Since its inception in 2010, NZEC has moved quickly to assemble a portfolio of highly prospective properties and a world-class technical team with the expertise required to rapidly advance the properties to production. NZEC is focused on systematically exploring and advancing its properties, reducing risk and adding value with every corporate milestone. Milestones achieved to date are outlined in the History of NZEC page. Plans for 2014 include:
- Continue to optimize production levels from the TWN and Eltham wells
- Advance additional reactivation and uphole completion opportunities to production on the TWN Licenses
- Continue to review well logs, drilling records and seismic data to identify new production opportunities on the TWN Licenses
- Grow production and cash flow to allow the Company to organically fund the exploration of new high-impact Mt. Messenger and Tikorangi drill targets
- Drill the Horoi Mt. Messenger well on the Alton Permit
- Continue to seek partners for East Coast properties to advance the Castlepoint, Wairoa and East Cape permits
The Company announced its initial development plans for the TWN Licenses and other permits in the Taranaki Basin on August 6, 2013. As outlined in the Company’s Taranaki Basin development program, NZEC anticipates that successful execution of the work program planned for 2014 will result in NZEC producing 2,300 boe/d (82% oil) by year-end 2014, based on the Company’s working interest in its various permits. This forecast reflects management’s mid-case production assumptions, as outlined in the Company's corporate presentation. While the timing of a number of a planned exploration and development plans has shifted, the Company has identified additional production opportunities on the TWN Licenses in existing wells and continues to work toward its year-end 2014 guidance.
Development and operating costs are to be funded initially by existing working capital and cash flows from production. The Company is focused on increasing cash flow by advancing existing wells to production, since reactivations and uphole completions are significantly less expensive than drilling new wells. The Company’s ability to execute its exploration and development activities is contingent on its financial capacity. The Company is considering a number of options to increase its financial capacity, including increasing cash flow from oil production, additional joint arrangements, commercial arrangements or other financing alternatives.