New Zealand Energy Corp.

New Zealand Energy Corp.

August 24, 2011 08:30 ET

New Zealand Energy's Copper Moki-1 Well Tests 1,100 Barrels of Oil Per Day

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2011) - New Zealand Energy Corp. ("NZEC" or the "Company"), an oil and natural gas company with exploration and development prospects in New Zealand, has completed its Copper Moki-1 well and initiated the steps to obtain a mining permit to achieve long-term production.

NZEC's 100%-owned Copper Moki-1 well production tested the Mt. Messenger formation over a 48-hour period and flowed 41.8 API(1) oil at a consistent rate of 1,100 barrels per day along with 855 mcf(2) per day of natural gas. Pressure recorders have been run for an extended build-up and the well will be placed on an extended production test to determine the reservoir size and flow conditions. Copper Moki-1 is well positioned in close proximity to oil and gas infrastructure, including production stations and oil and gas pipelines. NZEC has entered into a contract whereby its test volumes of oil will be sold at a premium to the Brent reference price(3).

"Our team is working to advance Copper Moki-1 into production while continuing our aggressive exploration program to test additional targets," said Bruce McIntyre, President of NZEC. "We will continue to explore in the Copper Moki area and initiate testing of the extensive shale formations on our East Coast permits, and look forward to reporting the results of our efforts as the projects advance."

The Copper Moki-1 well was completed in three sands over an interval of 12.2 metres within the Mt. Messenger Formation, a thick sequence of turbidite sandstones at a depth of approximately 1,800 metres in New Zealand's Taranaki Basin. NZEC also perforated and tested a portion of the shallower Urenui Formation in the Copper Moki-1 well. While preliminary results from the Urenui Formation show the potential for oil and gas production, NZEC has suspended the Urenui zone for the near-term to focus on oil production from the Mt. Messenger Formation.

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.

Bruce McIntyre, President and Director

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 "initiated", "will be", "will" 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 resources; changes in the cost of operations, including cots of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; volatility in market prices for oil and natural gas; 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 discussed under "Risk Factors" in NZEC's Prospectus dated July 19, 2011. 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.

(1) American Petroleum Institute

(2) Thousand cubic feet

(3) The reference against which two thirds of the world's internationally traded crude oil supplies are priced.

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.

Contact Information

  • New Zealand Energy Corp.
    Rhylin Bailie
    Vice President, Communications & Investor Relations
    +1 604-601-2010

    New Zealand Energy Corp.
    John Proust
    Chief Executive Officer & Director
    +1 604-601-2010
    +1 604-288-0319 (FAX)