NZ New Zealand Energy Corp

New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) today announced that at
the end of February 2014, the Company was producing light, high-quality oil from
nine wells in the Taranaki Basin of New Zealand's North Island. Consistent with
guidance in the Company's previous production update, no new wells were added in
February but substantial progress was made in order to prepare four existing
wells to further add to oil production. As a result of optimization efforts on
existing wells, production for February 2014 increased 11% over January's
average, with an average of 228 barrels of oil per day ("bbl/d") in February
compared to 202 bbl/d in January. In addition, the Company's Waitapu-2 well
re-commenced production on March 3.


"NZEC remains focused on its primary objectives of increasing production and
cash flow while reducing costs," said John Proust, Chief Executive Officer and
Director of NZEC. "The Company is committed to providing monthly updates so that
investors can track our progress. While production rates continue to fluctuate
as a result of optimization and workover activities on the wells, monthly
production averages are the best representation of our corporate production.
During March and early April NZEC will systematically complete workover
activities on a number of existing wells that are expected to add to the
Company's oil production." 


Workover activities at existing wells on the Eltham Permit and TWN Licenses are
on track as outlined in the February 4, 2014 press release. Following the
mobilization of a service rig on February 17, NZEC completed workover activities
on the Waitapu-2 well as well as wireline activities on the Waihapa-1B well.
Waitapu-2 has been pumping since February 27 and produced load fluid (water that
was pumped into the well during workover activities) for a number of days. On
March 3 the well started to produce oil along with load fluid and is expected to
finish cleaning up the load fluid in the next few days. The TWN Joint
Arrangement ("TWN JA") (NZEC and L&M Energy, joint owners of the TWN Licenses)
also identified a cost savings opportunity on the Waihapa-8 well. Initially
expected to require installation of a dedicated downhole pump for artificial
lift, further review determined that the well can likely be produced by heating
gas at the wellhead and using existing gas lift. If successful, this should
result in savings of approximately NZ$200,000 net to NZEC and accelerate
Waihapa-8 production to March 2014. 


The TWN JA also advanced the Waihapa-1B well in February by removing a plug from
the well and commencing evaluation of the potential to produce oil from the
Tikorangi Formation. If successful, Tikorangi production could resume in March
2014, with the alternative of an uphole completion in the Mt. Messenger
Formation. The TWN JA also commenced installation of artificial lift on the
Waihapa-2 well with the expectation of achieving production from the Mt.
Messenger Formation in April 2014.


During February the TWN JA entered into an agreement with a gas marketing
counterparty to transport gas along a section of the TAW gas pipeline for a term
of four years with a five-year right of renewal. The arrangement is expected to
generate between NZ$250,000 and NZ$1million revenue per year (net to NZEC).
First gas is expected to flow during Q2-2014.


Third-party revenue at the Waihapa Production Station year to date totals
approximately NZ$346,000 net to NZEC. 


Upcoming Catalysts



--  Waitapu-2: Contributing oil production as of March 3 
--  Waihapa-8: Production from Mt. Messenger Formation anticipated in March
    2014 using existing gas lift 
--  Waihapa-1B: Continuing to evaluate production potential from Tikorangi
    Formation. If successful, Tikorangi production could resume in March
    2014. If unsuccessful, the TWN JA will proceed to complete the well
    uphole in Mt. Messenger Formation 
--  Waihapa-2: Artificial lift installation underway with production
    anticipated from Mt. Messenger Formation in April 2014 
--  Toko-2B: ESP installation targeted for March 2014, with a production
    increase anticipated in April 2014 



NZEC and L&M Energy applied to New Zealand Petroleum & Minerals and were granted
an extension to drill the Alton Permit Horoi commitment well by June 22, 2014. 


Management Changes

Further to NZEC's commitment to reduce costs, two of NZEC's senior executives,
Bruce McIntyre and Ian Brown, have taken early retirement from their paid
employment positions. Bruce McIntyre will remain on the Board of Directors and
Ian Brown will act as an advisor to NZEC.


"On behalf of the Board of Directors and NZEC employees, I thank Bruce and Ian
for their significant contributions to NZEC," said John Proust, Chief Executive
Officer and Director of NZEC. "They remain committed to the Company's success
and I look forward to their continued input.


To view Table 1 - NZEC's Production & Development Wells, please visit the
following link: http://media3.marketwire.com/docs/931145_TABLE_1.pdf. 


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 1.93 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", "anticipated",
"expected", "targeted", "evaluate", "should", "could", "prepare", "likely",
"expectation", "optimization", 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; the Company's ability to generate sufficient cash flow from
production to fund future development activities; 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


New Zealand Energy Corp.
Bruce McIntyre
Director
North American toll-free: 1-855-630-8997


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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