The Transocean drill vessel, Discoverer Clear Leader, prepares for drilling operations for the Deepwater Horizon oil response in the Gulf of Mexico, July 9, 2010. The Discoverer Clear Leader, an 835-foot ultra-deepwater drilling rig, can recover more than 15,000 barrels of oil and 30 million cubic feet of natural gas per day with the help of the supply vessel Celena Chouest that provides drilling mud and other material (Photo credit: Wikipedia)
Company News Release April 30
NOTE : This is part of the release – see the company website for the full release . Four analysts have a ” buy ” recommendation on the stock.
New Zealand Energy Announces 2011 Year-End and Fourth Quarter Results and 2011 Year-End Reserves Estimate
FINANCIAL SNAPSHOT
---------------------------------------------------------------------------- For the year ended For the year ended December 31, 2011 December 31, 2010 $ $ ---------------------------------------------------------------------------- Production 11,623 bbl Nil Sales 9,567 bbl Nil ---------------------------------------------------------------------------- Price 106.83 $/bbl Nil Production costs 23.44 $/bbl Nil Royalties 4.96 $/bbl Nil Net revenue 78.43 $/bbl Nil ---------------------------------------------------------------------------- Revenue $ 974,517 $ Nil Total comprehensive loss (6,655,829) (10,338,136) Interest income 119,583 Nil Loss per share - basic and diluted (0.08) (0.24) Current assets 19,293,345 6,229,650 Total assets 31,152,804 6,301,322 Total liabilities 1,383,376 371,958 Shareholders' equity $ 29,769,428 $ 5,929,364 ----------------------------------------------------------------------------
RECENT DEVELOPMENTS
OnApril 24, 2012, NZEC entered into a drilling agreement withEnsign International Energy Services Pty Ltd(“Ensign”) pursuant to which Ensign has committed to drill three exploration wells for NZEC, with the option for up to five additional wells, in the second half of 2012.
OnApril 1, 2012, NZEC commenced continuous production from its Copper Moki-2 well. Copper Moki-2 flowed 14,825 barrels of oil and 15,352 thousand cubic feet (“Mcf”) of natural gas(1) during a 16-day flow test in February and was subsequently shut-in for pressure build-up before commencing production in April. The well is currently producing from natural reservoir pressure out of the Mt. Messenger formation at an average rate of 581 barrels of oil per day (“bbl/d”) and 1,530 Mcf of natural gas(1) per day (“Mcf/d”) through a 24/64th inch choke.
NZEC has drilled five exploration wells in theTaranaki Basin, one on the Alton Permit and four from the Copper Moki pad on the Eltham Permit. Copper Moki-1 and Copper Moki-2 are currently in production. Copper Moki-3 and Copper Moki-4 will be completed and tested in Q2-2012.
Production
NZEC’s Copper Moki-1 well has been flowing from natural reservoir pressure sinceDecember 10, 2011and has produced more than 67,000 barrels of oil since it was first tested inAugust 2011. Production rates have averaged 424 bbl/d and 1,058 Mcf/d(1) since commencing continuous production inDecember 2011. Over the last 30 production days, Copper Moki-1 has produced at an average rate of 309 bbl/d and 1,205 Mcf/d(1) through a 24/64th inch choke.
Copper Moki-2 flowed 14,825 barrels of oil and 15,352 Mcf of natural gas(1) during a 16-day flow test in February and was subsequently shut-in for pressure build-up. NZEC initiated continuous production from Copper Moki-2 onApril 1, 2012. The well is currently producing from natural reservoir pressure out of the Mt. Messenger formation at an average rate of 581 bbl/d and 1,530 Mcf/d(1) through a 24/64th inch choke.
Natural gas and associated natural gas liquids are being flared until the Corporation completes a 2.6-km pipeline and associated production and sales agreements, with the pipeline scheduled for completion by the end of Q2-2012.
Exploration
Copper Moki-3 reached target depth at 3,167 metres in mid-March and is the Corporation’s first well drilled through to NZEC’s deeper exploration target, the Moki formation. After evaluation, the Corporation identified 12 metres of net pay within the Mt. Messenger formation and 15 metres of net pay within the Moki formation. NZEC brought a service rig to site and commenced completion of Copper Moki-3 onApril 25, 2012.
Copper Moki-4 reached target depth of 2,125 metres onApril 10, 2012. After evaluation, the Corporation has decided to perforate and test both the Urenui and Mt. Messenger formations, and will commence completion activities after perforating the Moki formation in Copper Moki-3.
East Coast Basin
The East Coast BasinofNew Zealand’sNorth Islandhosts two highly prospective shale formations, the Waipawa and Whangai, which are the source of more than 300 oil and gas seeps. Within theEast Coast Basin, the following PEPs have been, or are in the process of being, acquired:
In Part
NZEC will complete and test Copper Moki-4 once the service rig has finished completion operations with respect to the Moki formation of Copper Moki-3. If successful, both wells will be tied into the existing production facilities at the Copper Moki pad.
NZEC will shortly begin construction of an approximately 2.6-km natural gas pipeline that will deliver natural gas from the Copper Moki site to a gas production facility. The pipeline is targeted for completion at the end of Q2-2012. NZEC is currently producing approximately 2,630 Mcf/d(1) of natural gas.
NZEC has identified six prospects on 3D seismic similar to Copper Moki, with the expectation of establishing one pad per prospect with two to four wells per pad. NZEC has also identified 12 leads on 2D seismic that will be further defined with the ongoing 3D seismic survey.
With a fully-funded treasury, NZEC is evaluating opportunities to accelerate its exploration program, including drilling additional wells which may target the deeper Tikorangi and Kapuni formations. While previous guidance was for six wells in theTaranaki Basin, NZEC has entered into a rig contract to drill up to eight wells in the second half of 2012. NZEC also has the ability to move quickly should the team identify a strategic acquisition, partnership or farm-in opportunity.
NZEC is completing a 100-km2 3D seismic program over the northern region of the Eltham andAltonpermits. Preparation for the seismic survey is nearly complete and NZEC intends to initiate the 30-day data acquisition process in early May. Following data acquisition, NZEC’s technical team will take approximately four months to process and interpret the data and integrate the information into its technical database. The 3D seismic survey will further define existing targets and reduce drilling risk while potentially identifying new exploration targets and expanding NZEC’s inventory locations for its 2013 exploration program.
Dee yje company web site for the full release .
