Monumental signs financing deal with New Zealand Energy

Executive Summary

• Monumental Energy Corp. entered into a definitive financing agreement with New Zealand Energy Corp. to fund appraisal and development workover projects aimed at increasing oil and gas production at the Waihapa-Ngaere project in onshore Taranaki, New Zealand.
• The transaction is structured as a royalty-based financing where Monumental funds New Zealand Energy's share of the additional project costs in exchange for a tiered royalty on net receipts from the specific additional project.
• The deal is subject to regulatory approvals, including TSX Venture Exchange review and New Zealand Ministerial consent, with the initial project expected to commence in Q1 2026.

Key Details

• Parties: Monumental Energy Corp. (via subsidiary Monumental Energy Corp. N.Z. Ltd.) and New Zealand Energy Corp. (via subsidiary NZEC Waihapa Ltd.).
• Asset Interest: New Zealand Energy holds a 50% interest in petroleum mining licences PML 38140 and PML 38141 in onshore Taranaki, New Zealand, under a joint operating agreement with L&M Energy Ltd.
• Transaction Structure: Monumental will finance New Zealand Energy's share of mutually agreed-upon appraisal and development workover projects (additional projects) to boost production.
• Royalty Terms:
  • Initial Phase: Monumental receives a royalty equal to 75% of net receipts on a quarterly basis.
  • Payback Period: The 75% royalty continues until Monumental has recovered the total costs paid for the additional project.
  • Final Phase: Upon full cost recovery, the royalty decreases to 25% of net receipts.
• Operational Process: New Zealand Energy prepares an Authorization for Expenditure (AFE) for each additional project. Monumental must agree to the scope and budget before proceeding. The AFE is then submitted to the operating committee for approval.
• Conditions Precedent:
  • Final approval from the TSX Venture Exchange.
  • Consent of the Minister in New Zealand under the Crown Minerals Act 1991.
  • Availability of requisite equipment and personnel.
• Timeline: The initial additional project is expected to commence in Q1 2026, subject to the satisfaction of conditions precedent.
• Related Party Disclosure: The transaction is considered "reviewable" under exchange Policy 5.3 because it involves a non-arm's-length party; Bill Treuren, a director of Monumental Energy, is also a director of New Zealand Energy.

Notable Quotes

• None explicitly quoted in the text, though the agreement details the operational and financial mechanics.