New Zealand Energy Corp. Announces Completion of Tariki 3D Seismic Survey and Convertible Loan Agreement
Wellington, New Zealand--(Newsfile Corp. - July 20, 2021) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announces the completion of the 71 sq km Tariki 3D Seismic Survey undertaken to both assess the potential for a gas-storage facility in the south of the field and appraise possible by-passed gas location(s). The Tariki 3D is a high resolution seismic survey. Downhole geophones were also deployed in well Tariki D1 while shooting the full survey area in order to improve resolution of fault compartments within the field.
The Tariki Field was discovered in 1986, with PML 38138 awarded in 1987 over an area of 14.9 sq km. The field produced 55PJ (50Bcf) of gas and 1.8 MMBBL of condensate from 1996 to 2008. Total in-place reserves were estimated to exceed 110 PJ (100Bcf). The 3D survey fulfills the work programme commitment of 50 sq km of 3D seismic due before July 20, 2022, when a decision to proceed with gas storage, carbon sequestration, appraisal drilling or decommissioning is required.
The Directors also announce the Company has entered into a CAD $2,000,000 Convertible Loan Agreement (the "Agreement") with Arizona Finance Limited. The Agreement is for a term of 1 year, at 10% interest rate per annum, convertible to NZEC shares at the Lender's option. The conversion price has been set at the close of business on July 19th 2021 at CAD $0.30 per share.
The Loan is to be drawn to fund the Tariki 3D Seismic Survey and subsequent processing and evaluation studies.
On behalf of the Board of Directors
New Zealand Energy Corp.
New Zealand Energy Contacts
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Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information regarding: the proposed Consolidation. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects NZEC's current beliefs and is based on information currently available to NZEC and on assumptions NZEC believes are reasonable. These assumptions include, but are not limited to: the receipt of all necessary approvals for the Consolidation. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of NZEC to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting NZEC; the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in NZEC's disclosure documents on the SEDAR website at www.sedar.com. Although NZEC has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of NZEC as of the date of this news release and, accordingly, is subject to change after such date. However, NZEC expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
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