevin Jackson

News Feed Item

New Zealand Energy Production and Operational Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/06/14 -- New Zealand Energy Corp. (TSX VENTURE: NZ)(OTCQX: NZERF) today provided an update on its production and operational activities. The Company is currently producing approximately 236 barrels ("bbl") per day of light, high-quality oil (average daily production net to NZEC during December 2013) from eight wells in the Taranaki Basin of New Zealand's North Island, with the expectation that three more wells will contribute to production by the end of Q1-2014.

HIGHLIGHTS

TWN Reactivated Wells (NZEC 50% interest)


--  Six wells reactivated and producing oil from Tikorangi Formation using
    installed gas lift

--  Total production (100% basis) during December 2013: 9,332 bbl oil, 16.2
    million cubic feet ("mmcf") natural gas(1)

--  Total production net to NZEC during December 2013: 4,666 bbl oil

--  Average daily production (100% basis) during December 2013: 302 bbl oil,
    0.52 mmcf natural gas,1 average water cut 74%

--  Average daily production net to NZEC during December 2013: 151 bbl oil

TWN Recompleted Well (NZEC 50% interest)


--  Existing Tikorangi Waihapa-2 well recompleted uphole to access bypassed
    production in Mt. Messenger Formation

--  Perforated two zones, well flowed from natural reservoir pressure for
    three short flow tests

--  A further flow test planned for early January, followed by shut-in for
    pressure build-up

--  Commercial production expected in early February

--  Recompletion activities on a second well expected to commence by mid-
    January

Eltham Permit Wells (NZEC 100% interest)


--  Average daily production during December 2013: 85 bbl/d from Copper
    Moki-1 and Copper Moki-2 wells

--  Copper Moki-3 shut-in during December, workover activities underway to
    resume production in January

--  Waitapu-2 well expected to resume production in January

New Zealand Energy Corp., through its subsidiaries (collectively "NZEC" or the "Company"), holds a 50% interest in the TWN Licenses, with L&M Energy and its related entities (collectively "L&M") holding the other 50%. NZEC and L&M acquired the TWN Licenses on October 28, 2013 and formed the TWN Joint Arrangement ("TWN JA"), with NZEC as the operator, to explore and develop the TWN Licenses and operate the Waihapa Production Station and associated infrastructure.

TWN Licenses - Tikorangi Formation Production and Development Plan

During November 2013 the TWN JA reactivated oil and gas production from six wells that had been drilled to the Tikorangi Formation by previous operators. Well head metering was installed at each well to monitor flow rates on a well-by-well basis. A number of wells flowed from natural pressure for two to three weeks, and all six wells are now being produced using an existing gas lift system. The TWN JA is monitoring production data to identify the most efficient method to optimize oil production from each well, which may include installation of high-volume electric submersible pumps ("ESPs") or other methods of artificial lift.

NZEC believes the Tikorangi Formation underlying the TWN Licenses holds significant production potential. Current development plans for the Tikorangi Formation on the TWN Licenses include drilling two new Tikorangi wells on the Waihapa License in 2014.(2) In addition, the TWN JA has identified production potential from additional existing wells in other areas of the TWN Licenses, and from additional drilling opportunities identified on 3D seismic.

TWN Licenses - Mt. Messenger Formation Production and Development Plan

In December 2013, the TWN JA recompleted the Waihapa-2 well to access bypassed pay with production potential in the Mt. Messenger Formation. Waihapa-2 had been drilled by a previous operator through the Mt. Messenger Formation to the Tikorangi, and produced 4.8 million bbl of oil from the Tikorangi Formation. The TWN JA used a service rig to perforate two intervals in the Mt. Messenger Formation. The well flowed from natural reservoir pressure for three short tests. Following a further flow test in early January, the well will be shut-in for pressure build-up, with commercial production expected in early February.

A number of additional existing wells on the TWN Licenses have uphole completion potential in the Mt. Messenger Formation. Recompletion of these wells is significantly less expensive and faster than drilling new wells, and economic discoveries could be tied in to the Waihapa Production Station using existing oil and gas gathering pipelines. The TWN JA plans to commence uphole completion of the Waihapa-1 well in mid-January.2

Exploration and development plans for the Mt. Messenger Formation on the TWN Licenses in 2014 include drilling three new Mt. Messenger wells (in addition to the uphole completions referred to above).2 The TWN JA will prioritize exploration targets that can be accessed from existing drill pads that are tied in or in close proximity to the Waihapa Production Station infrastructure.

