New Zealand Energy Corp. (TSX VENTURE: NZ)(OTCQX: NZERF) ("NZEC" or the "Company") has been granted an extension of land to its Eltham Permit (PEP 51150) in the Taranaki Basin of New Zealand's North Island.
New Zealand Petroleum and Minerals has granted NZEC an additional 700 acres (2.83 km2) in the northwest corner of the Eltham Permit. The land extension gives NZEC control over two prospects that were overlapping the Eltham Permit boundary, and will allow NZEC to drill the prospects from the optimal location. NZEC will proceed to obtain land access agreements and resource consents and expects to drill the prospects as part of the Company's previously announced eight well exploration program in the second half of 2012.
NZEC has two wells in production on its Eltham Permit, Copper Moki-1 and Copper Moki-2, and is currently testing Copper Moki-3 and Copper Moki-4. NZEC has identified six prospects on 3D seismic with the expectation of establishing one pad per prospect. Subject to success, two to four wells could be drilled per pad. NZEC has also identified leads on 2D seismic that will be further defined with the 100 km2 3D seismic survey that is currently being acquired. NZEC has entered into a rig contract to drill up to eight wells in the second half of 2012, focusing on the Mt. Messenger, Urenui and Moki formations. With a fully-funded treasury, the Company is evaluating opportunities to accelerate its exploration program, including drilling additional wells that may target the deeper Tikorangi and Kapuni formations.