VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 07/26/11 — New Zealand Energy Corp. (“NZEC” or the “Company”) is pleased to announce the completion of drilling of the Talon-1 exploration well on the Alton Permit located in New Zealand–s Taranaki basin. Completion of the Talon-1 well work program requirements is a condition of NZEC–s acquisition of a 50% working interest in the Alton Permit and allows NZEC to become the operator of the Permit. Upon receipt of the consent of New Zealand–s Minister of Energy, NZEC will own the 50% working interest in the Alton Permit and NZEC–s portfolio in the Taranaki Basin will consist of:
The Talon-1 well location, chosen by the previous operator of the Alton Permit using 2D seismic information, intersected over 75 metres of the targeted Manutahi reservoir with minor amounts of natural gas observed. NZEC has decided to not complete the well at this time, but will use the information obtained from Talon-1 drilling to identify other viable targets and may use 3D seismic to further define the prospect.
NZEC has cash on hand of approximately $2.6 million dollars following the drilling of the Talon-1 well. NZEC will now focus its Alton Permit exploration program on the multi-zone Horoi lead, offsetting the Copper Moki-1 well. The Horoi lead is the largest single lead that NZEC has identified and was one of the main reasons for acquiring the Alton Permit. Both the Copper Moki-1 and the Horoi leads were identified using 3D seismic. NZEC will concentrate its efforts on locations that can be identified on 3D seismic coverage in order to increase the certainty of an economic outcome.
“We continue to expand our knowledge of New Zealand Energy–s portfolio of properties,” said Bruce McIntyre, President of NZEC. “Now that we have earned our right to become operator of the Alton Permit, we will focus our efforts on completion of the Copper Moki-1 well and look forward to reporting progress to our shareholders as the projects advance.”
Copper Moki-1 Update
NZEC has secured the Ensign Rig 6 service rig to carry out completion of its 100% working interest Copper Moki-1 well. Completion of the well will commence within the next 10 days. NZEC plans to perforate and production test approximately 10 metres of net oil pay in the Mount Messenger Formation. Once the Mount Messenger Formation has been tested, the reservoir will be shut in for a pressure build up. NZEC will then production test approximately 15 metres of net natural gas pay in the shallower Urenui Formation, and then shut the well in for pressure build up. NZEC expects to report the results of the well tests by mid-August.
To view Figure 1. Prospects at New Zealand Energy–s Eltham and Alton Permits, please visit the following link:
About New Zealand Energy
NZEC is an oil and natural gas company engaged in the exploration, acquisition and development of petroleum and natural gas assets in New Zealand. NZEC–s property portfolio collectively covers nearly two million acres in the Taranaki Basin and East Coast Basin of New Zealand–s North Island. NZEC holds two petroleum exploration permits (Eltham Permit and Castlepoint Permit) and a 50% interest in a petroleum exploration permit (Alton Permit, pending completion of certain conditions), one pending petroleum exploration permit pursuant to an assignment agreement (Ranui Permit), and one pending non-competitive petroleum exploration permit application (East Cape Permit).
The Company–s management team has extensive experience exploring and developing oil and natural gas fields in New Zealand and Canada, and takes a multi-disciplinary approach to value creation with a track record of successful discoveries. NZEC plans to add shareholder value by executing a technically disciplined exploration program focusing on the discovery of onshore and offshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. The Company–s strategy is to develop its existing portfolio of assets and to pursue further exploration opportunities in other areas with proven hydrocarbon systems. NZEC will continue to evaluate strategic acquisitions from time to time where it views further exploration and development opportunities exist, and may participate in future tenders offered by the Government of New Zealand to acquire additional petroleum exploration permits or petroleum mining permits.
More information is available by emailing .
On behalf of the Board of New Zealand Energy Corp.
Bruce McIntyre, President & Director
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “propose”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including without limitation, those listed under the headings “Special Note Regarding Forward-Looking Statements” and “Risk Factors” in NZEC–s final prospectus dated July 19, 2011 which is available for download on SEDAR at . NZEC believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release and NZEC does not undertake to update any forward-looking statements that are contained in this news release, except in accordance with applicable securities laws. In addition, this news release may contain forward-looking statements attributed to third party industry sources.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
New Zealand Energy Contact
Rhylin Bailie
Vice President, Communications & Investor Relations
+1 604-601-2010