Monumental Energy Enters 25% Royalty Agreement for Copper Moki Oil & Gas Workover Wells

Monumental Energy Corp. (TSX-V: MNRG; FSE: ZA6; OTCQB: MNMRF) has entered into a definitive agreement with Taranaki Ventures Limited (TVL), a subsidiary of New Zealand Energy Corp. (TSXV: NZ), for a 25% royalty interest in the Copper Moki oil and gas workover wells. This strategic move aligns with Monumental's long-term goals in the oil and gas sector and presents significant revenue streams and cash flow implications.

The agreement, dated October 25, 2024, enables Monumental to participate in the repair and workover operation of two previously producing wells, Copper Moki 1 & 2, located on a permitted block PMP 55491. Upon successful completion of the workover and commencement of production, Monumental will receive a 25% royalty interest on the value received from the sale of oil and gas from the two wells.

The total cost to complete the workover of CM 1 & 2 is estimated at approximately NZ$800,000. In consideration, TVL granted Monumental the call option to acquire the royalty interest. The call option is exercisable by Monumental in its sole discretion upon successful completion of the workover and commencement of production.

The estimated production rate and lifespan of the Copper Moki 1 & 2 wells are crucial factors in determining the expected return on investment (ROI). While the specific production rates and lifespans are not disclosed, the market price of oil and gas in New Zealand will significantly impact the potential revenue generated from the 25% royalty interest.

Potential risks and challenges associated with the workover operation and production restart include drilling-related issues, equipment failures, and regulatory hurdles. These factors could impact the expected ROI and require careful management and mitigation strategies.

Monumental's 25% royalty interest in the Copper Moki oil and gas workover wells aligns with its long-term strategic goals in the oil and gas sector. By securing a significant stake in the project, Monumental can generate near-term revenue and further solidify its position in the New Zealand energy market. This agreement also strengthens Monumental's relationship with New Zealand Energy Corp. and may open doors for future investment decisions in the region.

In conclusion, Monumental Energy Corp.'s entry into a 25% royalty agreement for the Copper Moki oil and gas workover wells presents a strategic opportunity for the company to generate near-term revenue and solidify its position in the New Zealand energy market. The agreement aligns with Monumental's long-term strategic goals and offers significant cash flow implications. However, potential risks and challenges must be carefully managed to ensure a successful outcome.