New Zealand Energy Corp Announces 2025 Quarter 1 Results

Rhea-AI Summary

New Zealand Energy Corp (NZERF) reported Q1 2025 financial results, posting a comprehensive loss of $994,550, compared to a $914,919 loss in Q1 2024. Cash position deteriorated with a $965,615 decrease, ending at $155,930, while cash used in operations increased to $665,681 from $397,608 in the previous year. The company shifted focus to the Tariki Gas Field conversion project following declining gas rates at Tariki-5A well. NZEC is working on restoring Waihapa-Ngaere wells, with four wells back in production and two more expected in Q2, targeting 25-40 bopd (NZEC share). Two Copper Moki workovers planned for June 2025 are expected to add 200 bopd and 0.2 mmscf/d of gas sales. The company is advancing the Tariki Gas Storage development with reservoir studies and facility development concepts, aiming for Final Investment Decision within 12 months.

Positive

• Two Copper Moki workovers expected to add 200 bopd and 0.2 mmscf/d of gas production by June 2025
• Four wells restored to production with two more expected in Q2 2025
• Progress on Tariki Gas Storage development with studies and commercial discussions underway
• Final Investment Decision for Tariki Gas Storage project expected within 12 months

Negative

• Comprehensive loss increased to $994,550 in Q1 2025 from $914,919 in Q1 2024
• Significant cash decrease of $965,615 with only $155,930 remaining at quarter end
• Higher cash burn in operations at $665,681 compared to $397,608 in 2024
• Declining gas rates at Tariki-5A well forcing change in priorities

Vancouver, British Columbia--(Newsfile Corp. - June 3, 2025) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today it has filed with Canadian regulatory authorities its Q1 2025 consolidated financial results and an accompanying management discussion and analysis report, which documents are available on the Company's website at www.newzealandenergy.com and on SEDAR at www.sedar.com.

Commenting on the Company's first quarter 2025 results, CEO Mike Adams said "The results saw a total comprehensive loss of $994,550. (2024: loss of $914,919). There was a $965,615 decrease in cash held ($155,930 was held at the end of the quarter). Cash used in operating activities for the quarter was $665,681 (2024: used $397,608)."

With respect to development operations, Mr Adams commented: "New Zealand Energy Corp. (NZEC) shifted its primary focus to the Tariki Gas Field conversion project in Q1 2025. The decline in gas rate at the Tariki-5A well in January prompted an immediate change in priorities.

In the short term, NZEC has been restoring accessible Waihapa-Ngaere wells to production. By the end of Q1, four wells were added back into production, with two more expected by the end of Q2, aiming for rates of ~50 to 80 bopd (NZEC share 25 to 40 bopd). Additionally, two Copper Moki workovers in June 2025 are expected to add ~200 bopd (NZEC share) and 0.2 mmscf/d of associated gas, enabling gas sales to market from late June 2025 via the Cheal Production Station.

Along with the Q1 and Q2 2025 production activities, aimed at restoring positive cash flow, the focus is the Tariki Gas Storage development. Reservoir studies have commenced, with initial recommendations expected in mid-June 2025. Detailed project deliverables will be available in early August 2025, defining gas storage capacity, cushion gas requirements, and long-term storage behaviours.

In parallel, NZEC has started storage facility development concept studies and is in commercial discussions with potential gas storage customers. With this work in progress, NZEC is well-positioned to advance the Tariki Gas Storage project to the Final Investment Decision (FID) stage within the next 12 months, and then to prioritise opportunities within its remaining existing acreage."

On behalf of the Board of Directors

"Mike Adams"

CEO

New Zealand Energy Contacts

Tel: +64-6-757-4470
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 AND CAUTIONARY NOTE REGARDING RESERVE ESTIMATES

This document, the consolidated financial statements for the year ended 31 March 2025 and the Management's Discussion and Analysis contain certain forward- looking information, forward-looking statements ("forward-looking statements"). The reader's attention is specifically drawn to the qualifications, disclosure and cautionary statements in these documents regarding forward-looking statements and reserve and resource estimates.

The Company notes that such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond NZEC's control, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information.

As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to future results, levels of activity or achievements. All forward-looking statements are made as of the date of this document or the date of the documents referenced above, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254402

FAQ

What were NZERF's Q1 2025 financial results?

NZERF reported a comprehensive loss of $994,550 in Q1 2025, compared to a $914,919 loss in Q1 2024, with cash decreasing by $965,615 to $155,930 at quarter end.

What is New Zealand Energy Corp's plan for the Tariki Gas Storage project?

NZEC is conducting reservoir studies and facility development concepts, with initial recommendations expected mid-June 2025 and detailed project deliverables in August 2025, aiming for Final Investment Decision within 12 months.

How much additional production is expected from NZERF's Copper Moki workovers?

The two Copper Moki workovers planned for June 2025 are expected to add approximately 200 bopd (NZEC share) and 0.2 mmscf/d of associated gas production.

What is the status of NZERF's Waihapa-Ngaere wells restoration?

Four wells have been restored to production, with two more expected by Q2 end, targeting production rates of 25 to 40 bopd (NZEC share).

How much cash did NZERF use in operating activities during Q1 2025?

NZERF used $665,681 in operating activities during Q1 2025, compared to $397,608 in the same period of 2024.