NZEC Updates on Firm's Operations in New Zealand, Future Corporate Plans
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.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- NZEC Plans to Boost Exploration, Appraisal Work at its NZ Assets (Jun 23)
- NZP&M Extends Tariki, Waihapa and Ngaere Licenses in New Zealand (Jun 13)
- NZEC Commences Water Flood Project in New Zealand's Taranaki Basin Permit (Nov 17)