New Zealand Energy Corp. Provides Update on Tariki Gas Storage Project

Rhea-AI Summary

New Zealand Energy Corp (OTC:NZERF) and joint venture partner L&M Energy have executed a non-binding MoU with Genesis Energy to collaborate exclusively on technical studies, commercial negotiations, and milestones for the Tariki Gas Storage Project.

Key near-term items: dynamic subsurface modelling is on schedule for delivery in December 2025, facility concept studies are underway, NZEC is recruiting gas-storage personnel, and operations at Tariki-5A are anticipated to recommence in Q1 2026 based on current lead times.

The MoU aims to progress to a gas storage services agreement, support a final investment decision, and advance the project toward commercial operations.

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Details

News Market Reaction – NZERF

The recorded move for NZERF in the trading session of this news was +15.50%.

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Key Figures

Private placement price: C$0.18 per share Gross proceeds: C$2,718,640 Debt settled: C$300,000 +5 more

Private placement price

C$0.18 per share

Non-brokered private placement terms (July 2025)

Gross proceeds

C$2,718,640

Private placement closed July 18, 2025

Debt settled

C$300,000

Charlestown Energy Partners loan converted to shares

Shares issued (placement)

15,103,556 shares

Private placement issuance at C$0.18

Debt termination shares

1,666,667 shares

Issued to settle C$300,000 Charlestown loan

Vliet termination shares

1,000,000 shares

Issued to terminate Vliet Financing loan

Planned raise

Up to C$3,000,000

Announced private placement (July 3, 2025)

Vliet loan amount

C$2,000,000

Outstanding loan targeted for termination

Historical Context

3 past events · Latest: Jul 18

3 events

1. Jul 18

   Private placement close

   24h Move

   +30.4%

   Closed financing and debt settlement to fund Tariki gas storage project.

2. Jul 07

   Placement update

   24h Move

   +30.4%

   Updated on private placement and debt conversion supporting Tariki funding.

3. Jul 03

   Financing & director

   24h Move

   +30.4%

   Announced up to C$3M financing for Tariki and appointed new director.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

memorandum of understanding, cushion-gas, injection/withdrawal rates, compression

4 terms

memorandum of understanding financial

"has executed a non-binding memorandum of understanding ("MoU") with Genesis"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

cushion-gas technical

"define the range of gas storage capacity, cushion-gas requirements, operating pressures"

Cushion gas is the volume of natural gas that must remain permanently in an underground storage facility to keep pressure high enough for the facility to inject and withdraw gas reliably. For investors it matters because this gas is essentially capital that cannot be sold, reducing the amount of working gas that generates revenue and tying up cash and value in a project much like the water you must keep in a tank to maintain flow.

injection/withdrawal rates technical

"operating pressures, injection/withdrawal rates, and long-term storage behaviour"

Injection/withdrawal rates are the speeds at which a commodity, cash or inventory is put into (injection) or taken out of (withdrawal) a storage facility, fund or account. Investors care because those speeds influence supply and demand dynamics, storage capacity limits and short-term price swings—think of them like how fast you can fill or drain a bathtub, which affects how much water is available and how quickly conditions change.

compression technical

"Gas storage facility development concept studies are underway, including surface facilities, compression"

Compression is a shrinking of the gap between two related financial measures — for example, falling profit margins, narrower interest-rate spreads, or reduced differences between prices and expected returns. Investors care because compression usually means less profit or lower yield from the same activity, which can cut future cash flow and reduce a stock or bond’s value; think of it like squeezing a sponge so it gives you less water than before.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New Plymouth, New Zealand--(Newsfile Corp. - November 26, 2025) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") is pleased to provide the following update regarding the ongoing work associated with the Tariki Gas Storage Project.

