The company anticipates significant flush production rates and is preparing to bring the Copper Moki-1 well back online, leveraging a newly integrated gas network for enhanced revenue opportunities.
Monumental Energy Corp. has announced the successful workover and recommencement of commercial production at its Copper Moki-2 (CM-2) oil and gas well in New Zealand's Taranaki Basin. This achievement marks a pivotal step in the company's strategy to revitalize previously shut-in wells and capitalize on favorable market conditions for both oil and a significantly integrated gas network. The company anticipates substantial "flush production" rates and an overall increase in output from the Mt. Messenger sands.
The primary goal of the CM-2 workover was to restore oil and associated gas flow, addressing earlier identified restrictions. Additionally, Monumental Energy capitalized on the opportunity to perforate and test new hydrocarbon zones within the well. The positive early indications from CM-2, including the successful pumping out of approximately 300 barrels of brine, confirm the new equipment is operating as expected. Three new intervals have been perforated, which are projected to contribute significantly to the initial flush production and bolster overall output.
Following the success at CM-2, the company is now turning its attention to the Copper Moki-1 (CM-1) well, with a workover estimated to take around 10 days. If this operation proves successful, CM-1 will also be brought online for continuous production alongside CM-2, further amplifying the anticipated "flush production" rates from the Copper Moki site.
A key factor in the renewed viability of the Copper Moki wells is the significant change in New Zealand's gas market. At the time of the original drill program, the country faced a gas surplus, and the Copper Moki field was isolated from the national gas network. Today, the field has been fully integrated into the gas infrastructure, transforming into a substantial and previously unavailable revenue opportunity for Monumental Energy.
Both CM-1 and CM-2 were initially shut-in not due to reservoir depletion or concerns, but rather due to mechanical issues that accumulated over time. Their return to production simply required standard maintenance and equipment upgrades. This was made possible by an agreement struck in late 2024 between Monumental Energy and NZEC, as NZEC shifted its business model towards gas storage. Under the terms of this agreement, Monumental Energy is entitled to a 25% royalty on all oil and gas production from the Copper Moki site, once its initial 75% capital contribution has been fully recovered.
The economics for production in the Taranaki Basin are currently favorable. Oil produced in the region typically trades at a modest discount to Brent Crude, which was last reported at USD $77.39 as of June 20. More significantly, natural gas in New Zealand commands a premium price, ranging between USD $11.00 and $15.00 per MCF, a considerably higher rate than those seen in North American markets.
