New Zealand Energy Corp. ("NZEC" or the "Company") (TSX VENTURE:NZ)(OTCQX:NZERF) today provided an update on the Company's exploration and production activities in the Taranaki Basin of New Zealand's North Island.
Waitapu-2 commenced continuous production at the end of December 2012 and produced at an average rate of 151 barrels of oil per day over the first two weeks of January. The three Copper Moki wells (CM-1, CM-2 and CM-3) have collectively produced at an average rate of 273 barrels of oil per day over the first two weeks of January. All four wells are producing light (~40° API), high-quality oil from the Mt. Messenger formation. Oil is trucked approximately 45km to the Shell-operated Omata Tank Farm in New Plymouth and sold at Brent pricing, generating a top-tier netback.
Completion operations are underway at two wells on the Arakamu site. Arakamu-1A reached target depth in the Moki formation at a vertical depth of 2,650 metres. NZEC has cased the well to depth and will perforate the Moki formation shortly. In December the Arakamu-2 well was perforated across two intervals in the Mt. Messenger formation. A service rig is working on the well to remove stuck tubing in order to allow completion operations to proceed.
NZEC's contracted drill rig has been moved to the Wairere site and the Company expects to spud the Wairere-1 well by the end of the week, targeting the Mt. Messenger formation at approximately 1,900 metres. Wairere is NZEC's fourth drill site, located approximately 3.75 km southwest of the Company's Copper Moki site and 7.5 km southwest of the Waihapa Production Station.
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