New Zealand Energy Corp (NZ)

[junkHustler]

New Zealand Energy clinches last step to formally close Origin deal later this month

The $33.7 million deal will formally close at 10:00am New Zealand time on October 29, according to the Vancouver-based oil and gas junior's statement released Friday. The $33.7 million deal will formally close at 10:00 am New Zealand time on October 29, according to the Vancouver-based oil and gas junior's statement released Friday.

New Zealand Energy Corp. (CVE:NZ)(OTCQX:NZERF) has now secured New Zealand government approval for the acquisition of upstream and midstream oil and gas assets from Origin Energy (ASX:ORG), the last step required to close the deal that has been in the works since last year.

The $33.7 million deal will formally close at 10:00 am New Zealand time on October 29, according to the Vancouver-based oil and gas junior's statement released Friday.

New Zealand Energy, which has been strategizing to improve its operations, will acquire from Origin the Tariki, Waihapa and Ngaere (TWN) petroleum licenses in the main Taranaki Basin production fairway as a means to generate substantially higher cash flow and production. The deal, which was partly financed by L&M Energy as part of a 50/50 split joint venture agreement to develop the TWN licenses, also includes Waihapa production station and associated infrastructure.

New Zealand Energy said Friday that its technical and engineering teams, together with L&M, have prepared a detailed development and exploration plan for the new assets that will start immediately after the deal wraps up. The program is to be made up of reactivation and re-completion of existing wells, in addition to up to eight new wells, including four targeting deeper, high impact targets. The acquisition will no doubt add to the Canadian junior's existing production portfolio in the Taranaki Basin, with the work program forecast to give the company a 2014 exit production rate of 2,300 barrels of oil equivalent per day.

Investors have been sitting tight for the company to finally complete the acquisition, which is expected to transform New Zealand Energy into a fully integrated upstream/midstream company, positioning it for increased production and cash flow, with the infrastructure and drilling inventory to support long-term growth. The news today follows the completion of the financing for the transaction earlier this month.

"We greatly appreciate the efforts of New Zealand Petroleum & Minerals to expedite the approval process," said CEO of New Zealand Energy, John Proust, in the release Friday.

"We look forward to formally closing the acquisition on October 29 so that we can focus on developing the TWN Assets for the benefit of NZEC's shareholders, L&M and our New Zealand community partners."

The Canadian junior oil and gas play already controls 2.2 million acres of exploration permits on New Zealand’s North island (including one permit pending), where it is producing oil from four wells.

Read more at http://www.stockhouse.com/companies/bullboard/v.nz/new-zealand-energy-corp?postid=21842732#dIAJriAYQuDudf2e.99