Board of Directors
Certain statements contained in this website constitute forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “propose”, “should”, “believe”, "advance" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements included in this website should not be unduly relied upon. In addition, this website may contain forward-looking statements attributed to third party industry sources.
In particular, this website contains forward-looking statements pertaining to the following:
- business strategy, strength and focus;
- the granting of regulatory approvals;
- the timing for receipt of regulatory approvals;
- the resource potential of the Properties;
- the estimated quantity and quality of the company’s oil and natural gas resources;
- projections of market prices and costs and the related sensitivity of distributions;
- supply and demand for oil and natural gas;
- expectations regarding the ability to raise capital and to continually add to resources through acquisitions and development;
- treatment under governmental regulatory regimes and tax laws, and capital expenditure programs;
- expectations with respect to the company’s future working capital position;
- capital expenditure programs; and
- abandonment and reclamation costs.
Statements relating to “resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably produced in the future.
With respect to forward-looking statements contained in this website, assumptions have been made regarding, among other things:
- future commodity prices;
- the company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner;
- the impact of any changes in New Zealand law and any other jurisdictions in which the company may conduct its business in the future;
- the regulatory framework governing royalties, taxes and environmental matters in New Zealand and any other jurisdictions in which the company may conduct its business in the future;
- the ability of the company’s subsidiaries to obtain subsequent mining permits, environmental consents and access rights in respect of land and resources;
- the recoverability of the company’s crude oil, natural gas and natural gas liquids resources;
- the applicability of technologies for recovery and production of the company’s oil, natural gas and natural gas liquids resources;
- the company’s future production levels;
- the company’s ability to market crude oil, natural gas and natural gas liquids production;
- future development plans for the company’s assets unfolding as currently envisioned;
- future capital expenditures to be made by the company;
- future cash flows from production meeting the expectations stated herein;
- future sources of funding for the company’s capital program;
- the company’s future debt levels;
- geological and engineering estimates in respect of the company’s resources;
- the geography of the areas in which the company is exploring;
- the impact of increasing competition on the company; and
- the company’s ability to obtain financing on acceptable terms, or at all.
Actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below and elsewhere in this website:
- the speculative nature of exploration, appraisal and development of oil and natural gas properties;
- uncertainties associated with estimating oil and natural gas resources;
- changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration;
- operating hazards and risks inherent in oil and natural gas operations;
- volatility in market prices for oil and natural gas;
- market conditions that prevent the company from raising the funds necessary for exploration and development on acceptable terms or at all;
- global financial market events that cause significant volatility in commodity prices;
- unexpected costs or liabilities for environmental matters;
- competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production;
- changes in exchange rates, laws of New Zealand or laws of Canada affecting foreign trade, taxation and investment;
- failure to realize the anticipated benefits of acquisitions; and
- other factors discussed under “Risk Factors” in the company’s continuous disclosure materials
Readers are cautioned that the foregoing list of factors is not exhaustive.
The material factors and assumptions used in developing the forward-looking statements are based on the assumptions contained in various reports, including future commodity prices, costs and expected inflation, as well as the company’s planned capital expenditure program, estimated drilling success rates and other prospects. Due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of the expenditures and other opportunities that may become available to the company. Accordingly, while the company anticipates that it will have the ability to spend the funds available to it, there may be circumstances where, for sound business reasons, a reallocation of funds may be prudent.
The forward-looking statements contained in this website are expressly qualified by this cautionary statement. Except as required under applicable securities laws, the company does not undertake or assume any obligation to publicly update or revise any forward-looking statements. Readers should consult their own professional advisors to assess the income tax, legal, risk factors and other aspects of their potential investment in NZEC.
Cautionary Note Regarding Reserve Estimates
The oil and gas reserve estimates and economic evaluations outlined in this website and in documents posted on this website were estimated in accordance with the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and National Instrument 51-101 (“NI 51-101”). The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf: one bbl was used by NZEC. This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates. Proved Reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Possible Reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. Revenue projections outlined in the reserve estimate and economic evaluation are based in part on forecasts of market prices, current exchange rates, inflation, market demand and government policy which are subject to uncertainties and may in future differ materially from the forecasts above. Present values of future net revenues documented in the reserve estimate and economic evaluation do not necessarily represent the fair market value of the reserves evaluated in the reserve estimate and economic evaluation. The reserve estimates were created using expectations of future production and capital expenditures. Information concerning reserves may also be deemed to be forward looking as estimates imply that the reserves described can be profitably produced in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause the actual results to differ from those anticipated.
We’re currently producing light, high-quality oil from seven wells in the Taranaki Basin, and executing a comprehensive development and exploration program to further increase production.