NZEC Updates on Development of its New Zealand Assets

New Zealand Energy Corp. (NZEC or the Company) provided an update regarding its plans to develop its oil and gas assets in the Taranaki Basin of New Zealand's North Island. These include plans for the Tariki, Waihapa and Ngaere petroleum mining licenses (the TWN Licenses), the Waihapa Production Station and associated pipelines and infrastructure (the TWN Assets). The acquisition of the TWN Licenses and the TWN Assets from Origin Energy Resources NZ (TAWN) Ltd. (Origin) is subject to the completion of certain conditions precedent described in NZEC's June 17 news release. NZEC has created an updated corporate presentation that provides additional details and can be viewed and downloaded on the Company's website at www.newzealandenergy.com.

Highlights

• Completion of independent study into Mt. Messenger discoveries provides valuable insight for future exploitation strategy
• TWN acquisition closing proceeding
• Extensive post TWN acquisition work program comprising reactivation and re-completion of existing wells in addition to up to 8 new wells including 4 targeting deeper high impact targets
• Forecast production of 2,300 barrels oil equivalent per day exit 2014 (net to NZEC, 81 percent oil)
• Forecast cash flow from operations of $25.1 million (CAD 26.1 million) from end 3Q 2013 closing of the TWN acquisition to exit 2014

Development Program and Forecasts for Taranaki Assets

Completing the acquisition of assets from Origin Energy Resources NZ (TAWN) Ltd. (Origin), as updated June 17, will be transformative for NZEC, resulting in a fully integrated upstream/midstream company with the potential for cash flow, infrastructure and inventory to support long-term growth. On July 30, NZEC announced a binding agreement with L&M Energy Limited (L&M) whereby L&M will pay NZEC $17.74 million (CAD 18.25 million) to form a 50/50 joint venture (TWN Joint Venture) to explore, develop and operate the TWN Licenses and the TWN Assets. The parties intend to finalize the definitive agreements shortly with the objective of closing the transaction contemporaneously with closing of the acquisition of assets from Origin (the TWN Assets Acquisition). Following closing, NZEC (through its subsidiary companies) will become the operator of the TWN Licenses and the Waihapa Production Station. Decisions regarding exploration, development and operations of the TWN Assets will be made by management committees with equal representation from both NZEC and L&M.

Owning 50 percent of the TWN Assets will also allow NZEC to optimize development of its existing permits. The gas supply that NZEC has identified to reactivate gas lift and production on existing Tikorangi wells on the TWN Licenses will provide the blending gas required to deliver NZEC's Copper Moki gas to market, bringing additional cash flow to NZEC from the Copper Moki wells. The Company also plans to build a pipeline to connect the Waitapu-1 well to the Copper Moki gas pipeline, tying Waitapu production into the Waihapa Production Station. As NZEC continues to explore the Eltham and Alton permits, the Company will focus on drill targets that are close to the Waihapa Production Station and associated pipelines, allowing for rapid and cost effective tie-in of both oil and gas production.

NZEC has prepared a detailed financial and production model outlining its exploration and development program for its Taranaki assets that has allowed the Company to forecast the impact of those activities on its production and cash flow.

Understanding the Mt. Messenger Formation

NZEC has drilled 4 successful wells drilled to date with a cumulative total production of 257,088 barrels to end June. Initial production rates and declines have varied and these results are consistent with Mt. Messenger experience on adjacent permits.

The Company engaged RPS Group PLC a world leader in well evaluation, to complete an independent reservoir study to better reservoir characteristics and declines using data from Copper Moki, Waitapu and other Mt. Messenger wells in the region. The RPS study concluded that declines are not related to wax buildup or mechanical issues. NZEC has used the study results to prepare composite type curves for Mt. Messenger production and recent proprietary merged 3D seismic in order to enhance the Company's Mt. Messenger exploitation strategy, which includes:

• Choosing optimally sized targets based in interpretation of the merged 3D dataset
• Reducing costs by drilling multiple wells from each pad and,
• Prioritization of targets close to the Waihapa production Station to expedite tie-in

The Horoi 1 well will target the Mt. Messenger formation in the Alton permit later this year and further Mt. Messenger wells are planned in the 2014 work program.