Business
New Zealand Energy Corp. Announces Tariki Gas Sale
Wellington, New Zealand--(Newsfile Corp. - July 25, 2024) - New Zealand Energy Corp.  (TSXV:...
About this update from New Zealand Energy Corp.
[{"type":"text","content":"\nNew Zealand Energy Corp. Announces Tariki Gas SaleWellington, New Zealand--(Newsfile Corp. - July 25, 2024) - New Zealand Energy Corp. (TSXV: NZ) (\"NZEC\" or the \"Company\") is pleased to announce that 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%), entered into a gas sales agreement on 26 July 2024 with an arms-length third party offtaker (the \"Offtaker\"). Under the gas sales agreement:The Tariki Joint Venture has agreed to sell to the Offtaker 2 petajoules of gas, approximately 1.8bcf to be produced from the Tariki-5 well;The Tariki Joint Venture has agreed that, for a period of 12 months after Tariki-5 well has been drilled and evaluated, to work exclusively with the Offtaker to negotiate the terms and conditions for the storage of gas in the Tariki field;In consideration for granting the exclusive right described above, the Offtaker has agreed to pay NZ$2,000,000 to the Tariki Joint Venture (with NZEC Tariki Limited's 50% share being NZ$1,000,000) payable shortly after certain specified development activities have been completed by the Tariki Joint Venture and drilling operations at Tariki-5 commence.The gas sales pursuant to the agreement are conditional on the New Zealand Minister of Energy and Resources providing a consent to the agreement.Preparations for the drilling of the Tariki-5 well are now well advanced. Site works for the well location are complete and most consents required before drilling can commence have been obtained. The Tariki Joint Venture expects to sign a rig contract shortly. Subject to the receipt of some items of equipment required for drilling, NZEC expects the well to be spudded in early September 2024. The well plan anticipates drilling to completion in approximately 28 days with production of gas anticipated to commence in late October or early November 2024. Further updates concerning drill timing and drilling operations will be provided in due course, once drilling commences. As announced on October 31, 2022, NZEC received an independent reserves evaluation from RPS Energy Canada Ltd. in respect of the Tariki field located in petroleum mining licence (PML 38138) held as to 50% by NZEC's wholly owned subsidiary, NZEC Tariki Limited‎. For further information regarding the Tariki...