New Zealand Energy Corp. (CVE:NZ)(OTCQX:NZERF) said Monday that it has achieved the target depth and cased its Copper Moki-3 well in the Taranaki Basin of New Zealand's North Island.
Copper Moki-3 was drilled through the Urenui and Mt. Messenger
formations to the deeper Moki formation, with a measured depth of 3,167
metres and a true vertical depth of 2,633 metres, the company said.
New Zealand Energy plans to test both the Moki and Mt. Messenger
formations, with the Moki formation to be tested first. The company will
determine the next steps for the well based on these results.
Following the perforation of Copper Moki-3, the rig will be
repositioned on the same drill pad to spud Copper Moki-4, which will
target the Urenui and Mt. Messenger formations.
The oil and natural gas company controls two permits covering 169,949
net acres in the Taranaki Basin. The company achieved production in
December 2011 from Copper Moki-1, its first discovery well in the
Taranaki Basin, and late last month, announced the start of an extended
production test from its Copper Moki-2 well and the start of drilling at
Copper Moki-3 well.
The company also said in February that based on its early operational
success in the Taranaki Basin of New Zealand's North Island, it has
forecast an exit production rate of 3,000 barrels of oil equivalent
(boe) per day for 2012.
The company said the guidance was prepared on the back of production
results disclosed that week, as well as the planned drilling of eight
net additional wells this year.
The forecast also took into account the completion of a natural gas
pipeline, and the "continued performance in line with existing oil and
natural gas production" from its Copper Moki-1 and Copper Moki-2 wells.
At the Copper Moki-2 (CM-2) well, it is producing 42.0 degrees of API
oil, and is currently flowing at a rate of 1,000 barrels of oil per
day, and 820 thousand cubic feet (mcf) of natural gas per day, New
Zealand Energy said.
In early March, the company boosted a planned bought deal financing
to $55.2 million from $35.1 million previously. The proceeds will be
used to explore and develop its oil and gas properties, as well as for
additional geologic and technical studies, and for other corporate
The company's stock has tripled since the start of 2012, closing Friday at $3.27 on the TSX Venture Exchange.