NZEC Completes Drilling Ops at Talon-1 Well
New Zealand Energy Corp. (NZEC) announced 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:
- Operatorship and 50% working interest in the Alton Permit covering 119,200 (59,600 net) acres with prospective recoverable resources of 34.6 million barrels of oil equivalent (as estimated by AJM Petroleum Consultants effective February 1, 2011)
- 100% working interest in the Eltham Permit covering 92,467 net acres with prospective recoverable resources of 32.1 million barrels of oil equivalent (as estimated by AJM Petroleum Consultants effective February 1, 2011)
The Talon-1 well location, chosen by the previous operator of the Alton Permit using 2D seismic information, intersected over 75 meters 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 meters 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 meters 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.