Monumental Energy Corp. Advances Gas Storage and Production
Insights into Monumental Energy Corp.'s New Zealand Operations
Monumental Energy Corp. (“Monumental” or the “Company”) (OTCQB: MNMRF) is excited to share positive developments regarding its partnership with New Zealand Energy Corp. (“NZEC”). This collaboration is aimed at enhancing energy production and storage solutions in New Zealand's evolving landscape.
Tariki-5A Well Update
The recent progress on the Tariki-5A well marks a significant achievement as it intersected the target Tariki sands at a higher elevation than previous wells. This breakthrough indicates a promising amount of remaining free gas and condensate available in the area. The initial quality of the 55 meters of net sand enhances Tariki's potential as a viable gas storage option, with ongoing evaluations of both reserves and forecasts.
Flow Rate Dynamics
Initial flow rates from Tariki-5A indicated challenges, with technical issues like liquid loading in the tubing affecting overall performance. While flow rates exceeding 4 million standard cubic feet per day (mmscf/d) were observed, stable outputs have stabilized around 1 mmscf/d with approximately 25 to 30 barrels per day of condensate. There are ongoing efforts to enhance production efficiency.
Gas Storage Development Initiatives
NZEC is diligently working on the gas storage development at the Tariki field, which will consist of a phased approach for injecting and extracting gas. The focus now is on the first stage of the project, executed around wells Tariki-5A and Tariki-1A. This stage aims to provide initial gas storage solutions, anticipating injection rates from 10 to 15 mmscf/d and extraction rates of around 30 mmscf/d.
Infrastructure Status
Fortunately, much of the infrastructure necessary for Stage 1 is ready, with only the final stage compression at the well site still pending. Plans are in motion to modify an existing mobile unit at the nearby Waihapa Production Station to fulfill the compression needs at the site as soon as possible.
Transformation of the Tariki Gas Field
The transformation of the Tariki Gas Field into a gas storage facility is modeled after a successful conversion that took place at the neighboring Ahuroa Gas Field. The Tariki Gas Field, which previously yielded around 50 billion standard cubic feet (Bscf) of gas, now has the capacity to store between 25 and 40 Bscf, making it a strategic asset in the region.
Market Dynamics and Pricing Trends
The crucial nature of gas storage in New Zealand has been underscored by the recent surges in gas prices, which have more than doubled from late 2017 levels to surpass NZD 14/mmscf in early 2025. Seasonal fluctuations have led to prices soaring to above NZD 40/mmscf during high-demand periods, illustrating an acute need for expanded gas storage options to stabilize supply.
Restoration of Oil Production
With the completion of Tariki-5A, NZEC is prioritizing the restoration of oil production from key Waihapa wells, anticipating this will yield an additional output of 30 to 60 barrels of oil per day, alongside associated gas. The production from these wells is expected to resume shortly.
Company Insights from Leadership
Max Sali, VP of Corporate Development and Director, shared insights on the strategic importance of enhancing storage capabilities, stating, "As New Zealand's gas market experiences increased prices and volatility, enhancing our storage and production capabilities is essential. I commend NZEC for prioritizing the Tariki gas storage project, which not only supports our stakeholders but also contributes to a more stable energy future for New Zealand."
Advancements at the Copper Moki Project
The company is also making strides with the Copper Moki workover project, intending to intervene in two wells set for production in April 2025. The timeline for these interventions hinges on the timely arrival of crucial equipment for local facilities.
Anticipated Production Outcomes
Based on prior operations at Copper Moki, the company is optimistic about exceeding combined production rates of 100 stb/oil per day, with targets potentially reaching 300 stb/d during peak operation phases. This success is contingent upon meeting logistical timelines for essential materials.
Warrant Repricing Approval
Monumental Energy Corp. has also seen a recent amendment approval from the TSX Venture Exchange concerning the exercise price reduction of 17,120,284 share purchase warrants from $0.30 to $0.25 per share, effective for various placements made in 2023.
About Monumental Energy Corp.
Monumental Energy Corp. focuses on the exploration, acquisition, and development of critical energy sector projects. The company also holds strategic interests in lithium projects, including a 75% option on the Laguna cesium-lithium brine project situated in Chile, and retains a 2% net smelter return on lithium production from Summit Nanotech’s operations.
Frequently Asked Questions
What recent updates has Monumental Energy Corp. provided?
They have reported on advancements in their operations in New Zealand, especially regarding the Tariki-5A well and gas storage project.
How has the gas market in New Zealand changed?
Gas prices have notably surged, emphasizing the necessity for increased storage capacity as demand fluctuates.
What is the significance of the Tariki-5A well?
The Tariki-5A well confirms significant gas and condensate reserves, affirming the area's viability for gas storage.
What are the expected production outputs from the Copper Moki project?
Projected outputs are anticipated to exceed 300 stb/d for short periods post-intervention.
What changes were made regarding share purchase warrants?
The exercise price of 17 million share purchase warrants was reduced from $0.30 to $0.25 per share.
About The Author
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