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New Zealand Energy Production and Operational Update

November 04, 2014

November 4, 2014 – Vancouver, British Columbia – New Zealand Energy Corp. (“NZEC” or the “Company”) (TSX-V: NZ, OTCQX: NZERF) today provided an update on production and development activities on the Company’s properties in the Taranaki Basin of New Zealand’s North Island.

Total corporate production during October 2014 averaged 214 barrels of oil per day (“bbl/d”) net to NZEC, slightly ahead of the September average of 205 bbl/d and in line with the average of 215 bbl/d for the first nine months of 2014. Production from the TWN wells was up slightly in October, despite a five-day shutdown of the Waihapa facilities to allow for inspection and recertification of a number of pressure vessels. No significant repairs were necessary and the vessels were recertified for another four years of service.

Production from the Copper Moki field remains stable, with an average of 136 bbl/d during October and an average of 135 bbl/d since March 1, 2014, when the Waitapu-2 well came online. In addition to oil production, during October NZEC sold four terrajoules of Copper Moki natural gas production.

Average Daily Oil Production net to NZEC (bbl/d)

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

202

228

233

228

201

231

202

205

205

214

The TWN Joint Arrangement (“TWN JA”) (the 50/50 NZEC/L&M Energy partnership that owns the TWN Licenses) successfully completed the workover of the Waihapa-2 well during October. Surface facility work is underway to prepare for installation of a jet pump, with the expectation that the Waihapa-2 well will commence production in early December.

Third-party revenue from the Waihapa Production Station since closing the TWN Acquisition totals approximately NZ$1.81 million to NZEC.

During October, NZEC and L&M Energy were granted an extension to November 22, 2015 for drilling of a commitment well on the Alton Permit. The Company has identified a drill target (Horoi) in the Mt. Messenger Formation and has received all necessary resource and land access consents required to drill the well. However, NZEC has requested mediation to discuss certain conditions associated with the consents.

On behalf of the Board of Directors

“John Proust”   

Chief Executive Officer & Director

About New Zealand Energy Corp.

NZEC is an oil and natural gas company engaged in the production, development and exploration of petroleum and natural gas assets in New Zealand. NZEC’s property portfolio collectively covers approximately 1.15 million acres of conventional and unconventional prospects in the Taranaki Basin and East Coast Basin of New Zealand’s North Island. NZEC plans to execute a technically disciplined exploration and development program focused on the onshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. The Company’s management team has extensive oil and gas exploration and operations experience in New Zealand. NZEC is listed on the TSX Venture

Exchange under the symbol NZ and on the OTCQX International under the symbol NZERF. More information is available at www.newzealandenergy.com or by emailing info@newzealandenergy.com.

Figure 1 – NZEC’s Production & Development Wells – Status at October 31, 2014

Well Name

Permit

Formation

Notes

Producing Wells

Copper Moki-1

Copper Moki

Mt. M

Producing since Dec 2011

Copper Moki-2

Copper Moki

Mt. M

Producing since Apr 2012

Waitapu-2

Copper Moki

Mt. M

Produced Dec 2012 – May 2013

Recommenced oil prod. Mar 2014

Ngaere-1

TWN

Tikorangi

Oil prod. reactivated Nov 2013 Producing on rest/recovery

Ngaere-2A

TWN

Tikorangi

Oil prod. reactivated Nov 2013 Producing on rest/recovery

Ngaere-3

TWN

Tikorangi

Oil prod. reactivated Nov 2013 Producing on rest/recovery

Waihapa-H1

TWN

Tikorangi

Oil prod. reactivated Nov 2013 Producing on rest/recovery

Waihapa-6A

TWN

Tikorangi

Oil prod. reactivated Nov 2013

Producing on rest/recovery

Waihapa-8

TWN

Mt. M

Commenced oil prod. Mar 2014

Toko-2B

TWN

Tikorangi

Oil prod. reactivated Nov 2013

Recommenced prod. on June 28 with high-volume lift

 

 

 

 

 

Producing wells current shut-in

Waihapa-2

TWN

Mt. M

Commenced oil prod. Apr 2014.

Workover complete to prepare for jet pump installation. Expected to recommence prod. during Dec 2014

Copper Moki-3

Copper Moki

Mt. M

Producing since Jul 2012, shut-in pending installation of artificial lift

 

 

 

 

Additional Opportunities

Waihapa-1B

TWN

Tikorangi

Evaluating potential for possible
re-entry into the Tikorangi

Waihapa-3

TWN

Mt. M

Uphole completion potential

Waihapa-4

TWN

Mt. M

Uphole completion potential

Waihapa-5

TWN

Mt. M

Uphole completion potential

Horoi

Alton

Mt. M

New exploration well

Mt. M – Mt. Messenger Formation

 

New Zealand Energy Contacts

North American toll-free: 1-855-630-8997

John Proust – Chief Executive Officer & Director

Rhylin Bailie – Vice President Communications & Investor Relations

Email: info@newzealandenergy.com

Website: www.newzealandenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the word “will”, “expectation”, “commence” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas reserves and resources; uncertainties in both daily and long-term production rates and resulting cash flow; volatility in market prices for oil and natural gas; changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration and production; the need to obtain various approvals before exploring and producing oil and natural gas resources; exploration hazards and risks inherent in oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; the Company’s ability to generate sufficient cash flow from production to fund future development activities; market conditions that prevent the Company from raising the funds necessary for exploration and development on acceptable terms or at all; global financial market events that cause significant volatility in commodity prices; unexpected costs or liabilities for environmental matters; competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production; changes in exchange rates, laws of New Zealand or laws of Canada affecting foreign trade, taxation and investment; failure to realize the anticipated benefits of acquisitions; and other factors as disclosed in documents released by NZEC as part of its continuous disclosure obligations. Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Actual results could differ materially from those anticipated in these forward-looking statements. The forward-looking statements contained in the document are expressly qualified by this cautionary statement. These statements speak only as of the date of this document and the Company does not undertake to update any forward-looking statements that are contained in this document, except in accordance with applicable securities laws.

About New Zealand Energy Corp.

NZEC is a publicly-traded company (TSX-V:NZ) focused on the production and exploration of oil and natural gas prospects in New Zealand.

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