The Copper Moki-2 (CM-2) oil and gas well in New Zealand’s Taranaki Basin has resumed commercial production after completing a workover, Monumental Energy Corp. said Monday.
Last year the Vancouver, Canada-based company agreed to fund workovers at CM-1 and CM-2, owned by New Zealand Energy Corp. (NZEC), in exchange for an initial entitlement of 75 percent of revenue.
“Early indications confirm the new pump is functioning as expected, with approximately 300 barrels of brine – previously used to maintain pressure – successfully pumped out of the well”, Monumental said in a press release.
Meanwhile a workover at CM-1 has yet to be completed and would take about 10 days, the company said.
Cumulative production data from the two wells would be released in the coming weeks, Monumental said.
“The Copper Moki wells have demonstrated exceptional reservoir performance, with cumulative production approaching one million barrels of oil to date”, said Monumental vice president for corporate development Max Sali. “The successful recompletion of CM-2 – including the perforation of three new intervals – is expected to significantly enhance output. We anticipate strong flush volumes and reservoir recharge, further validating the productivity of the Mt. Messenger formation.
“This positions us for meaningful near-term cash flow while supporting the long-term value proposition for our shareholders”.
Copper Moki started production 2011. Flows halted 2022, according to data from the Ministry of Business, Innovation and Employment (MBIE).
Monumental noted, “At the time of the original drill program at Copper Moki, New Zealand faced a gas surplus, and the field remained isolated from the gas network. Today, the field has been fully integrated into the gas infrastructure, presenting a meaningful revenue opportunity that was previously unavailable”.
“CM-1 and CM-2 were originally shut-in due to mechanical issues over time, rather than any reservoir-related concerns. The wells required only standard maintenance, and equipment upgrades to resume production”, Monumental added.
In the announcement of the deal with NZEC October 2024, the workovers were estimated to cost NZD 800,000 ($482,000).
Monumental is entitled to 75 percent of revenue, net of production costs, until its investment is recovered, after which it will have a 25 percent net revenue interest or royalty in the permit.
“Oil produced in the Taranaki Basin typically receives a modest discount to Brent Crude (USD $77.39 as of June 20), while natural gas sells at a premium, with current prices ranging between USD $11.00 and $15.00 per MCF – significantly higher than North American market levels”, it noted in Monday’s statement.
New Zealand is a net oil importer. It imported 57.3 million barrels of crude, blendstocks, feedstocks and fuels in 2024. That year it produced 5.65 million barrels of crude, condensate, naphtha and natural gas liquids, according to the MBIE.
Taranaki is New Zealand’s only hydrocarbon-producing region. However, amid an energy supply shortage, the government said 2024 it would withdraw a ban on exploration. And last May the government announced a contingency fund of NZD 200 million for investment in new gas fields.
To contact the author, email jov.onsat@rigzone.com
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