New Zealand Energy Corp.

New Zealand Energy Corp.

August 03, 2011 11:41 ET

New Zealand Energy Closes Initial Public Offering, Commences Trading on TSX-V

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 3, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS

New Zealand Energy Corp. ("NZEC" or the "Company"), an oil and natural gas company with exploration and development prospects in New Zealand, is pleased to announce that it has closed its previously announced initial public offering (the "Offering"). The Offering was completed through a syndicate of agents led by Canaccord Genuity Corp. and including GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Haywood Securities Inc. and NCP Northland Capital Partners Inc. ("the Agents"). Pursuant to the Offering, NZEC issued 20,000,000 common shares at a price of $1.00 per common share for total gross proceeds of $20,000,000. In addition, The Agents have been granted an over-allotment option to subscribe for an additional 3,000,000 common shares, on the same terms, at any time up to 30 days following today's date. The Agents received a 6% commission on the proceeds of the Offering, which was paid in cash and common shares. Warrants were also issued totaling 3% of the common shares issued pursuant to the Offering, and are exercisable at $1.00 for a period of 18 months from closing of the Offering.

NZEC is also pleased to announce that the common shares of the Company are anticipated to commence trading on the TSX Venture Exchange under the symbol "NZ" at market open on Thursday, August 4, 2011.

Net proceeds of the Offering will be used to explore and develop NZEC's oil and gas properties, for additional geologic and technical studies and for general corporate purposes.

"We are excited by our IPO milestone as we have now have highly prospective assets, a strong technical team with a detailed plan to production and the capital to execute," said Bruce McIntyre, President of NZEC. "Our near term focus is on the Copper Moki-1 discovery and offsetting prospects targeting the Mt. Messenger, Urenui and Moki formations. We look forward to reporting progress at our properties as the year unfolds."

The completion of the Company's 100% working interest Copper Moki-1 well is underway. NZEC plans to perforate and production test approximately 10 metres of net oil pay in the Mount Messenger Formation. Once the Mount Messenger Formation has been tested, the reservoir will be shut in for a pressure build up. NZEC will then production test approximately 15 metres of net natural gas pay in the shallower Urenui Formation, and then shut the well in for pressure build up. NZEC expects to report the results of the well tests by mid-August. Once production testing has been completed NZEC will commence with its plans to drill the offsetting Copper Moki-2 location.

The common shares offered in the Offering were qualified for distribution pursuant to the long form prospectus of the Company dated July 19, 2011 and filed in each of the provinces of Canada, other than Quebec. The long form prospectus that details the current affairs on the Company, the comprehensive work program and further information on the Offering, is available on SEDAR (www.sedar.com), on the Company's website at www.newzealandenergy.com or by contacting NZEC at info@newzealandenergy.com.

About New Zealand Energy

NZEC is an oil and natural gas company engaged in the exploration, acquisition and development of petroleum and natural gas assets in New Zealand. NZEC's property portfolio collectively covers nearly two million acres in the Taranaki Basin and East Coast Basin of New Zealand's North Island. NZEC holds two petroleum exploration permits (Eltham Permit and Castlepoint Permit) and a 50% interest in a petroleum exploration permit (Alton Permit, pending completion of certain conditions), one pending petroleum exploration permit pursuant to an assignment agreement (Ranui Permit), and one pending non-competitive petroleum exploration permit application (East Cape Permit).

The Company's management team has extensive experience exploring and developing oil and natural gas fields in New Zealand and Canada, and takes a multi-disciplinary approach to value creation with a track record of successful discoveries. NZEC plans to add shareholder value by executing a technically disciplined exploration program focusing on the discovery of onshore and offshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. The Company's strategy is to develop its existing portfolio of assets and to pursue further exploration opportunities in other areas with proven hydrocarbon systems. NZEC will continue to evaluate strategic acquisitions from time to time where it views further exploration and development opportunities exist, and may participate in future tenders offered by the Government of New Zealand to acquire additional petroleum exploration permits or petroleum mining permits.

On behalf of the Board of New Zealand Energy Corp.

John Greig, Chairman of the Board

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "propose", "should", "believe" 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, those listed under the headings "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in NZEC's prospectus dated July 19, 2011 relating to NZEC's initial public offering. NZEC 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. Such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release and NZEC does not undertake to update any forward-looking statements that are contained in this news release, except in accordance with applicable securities laws. In addition, this news release may contain forward-looking statements attributed to third-party industry sources.

United States Advisory

This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, any securities of NZEC in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered hereunder have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States of America (the "United States") and, subject to certain exceptions, may not be offered or sold within the United States or its territories or possessions except in transactions exempt from registration under the U.S. Securities Act and under the securities laws of any applicable state. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States, its territories or possessions.

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.

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