New Zealand Energy Announces Private Placement of up to $15 Million

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS.


New Zealand Energy Corp. (TSX VENTURE:NZ) (OTCQX:NZERF) ("NZEC" or the
"Company") is pleased to announce the terms of a non-brokered private placement
of up to $15 million (the "Offering"). The Offering is scheduled to close by
September 30 and will consist of up to 45.5 million of subscription receipts
(the "Subscription Receipts") at a price of $0.33 per Subscription Receipt. The
Subscription Receipts will be convertible into units (the "Units") consisting of
one common share (a "Share") and one-half of one non-transferable share purchase
warrant (each whole warrant referred to as a "Warrant") of the Company. Each
Warrant will entitle the holder to acquire one Share at a price of $0.45 for a
period of 12 months following closing of the Offering. 


The proceeds from the sale of the Subscription Receipts will be used to complete
the acquisition of assets (the "Acquisition") from Origin Energy Resources NZ
(TAWN) Limited, a wholly-owned subsidiary of Origin Energy Limited (ASX:ORG)
(collectively "Origin") and for general working capital. The funds will be held
in escrow and released on closing of the Acquisition. See the Company's June 17,
July 30, August 6 and August 12 news releases for details regarding the
Acquisition. If the Company is unable to close the Acquisition then the proceeds
from the sale of the Subscription Receipts will be returned to the subscribers.


NZEC will file a short form prospectus with the applicable regulatory
authorities in each of the provinces of Canada where Subscription Receipts are
sold. Each Subscription Receipt will automatically convert into one Unit on the
date that the Acquisition closes (the "Acquisition Closing Date") if a final
receipt for the prospectus has been issued by the applicable regulatory
authorities. If NZEC has not received a final receipt for its prospectus by the
Acquisition Closing Date, then the Subscription Receipts will convert into Units
when a prospectus receipt is issued or at the latest on the date that is four
months and one day from the closing of the Offering. The Shares and the Shares
underlying the Warrants will be free-trading on conversion of the Subscription
Receipts.


NZEC will pay a finder's fee to qualified persons comprised of a 7% cash
commission plus finder's warrants (the "Finder's Warrants") of the Company in an
amount equal to 7% of the number of Subscription Receipts issued by the Company.
Each Finder's Warrant will entitle the finder to acquire one Share at an
exercise price of $0.33 for a period of 12 months following closing of the
Offering.


The Offering is subject to TSX Venture Exchange acceptance. 

The securities offered have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the registration
requirements. This news release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these securities
in any province, state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such province, state or jurisdiction.


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 2.25 million acres
(including permits and acquisitions pending) 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. 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 [e-mail].


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. 


Forward-looking Information

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 any of the words "will", "plans", "is
scheduled to", "has arranged" 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.
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. This document contains forward-looking statements and assumptions
pertaining to the following: the Origin Acquisition; the ability of the Company
to close the Offering; the granting of regulatory approvals; the timing for
receipt of regulatory approvals; the ability of the Company to obtain the
necessary approvals and secure the necessary financing to conclude the
Acquisition on schedule, or at all; and the use of proceeds raised from the
Offering. Actual results could differ materially from those anticipated in these
forward-looking statements as a result of the risk factors set forth below and
elsewhere in the document, including market conditions that prevent the Company
from raising the funds necessary to close the Offering and complete the
Acquisition on acceptable terms or at all; and global financial market events
that cause significant volatility. Readers are cautioned that the foregoing list
of factors is not exhaustive. 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
Executive 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


New Zealand Energy Corp.
Chris Bush
New Zealand Country Manager
New Zealand: 64-6-757-4470
[e-mail]
www.newzealandenergy.com