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Wellington, New Zealand--(Newsfile Corp. - August 8, 2020) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today it has filed with Canadian regulatory authorities its 2019 consolidated financial results, management discussion and analysis and Form 51-101 reserves report, which documents are available on the Company's website at www.newzealandenergy.com and on SEDAR at www.sedar.com.
Commenting on the Company's 2019 end of year results, Chairman James Willis said "The results saw a loss of $1,624,881 (2018 loss of $996,660) which was substantially attributable to non-cash expenses including depreciation and depletion."
There was a small ($237,790) increase in cash. $1,474,809 was held as at 31 December 2019 with modest development expenditure ($21,095) paid in the quarter. Production was down as a result of a hole identified in the tubing in Ngaere-1, above the Electric Submersible Pump. The Copper Moki wells continued to perform well during 2019, with regular condensate flushes removing wax and sand disposition and increasing productivity.
Cash provided by operating activities was $787,751, compared to 2018 when $1,750,824 of cash was provided by operations. The Company achieved average net daily production of 158 boe/d (99% oil) through 2019 compared to 164 boe/d (93% oil) during 2018.
The Company has been through a difficult period since the start of 2020. The COVID-19 pandemic and its effect on the price of oil required management to act decisively. As announced on 24 March 2020, the Company implemented a Low Cost Midstream Focussed Operating Mode. These measures have included the elimination of all non-essential capital expenditures and a reduction in operating costs by ceasing to use gas lift to sustain production from the Waihapa and Ngaere wells. These wells are now produced on a cyclic basis.
The Company has also implemented a restructuring of the business which has involved a reduction in manpower and a change to shift patterns at the plant. The Company is continuing to direct its efforts to increasing revenues from third party services.
As to the future, Mr Willis commented that "The Company is considering new opportunities, with a particular focus on by-passed gas and gas storage projects at Tariki, the duration of which was extended in June 2020. The forward plan is to acquire seismic at Tariki in Q1, 2021."
On behalf of the Board of Directors
"James Willis"
Chairman
New Zealand Energy Corp.
New Zealand Energy Contacts
Email: info@newzealandenergy.com
Website: www.newzealandenergy.com