New Zealand Energy Corp. Provides Update on Tariki-5

Rhea-AI Summary

New Zealand Energy Corp. (TSXV: NZ) has announced an update on the Tariki-5 gas well. The Tariki Joint Venture, comprising NZEC Tariki (50%) and L&M Energy (50%), has been informed of a delay in rig mobilization due to mechanical issues with another party's well. Drilling operations are now expected to start on September 23, 2024, with completion and tie-in likely by November 11, 2024. This represents a two-week delay from the original schedule.

Despite the setback, long lead items are expected to be available on time, and permitting is progressing well. The company is also nearing completion of an agreement for gas export and processing, well ahead of production commencement.

Positive

• Agreement for gas export and processing is nearly completed, ahead of production start
• Long lead items are expected to be available on time
• Permitting is progressing well

Negative

• Drilling operations for Tariki-5 gas well delayed by approximately two weeks
• Rig mobilization delayed due to mechanical problems with another party's well

News Market Reaction

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% News Effect

On the day this news was published, NZERF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Wellington, New Zealand--(Newsfile Corp. - August 21, 2024) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today an operational update regarding the Tariki-5 gas well.

The Tariki Joint Venture, comprised of the Company's wholly owned subsidiary, NZEC Tariki Limited (as to 50%) and L&M Energy Limited (as to 50%), has been informed by the drilling rig operator that the rig mobilization to the Tariki-5 drill site has been delayed due to mechanical problems with the well now being drilled for another party.

The current planning indicates well drilling operations may not commence at Tariki until 23 September 2024; with driling, completion & tie-in of the well likely completed by 11 November 2024. This is a delay of approximately two weeks.

All long lead items are expected to be available in a timely matter and permitting is all well in hand. Agreement for export and processing of the gas is nearly completed and well ahead of the commencement of production.

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/220759

FAQ

When is drilling expected to start for the Tariki-5 gas well?

According to the latest update, drilling operations for the Tariki-5 gas well are expected to start on September 23, 2024.

What caused the delay in the Tariki-5 gas well project?

The delay was caused by mechanical problems with a well being drilled for another party, which affected the rig mobilization to the Tariki-5 drill site.

When is the Tariki-5 gas well expected to be completed?

The drilling, completion, and tie-in of the Tariki-5 gas well are likely to be completed by November 11, 2024.

Who are the partners in the Tariki Joint Venture?

The Tariki Joint Venture comprises NZEC Tariki (50%) and L&M Energy (50%).

What is the stock symbol for New Zealand Energy Corp?

New Zealand Energy Corp. trades on the TSX Venture Exchange under the symbol NZERF.