Commenting on the Company's second quarter 2019 results, Chairman James Willis said " The results saw a loss of $524,505 in part attributable to non cash expenses and a small ($78,875) reduction in cash ($904,314 was held at the end of the quarter) as a result of development expenditure ($315,913) paid in the quarter. We are seeing improving oil production from the Electric Submersible Pump in Ngaere-1 (on stream in April). The performance of the Copper Moki wells has been good, following a pump change in Copper Moki-2 in early July. Copper Moki production has averaged ~155bopd in August.
Cash provided by operating activities, for the quarter, was $298,711 (2018: $241,278). The net loss for the quarter was $524,505 (2018: net profit $742,146) with one factor being $338,401 in non-cash depreciation, depletion and accretion (2018: $668,313). The Company achieved average net daily production of ~128 boe/d (100% oil) through Q2 (exit rate at the end of June was ~160boe/d).
On behalf of the Board of Directors
New Zealand Energy Corp.
New Zealand Energy Contacts
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FORWARD-LOOKING INFORMATION AND CAUTIONARY NOTE REGARDING RESERVE ESTIMATES
This document, the consolidated financial statements for the quarter ended 30 June 2019 and the Management's Discussion and Analysis contain certain forward- looking information, forward-looking statements ("forward-looking statements"). The reader's attention is specifically drawn to the qualifications, disclosure and cautionary statements in these documents regarding forward-looking statements and reserve and resource estimates.
The Company notes that such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond NZEC's control, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information.
As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. All forward-looking statements are made as of the date of this document or the date of the documents referenced above, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.
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