New Zealand Energy Corp. (NZEC) has executed a working capital facility agreement with New Dawn Energy Ltd. for up to $4 million (NZD 5 million).
New Dawn is the parent company of L&M Energy Ltd., NZEC’s 50% partner in the Tariki, Waihapa, and Ngaere licenses (the TWN licenses) and the Waihapa production station (collectively the TWN assets) and NZEC’s 35% partner in the Alton exploration permit, all located in the Taranaki Basin of New Zealand’s North Island.
“Execution of this $4 million (NZD 5 million) working capital facility is the first step in a capital rebuilding process for New Zealand Energy,” said John Proust, CEO and director of NZEC. “The additional working capital will allow NZEC to undertake the activities required to further exploit the TWN licenses, with the objective of increasing oil production. In addition, NZEC, as operator of the TWN assets, is reviewing an opportunity at the Waihapa production station that could enable liquefied petroleum gas to be extracted, bringing in additional revenue.”