New Zealand Energy Corp. (NZEC or the Company) reported Monday that the Company has relinquished the Castlepoint and Wairoa permits in the East Coast Basin of New Zealand's North Island.
NZEC continues to hold a 100 percent interest in the East Cape Permit, which covers 1,048,406 onshore acres in the East Coast Basin, and also controls 97,637 net acres across six permits in the Taranaki Basin of New Zealand's North Island.
"NZEC is focused in the near-term on its Taranaki Basin permits that offer near-term production potential. The Company has also retained its East Cape Permit, which gives the Company more than 1 million acres and 5 years to explore the unconventional oil shales and unlock the potential of New Zealand's East Coast Basin," said John Proust, CEO of NZEC. "Relinquishing the Castlepoint and Wairoa permits has reduced our work program commitments by $12.9 (CAD 13.9 million) for 2014, and $50.6 (CAD 54.3 million) over the life of the relinquished permits. The Company's work program commitments for the East Coast for the remainder of 2014 are now only $59,686 (CAD 64,000). The Company's Taranaki work program commitments for the remainder of 2014 are $2.9 million (CAD 3.2 million), of which approximately $298,432 (CAD 320,000) relate to the Company's producing assets.
"NZEC's work on the Castlepoint and Wairoa permits has provided the Company with significant technical information and insight into the Waipawa Black Shale, which will guide the Company's exploration strategy on the East Cape Permit," continued Proust. "For example, one of the stratigraphic wells that NZEC drilled on the Castlepoint Permit identified a Waipawa horizon that the Company's geology team believes may extend northward into the East Cape Permit. In addition, NZEC's community engagement activities have allowed the Company to build strong relationships with regulators, landowners and iwi communities in the East Coast Basin. We look forward to continuing to build those relationships as we undertake exploration activities on the East Cape Permit."
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