NZ New Zealand Energy Corp

New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) today provided an update
on its production and operational activities. The Company is currently producing
approximately 236 barrels ("bbl") per day of light, high-quality oil (average
daily production net to NZEC during December 2013) from eight wells in the
Taranaki Basin of New Zealand's North Island, with the expectation that three
more wells will contribute to production by the end of Q1-2014. 


HIGHLIGHTS

TWN Reactivated Wells (NZEC 50% interest)



--  Six wells reactivated and producing oil from Tikorangi Formation using
    installed gas lift 
    
--  Total production (100% basis) during December 2013: 9,332 bbl oil, 16.2
    million cubic feet ("mmcf") natural gas(1) 
    
--  Total production net to NZEC during December 2013: 4,666 bbl oil 
    
--  Average daily production (100% basis) during December 2013: 302 bbl oil,
    0.52 mmcf natural gas,1 average water cut 74% 
    
--  Average daily production net to NZEC during December 2013: 151 bbl oil 



TWN Recompleted Well (NZEC 50% interest)



--  Existing Tikorangi Waihapa-2 well recompleted uphole to access bypassed
    production in Mt. Messenger Formation 
    
--  Perforated two zones, well flowed from natural reservoir pressure for
    three short flow tests 
    
--  A further flow test planned for early January, followed by shut-in for
    pressure build-up 
    
--  Commercial production expected in early February 
    
--  Recompletion activities on a second well expected to commence by mid-
    January 



Eltham Permit Wells (NZEC 100% interest)



--  Average daily production during December 2013: 85 bbl/d from Copper
    Moki-1 and Copper Moki-2 wells 
    
--  Copper Moki-3 shut-in during December, workover activities underway to
    resume production in January 
    
--  Waitapu-2 well expected to resume production in January 



New Zealand Energy Corp., through its subsidiaries (collectively "NZEC" or the
"Company"), holds a 50% interest in the TWN Licenses, with L&M Energy and its
related entities (collectively "L&M") holding the other 50%. NZEC and L&M
acquired the TWN Licenses on October 28, 2013 and formed the TWN Joint
Arrangement ("TWN JA"), with NZEC as the operator, to explore and develop the
TWN Licenses and operate the Waihapa Production Station and associated
infrastructure. 


TWN Licenses - Tikorangi Formation Production and Development Plan

During November 2013 the TWN JA reactivated oil and gas production from six
wells that had been drilled to the Tikorangi Formation by previous operators.
Well head metering was installed at each well to monitor flow rates on a
well-by-well basis. A number of wells flowed from natural pressure for two to
three weeks, and all six wells are now being produced using an existing gas lift
system. The TWN JA is monitoring production data to identify the most efficient
method to optimize oil production from each well, which may include installation
of high-volume electric submersible pumps ("ESPs") or other methods of
artificial lift. 


NZEC believes the Tikorangi Formation underlying the TWN Licenses holds
significant production potential. Current development plans for the Tikorangi
Formation on the TWN Licenses include drilling two new Tikorangi wells on the
Waihapa License in 2014.(2) In addition, the TWN JA has identified production
potential from additional existing wells in other areas of the TWN Licenses, and
from additional drilling opportunities identified on 3D seismic. 


TWN Licenses - Mt. Messenger Formation Production and Development Plan

In December 2013, the TWN JA recompleted the Waihapa-2 well to access bypassed
pay with production potential in the Mt. Messenger Formation. Waihapa-2 had been
drilled by a previous operator through the Mt. Messenger Formation to the
Tikorangi, and produced 4.8 million bbl of oil from the Tikorangi Formation. The
TWN JA used a service rig to perforate two intervals in the Mt. Messenger
Formation. The well flowed from natural reservoir pressure for three short
tests. Following a further flow test in early January, the well will be shut-in
for pressure build-up, with commercial production expected in early February. 


