TSX-V: NZ     C$ 0.02 +0.00 +0% Volume: 5,000 August 20, 2019

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New Zealand Energy Production and Operational Update

October 02, 2014

Vancouver, British Columbia--(Newsfile Corp. - October 2, 2014) - New Zealand Energy Corp. (TSXV: NZ) (OTCQX: NZERF) ("NZEC" or the "Company") 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 September 2014 averaged 205 barrels of oil per day ("bbl/d") net to NZEC, unchanged from the August average of 205 bbl/d and in line with the average of 214 bbl/d for the first six months of 2014. In addition to oil production, during September NZEC sold eight 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
202 228 233 228 201 231 202 205 205
                 

The TWN Joint Arrangement ("TWN JA") (the 50/50 NZEC/L&M Energy partnership that owns the TWN Licenses) continues to review opportunities to enhance production from the TWN wells. The TWN JA has completed reservoir build-up surveys and gradient tests on the Waihapa-H1, Waihapa-6 and Ngaere-1 wells (see Figure 1). This information will be used to determine the optimum lift mechanism and flow period for the wells. The Toko-2B well high-volume lift continues to pump at the maximum rate of 9,000 boe/d with current production of approximately 25 bbl/d (100%).

As announced on September 24, NZEC has executed a working capital facility agreement with New Dawn Energy Limited for up to NZ$5 million, to be used for NZEC’s share of expenditures and equipment required to advance the TWN Assets, and for other working capital purposes as agreed to by New Dawn Energy. NZEC and the TWN JA are prioritizing additional development opportunities on the TWN Licenses.

One of NZEC’s first draw-downs against the facility will be applied to workover of the Waihapa-2 well. Rig work will commence mid-October to recomplete the well with dual packers to segregate the upper and lower Mt. Messenger zones. This will allow the zones to be tested both separately and collectively, providing production flexibility and allowing the TWN JA to gain valuable information about both Mt. Messenger zones. Following this work, surface jet pumping facilities will be installed, with first production from Waihapa-2 expected by year-end 2014.

Third-party revenue from the Waihapa Production Station since closing the TWN Acquisition totals approximately NZ$1.63 million to NZEC. The Waihapa Production Station was shut down on September 28 to carry out inspection and recertification of a number of pressure vessels. The plant will be shut down for eight days, which will impact October production from the TWN wells. Production from the Copper Moki Permit is not affected.

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. The Company’s management team has extensive oil and gas exploration and operations experience in New Zealand. NZEC plans to execute a technically disciplined exploration and development program focused on the onshore and offshore oil and natural gas resources in the politically and fiscally stable country of 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 September 30, 2014

If you cannot view the image above or would like to view an enhanced version of NZEC's Production & Development Wells, please visit: http://orders.newsfilecorp.com/files/2648/11958_newzea2.jpg

If you cannot view the image above or would like to view an enhanced version of NZEC's Production & Development Wells, please visit:
http://orders.newsfilecorp.com/files/2648/11958_newzea2.jpg

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”, “to be used”, “advance” 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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