Monumental Energy Supports the Drilling of the Tariki-5 Gas Well in New Zealand

New Zealand Energy Corp. has started drilling the Tariki-5 well in partnership with L&M Energy. Monumental Energy, a shareholder in the company, is closely monitoring this new step aimed at boosting gas production in the Taranaki region.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

New Zealand Energy Corp. (“NZEC”) has initiated operations to drill the conventional Tariki-5 gas well, located in the Taranaki region, in the north of New Zealand. The project is managed in collaboration with L&M Energy Limited, with each company holding a 50% stake in the “Tariki” joint venture. Monumental Energy Corp., which owns 8.63% of NZEC, considers this development strategic for strengthening its position in the New Zealand gas sector. The well is planned to reach a total depth of 2846 meters over a 27-day period.

The well is designed to target two distinct geological formations. The first section aims at the Tikorangi Limestone, a secondary reservoir, which will be crossed between October 12 and 14, 2024. This phase is primarily focused on collecting geological data. The second formation, the Tariki Sandstone, is the primary objective. Scheduled between October 16 and 21, 2024, this segment will be evaluated to estimate the recoverable gas reserves. The success of this campaign could provide NZEC with an additional financial lever for its regional operations.

Integration into the Existing Gas Network

The gas extracted from Tariki-5 is expected to be rapidly transported to New Zealand’s main network. NZEC has already completed the necessary agreements for gas transportation, facilitating immediate commercialization of the extracted volumes. Genesis Energy, a major buyer, has been confirmed as the primary client for the gas produced. This agreement mitigates commercialization risks while ensuring a more predictable profitability for the project.

Monumental Energy, for its part, is closely observing the evolution of these operations. With an average acquisition cost of $0.46 per share, the project’s success could lead to a revaluation of its portfolio. This strategy enables Monumental to diversify its assets in a growing market, while supporting local development of gas resources. This positioning is particularly relevant in the current context, where natural gas remains a key component of New Zealand’s energy mix.

Production Timelines and Short-Term Outlook

Projections indicate that all drilling and well completion operations will be finalized by October 26, 2024. Once this stage is completed, production tests will be conducted to evaluate the well’s performance. If the results meet expectations, gas could be brought into production by mid-November. This quick execution is facilitated by the presence of existing infrastructures, enabling a smooth integration into the national grid, thus optimizing the return on investment.

The New Zealand natural gas market is currently marked by strong demand, driven by growing energy needs and efforts to secure local supply. NZEC, in partnership with L&M Energy, could capitalize on this favorable context. The joint venture’s development strategy aims to increase local production and reduce dependence on imports. Upcoming stages will also include additional perforations and site optimization to maximize resource recovery.

Financial Stakes and Growth Opportunities

The success of Tariki-5 could also open new opportunities for the partners involved. Monumental Energy might consider increasing its stake in the event of positive results, while securing outlets for potential future projects. The Taranaki region remains one of the most explored sedimentary basins in New Zealand, and this development could encourage other stakeholders to increase their investments in the sector.

This project is closely watched by investors, as it reflects the current dynamics of the New Zealand gas sector. If the flow tests confirm initial forecasts, it could strengthen the region’s attractiveness for new exploration and production projects. In the medium term, Tariki-5’s results will serve as a benchmark for assessing the commercial potential of similar formations.

Rising terminal capacity and sustained global demand, notably from China and Europe, are driving U.S. ethane exports despite new regulatory uncertainties.
The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.