A number of additional existing wells on the TWN Licenses have uphole completion
potential in the Mt. Messenger Formation. Recompletion of these wells is
significantly less expensive and faster than drilling new wells, and economic
discoveries could be tied in to the Waihapa Production Station using existing
oil and gas gathering pipelines. The TWN JA plans to commence uphole completion
of the Waihapa-1 well in mid-January.2


Exploration and development plans for the Mt. Messenger Formation on the TWN
Licenses in 2014 include drilling three new Mt. Messenger wells (in addition to
the uphole completions referred to above).2 The TWN JA will prioritize
exploration targets that can be accessed from existing drill pads that are tied
in or in close proximity to the Waihapa Production Station infrastructure.


Eltham Permit Production and Development Plans

NZEC's Copper Moki-1 and Copper Moki-2 wells produced a total of 2,633 bbl of
oil during December 2013, with average daily production of 85 bbl/day (100% net
to NZEC). NZEC will commence workover activities on the Copper Moki-3 well in
mid-January to clean out sand around the well bore and replace the pump, with
the objective of recommencing production in January.


NZEC completed installation of artificial lift on the Waitapu-2 well in
December, but has encountered problems with the down hole pump. Servicing of the
pump will commence this week to allow Waitapu-2 to recommence production. 


(1) Gas produced from the reactivated Tikorangi wells has been used as fuel for
the compressor at the Waihapa Production Station. There were no gas sales
through December.


(2) Development and operating costs are to be funded initially by existing
working capital and cash flows from production. However, in order to carry out
all of the planned development activities, the Company is considering a number
of options to increase its financial capacity. These options include increasing
cash flow from oil production, additional joint arrangements, commercial
arrangements or other financing alternatives.


On behalf of the Board of Directors

John Proust, Chief Executive Officer & Director 

About New Zealand Energy Corp.

NZEC is an oil and natural gas company engaged in the production, development
and exploration of petroleum and natural gas assets in New Zealand. NZEC's
property portfolio collectively covers approximately 1.97 million acres of
conventional and unconventional prospects in the Taranaki Basin and East Coast
Basin of New Zealand's North Island. 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 and development program focused
on the onshore and offshore oil and natural gas resources in the politically and
fiscally stable country of New Zealand. NZEC is listed on the TSX Venture
Exchange under the symbol NZ and on the OTCQX International under the symbol
NZERF. More information is available at www.newzealandenergy.com or by emailing
info@newzealandenergy.com.


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. 


This document contains certain forward-looking information and forward-looking
statements within the meaning of applicable securities legislation (collectively
"forward-looking statements"). The use of the word "will", "planned",
"expected", "may include", "expectation", "will be", "plans", "could be",
"objective" 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 reserves and resources; uncertainties in both daily and long-term
production rates and resulting cash flow; volatility in market prices for oil
and natural gas; changes in the cost of operations, including costs of
extracting and delivering oil and natural gas to market, that affect potential
profitability of oil and natural gas exploration and production; the need to
obtain various approvals before exploring and producing oil and natural gas
resources; exploration hazards and risks inherent in oil and natural gas
exploration; operating hazards and risks inherent in oil and natural gas
operations; 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 as disclosed in
documents released by NZEC as part of its continuous disclosure obligations.
Such forward-looking statements should not be unduly relied upon. The Company
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. Actual results could differ materially from those anticipated in
these forward-looking statements. The forward-looking statements contained in
the document are expressly qualified by this cautionary statement. These
statements speak only as of the date of this document and the Company does not
undertake to update any forward-looking statements that are contained in this
document, except in accordance with applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
New Zealand Energy Corp.
John Proust
Chief Executive Officer & Director
North American toll-free: 1-855-630-8997
info@newzealandenergy.com


New Zealand Energy Corp
Bruce McIntyre
Acting General Manager Exploration & Director
North American toll-free: 1-855-630-8997
info@newzealandenergy.com


New Zealand Energy Corp
Rhylin Bailie
Vice President Communications & Investor Relations
North American toll-free: 1-855-630-8997
info@newzealandenergy.com
www.newzealandenergy.com

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