Eltham Permit Production and Development Plans

NZEC's Copper Moki-1 and Copper Moki-2 wells produced a total of 2,633 bbl of oil during December 2013, with average daily production of 85 bbl/day (100% net to NZEC). NZEC will commence workover activities on the Copper Moki-3 well in mid-January to clean out sand around the well bore and replace the pump, with the objective of recommencing production in January.

NZEC completed installation of artificial lift on the Waitapu-2 well in December, but has encountered problems with the down hole pump. Servicing of the pump will commence this week to allow Waitapu-2 to recommence production.

(1) Gas produced from the reactivated Tikorangi wells has been used as fuel for the compressor at the Waihapa Production Station. There were no gas sales through December.

(2) Development and operating costs are to be funded initially by existing working capital and cash flows from production. However, in order to carry out all of the planned development activities, the Company is considering a number of options to increase its financial capacity. These options include increasing cash flow from oil production, additional joint arrangements, commercial arrangements or other financing alternatives.

On behalf of the Board of Directors

John Proust, Chief Executive Officer & Director

About New Zealand Energy Corp.

NZEC is an oil and natural gas company engaged in the production, development and exploration of petroleum and natural gas assets in New Zealand. NZEC's property portfolio collectively covers approximately 1.97 million acres of conventional and unconventional prospects in the Taranaki Basin and East Coast Basin of New Zealand's North Island. The Company's management team has extensive experience exploring and developing oil and natural gas fields in New Zealand and Canada, and takes a multi-disciplinary approach to value creation with a track record of successful discoveries. NZEC plans to add shareholder value by executing a technically disciplined exploration and development program focused on the onshore and offshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. NZEC is listed on the TSX Venture Exchange under the symbol NZ and on the OTCQX International under the symbol NZERF. More information is available at www.newzealandenergy.com or by emailing [email protected].

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.

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the word "will", "planned", "expected", "may include", "expectation", "will be", "plans", "could be", "objective" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas reserves and resources; uncertainties in both daily and long-term production rates and resulting cash flow; volatility in market prices for oil and natural gas; changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration and production; the need to obtain various approvals before exploring and producing oil and natural gas resources; exploration hazards and risks inherent in oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; market conditions that prevent the Company from raising the funds necessary for exploration and development on acceptable terms or at all; global financial market events that cause significant volatility in commodity prices; unexpected costs or liabilities for environmental matters; competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production; changes in exchange rates, laws of New Zealand or laws of Canada affecting foreign trade, taxation and investment; failure to realize the anticipated benefits of acquisitions; and other factors as disclosed in documents released by NZEC as part of its continuous disclosure obligations. Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Actual results could differ materially from those anticipated in these forward-looking statements. The forward-looking statements contained in the document are expressly qualified by this cautionary statement. These statements speak only as of the date of this document and the Company does not undertake to update any forward-looking statements that are contained in this document, except in accordance with applicable securities laws.

Contacts:
New Zealand Energy Corp.
John Proust
Chief Executive Officer & Director
North American toll-free: 1-855-630-8997
[email protected]

New Zealand Energy Corp
Bruce McIntyre
Acting General Manager Exploration & Director
North American toll-free: 1-855-630-8997
[email protected]

New Zealand Energy Corp
Rhylin Bailie
Vice President Communications & Investor Relations
North American toll-free: 1-855-630-8997
[email protected]
www.newzealandenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"SOASTA built the concept of cloud testing in 2008. It's grown from rather meager beginnings to where now we are provisioning hundreds of thousands of servers on a daily basis on behalf of customers around the world to test their applications," explained Tom Lounibos, CEO of SOASTA, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that ...
“This win means a great deal to us because it is decided by the readers – the people who understand how use of our technology enables new insights that drive the business,” said Matt Davies, senior director, EMEA marketing, Splunk. “Splunk Enterprise enables organizations to improve service levels, reduce operations costs, mitigate security risks, enhance DevOps collaboration, create new product and service offerings and obtain deeper insight into customer behavior. Being named Best Business App...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
Datapipe has acquired GoGrid, a provider of multi-cloud solutions for Big Data deployments. GoGrid’s proprietary orchestration and automation technologies provide 1-Button deployment for Big Data solutions that speed creation and results of new cloud projects. “GoGrid has made it easy for companies to stand up Big Data solutions quickly,” said Robb Allen, CEO, Datapipe. “Datapipe customers will achieve significant value from the speed at which we can now create new Big Data projects in the clou...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...