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Wednesday, 6 February 2013
New Zealand Energy rises nearly 20% late Wednesday
New Zealand Energy Corp's (CVE:NZ)(OTCQX:NZERF) stock moved higher Wednesday, rising almost 20% in late afternoon trade as investors await the completion of its eight-well drilling program in the Taranaki Basin, which the company says will boost production.
The company recently announced the appointment of Chris Ferguson as its new CFO, starting February 25.
Ferguson, who has more than 18 years of accounting and operational experience in both the public and private sectors, will be based in the company's New Plymouth, New Zealand office.
The company noted he has "extensive" oil and gas experience within the Taranaki Basin, where New Zealand Energy has a significant foothold, having held senior financial positions over the past 13 years with both local and international exploration and production companies.
The news came after New Zealand Energy last month provided an update on its exploration and production activities in the Taranaki Basin of New Zealand's North Island, as it prepared to spud the first well at its fourth drill site.
The company is undertaking an eight well exploration program in the Taranaki Basin, designed to increase production and cash flow. The junior oil and gas company expects to produce 3,000 barrels of oil equivalent per day once the campaign is complete - expected by the end of this quarter.
Investors are eagerly anticipating the results, tuning into its stock, as shares rose 14 cents today to 85 cents.
After the eight well exploration program is wrapped up, the company will then move directly into its 2013 campaign.
This year's program will focus on targets that are central to the Waihapa Production Station and associated gathering pipelines, expected to expedite the tie-in of discoveries and reduce transport and processing costs.
As the only open-access midstream facility in the Taranaki Basin, the station ensures the company can process its own production, as well as offers opportunities for processing third-party gas, liquids, oil and water.
The station is located around 3km from New Zealand Energy's Copper Moki site, where it already has three producing wells.
The company also plans to drill two wells on the East Coast in 2013 to test both conventional opportunities in the shallower Miocene sands and unconventional opportunities in the Waipawa and Whangai oil shale formations.