New Zealand Energy Commences Production from Copper Moki-3

New Zealand Energy Corp. ("NZEC" or the "Company") (TSX VENTURE:NZ)(OTCQX:NZERF)
is pleased to provide an update on production activities on its 100%-owned
Eltham Permit in the Taranaki Basin of New Zealand's North Island. 


Highlights



--  Copper Moki gas pipeline is complete and tied in to Waihapa Production
    Station 
--  Eight-well drill program to commence in early August 
--  Copper Moki-3 is producing approximately 242 barrels of oil per day
    ("bbl/d") and 135 thousand cubic feet of natural gas per day(1)
    ("mcf/d") 
--  Average production in June from Copper Moki-1 and Copper Moki-2 was
    approximately 688 barrels of oil equivalent per day (391 bbl/d and 1,784
    mcf/d) 



Copper Moki Production Update

Copper Moki-1 and Copper Moki-2 continue to flow from natural reservoir
pressure, with a total of more than 132,000 barrels of oil produced to date.
Copper Moki-3 flowed 7,456 barrels of oil and 4,765 mcf of natural gas1 during
production testing and commenced continuous production on July 2, 2012. The well
is producing from natural reservoir pressure out of the Mt. Messenger formation
at an average rate of 242 bbl/d and 135 mcf/d1 through a 20/64 inch choke. 


NZEC's natural gas pipeline is complete and tied in to the Waihapa Production
Station. The operator is finalizing arrangements to receive the gas and NZEC
expects to begin generating cash flow from its natural gas production in July. 


NZEC has completed a production test of Copper Moki-4, the Company's first
Urenui formation well. The well produces 29 degrees API oil which has a higher
temperature pour point than Mt. Messenger oil. The well is shut in while NZEC
completes the well test analyses and economic evaluation of artificial lift
systems required to make a production decision for Copper Moki-4. 


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 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 "commence", "finalizing", "expects" 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 the Petroleum Licenses; 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.   


(1) Natural gas and associated liquids will be flared until the well can be tied
in to NZEC's natural gas pipeline.