NZEC, together with its joint venture partner L&M Energy Limited, has executed a non-binding memorandum of understanding ("MoU") with Genesis Energy Limited ("Genesis"), one of New Zealand's leading energy generators and retailers. The MoU formalizes a framework that commits the parties to collaborate exclusively on a programme of technical studies, commercial negotiations, and project development milestones required to progress the Tariki Gas Storage Project to a final gas storage services agreement which will then support moving towards a final investment decision and ultimately project completion and commercial operations. The MoU is a critical milestone that positions the Tariki Gas Storage Project to become a foundational asset in New Zealand's evolving energy market.

Malcolm Johns, CEO of Genesis, stated, "Genesis has recently enhanced our relationship with the Tariki Gas Storage Project through the execution of an MoU. This agreement sets out a clear programme to close out remaining studies and negotiations towards a gas storage services agreement."

Subsurface and engineering work to confirm the Tariki Gas Storage Project's parameters continues to advance. Dynamic subsurface modelling to define the range of gas storage capacity, cushion-gas requirements, operating pressures, injection/withdrawal rates, and long-term storage behaviour is on schedule for delivery in December 2025. Gas storage facility development concept studies are underway, including surface facilities, compression, and operational configuration. NZEC has commenced recruiting additional personnel to expand its gas-storage development capabilities and support execution and delivery of the Tariki Gas Storage Project.

NZEC continues to progress operational readiness requirements at the Tariki-A site. By the end of Q2 2025, velocity-string sizing was completed. Workstreams to plan temporary gas compression for Tariki-5A advanced through Q3 2025, including sourcing and tendering for required equipment and services. Based on current lead times, the Tariki joint venture anticipates the operations will recommence at Tariki-5A in Q1 2026.

These activities support both interim production planning and future integration into the proposed storage-services configuration.

"NZEC is encouraged by the strengthening partnership with Genesis and the continued technical advancement at Tariki," said Michael Adams, NZEC's CEO. "Our gas storage project has the potential to provide significant value to the New Zealand energy system, and today's update represents meaningful progress towards that opportunity."

About New Zealand Energy Corp.

NZEC is a publicly listed energy company focused on the development of oil, gas, and gas-storage opportunities in New Zealand. The Company holds interests in multiple heritage assets and development-stage projects, including the Tariki Gas Storage Project in Taranaki. With a 50% ownership stake in the Waihapa production station, the Company can quickly tie in any near-term production and sell directly to market. For more information, please visit www.newzealandenergy.com.

For further information:
Mike Adams, Chief Executive Officer
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 Statements and Disclaimer

This release contains forward-looking statements within the meaning of applicable Canadian securities laws, including statements regarding the MoU with Genesis, potential negotiation of a gas storage services agreement, timing and results of subsurface modelling and engineering studies, operational planning for Tariki-5A, equipment procurement, and the expected timing of the Tariki-5A restart. Forward-looking statements are based on assumptions believed to be reasonable at the time made but are subject to various risks and uncertainties that may cause actual results to differ materially, including technical, operational, commercial, regulatory, and market risks, and the possibility that negotiations with Genesis may not lead to a definitive agreement. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except as required by law.

This release is for information purposes only and does not constitute an offer or solicitation to buy or sell any securities. Technical and operational information is preliminary, subject to change, and may depend on future study results, commercial negotiations, and regulatory approvals.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/275974

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did New Zealand Energy Corp (NZERF) announce about the Tariki Gas Storage Project on November 26, 2025?

NZEC announced a non-binding MoU with Genesis to collaborate on technical studies and commercial steps toward a gas storage services agreement for Tariki.

When will the Tariki dynamic subsurface modelling be delivered for NZERF's project?

The dynamic subsurface modelling is on schedule for delivery in December 2025.

When does NZERF expect operations to restart at Tariki-5A?

Based on current lead times, the Tariki joint venture anticipates operations at Tariki-5A will recommence in Q1 2026.

What does the MoU between NZERF, L&M Energy and Genesis mean for a final investment decision?

The MoU formalizes exclusive collaboration on studies and negotiations intended to progress to a gas storage services agreement and support a final investment decision.

How is NZERF preparing to support Tariki gas-storage development after the MoU?

NZEC has started recruiting additional personnel and is advancing facility concept studies, compression planning, and subsurface analysis to support project execution.