New Zealand Energy Gets Extension for Three Licences

New Zealand Energy Corp. (NZEC) has been granted an extension of term for the Tariki, Waihapa and Ngaere licences by regulator, New Zealand Petroleum & Minerals (NZP&M).

NZEC is the operator of the three licences and holds a 50 percent permit share with L&M Energy Limited the other 50 percent permit owner.

The Waihapa and Ngaere licences have been extended for a period of 20 years (from 19 June 2016) and the Tariki licence has been extended for a period of 5 years (from 20 July 2016). The Waihapa and Ngaere work programmes, as agreed with NZP&M, include requirements on the permit holders to undertake reservoir modelling, field development work and undertake a comprehensive evaluation of prospectivity together with a requirement to restore the Waihapa 1B well to production (Waihapa PML) and implement an enhanced oil recovery project (Ngaere PML).

The agreed work programme for the Tariki PML requires the permit owners to complete dynamic reservoir modelling, determine the economic viability of the permit resource and either commit to implementation of the preferred development project or surrender the permit.