Mr. Toby Pierce reports

NEW ZEALAND ENERGY CORP. ANNOUNCES AMENDMENT TO GAS SUPPLY AGREEMENT AND PROVIDES UPDATE ON TARIKI GAS STORAGE

New Zealand Energy Corp. has amended the gas supply agreement and provided an update on the Tariki gas storage project.

Gas supply agreement

The company, together with its co-venturer, L&M Energy Ltd., through the Tariki joint venture, has entered into an agreement with Genesis Energy Ltd. to amend the existing gas supply agreement that was originally entered into in July, 2024.

The amendment significantly broadens the potential sources of natural gas that may be supplied under the gas supply agreement and provides New Zealand Energy and L&M with substantially greater flexibility to aggregate available gas production from across the three licence areas for sale. The commercial terms of the amended arrangement remain subject to confidentiality.

Spot prices for gas sales in New Zealand have ranged from $3.38 (New Zealand) to $20.55 (New Zealand) per gigajoule (GJ) over the past 12 months. Current production from the expanded supply area is approximately two million cubic feet per day (mmcf/d) gross and is expected to grow with further operational progress in the near term.

Tariki gas storage project

In addition to significantly expanding the scope of supply and increasing the flexibility to supply from multiple petroleum licence areas, the amendment supports the continuing advancement of the Tariki gas storage opportunity to full development.

New Zealand Energy and L&M continue to diligently work toward the execution of a gas storage services agreement under a non-binding memorandum of understanding with Genesis to contract a significant portion of the gas storage capacity.

Robert Bose, executive chairman of New Zealand Energy, commented: "The amendment provides significantly greater flexibility in how we source and deliver gas to Genesis while creating a pathway to monetize available production across our broader licence portfolio. Importantly, it also accelerates the strategic opportunity associated with the development of Tariki as a gas storage facility.

"The combination of near-term gas sales and the longer-term gas storage opportunity provides a strong commercial framework for advancing Tariki and our surrounding assets as we look to develop critical natural gas infrastructure in New Zealand."

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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