Monumental Agrees New Funding for NZEC

Monumental Energy Corp said Tuesday it had signed a definitive deal to help fund New Zealand Energy Corp’s (NZEC) planned increase of oil and gas production in the Taranaki basin onshore New Zealand.

The agreement extends a partnership that already saw the restart of production in the nearby Copper Moki field in 2025.

“The agreement will enable the company [Monumental] to participate in certain mutually agreed upon appraisal and development workover projects with NZEC to increase oil and gas production” in the Waihapa-Ngaere area, Vancouver, Canada-based Monumental said in an online statement.

NZEC, a 50 percent owner in the relevant licenses, and Monumental must agree on the budget for each project, the statement said.

“In consideration for Monumental funding NZEC’s share of any additional project, NZEC grants to Monumental a royalty applicable to such additional project effective upon satisfaction of all conditions precedent and commencement of production”, said Monumental, already a shareholder in NZEC.

“In summary, the initial royalty will be payable in an amount equal to 75 percent of net receipts, on a quarterly basis, until such time as a sum equal to the costs that have been paid by Monumental has been paid back, and thereafter the final royalty will commence and will be payable by NZEC to Monumental in an amount equal to 25 percent of net receipts”, it said.

The companies expect the first project under the funding agreement to start in the first quarter of 2026 subject to conditions including the receipt of regulatory approvals.

On November 18, 2025, Monumental said it had completed a capital raise with gross proceeds of CAD 810,000 ($583,000) “to fund cost overruns on Copper Moki 1 oil and gas well, to fund the costs and expenses to formally enter into and fund additional workover projects with New Zealand Energy Corp and L&M Energy and for general working capital purposes and corporate expenses”.

On October 15, 2025, Monumental said it had agreed to fund NZEC’s share of workover costs to restart flows at several wells in Waihapa-Ngaere.

“These workovers will follow the same royalty structure as that established for the successful Copper Moki programs, whereas Monumental will earn a 25 percent royalty on NZEC’s production share after full recovery of its capital investment, which will be repaid from 75 percent of NZEC’s net revenue interest”, Monumental said.

L&M Energy Ltd would shoulder the remaining investment as NZEC’s equal partner in the campaign, Monumental said.

The workovers involve the Waihapa-H1 well and the Ngaere 1, 2, and 3 wells.

“The Waihapa-H1 well, drilled in the early 2000s, initially flowed oil at rates of approximately 1,500 barrels per day from fracture porosity within the Tikorangi horizontal section”, Monumental said. “Production ceased due to a collapse in the upper section of the wellbore.

“A workover program proposed to return the well to production includes jetting clean-out and the installation of new tubing. The well site is located approximately 600 meters from, and easily connected to, the Waihapa production facility.

“The Ngaere 1, 2, and 3 wells historically produced oil from the Tikorangi Formation. However, a review of electric logs and drilling data has identified multiple shallower, hydrocarbon-charged sand intervals in each well that present opportunities for additional oil and gas production. A field redevelopment program has been designed to access and produce these bypassed pay zones.

“The steel casing in each well will be perforated at the target intervals, followed by production testing. All three wells are connected via existing pipelines to the Waihapa production and export facilities, allowing for immediate oil and gas sales upon successful completion.

“In the event of success, anticipated flow rates per well are expected to range from the tens to low hundreds of barrels of oil per day”.

In late July 2025 Monumental restarted production at the Copper Moki-1 well, marking the completion of its workover campaign in the Copper Moki field with the earlier reactivation of Copper Moki-2, according to announcements by the company.

It said in an update August 19, 2025, “Both Copper Moki-1 and Copper Moki-2 have been onstream for almost a month delivering a combined production rate of approximately 125 barrels of oil per day. These rates continue to trend upward as pump speeds are gradually increased to optimize flow while preventing sand from entering the borehole”.

“In addition to oil production, both wells are now exporting associated gas to the neighboring Waihapa Production Station for processing and sale”, Monumental added.

Copper Moki, which started production 2011, halted production 2022, according to data from New Zealand’s Business, Innovation and Employment Ministry.

To contact the author, email jov.onsat@rigzone.com