Disseminated on Behalf of: Monumental Energy Corp.
Maximilian Sali, CEO of Monumental Energy (TSXV: MNRG | FSE: ZA6 | OTCQB: MNMRF), discusses the company’s entry into New Zealand’s oil and gas sector, highlighting its investments and joint projects to restart production, the successful workover of past-producing wells at the Copper Moki project, future exploration opportunities, and how high energy prices and government support create strong tailwinds for the company’s growth and revenue strategy.
Jim Gordon
Hi, I’m Jim Gordon, and you’re watching Market One Minute. Joining us is Maximilian Sali. He is the Founder, Director, and VP of Corporate Development for Monumental Energy. Max, welcome.
Maximilian Sali
Thank you for having me.
Jim Gordon
Great to have you, sir. Okay, let’s talk about Monumental Energy and its entry into the oil and gas space.
Maximilian Sali
So Monumental had the opportunity in late 2023 to invest into an oil and gas company in New Zealand. It’s a past producer, and they’re working on a gas storage project currently. Naturally, we were able to not only invest, but now we’re working with them on a joint project.
The oil and gas sector in New Zealand has been dead for 10 years. The government decided to try solar power and hydro dams to get their electricity. Unfortunately, with the growing population — New Zealand being a beautiful place to live — they couldn’t keep up with electricity and the demand for it. And so, what you’re seeing now is spikes in the gas price and the oil price, and blackouts due to the lack of power.
So, the infrastructure is all there, but it’s the gas and the oil that they’re lacking. And so Monumental is now producing gas and oil in the Taranaki Basin, and we hope to increase those barrels in the near future.
Jim Gordon
And how is your Copper Moki project advancing?
Maximilian Sali
So, that’s a royalty agreement that we did with New Zealand Energy Corp. Those two wells, workover wells, past producers, almost a million barrels of oil to date, and now closer to that number with them being back in production. These are two wells that were shut in due to mechanical issues, not reservoir issues. And so, we had the opportunity to fund those workovers. It’s been successful. Both wells are now online and producing oil and gas.
There was excess gas when these wells came online in 2010, and so there was no gas pipeline. Now there is a gas pipeline from these two wells right to a production facility. And so having that infrastructure set up makes things easier for us and also having a port close for us to truck the oil and goes right to market, both the oil and gas go right to the New Zealand market.
Jim Gordon
And are there any other exploration projects that you’re looking at doing in New Zealand?
Maximilian Sali
Yeah, so New Zealand Energy Corp. has a portfolio of other workover wells that we are having discussions on. Their focus is the gas storage business, and their shareholders want to see that evolve.
What Monumental is going to do is come in and partner with them on more of these workover wells to put into production. These are low-hanging fruit. The wells need simple workovers, such as tubing or some maintenance issues. These wells also were not shut in for reservoir issues — simply mechanical. So, we hope to partner with them on more of these and then apply for some additional permits in the very near future.
Jim Gordon
And, Max, what are some of the key trends you’re seeing in the market that support your growth strategy?
Maximilian Sali
Well, I think one of the major trends is that the government’s much more on side now with the oil and gas sector. There has been such a lack of oil and gas that the government’s now willing to participate and fund some of these new gas projects.
The price of gas is extremely high. It’s between $11 and $15 per MCF USD, which is about four times higher than here. And so, the lack of energy has obviously caused a spike in energy prices, but it’s also causing rolling blackouts.
And so, the government understands the need for oil and gas, especially gas, and Monumental has the ability to farm in on additional oil and gas projects, which generates more revenue for us as a junior company, but also helps take some of the energy needs off of New Zealand.
Jim Gordon
And finally, Max, what can investors and stakeholders expect over the next six to 12 months?
Maximilian Sali
Well, I think our investment in New Zealand Energy Corp, their gas storage business will come to fruition, which is fantastic for us and for the country of New Zealand, that really needs more gas storage. We would like to increase our barrels and have more production.
You know, being a junior company with a small market cap, to have revenue and cash flow is an amazing thing. It’s less dilutive to the share structure if we need to raise a bit of capital. And it just gives us a nice cushion. The oil and gas price is significant and so it’s a big benefit to us having cash flow.
Jim Gordon
Maximilian Sali, thank you very much for joining us.
Maximilian Sali
Thank you.
To learn more about Monumental Energy, visit their website here.
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