Mr. Toby Pierce reports

NEW ZEALAND ENERGY CORP. PROVIDES OPERATIONAL UPDATE

New Zealand Energy Corp. has provided an operational update regarding recent production activity in the area covered by New Zealand Energy's 50-per-cent interest in PML 38140 and PML 38141 and continuing Tariki gas storage project development initiatives, located in onshore Taranaki, New Zealand.

Ngaere-1 initial production

New Zealand Energy, together with its joint venture partner L&M Energy Ltd. and in partnership with Monumental Energy Corp., recently completed perforation operations at the Ngaere-1 well targeting the Mount Messenger formation. The well immediately flowed oil and gas following perforation, producing approximately 580 barrels of oil within the first six hours of operation and approximately 3,000 barrels of oil to date. Production is currently stabilizing at approximately 120 barrels of oil per day without additional stimulation or optimization. Oil sales in New Zealand generally occur at local prices equivalent to Brent crude, which is currently at approximately $85 (U.S.) per barrel.

The encouraging initial results demonstrate the potential of previously bypassed hydrocarbon zones within existing wells and support further workover and optimization activities. Initial production revenues have already recovered the workover costs within the first weeks of operation.

Additional workover opportunities

Following the strong results at Ngaere-1, the partnership plans to proceed with similar perforation operations at the Waihapa H1 and Ngaere-2 wells. These programs are expected to represent low-cost opportunities to unlock additional production from the Mount Messenger formation across the permit areas. Activities are due to commence in the next few days with flow results expected in the next two to three weeks.

Tariki gas storage project and outlook for 2026

Separately, the joint venture between New Zealand Energy and L&M continues to advance the Tariki gas storage project in collaboration with Genesis Energy. Significant progress has been made on engineering and pre-FEED due diligence activities, and the project continues to move forward as planned. The joint venture is on track to begin flow back operations at the Tariki-5A well in the coming weeks.

In addition, the recent commitment by the government of New Zealand to support a liquefied natural gas import facility further strengthens the business case for the Tariki gas storage project. New Zealand Energy believes the facility will play an important role in stabilizing the country's energy supply and enhancing long-term energy security. The company's existing pipeline and infrastructure assets also have significant potential strategic value in an LNG import and gas storage buildout scenario, where domestic storage capacity and interconnections are expected to play an important role in balancing gas supply. New Zealand Energy looks forward to providing a stable long-term gas storage platform to benefit the people of New Zealand.

New Zealand Energy remains focused on optimizing production from existing wells with partners L&M and Monumental while advancing strategic gas storage infrastructure initiatives in the Taranaki basin. The company believes these initiatives position New Zealand Energy to contribute to addressing New Zealand's natural gas supply challenges while generating value for shareholders.

About New Zealand Energy Corp.

New Zealand Energy is a publicly listed energy company focused on the development of oil, gas and gas storage opportunities in New Zealand. The company holds interests in multiple heritage assets and development-stage projects, including the Tariki gas storage project in Taranaki. With a 50-per-cent ownership stake in the Waihapa production station, the company can quickly tie in any near-term production and sell directly to market.

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