New Zealand Energy Corp. Enters into Funding Agreement to Increase Production at Waihapa-Ngaere

Executive Summary

• New Zealand Energy Corp. (NZEC) entered into a definitive funding agreement with Monumental Energy Corp., enabling Monumental to finance workover projects on NZEC’s 50% interest in Licenses PML 38140 and PML 38141 in Taranaki, New Zealand.
• In exchange for the funding, NZEC will pay Monumental an initial royalty of 75 % of net receipts until Monumental recoups its funded costs; thereafter a 25 % ongoing royalty will apply.
• The Ngaere 1 workover project, adding a new producing zone, is slated to start in Q1 2026 pending TSX‑V approval, New Zealand Crown Minerals consent, and equipment/personnel availability.

Key Details

• Parties: NZEC (TSXV: NZ) and Monumental Energy Corp. (TSXV: MNRG).
• Effective Date of Agreement: January 12 2026.
• Scope: Funding for mutually agreed workover projects on Licenses PML 38140 & PML 38141 (NZEC holds 50% interest).
• Royalty Structure:
• Initial royalty – 75 % of net receipts paid quarterly until Monumental’s funded costs are fully repaid.
• Ongoing royalty – 25 % of net receipts payable thereafter.
• Project Timeline: Ngaere 1 project expected to commence in Q1 2026, subject to:
• TSX‑V approval of the non‑arm’s‑length transaction (director Bill Treuren sits on both boards).
• Consent from New Zealand Minister under the Crown Minerals Act 1991.
• Availability of required equipment and personnel.
• Regulatory Conditions: Transaction requires TSX‑V review due to related‑party nature; final approval pending.
• Strategic Rationale: Funding aims to increase oil & gas production from the Licenses, enhancing NZEC’s cash flow and asset utilization.

Notable Quotes

(No direct quotes were provided in the release.)