New Zealand Energy Spuds Waitapu-1 Well, Hires Operations Manager

New Zealand Energy Corp. ("NZEC" or the "Company") (TSX VENTURE:NZ)(OTCQX:NZERF)
is pleased to announce that the Company has commenced drilling of the Waitapu-1
well, the first of an anticipated eight wells to be drilled by year-end 2012. In
addition, NZEC continues to expand its in-country team and has appointed James
Watchorn to the position of Operations Manager. 


On August 19, NZEC commenced drilling of the Waitapu-1 well at its Waitapu site,
approximately 1.3 km south of the Company's Copper Moki site. Waitapu-1 has a
target depth of 2,172 metres and is expected to drill through the Mt. Messenger
formation. NZEC is permitting a number of new drill pads as the Company advances
toward its objective of drilling eight conventional wells by year-end 2012 and
increasing production to 3,000 barrels of oil equivalent per day.


James Watchorn joined NZEC as Operations Manager on July 30, bringing more than
15 years of technical experience in oilfield operations to the Company. He is a
mechanical engineer experienced in all aspects of drilling, completions and
production, along with facility and wellsite construction. James has worked for
a number of oil and gas companies in both North America and New Zealand, most
recently as Senior Petroleum Engineer for Origin Energy and Production and
Facilities Manager for TAG Oil. As Operations Manager, James will focus on
upstream operations, working with NZEC's General Manager Upstream Operations to
design and execute the Company's exploration and production strategy.


On behalf of the Board of Directors

Bruce McIntyre, Executive 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 "continues", "expects", "continues", "increase", "advances", "will" 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.