New Zealand Energy Corp. Receives Final TSXV Approval of Farmout Agreement for Copper Moki Wells

Rhea-AI Summary

New Zealand Energy Corp. (TSXV: NZ) has received final TSX Venture Exchange approval for its farmout agreement with Monumental Energy Corp. The agreement allows Monumental to participate in repairing and restarting production at two wells, Copper Moki 1 & 2, located in the Taranaki Basin, New Zealand. Monumental will invest approximately NZ$800,000 in exchange for 75% of oil and gas revenue (net of production costs) until investment recovery, followed by a 25% net revenue interest. The project has also received consent from the New Zealand Minister under the Crown Minerals Act 1991. Workovers are expected to begin in early 2025.

Positive

• Secured regulatory approvals for well workover project
• NZ$800,000 external investment for well repairs without direct cost to company
• Potential revenue generation from restart of two idle wells

Negative

• 75% of initial revenue will go to Monumental until investment recovery
• Long-term reduction in revenue share to 25% for these wells

New Plymouth, New Zealand--(Newsfile Corp. - December 23, 2024) - New Zealand Energy Corp. (TSXV: NZ)  ("NZEC" or the "Company") is pleased to announce that, further to its 29 October 2024 news release, it has received final approval of the TSX Venture Exchange (the "Exchange") regarding the non-arm's length farmout agreement (the "Agreement") entered into between the Company's wholly-owned subsidiary and a wholly-owned subsidiary of Monumental Energy Corp. ("Monumental") (TSXV: MNRG). In addition, the applicable consent of the Minister in New Zealand in accordance with the New Zealand Crown Minerals Act 1991 has also been obtained.

Pursuant to the Agreement, Monumental is entitled to participate in the repair and workover of two wells, Copper Moki 1 & 2 ("CM 1 & 2") in order to restart production. The wells are located in a permitted block in the Taranaki Basin, New Zealand in which NZEC holds a 100% interest. In exchange for paying for the workovers, which are estimated to cost approximately NZ$800,000, Monumental will be entitled to 75% of the oil and gas revenue, net of production costs, until its investment is recovered after which it will have a 25% net revenue interest, or royalty, in the permit. Monumental and NZEC expect the workovers will begin in early 2025.

On behalf of the Board of Directors
Mike Adams, Chief Executive Officer
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 Agreement, the business of the Company, including future plans and objectives, and the CM 1 & 2 wells. 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/234993

FAQ

What is the cost of the Copper Moki wells workover program for NZERF?

NZERF will not directly bear the cost of the workover program, as Monumental Energy Corp. will invest approximately NZ$800,000 for the repairs.

When will the Copper Moki wells workover program begin?

The workover program is expected to begin in early 2025.

What is the revenue sharing agreement between NZERF and Monumental for the Copper Moki wells?

Monumental will receive 75% of oil and gas revenue until investment recovery, after which it will retain a 25% net revenue interest.

Which regulatory approvals has NZERF received for the Copper Moki farmout agreement?

NZERF has received both TSX Venture Exchange approval and consent from the New Zealand Minister under the Crown Minerals Act 1991.