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New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") is pleased to announce an amendment to the Gas Supply Agreement and provide an update on the Tariki Gas Storage Project.
Gas Supply Agreement
The Company, together with its co-venturer L&M Energy Limited ("L&M") through the Tariki joint venture, has entered into an agreement with Genesis Energy Limited ("Genesis") to amend the existing Gas Supply Agreement that was originally entered into in July 2024.
The amendment significantly broadens the potential sources of natural gas that may be supplied under the Gas Supply Agreement and provides NZEC and L&M with substantially greater flexibility to aggregate available gas production from across the three licence areas for sale. The commercial terms of the amended arrangement remain subject to confidentiality.
Spot prices for gas sales in New Zealand have ranged from NZ$3.38 to NZ$20.55 per GJ over the past 12 months(1). Current production from the expanded supply area is approximately 2 MMcf/d gross and is expected to grow with further operational progress in the near term.
Tariki Gas Storage Project
In addition to significantly expanding the scope of supply and increasing the flexibility to supply from multiple petroleum licence areas, the amendment supports the ongoing advancement of the Tariki gas storage opportunity to full development.
NZEC and L&M continue to diligently work toward the execution of a Gas Storage Services Agreement under a non-binding memorandum of understanding with Genesis to contract a significant portion of the gas storage capacity.
Robert Bose, Executive Chairman of NZEC, commented: "The amendment provides significantly greater flexibility in how we source and deliver gas to Genesis while creating a pathway to monetize available production across our broader licence portfolio. Importantly, it also accelerates the strategic opportunity associated with the development of Tariki as a gas storage facility.
"The combination of near-term gas sales and the longer-term gas storage opportunity provides a strong commercial framework for advancing Tariki and our surrounding assets as we look to develop critical natural gas infrastructure in New Zealand."
About New Zealand Energy Corp.
NZEC is a publicly listed energy company focused on the development of oil, gas, and gas-storage opportunities in New Zealand. The Company holds interests in multiple heritage assets and development-stage projects, including the Tariki Gas Storage Project in Taranaki. With a 50% ownership stake in the Waihapa production station, the Company can quickly tie in any near-term production and sell directly to market. For more information, please visit www.newzealandenergy.com.
For further information:
Toby Pierce, Chief Executive Officer
Email: info@newzealandenergy.com
Phone: +6467574470
Website: www.newzealandenergy.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical fact, are forward-looking statements. Forward-looking statements in this release include, but are not limited to, statements regarding the anticipated benefits of the amendment to the Gas Supply Agreement; the sourcing, aggregation and sale of gas to Genesis from the Company's licence areas; current and anticipated production volumes from the expanded supply area, including expected production growth; the negotiation and execution of a Gas Storage Services Agreement with Genesis under the non-binding memorandum of understanding and the timing thereof; the advancement and development of the Tariki gas storage opportunity; and the Company's ability to monetize available production across its licence portfolio and to develop natural gas infrastructure in New Zealand.
Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Such assumptions include, among others, that NZEC, L&M and Genesis will continue to work toward, and will ultimately execute, a Gas Storage Services Agreement on acceptable terms; that production from the expanded supply area will be maintained and will grow as anticipated; and that the Company and L&M will be able to produce and deliver gas from their licence areas as anticipated. Such risks include, among others, the non-binding nature of the memorandum of understanding with Genesis; the failure of NZEC, L&M and Genesis to execute a Gas Storage Services Agreement on acceptable terms or at all; the failure of production from the expanded supply area to be maintained or to grow as anticipated; the availability of sufficient gas production to supply Genesis; operational, technical and development risks associated with the Company's licence areas and the Tariki gas storage opportunity; fluctuations in natural gas prices; the availability of financing; and changes in applicable laws and regulatory requirements. Accordingly, readers should not place undue reliance on forward-looking statements. NZEC does not undertake any obligation to update forward-looking statements, except as required by applicable securities laws.
This release is for information purposes only and does not constitute an offer or solicitation to buy or sell any securities.
(1) Source: https://www.emstradepoint.co.nz/.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/316221
