New Zealand Energy Corp. (TSX-V: NZ): Positive well result. Supportive environment
• Ngaere‑1 is currently producing around 120 bbl/d of oil after perforating a previously bypassed interval. The zone has already delivered roughly 3,000 bbl, with an initial rate of 580 bbl/d when first opened, and it carries meaningful upside for additional reserves.• The same bypassed interval is now expected to be perforated at Ngaere‑2 and Waihapa H1, with all associated costs covered by Monumental Energy. These recompletions have the potential to add production, cash flow, and reserves.
• An application has been submitted to extend the Ngaere permit by approximately 4,050 acres. New Zealand Energy will retain a 50% working interest, while Monumental Energy has funded the application costs.
• Key near‑term catalysts remain the upcoming Tariki‑5 flow test and the expected indicative offer from Genesis for the gas‑storage project. Our risked valuation for the gas storage asset is ~US$52 mm net to NZE, equivalent to C$1.26 per share.
• We re-iterate our target price of C$1.25 per share.
Improving environment
With the Strait of Hormuz now closed, LNG and natural gas have quickly become far more strategic. Genesis has just raised NZ$300 mm of new equity, which matters for New Zealand Energy because Genesis is the most likely partner for the Tariki gas‑storage project which will itself require meaningful capital. The New Zealand government has also launched a NZ$200 mm Gas Security Fund aimed at boosting domestic gas production and strengthening security of supply. The fund is expected to provide grants and low‑cost debt for drilling, facility upgrades, and even exploration. This marks a complete reversal from the previous administration, which had effectively blocked new upstream investment in the country.
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.
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.