N.Z. Energy, Monumental enter definitive financing deal

Executive Summary

• New Zealand Energy Corp. entered a definitive financing agreement with Monumental Energy Corp. to fund workover projects that will increase oil and gas production from its 50 % interest in licences PML 38140 and PML 38141 (Waihapa‑Ngaere) in onshore Taranaki, New Zealand.
• Under the deal, Monumental provides upfront financing in exchange for a royalty stream: 75 % of net receipts until Monumental’s funded costs are repaid, then a continuing royalty of 25 % of net receipts.
• The Ngaere 1 project, adding a new producing zone, is slated to start production in Q1 2026 pending TSX‑V approval, New Zealand ministerial consent, and equipment/personnel availability; the transaction requires TSX‑V clearance due to a related‑party director.

Key Details

• Financing Structure: Monumental Energy Corp. will finance New Zealand Energy’s share of mutually agreed workover projects on licences PML 38140 & PML 38141.
• Royalty Terms:
• Initial royalty – 75 % of net receipts, paid quarterly, until total payments equal the amount funded by Monumental.
• Continuing royalty – 25 % of net receipts thereafter.
• Project Scope: The agreement targets workover activities to boost oil and gas output from the Waihapa‑Ngaere area, specifically the Ngaere 1 project which will create a new producing zone.
• Timeline: Expected commencement of production for Ngaere 1 in Q1 2026, subject to:
• Final TSX Venture Exchange (TSX‑V) approval of the agreement.
• Consent from the New Zealand Minister under the Crown Minerals Act 1991.
• Availability of required equipment and personnel.
• Related‑Party Consideration: Bill Treuren serves as a director of both New Zealand Energy Corp. and Monumental Energy Corp.; therefore, TSX‑V approval is mandatory.
• Geographic Focus: Onshore Taranaki, New Zealand – licences PML 38140 & PML 38141 covering New Zealand Energy’s 50 % interest in the Waihapa production station.

Notable Quotes

(No direct quotes were provided in the release.)