New Zealand Energy Corp. (TSX-V: NZ): 100% focused on executing the Tariki gas storage project
• New Zealand Energy (NZE) has raised C$3.5 mm of new equity priced at C$0.20 per share, providing the funding required to advance the Tariki gas‑storage project and ongoing negotiations with Genesis.• A key near‑term catalyst is securing an extension of the Petroleum Mining Licence for Tariki beyond its July 2026 expiry. Approval—expected within 4–6 weeks—would also defer decommissioning liabilities by an expected 10 years. Gas storage remains central to NZE’s strategy.
• The Tariki‑5 well is scheduled for flow testing in approximately six weeks. A 72‑hour test would allow NZE to demonstrate deliverability to both the market and potential offtakers.
• NZE anticipates receiving an indicative offer from Genesis for the gas‑storage project by the end of 1Q26. We anticipate that Genesis may wish to acquire the project while retaining NZE as operator.
• Our risked valuation for the gas storage asset is ~US$52 mm net to NZE, equivalent to C$1.26 per share.
• NZE also holds a 50% working interest in the only gas pipeline connecting the Taranaki port, New Plymouth, regional gathering systems, and key power plants. With New Zealand’s Energy Minister announcing earlier this week plans for the country’s first LNG import terminal in Taranaki—expected to be completed next year or in early 2028—NZE’s gas infrastructure could become strategically valuable.
• Benchmarking against the existing Ahuroa storage facility suggests Tariki could generate US$2–4 mm in annual operating cash flow, or US$1–2 mm net to NZE’s 50% interest.
• Incorporating the recent equity financing into our model, we revise our target price to C$1.25 per share.
Valuation
We apply a 50% discount to the unrisked value of the Tariki gas‑storage project, benchmarked against the 2017 sale of the Ahuroa facility and assuming 20 bcf of storage capacity at Tariki versus 11 bcf at Ahuroa. This results in a ReNAV of C$1.25 per share.
Until any offer from Genesis is forthcoming, we have not assigned value to NZE’s 50% interest in the regional gas pipeline or to operatorship of the storage facility. The latter could generate US$1–2 mm in annual free cash flow, implying a potential valuation of US$10–20 mm, or C$0.24–0.48 per share. We are not carrying any value for the production enhancement initiatives that is funded by Monumental.
Sintana Energy is a development stage company engaged in oil and gas exploration and development activities in the United States.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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