Monumental Energy Announces Additional Participation in Production-Focused Workovers in the Taranaki Basin, New Zealand

Executive Summary

• Monumental Energy Corp. will fund New Zealand Energy Corp.’s (NZEC) 50% share of four workover projects jointly owned with L&M Energy, gaining a 25% royalty on NZEC’s production after full recovery of its capital investment.
• The workovers target the Waihapa/H1 well and three Ngaere wells in New Zealand’s Taranaki Basin, aiming to restore or increase oil output (expected tens‑to‑low hundreds of barrels per day per well).
• The initiative aligns with Monumental’s strategy to generate non‑dilutive cash flow from proven assets and provides near‑term upside exposure in a stable jurisdiction.

Key Details

• Participation Structure: Monumental funds NZEC’s 50% of the workover costs; L&M Energy contributes its proportional share.
• Royalty Arrangement: Monumentan receives a 25% royalty on NZEC’s production share after full repayment of Monumental’s capital, which is repaid from 75% of NZEC’s net revenue interest.
• Waihapa/H1 Re‑entry: Original flow ~4,500 bbl/d (historical); later re‑entry flow ~1,500 bbl/d before collapse. Workover will include jetting clean‑out and new tubing; well is 600 m from the production facility for easy tie‑in.
• Ngaere 1‑3 Wells: Historical production from Tikorangi Formation; electric logs reveal shallower hydrocarbon‑charged sand intervals. Planned perforation of steel casing at target zones, followed by production testing. Anticipated flow rates per well: tens to low hundreds of barrels of oil per day.
• Infrastructure: All three Ngaere wells are already connected via existing pipelines to the Waihapa production and export facilities, enabling immediate sales upon successful completion.
• Strategic Rationale (Quote – Max Sali, VP Corporate Development): “This participation represents the continued advancement of Monumental’s strategy to generate non‑dilutive, cash‑flow‑generating opportunities through partnerships in proven production assets.”

Notable Quotes

• Max Sali, VP Corporate Development and Director:

  “This participation represents the continued advancement of Monumental’s strategy to generate non‑dilutive, cash‑flow‑generating opportunities through partnerships in proven production assets. These workovers allow the Company to maintain exposure to near‑term upside within established and stable jurisdictions.”