Project Profile
Value: US$62.9 million before tax net present value
Location: Fairway of the Taranaki Basin, contiguous with the northern border of Eltham and Alton permits, New Zealand
Reserves: 1,852,700 barrels of oil, 1.45 billion cubic feet of natural gas and 50,700 barrels of natural gas liquids, collectively 2,144,700 barrels of oil equivalent (proved and probable reserves)
Area: 23,049 acres
Start-up Year: -
NZEC has entered into an agreement with Origin Energy to acquire three Petroleum Licenses (TWN Licenses) covering 23,049 acres in the main production fairway of the Taranaki Basin, contiguous with the northern border of NZEC’s Eltham and Alton permits. The TWN Licenses offer multi-zone potential from the Urenui, Mt. Messenger, Moki, Tikorangi and Kapuni formations. Unliked exploration permits, the Petroleum Licenses are permitted and renewable without relinquishment, subject to government approval. Included are 16 established drill pads with gathering systems in place, which will allow for timely tie-in to the Waihapa Production Station upon exploration and completion success. The Acquisition includes 93 km² of 3D seismic data with coverage over the southern half of the TWN Licenses and 585 km of 2D seismic data. NZEC has access to well log data from 27 previously drilled wells, offering additional insight into the geology of the area.
In conjunction with the Acquisition, NZEC commissioned Deloitte LLP (Deloitte) to prepare an independent assessment of reserves and resources attributable to the TWN Licences. Proved and Probable Reserves are estimated at 1,852,700 barrels of oil, 1.45 billion cubic feet of natural gas and 50,700 barrels of natural gas liquids, collectively 2,144,700 barrels of oil equivalent (boe), estimated by Deloitte to have a before tax net present value (NPV) of US$62.9 million (assuming a 10% discount rate). Contingent Resources are estimated at 1,162,000 boe, with Prospective Resources estimated at 23,541,000 boe. These reserves and resources will not be attributed to the company until the Acquisition is complete and NZEC files an updated NI 51-101 reserve report.
Operators:
New Zealand Energy Corp. (NZEC): Operator with 50% interest
New Dawn Energy: 50% interest
Contractor:
Deloitte LLP: Prepare an independent assessment of reserves and resources attributable to the TWN Licences