Vancouver-based New Zealand Energy Corp. (CVE:NZ)(OTCQX:NZERF) has produced more than 175,000 barrels of oil from its three Copper Moki wells so far, generating total revenue of over US$19 million.
The oil and gas producer updated investors Wednesday on its operations in the Taranaki Basin of New Zealand's North Island.
The company said well optimization at its Copper Moki wells is underway, with the aim of increasing and stabilizing oil production rates from the installation of artifical lift sytems, or pump jacks.
Once the installation of the jacks is finished, raw natural gas from all three wells at Copper Moki will be delivered through the company's existing gas pipeline to the Waihapa Production Station.
Arrangements are being finalized with various third parties to provide continuous supply to the plant, at which point the company can start sales of its natural gas and liquid petroleum gas.
New Zealand Energy is also in the midst of an eight well drilling program at Taranaki, which is now expected to wrap up in the first quarter of next year.
In terms of progress, the Waitapu-1 well completion is ongoing, perforating across 18 metres in two additional intervals, while the Waitapu-2 well is expected to reach targeted depth this week.
Results from the Waitapu-1 well, where open hole logs showed around 30 metres of gross pay in the Mt. Messenger formation as well as oil and gas shows in the shallower Urenui formation, are expected by the end of the month.
The newly-established Waitapu site sits approximately 1.3 kilometres south of the company's Copper Moki site in the Taranaki Basin, where it has three producing wells.
The company said today that its 3,000 barrels of oil equivalent per day guidance has shifted to the first quarter of 2013, so as to coincide with the completion of its eight well drill program.
Wellsite construction is underway at the oil and gas producer's Arakamu site, which sits around 3.8 kilometres southwest of Copper Moki and 2.5 kilometres south of Waitapu.
The company has found two primary targets on the site, and may drill a third well depending on results from the first.
New Zealand Energy also said Wednesday that a review of 3D seismic across the 50 square kilometre Eltham permit is defining new "sizeable" prospects in several formations.
One identified Moki prospect is estimated to cover an area of 1km by 2km and has become a priority drill target for the company's 2013 exploration campaign.
The data collected is part of the 100 square kilometre 3D seismic program done across its Eltham and Alton permits.
Meanwhile, the company says it is progressing toward the targeted close of Taranaki upstream and midstream asset acquisition in the first quarter of 2013 as it reviews data from the four Tawn Petroleum Mining Licenses.
These licenses are part of the asset acquisition from a subsidiary of Origin Energy, announced in May of this year. So far, it has found 18 3D-defined prospects on the Tawn properties, and is compiling a list of targets to start on when the licenses are acquired.
Conditional approval for the deal has already been received from the TSX Venture Exchange, but the acquisition also needs two New Zealand government approvals.
New Zealand Energy has also lodged bids for new exploration properties at Taranaki as part of the annual New Zealand Block offer, with the blocks to be awarded in December after a review of bids by a government office.
The company's property portfolio covers nearly two million acres of prospects in the Taranaki Basin and East Coast Basin of New Zealand’s North Island.
A large chunk of its properties are located in the Taranaki Basin, which is situated on the west coast of the North Island and is currently the country's only oil and gas producing basin, producing roughly 130,000 barrels of oil per day from 18 fields.
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