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New Zealand Energy Corp Announces Reserves Evaluation for Its Tariki Licence and Extension of Outstanding Convertible Loan
Wellington, New Zealand--(Newsfile Corp. - October 31, 2022) - New Zealand Energy Corp. (TSXV:...
About this update from New Zealand Energy Corp.
[{"type":"text","content":"New Zealand Energy Corp Announces Reserves Evaluation for Its Tariki Licence and Extension of Outstanding Convertible LoanWellington, New Zealand--(Newsfile Corp. - October 31, 2022) - New Zealand Energy Corp. (TSXV: NZ) (\"NZEC\" or the \"Company\") announced today it has received an independent reserves evaluation (the \"RPS Reserve Report\") dated October 29, 2022 with an effective date of January 1, 2023, from RPS Energy Canada Limited (\"RPS\") in respect of the Tariki field located in the Petroleum Mining Licence (PML 38138) held as to 50% by NZEC's wholly owned subsidiary, NZEC Tariki Limited.This reserves evaluation continues the work programme undertaken by the Tariki Joint Venture over the last two years. During 2020, reservoir studies indicated the likely presence of undeveloped gas in the Tariki Field. Encouraged by this assessment and also in support of the gas storage development, the Tariki Joint Venture acquired a 3D seismic survey over the Tariki Permit which was completed in June 2021. Processing of the new data was completed by the end of 2021 and interpretation of the Tariki field data has been ongoing throughout 2022. The Tariki Joint Venture engaged RPS to prepare an independent report of the oil and gas reserves of the Tariki Field and is formalizing plans for drilling a well at Tariki in the first half of 2023 to produce the identified reserves.A summary of the evaluation follows:Undeveloped reserves have been assigned to the planned new well which is to be drilled in the crest of the Tariki sandstone member in the overthrust structure of the field during 1H 2023;Gross (before royalties) remaining reserves net to NZEC are:3.20PJ (2.56 Bcf) gas and 51.9 thousand stock tank barrels condensate of Proven (1P)6.88PJ (5.50 Bcf) gas and 136.9 thousand stock tank barrels condensate of Proven plus Probable (2P)9.24PJ (7.39 Bcf) gas and 205.8 thousand stock tank barrels condensate of Proven plus Probable plus Possible (3P) (1)Net Present Value of Future Cash Flow net to NZEC of:NZ$14.66 million after tax for Proved reserves (1P) at a discount of 10%NZ$37.09 million after tax for Proved and Probable reserves (2P) at a discount of 10%NZ$45.56 million after tax for Proved and Probable and Possible reserves (3P) at a discount of 10% (1)Tax losses of NZ$50 million have been assumed in all casesKey assumptions (on a 100%...