In October 2013 NZEC closed a strategic acquisition, in partnership with L&M Energy, and now owns a 50% interest in three Petroleum Mining Licenses ("TWN Licenses") totalling 23,049 acres in the main production fairway of the Taranaki Basin, and a 50% interest in the Waihapa Production Station, a high-capacity (45 mmcf/day, 25,000 bbl/day) full-cycle production facility that is central to NZEC's permits and includes an extensive network of gathering and sales pipelines. NZEC and L&M formed a 50/50 joint venture to explore, develop and operate the TWN Licenses and the Waihapa Production Station, with NZEC as the operator.
The Waihapa Production Station gives NZEC strategic control over gathering, processing and sales infrastructure in the Taranaki Basin and provides NZEC with the ability to quickly bring on near-term production additions, reduce full-cycle development lead times and execute on longer-term growth plans. In addition, as the only open-access midstream facility in the Taranaki Basin, the Waihapa Production Station offers business opportunities for processing third-party gas, liquids, oil and water. The Waihapa Production Station is central to NZEC’s inventory of exploration prospects, thereby reducing transportation and processing costs for NZEC’s oil and gas production.
The Waihapa Production Station and associated infrastructure includes:
- a 45 mmcf/d gas processing, gas compression and LPG extraction facility (“TAWN facility”);
- a 51-km 8-inch gas sales pipeline from the Waihapa Production Station to the Stratford Gas Power Generation Plant then terminating in New Plymouth;
- 59 km of oil/gas mixed product pipelines including gas lift lines;
- a 25,000 bbl/d oil processing facility;
- a 49-km oil sales pipeline from the Waihapa Production Station to the Omata Tank Farm, capable of transporting up to 15,500 bbl/d;
- an 18,000 bbl/d water disposal processing system; and
- 70 tonne/d liquid extraction capacity.