Stonecap Securities previewed full-year earnings from New Zealand Energy (CVE:NZ) in a research note.
Zealand Energy is an oil and natural gas company engaged in the
exploration, development and production of petroleum and natural gas
assets in New Zealand. NZEC’s property portfolio covers nearly two
million acres of conventional and unconventional prospects in the
Taranaki Basin and East Coast Basin of New Zealand’s North Island.
estimate average production of 500 barrels per day through the end of
2011, with Brent pricing and a $90 netback," Stonecap analyst Amin Haque
The capital markets firm has an "Outperform" rating and $3.75 target price on New Zealand Energy.
Since the company had the benefit of production from only one well drilled during 2011 - Copper Moki 1 - there will be
only limited revenue and cash flow in 2011.
company's Copper Moki 3 and 4 wells are awaiting completion with both
wells intersecting multiple formations and are expected to add to
production after completion.
New Zealand Energy announced a
10-well drilling program for 2012 and Stonecap's Haque expects to
receive more information on the location and target of these wells.
said the company is undertaking two seismic shoots in Taranaki and the
East Coast basins. It is also constructing a 2.6 km pipeline to tie-in
the gas produced at its Copper Moki well.