New Zealand Energy Corp. (TSXV: NZ) released its consolidated financial results for the first quarter of 2025, reporting a net loss of $994,550, compared to a loss of $914,919 during the same period in the previous year. The company also reported a cash balance of only $155,930 at the end of the quarter, a notable decline from CAD1.1mn (approximately $800,000) at the end of the previous quarter. Operating activities used $665,681 in cash, an increase from $397,608 in Q1 2024.
Focus on gas storage project
The company redirected its priorities towards the Tariki Gas Field conversion project during the first quarter, following a decline in production at the Tariki-5A well. In response, NZEC restored several wells in the Waihapa-Ngaere area to resume production. By the end of the quarter, four wells had returned to service, with two more expected by the end of Q2, targeting production of 50 to 80 barrels of oil per day (bopd), with NZEC’s share ranging from 25 to 40 bopd.
Progress in gas storage development
In parallel, NZEC launched preliminary reservoir studies for the Tariki gas storage project, with initial recommendations expected by mid-June 2025. The project is expected to advance to a Final Investment Decision (FID) by the end of 2025, with ongoing commercial discussions under way with potential gas storage customers.
Future investments and outlook
Development of the gas storage facilities continues, with design studies in progress, while the company focuses on restoring short-term profitability through production ramp-up. The Tariki gas storage project is expected to remain a top priority for NZEC over the next 12 months.
