New Zealand Energy Corp (NZEC) has confirmed significant progress in its development of the Tariki field, where the Tariki-5A well has intersected productive sands with significant gas and condensate reserves. The company also announced that the gas storage project is being accelerated to meet the growing demand of the New Zealand energy market.
Tariki-5A confirms gas reserves and storage potential
The Tariki-5A well has intersected the reservoir sands 11 metres above the previous wells, confirming the presence of free gas and condensate at upper levels. This discovery strengthens the viability of Tariki as a site for underground gas storage, following the model of the Ahuroa field, which was converted into a storage reservoir more than a decade ago.
Although initial well flows have been lower than expected, NZEC attributes the low production to the liquids loading in the tubing and liquids management difficulties at Waihapa. However, the company is sticking to its plan to develop a gas injection and extraction system in stages, with the aim of achieving an extraction capacity of 30 mmscf/d.
Growing demand drives gas storage
The New Zealand gas market has seen significant price increases since 2017, rising from NZD6.40/mscf to over NZD14/mscf in January 2025, with peaks of up to NZD40/mscf in winter.
This increase has created an urgent need for additional storage infrastructure, leading NZEC to prioritise the implementation of the first phase of its Tariki project, with injection scheduled to begin in the fourth quarter of 2025.
Infrastructure development and oil production
In addition to progress at Tariki, the Company is focused on restarting oil production at key Waihapa wells 6A and H1, with restarts expected by mid-February. In parallel, the Copper Moki-1 and 2 well workover project is progressing in collaboration with Monumental Energy , with interventions scheduled for the second quarter of 2025. These wells are expected to reach a combined production of more than 300 stb/d during the first months of operation.
With these developments, NZEC reaffirms its commitment to expanding energy infrastructure in New Zealand, aligning with market needs and growth opportunities in the natural gas sector .
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Source: New Zealand Energy Corp
Photo: Shutterstock
