New Zealand Energy Announces Production Test of Copper Moki-2 Well, Commences Drilling of Copper Moki-3 Well and Enters Into ...

New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) ("NZEC" or the "Company")
has initiated an extended production test of its Copper Moki-2 ("CM-2") well and
commenced drilling Copper Moki-3 ("CM-3"), its third well in the Taranaki Basin
of New Zealand's North Island. In addition, NZEC is pleased to announce that the
Company has entered into a farm-in agreement with L&M Energy Limited pursuant to
which the Company will earn an additional 15% in the Alton Permit, increasing
NZEC's interest to 65%.


Taranaki Basin Update

The CM-2 well commenced flowing on February 15, 2012. CM-2 is producing 42.0
degrees API oil and is currently flowing at a rate of 1,000 barrels of oil per
day and 820 thousand cubic feet ("mcf") of natural gas per day through a 24/64th
inch choke. In the last five days CM-2 has produced 5,318 barrels of oil and
4,158 mcf of natural gas. CM-2 is tied in to the Copper Moki-1 ("CM-1")
production facilities. Produced oil is trucked to the Shell-operated Omata Tank
Farm, approximately 45 km north of the Copper Moki site. The oil sells at a
premium to Brent and earns a top-tier operating netback of approximately US$90
per barrel. NZEC calculates the netback as the oil sale price less fixed and
variable operating costs and a 5% royalty. The Company has also advanced its
plans to build a natural gas pipeline, upon completion of which NZEC expects to
begin marketing its natural gas production.


NZEC has continued to flow CM-1 while drilling and completing CM-2. The CM-1
well was first tested in August 2011 and has been flowing from natural reservoir
pressure since December 10, 2011, producing more than 44,000 barrels of oil
since the August test. The well has flowed through a 20/64th inch choke until
February 17, when the choke was increased to 24/64th inches. CM-1 production has
averaged 500 barrels of 41.8 degrees API oil per day and 860 mcf of natural gas
per day since December 10, 2011, and has produced an average of 434 barrels of
oil per day and 1,045 mcf of natural gas per day over the last 30 days of
production. 


The CM-2 well was drilled to a total depth of 2,080 metres, encountering
approximately 12 metres of net pay in the Mt. Messenger Formation, a thick
sequence of turbidite sandstones in New Zealand's Taranaki Basin. NZEC also
collected logs from the shallower Urenui Formation while drilling CM-2. The
Company's analysis of the Urenui Formation is consistent with earlier tests
demonstrating that the formation shows the potential for oil and gas production.
NZEC is evaluating opportunities to drill a well later in 2012 that will target
the Urenui Formation.


NZEC has commenced drilling CM-3, with the expectation of releasing well results
by the end of March 2012. CM-3 will be NZEC's first well to target the deeper
Moki formation, and the Company will collect information from both the Urenui
and Mt. Messenger formations as CM-3 drilling proceeds. Immediately following
the conclusion of CM-3 drilling, NZEC anticipates commencing drilling of the
Copper-Moki-4 well from the same drilling pad.


Alton Permit Farm-In

The Alton Permit covers 119,200 acres in the Taranaki Basin of New Zealand's
North Island, with an estimated resource base of 760 million barrels OOIP(1) and
prospective recoverable resources of 69 million barrels of oil.(2,3) NZEC will
earn the additional 15% by funding the collection and processing of 3D seismic
data over approximately 50 km2 of the permit. NZEC is the operator of the Alton
Permit.


Earning the additional 15% interest will increase NZEC's prospective recoverable
resource base in the Taranaki Basin to 77 million barrels of oil(2,3) and
increase NZEC's net Taranaki Basin acreage to 169,949 acres, a 16% and 12%
increase, respectively.


Notes:



1.  Net undiscovered petroleum initially in place. 
2.  Assuming a 9% recovery rate. 
3.  As estimated by AJM Petroleum Consultants, effective February 1, 2011. A
    prospective resource is defined as those quantities of petroleum
    estimated, as of a given date, to be potentially recoverable from
    undiscovered accumulations by application of future development
    projects. Prospective resources have both an associated chance of
    discovery and a chance of development. Prospective resources are further
    subdivided in accordance with the level of certainty associated with
    recoverable estimates assuming their discovery and development and may
    be sub-classified based on project maturity. There is no certainty that
    any portion of the resources will be discovered. If discovered, there is
    no certainty that it will be commercially viable to produce any portion
    of the resources. 



On behalf of the Board of Directors

Bruce McIntyre, President & 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 nearly two 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
[e-mail].


Forward-looking Statements

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", "advance", "expect", "begin", "evaluate", "anticipate", "commence"
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; 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. 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.