A subsidiary of New Zealand Energy Corp., Vancouver, BC, will enter a joint venture agreement with Westech Energy New Zealand, a subsidiary of Energy Corp. of America, under which NZEC can acquire 80% ownership and become the operator of a permit in New Zealand’s East Coast basin.
NZEC will assume responsibility for 267,862-acre PEP 38346 and the related work program and will pay Westech $725,000. On completion of the work program, Westech will refund $225,000 to NZEC and all future expenditures for the permit will be funded 80% by NZEC and 20% by Westech.
The proposed work program requires NZEC to complete various technical studies, reinterpret existing seismic data, shoot and interpret more 2D seismic, and drill two exploratory wells by March 2016. NZEC has the option to withdraw from the joint venture after drilling the first well, in which case it would transfer ownership and operatorship back to Westech.
Assuming that New Zealand authorities approve the transfer and joint venture, NZEC will hold more than 2 million net acres including pending permits in the East Coast basin.