New Zealand Energy Corp. (TSX-V: NZ): Gas storage MOU signed with Genesis Energy
• Monumental Energy will fund New Zealand Energy’s (NZE) share of work‑over costs at Waihapa‑Ngaere on Petroleum Mining Licences PML 38140 and PML 3814, in exchange for a royalty on incremental production.• The programme is expected to include the reperforations of Ngaere‑1 and Ngaere‑2 and repairs to the Waihapa H1 well, with an estimated total cost of C$0.7–0.8 mm. These activities could add approximately 200–260 bbl/d of gross production.
• NZE holds a 50% working interest, but will remit 75% of net receipts from incremental production to Monumental until cost recovery is achieved, and 25% thereafter.
• Key near‑term catalysts include finalising a binding agreement with Genesis to advance the gas storage project. Our unrisked NAV for the gas storage project stands at C$3.48 per share.
• We reiterate our target price of C$1.70 per share, which implies a net valuation of roughly US$50 mm for the Tariki gas storage project.
New management team
• Toby Pierce has been appointed CEO of NZE. He previously served as CEO of TAG Oil, which operated assets in New Zealand.
• Robert Bose has been named Executive Chairman. He is currently CEO of Sintana Energy and a Managing Member of Charlestown Energy Partners, a private investment vehicle focused on hydrocarbon and natural‑resource microcaps.
• Both Toby Pierce and Robert Bose bring extensive experience in oil‑and‑gas microcaps, strengthening NZE’s leadership bench.
Valuation
We currently apply a 50% discount to the unrisked value of the Tariki gas storage project based on the Ahuroa sale in 2017 (assuming 20 bcf storage capacity at Tariki and 11 bcf at Ahuroa). Our ReNAV is C$1.75 per share.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.