Monumental Starts Up First Project under New Partnership with NZEC

The Ngaere-1 well in the Waihapa-Ngaere area of the Taranaki basin onshore New Zealand has reached initial production, Monumental Energy Corp said, taking the results as encouragement to proceed with entry into additional wells in the area.

Ngaere-1 is the first project under Monumental’s agreement with New Zealand Energy Corp (NZEC) to fund the latter’s share of costs for the Waihapa-Ngaere campaign, which expands a partnership between the two that already saw the restart of production in the nearby Copper Moki field in 2025.

The existing well has produced about 3,000 barrels of crude since it was perforated through a previously untested “bypass pay zone”, Monumental said in an online statement Thursday. Ngaere-1 was “stabilizing at approximately 120 barrels of oil per day, without the benefit of additional stimulation and optimization activities which are planned for a future date”, the Vancouver, Canada-based company said.

“[T]he well flowed oil and gas immediately upon perforation, and initial production revenues have already recovered the workover costs within the first weeks of operation”, Monumental said.

“The next phase of work will focus on continued production and reservoir evaluation while preparing for a recompletion program designed to increase drawdown on the reservoir, which is expected to further enhance production rates and ultimate recoverable reserves.

“The partnership considers the initial results highly encouraging given the historical log uncertainty and believes they demonstrate the potential for similar opportunities across the field.

“Following the strong initial results from the cost-effective perforation of the Mount Messenger Formation at the Ngaere-1 well, the partnership has agreed to immediately advance similar perforation operations at the Waihapa H1 and Ngaere-2 wells. These perforations are expected to take place as soon as operational logistics permit and will target the same formation that has demonstrated encouraging early production at Ngaere-1”.

Monumental expects the additional perforations to unlock previously bypassed hydrocarbon zones at a low cost.

Monumental added an application has been filed to extend the Ngaere permit area by around 4,050 acres. “The proposed extension area lies between the Cheal oil field and the Ngaere wells currently under evaluation within the Ngaere field”, the statement said.

“Seismic data indicates the potential for additional hydrocarbon accumulations within this corridor, particularly at shallower depths similar to those currently being evaluated”.

Monumental is also eyeing two licenses in Taranaki focused on natural gas development, as well as evaluating opportunities under its portfolio that could qualify for government funding, the statement said.

Monumental is investing in the Waihapa-Ngaere fields under an agreement to fund NZEC’s share of costs as a 50-50 co-venturer with L&M Energy Ltd in Petroleum Mining Licenses 38140 and 38141.

“NZEC has granted Monumental a project-specific royalty, effective upon satisfaction of all conditions precedent and commencement of production”, NZEC said in a statement February 4 announcing the completion of the funding agreement. “Monumental will initially receive 75 percent of net receipts, payable quarterly, until its funded costs have been recovered, after which Monumental will receive an ongoing royalty equal to 25 percent of net receipts”.

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