Monumental Energy to Participate in Production-Focused Workovers in Taranaki Basin, New Zealand
Monumental Energy Corp. (“Monumental” or the “Company”) (TSX-V: MNRG; FSE: ZA6; OTCQB: MNMRF) has announced its participation in four production-focused initiatives through workover projects jointly owned by New Zealand Energy Corp. (“NZEC”) and L&M Energy (“LME”), a privately held oil and gas company.
The workover projects are equally owned by NZEC and LME. Under the agreed terms, Monumental will fund NZEC’s 50% share of the workover costs, while LME will contribute its proportionate share. These workovers follow a royalty structure similar to that of the successful Copper Moki program. Monumental will receive a 25% royalty on NZEC’s production share after recovering its capital investment, which will be repaid from 75% of NZEC’s net revenue interest.
Background on the Taranaki Basin Workovers
The Waihapa/Ngaere Field is located within the prolific Taranaki Basin in New Zealand, one of the country’s most productive hydrocarbon regions. Globally recognized for its high discovery rate, the Taranaki Basin is considered reliable relative to other mature hydrocarbon basins.
The Waihapa-H1 well, drilled in 1988, initially produced approximately 4,500 barrels of oil per day from the Tikorangi Limestone Formation at a depth of about 2,800 metres. Development in the 1990s focused on this formation, driving annual production to over 5 million barrels. The field delivered a cumulative recovery of around 24 million barrels of oil and several tens of billions of cubic feet (BCF) of natural gas before production declined in the early 2000s. Reservoir studies have since indicated the potential to recover several million additional barrels of oil across the broader field area.
Waihapa-H1 Well Re-entry
The Waihapa-H1 well, drilled in the early 2000s, initially flowed about 1,500 barrels of oil per day from fracture porosity in the Tikorangi horizontal section. Production ceased following a collapse in the upper wellbore section. Monumental’s planned workover program aims to return the well to production. The program includes jetting clean-out and the installation of new tubing. Located approximately 600 metres from the Waihapa production facility, the well can be readily connected to existing infrastructure.
Ngaere 1, 2, and 3 Wells
Historically, the Ngaere 1, 2, and 3 wells produced oil from the Tikorangi Formation. A detailed review of electric logs and drilling data has identified multiple shallower, hydrocarbon-charged sand intervals in each well, representing new production opportunities. A field redevelopment program has been designed to access these bypassed pay zones.
For each well, steel casing will be perforated at the targeted intervals, followed by production testing. All three wells are connected through existing pipelines to the Waihapa production and export facilities, enabling immediate oil and gas sales if successful. Anticipated flow rates per well are projected in the range of tens to low hundreds of barrels of oil per day.
Strategic Significance
Max Sali, Vice President of Corporate Development and Director of Monumental Energy, commented on the announcement: “This participation represents the continued advancement of Monumental’s strategy to generate non-dilutive, cash-flow-generating opportunities through partnerships in proven production assets. These workovers allow the Company to maintain exposure to near-term upside within established and stable jurisdictions.”
Monumental’s involvement in these workover projects underscores its commitment to expanding production exposure without significant equity dilution. By partnering with NZEC and LME, the Company can leverage existing infrastructure, proven fields, and established production pathways to generate near-term revenue while minimizing operational risk. The Waihapa/Ngaere Field redevelopment is expected to deliver incremental production, with early cash flows contributing directly to Monumental’s financial performance.
Overall, these initiatives align with Monumental’s broader objective of targeting high-quality, low-risk hydrocarbon opportunities in mature but underexploited assets. By capitalizing on workover projects that unlock additional production from proven formations, Monumental strengthens its position in New Zealand’s Taranaki Basin and reinforces its reputation as a disciplined, growth-focused energy company.
