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New Zealand Energy's Copper Moki-1 well tests 1,100 barrels of oil per day

Published: 18:41 24 Aug 2011 BST

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Oil and natural gas company New Zealand Energy Corp (CVE:NZ) said it has completed its Copper Moki-1 well, which for a period of 48-hours flowed oil at a consistent rate of 1,100 barrels per day, along with 855 thousand cubic feet of natural gas.

The Copper Moki-1 well is in close proximity to oil and gas infrastructure, including production stations and oil and gas pipelines.

It was completed over an interval of 12.2 meters within the Mt. Messenger formation, and drilled to a depth of about 1,800 meters in New Zealand’s Taranaki Basin, flowing 41.8 API (American Petroleum Institute) oil.

The company said it has initiated steps to obtain a mining permit for long-term production.

The well will be placed on an extended production test to determine the reservoir size and flow conditions.

New Zealand Energy has entered into a contract, whereby its test volumes of oil will be sold at a premium to the Brent reference price,  it said.

The company also perforated and tested a portion of the shallower Urenui Formation in the Copper Moki-1 well.

While preliminary results from the Urenui Formation show the potential for oil and gas production, it has suspended the Urenui zone for the near-term to focus on oil production from the Mt. Messenger Formation, New Zealand added.

"Our team is working to advance Copper Moki-1 into production while continuing our aggressive exploration program to test additional targets," said president, Bruce McIntyre.

"We will continue to explore in the Copper Moki area and initiate testing of the extensive shale formations on our East Coast permits."

New Zealand Energy explores and develops petroleum and natural gas assets in New Zealand. Its property portfolio covers nearly two million acres in the Taranaki Basin and East Coast Basin of New Zealand’s North Island.

The Vancouver-based company’s shares went up 10 cents, or 9.71%, to $1.13 Wednesday afternoon on the TSX Venture Exchange.

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