Monumental Energy Restores Production at Copper Moki-2 Well in New Zealand, Signaling Strategic Growth in Taranaki Basin
Monumental Energy Corp. (“Monumental” or the “Company”) has announced a significant operational milestone: the successful completion of a comprehensive workover program and the resumption of commercial production at the Copper Moki-2 (CM-2) oil and gas well, located in New Zealand’s prolific Taranaki Basin. This development marks a renewed chapter for Monumental Energy as it strengthens its operational footprint and revenue generation potential in a region poised for energy growth.
Workover Achieves Key Production Goals
The recently completed workover at CM-2 was designed to address both mechanical inefficiencies and to unlock new production potential from untapped reservoir zones. The primary aim was to restore sustained oil and gas production from the Mt. Messenger formation—a well-established hydrocarbon-bearing interval in the basin—while also mitigating flow restrictions that had limited output during previous production phases.
In addition to standard well intervention procedures, the operation included the perforation of three new hydrocarbon-bearing intervals. These zones had not been previously accessed and were carefully selected based on updated reservoir analysis and well log data. Early performance data indicates that the newly installed downhole pump is operating efficiently, with approximately 300 barrels of brine—used to maintain well pressure during the intervention—now removed from the wellbore. This suggests the well is transitioning smoothly into a new production phase.
The newly perforated zones are expected to contribute to “flush production”—a term used to describe the initial high rates of output seen following well recompletion—potentially resulting in a substantial increase in short-term production rates and contributing positively to the company’s cash flow.
Broader Development Strategy Includes Copper Moki-1
Building on the success at CM-2, Monumental Energy has also commenced preparatory activities for a workover of the adjacent Copper Moki-1 (CM-1) well. The CM-1 well, which shares similar geological characteristics with CM-2, is expected to undergo a 10-day workover campaign. If the effort proves successful, CM-1 will be brought back online and placed into continuous production alongside CM-2.
The decision to reactivate both CM-1 and CM-2 comes after a strategic re-evaluation of the field’s potential and infrastructure alignment. Notably, both wells were originally shut-in due to mechanical equipment issues rather than any decline in reservoir performance or depletion. This distinction is critical, as it implies that the underlying reservoir pressure and hydrocarbon presence remain robust, supporting a strong case for renewed operations with modest capital expenditure.
Changing Infrastructure and Market Conditions Create Opportunity
The historical context surrounding the Copper Moki field further supports Monumental’s renewed investment. At the time of the initial drilling and early production activities, New Zealand experienced a regional surplus in natural gas. The surplus, coupled with limited access to gas transport infrastructure in the area, constrained the commercial viability of gas production from the site.
Today, the situation has evolved significantly. The Copper Moki field has now been fully integrated into the regional gas network, a development that transforms the field’s economics. With infrastructure now in place to facilitate gas transportation and sale, the monetization potential of gas reserves from both CM-1 and CM-2 is much higher than in previous years. Monumental Energy is thus entering a more favorable energy market landscape, with both oil and gas production now offering commercially attractive terms.
Partnership and Revenue Framework with NZEC
Monumental’s operational revival at Copper Moki is being conducted under a collaborative agreement with New Zealand Energy Corp. (NZEC), the previous operator of the field. In late 2024, Monumental and NZEC formalized a development agreement under which Monumental would assume responsibility for reactivating the wells.
Under the terms of the agreement, Monumental Energy committed to funding 75% of the total capital expenditures required to bring CM-1 and CM-2 back into commercial operation. In return, Monumental will earn a 25% royalty interest on all oil and gas production from the Copper Moki site. The royalty arrangement will commence following the full recovery of Monumental’s initial capital outlay. This risk-sharing structure allows both parties to benefit from renewed production, while minimizing long-term capital burden.
Importantly, the royalty model provides Monumental with recurring cash flow potential without the need for extensive ongoing capital reinvestment, making it an efficient and shareholder-friendly business model.
Attractive Market Dynamics for Oil and Gas Sales
Oil produced from the Taranaki Basin typically trades at a modest discount to global Brent Crude benchmark prices. As of June 20, Brent was priced at approximately USD $77.39 per barrel. Even after accounting for the regional discount, the price level remains supportive of profitable oil extraction, especially for lower-cost, recompleted wells such as CM-2.
More notably, natural gas from the region is trading at a significant premium to North American prices. Current pricing in New Zealand for natural gas is reported to be between USD $11.00 and $15.00 per thousand cubic feet (MCF), which stands in stark contrast to the sub-$3.00 MCF range typically seen in the U.S. This price disparity underscores the compelling economics of gas production in the region and adds a valuable revenue stream to Monumental’s portfolio.
With CM-2 now online and CM-1 workover imminent, cumulative production figures—measured in barrels of oil equivalent (BOE)—are expected to be released in the coming weeks. These metrics will provide additional insight into the wells’ performance and help quantify the company’s near-term production and revenue expectations.
Executive Commentary Highlights Long-Term Potential
Max Sali, Vice President of Corporate Development and Director of Monumental Energy, emphasized the strategic importance of the Copper Moki redevelopment initiative. In a statement, he noted:
“The Copper Moki wells have demonstrated exceptional reservoir performance, with cumulative production approaching one million barrels of oil to date. The successful recompletion of CM-2—including the perforation of three new intervals—is expected to significantly enhance output. We anticipate strong flush volumes and reservoir recharge, further validating the productivity of the Mt. Messenger formation. This positions us for meaningful near-term cash flow while supporting the long-term value proposition for our shareholders.”
Sali’s remarks reflect Monumental’s broader goal of combining operational excellence with financial prudence. By leveraging existing well infrastructure and focusing on capital-efficient reactivations, the company is strategically building a low-cost, high-margin production base. This strategy, combined with access to premium regional gas pricing and a favorable revenue-sharing model, positions Monumental Energy as a lean and agile energy producer in the South Pacific.
