New Zealand Energy Corp. (NZEC or the Corporation) provided Thursday an update with respect to the company's current operations and future corporate plans.
Significant changes have been made at the New Zealand (NZ) operations level to limit (where practicable) cash burn in this low oil price environment.
After a review of the current production and oil price, the company has found it necessary to find further savings. Following a consultation process with staff, several positions have become either redundant or rationalized from the New Plymouth and Waihapa Production plant, and from March will achieve cost savings in the order of $58,870 (NZ 70,000) per month. CEO David Robinson said, “The company is focused on our commitment to health, safety and the environment and being a cost effective, efficient and focused operator.”
In addition, NZEC is undertaking a comprehensive review of all its third party access contracts with the intent of ensuring full value is attained from its current asset base.
Production from existing permits remains steady with an average of 147 barrel per day over the month of January. Subject to sufficient working capital being available, a number of short term upside opportunities are available, which could potentially increase production from Copper Moki and enhance the oil recovery from the TWN field. All facilities remain reliable with essential maintenance continuing to ensure plant integrity.
In light of recent changes to the oil price, the NZEC operations team has been conducting a Technical Review of both discretionary and commitment expenditure across its permit position.
The large number of targets across multiple reservoirs within the Company’s permit position allows for significant flexibility in maximizing economic returns – both from the drilling of new wells and workover programs across existing production.
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