New Zealand Energy Corp. Provides Operational Update

Executive Summary

• NZEC reported initial production from the Ngaere‑1 well, delivering ~580 barrels of oil in the first six hours and ~3,000 barrels to date, now stabilizing at ~120 bbl/d.
• The early cash flow has already covered workover costs, and similar low‑cost perforation programs are slated for Waihapa H1 and Ngaere‑2 wells within weeks.
• Progress continues on the Tariki Gas Storage Project, with engineering/pre‑FEED work advancing and flowback at the Tariki‑5A well expected soon, bolstered by New Zealand’s LNG import facility commitment.

Key Details

• Ngaere‑1 Well – Initial Production
• Perforated the Mount Messenger Formation; immediate oil & gas flow.
• ~580 barrels produced in first 6 h; ~3,000 barrels total to date.
• Current stabilized rate ≈120 bbl/d (no additional stimulation).

• Oil priced locally at Brent‑linked rates (~US$85/bbl).

• Economic Impact

• Initial production revenues have already recouped the workover expenses incurred for Ngaere‑1.

• Planned Workovers

• Upcoming perforation operations on Waihapa H1 and Ngaere‑2 wells.
• Expected to be low‑cost, targeting additional Mount Messenger Formation reserves.

• Activities to start within days; flow results anticipated in 2–3 weeks.

• Tariki Gas Storage Project

• Joint venture with L&M Energy advancing engineering and pre‑FEED due diligence.
• On track for flowback operations at Tariki‑5A well in the coming weeks.

• NZ government’s support for an LNG import facility strengthens project economics and long‑term gas storage value proposition.

• Strategic Outlook

• NZEC aims to optimize existing production while expanding strategic gas‑storage infrastructure in Taranaki.
• Anticipates contributing to New Zealand’s natural gas supply security and delivering shareholder value.

Notable Quotes

“The encouraging initial results demonstrate the potential of previously bypassed hydrocarbon zones within existing wells and support further workover and optimization activities.” – Toby Pierce, CEO, NZEC