Mr. Toby Pierce reports

NEW ZEALAND ENERGY CORP. ANNOUNCES STRONG INITIAL PRODUCTION TEST RESULTS FROM TWO TARIKI WELLS

New Zealand Energy Corp. has released strong initial production results from both its Tariki 1A well and its Tariki 5A well, located in the onshore Taranaki basin, New Zealand. The Tariki 1A well delivered a stabilized flow rate of approximately three million cubic feet per day over a 96-hour period and continues to flow natural gas. The Tariki 5A well delivered a stabilized flow rate of approximately 1.5 MMcf/d over a 48-hour period and was shut in to focus on the Tariki 1A operations.

The Tariki site is situated approximately 14 kilometres from the Waihapa production station, supporting efficient tie-in and continuing field development. These wells form part of New Zealand Energy's 50-per-cent-owned petroleum mining licence 38138. The company's activities at Tariki are conducted in conjunction with its co-venturer L&M Energy Ltd.

The Tariki 1A well started flowing at approximately 200,000 cubic feet per day with more than 2,000 barrels per day of water. The top-hole pressure continues to increase as does the flow rate of gas. As the well unloads significant quantities of water, there is potential for the flow rates to exceed the stabilized test rates. Operations are under way to tie the gas production into the WPS and begin selling gas into the spot market. Spot natural gas prices have averaged approximately $14 (New Zealand) per Mcf over the last week in the New Zealand market.

The Tariki 5A well flowed at between 1.5 and 2.0 MMcf/d near continuously over a five-day testing period. Top-hole pressures remained stable, and 800 barrels per day of water was produced. There was a moderate amount of sand that was also produced. The New Zealand Energy operations team is working on a solution to remove sand on the surface to tie in the Tariki 5A well for gas sales as well.

New Zealand Energy continues to focus on optimizing production through debottlenecking work at the WPS and is planning several low-cost workover and recompletion opportunities. The company has identified several behind-pipe and bypassed pay intervals in existing wells that present near-term production upside.

The continuing workover program continues to demonstrate a scalable pathway to increasing production while leveraging existing infrastructure and maintaining disciplined capital deployment.

Toby Pierce, chief executive officer of New Zealand Energy, commented: "We are pleased that we have re-established commercial natural gas production from the Tariki field. This will allow us to capture significant data for advancing our Tariki gas storage project and, more importantly, provide natural gas into a tight market for the benefit of New Zealand. We continue to methodically advance the gas storage project and remain in active commercial discussions to both fund and build the project in due course."

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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