VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2012) - New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) ("NZEC" or the "Company") is pleased to announce that the Company has been awarded a new exploration permit in the annual New Zealand block offer, expanding the Company's net onshore exploration land package in the Taranaki Basin by 16,455 acres (66.5 km2).
NZEC lodged a bid for Block TAR7 ("PEP 54867") in a 60/40 joint venture with a subsidiary of New Zealand Oil & Gas ("NZOG"). Joint venturing to advance this permit brings together two companies with extensive experience in the Taranaki Basin, skilled exploration and development teams, and the financial resources to thoroughly appraise and advance the property.
PEP 54867 lies within a large underexplored part of southwest Taranaki, immediately adjacent the large Kapuni gas-condensate field and contiguous with the south end of NZEC's Eltham permit (Figure 1). With the Kapuni field and numerous oil fields to the east and a number of large oil and gas fields offshore to the west, there is a high level of assurance that petroleum is actively migrating through this block, yet there has been very little exploration in the area. Exploration wells in adjoining areas, including the Kapuni wells to the east and the Te Kiri wells to the northwest, provide important technical information as does 90 km of 2D seismic collected on the property. In addition, the Kapuni 3D seismic survey extends 1,750 metres onto the permit from the east, providing valuable control on the eastern edge of the property. PEP 54867 has good access to existing infrastructure, including oil and gas gathering lines and a production station.
NZEC and NZOG have identified stratigraphic/fault-trap leads in the Urenui, Mt. Messenger and Moki formations on the property. With 14 wells producing from the Kapuni anticline less than 5 km east of the property, additional potential may exist in the deeper Kapuni formation. The partners' first priority is to advance the property with continued reprocessing and interpretation of existing data and the acquisition of new 2D and 3D seismic data. The partners plan to acquire 70 km of 2D seismic in the first 18 months and 30 km2 of 3D seismic in the third year to further define exploration leads and collect the information required to make a drilling decision.
As 60% owner, NZEC will be operator of the property with NZOG contributing technical expertise and manpower and funding 40% of expenditures. NZOG is an independent, Wellington-based exploration and production company listed on both the New Zealand and Australian stock exchanges. NZOG holds an interest in the Kupe gas and oil field and the Tui oil field, both located in the offshore Taranaki Basin, has additional exploration partnerships in New Zealand and recently expanded its portfolio to include properties in Tunisia and Indonesia.
"The addition of PEP 54867 to our portfolio gives NZEC strategic control over a promising, unexplored block of land and strengthens our long-term growth plans," said John Proust, Chief Executive Officer and Director of NZEC. "We look forward to working with NZOG, sharing both knowledge and financial responsibility as we advance the property. NZOG brings decades of New Zealand technical expertise to the partnership and shares NZEC's commitment to responsible resource development."
To view Figure 1 - NZEC's Taranaki Basin Land Package, please visit the following link: http://media3.marketwire.com/docs/nz1211-F1.pdf.
On behalf of the Board of Directors
John Proust, Chief Executive Officer
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 2.27 million acres (including pending permits) 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 firstname.lastname@example.org.
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 "will", "will be", "pending", "commenced", "estimate", "expected", "targeting", "objective", "increasing" 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; 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; the need to obtain various approvals before exploring and producing oil and natural gas resources; the need to obtain government approval of work programs before exploring or developing properties; uncertainty in the timing of receipt of permits and the Company's ability to extend the permits if required; 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. Information concerning reserves may also be deemed to be forward looking as estimates imply that the reserves described can be profitably produced in the future. 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.
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