VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/17/13 -- New Zealand Energy Corp. (TSX VENTURE: NZ)(OTCQX: NZERF) ("NZEC" or the "Company") is pleased to announce that it has finalized the Sale and Purchase Agreement ("SPA") to acquire strategic upstream and midstream assets (the "Acquisition") from Origin Energy Resources NZ (TAWN) Limited, a wholly-owned subsidiary of Origin Energy Limited (ASX: ORG) (collectively "Origin"), subject to meeting the financing condition precedent by August 14 and the government approval condition precedent by September 13, in order to close the Acquisition by September 20, 2013. The assets being acquired include three net Petroleum Mining Licences totaling 23,049 acres in the main Taranaki Basin production fairway (the "TWN Licences") as well as the Waihapa Production Station and associated gathering and sales infrastructure. All amounts are stated in Canadian dollars unless otherwise noted. More information regarding the Acquisition is available in the Company's Annual Information Form for the year ended December 31, 2012, which was filed today on SEDAR at www.sedar.com.
In conjunction with the Acquisition, NZEC commissioned Deloitte LLP ("Deloitte") to prepare an independent assessment of reserves and resources attributable to the TWN Licences. Proved and Probable Reserves(1) are estimated at 1,852,700 barrels of oil, 1.45 billion cubic feet of natural gas and 50,700 barrels of natural gas liquids, collectively 2,144,700 barrels of oil equivalent(2) ("boe"), estimated by Deloitte to have a before tax net present value ("NPV") of $62.9 million (assuming a 10% discount rate). Contingent Resources(1) are estimated at 1,162,000 boe, with Prospective Resources(1) estimated at 23,541,000 boe. These reserves and resources will not be attributed to the Company until the Acquisition is complete and NZEC files an updated NI 51-101 reserve report.
-- Revised purchase price to $33.5 million with no additional adjustments (from original purchase price in May 2012 of $42 million plus adjustments, estimated by NZEC to be $9 million)-- Purchase price comprises $30 million in cash plus a 9% royalty on net revenues, both payable to Origin, and a $3.5 million cash payment to Contact Energy Limited (NZX: CEN) ("Contact")-- NZEC purchases the Tariki, Waihapa and Ngaere petroleum licences totaling 23,049 acres (93.3 km2)-- NZEC retains 100% of production from all existing and new wells on the TWN Licences in all formations, subject to the 9% royalty payable to Origin-- Origin relinquishes all other rights and encumbrances on the TWN Licences, other than the royalty-- Reserve and resource estimate attributable to the TWN Licences, prepared by Deloitte LLP -- Proved and Probable Reserves(1) of 2,144,700 boe -- Before tax NPV (10% discount) for 2P Reserves of $62.9 million(1) -- Contingent Resources(1) (best estimate) of 1,162,000 boe -- Prospective Resources(1) (best estimate) of 23,541,000 boe-- Waihapa Production Station -- Facility ready for gas processing, oil handling and water disposal -- 10 TJ/day(3) gas supply identified to operate the gas plant and reactivate gas lift system on Tikorangi wells