New Zealand Energy Corp. has completed its Copper Moki-1 well and initiated the steps to obtain a mining permit to achieve long-term production.

NZEC's 100%-owned Copper Moki-1 well production tested the Mt. Messenger formation over a 48-hour period and flowed 41.8 API1 oil at a consistent rate of 1,100 barrels per day along with 855 mcf2 per day of natural gas. Pressure recorders have been run for an extended build-up and the well will be placed on an extended production test to determine the reservoir size and flow conditions.

Copper Moki-1 is well positioned in close proximity to oil and gas infrastructure, including production stations and oil and gas pipelines. NZEC has entered into a contract whereby its test volumes of oil will be sold at a premium to the Brent reference price 3.

Bruce McIntyre, president of NZEC commented: "Our team is working to advance Copper Moki-1 into production while continuing our aggressive exploration program to test additional targets.

"We will continue to explore in the Copper Moki area and initiate testing of the extensive shale formations on our East Coast permits, and look forward to reporting the results of our efforts as the projects advance."

The Copper Moki-1 well was completed in three sands over an interval of 12.2 metres within the Mt. Messenger Formation, a thick sequence of turbidite sandstones at a depth of approximately 1,800 metres in New Zealand's Taranaki Basin. NZEC also perforated and tested a portion of the shallower Urenui Formation in the Copper Moki-1 well. While preliminary results from the Urenui Formation show the potential for oil and gas production, NZEC has suspended the Urenui zone for the near-term to focus on oil production from the Mt. Messenger Formation.

Tags: New Zealand Energy Corp.