Canadian exploration company Monumental Energy has resumed commercial production at its Copper Moki-1 and Copper Moki-2 wells in New Zealand’s Taranaki Basin.
The strategic workovers have led to both wells producing at stable rates, with Copper Moki-1 delivering 100 barrels of oil per day (bopd) and Copper Moki-2 75bopd. These rates are expected to increase as operations continue.
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The implementation of new pump systems at the site is designed to ensure long-term performance and allow for increased output during flush production and the upcoming ramp-up period.
Monumental Energy has reported that the pumps are meeting expectations and plans to test their maximum capacity by operating above the rated pump level.
The potential for flush production from both wells is significant, with previous outputs reaching as high as 300bopd from Copper Moki-2 alone following pump replacements during the original drilling programme.
Monumental Energy has identified multiple revenue catalysts following the restart of production.
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By GlobalDataThe gas produced at Copper Moki is now linked to regional infrastructure, enabling the company to benefit from New Zealand’s high gas prices, which range between $15 (NZ$25.19) and $20 per million British thermal units.
Exact figures on gas production are expected to be disclosed in the forthcoming weeks.
Additionally, Monumental Energy has a favourable royalty structure in place, earning a 25% royalty on all oil and gas sales post recovery of initial capital, calculated at a 75% net revenue payback rate.
The operational wells at Copper Moki are set to provide immediate cash flow for Monumental Energy.
The company anticipates high margin returns without the need for further capital investment, with the royalty agreement already in effect.
Monumental Energy VP corporate development and director Max Sali said: “The successful restart of Copper Moki reinforces the strategic value of our pivot into oil and gas – particularly given today’s strong commodity prices. It is a move that not only strengthens our near-term revenue profile but also positions us to pursue additional high-impact opportunities with our trusted partners at New Zealand Energy.”
