NZ New Zealand Energy Corp

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 that it has met the finance condition precedent required
to acquire strategic upstream and midstream assets (the "Acquisition") from
Origin Energy Resources NZ (TAWN) Limited, a wholly-owned subsidiary of Origin
Energy Limited (ASX:ORG) (collectively "Origin"). The purchase price of
approximately $33.7 million comprises a $6 million deposit from NZEC, $7.9
million from Subscription Receipts, $1.5 million directly from NZEC, and $18.25
million from L&M Energy Limited ("L&M"). 


The assets are being acquired jointly by NZEC and L&M, and include the Tariki,
Waihapa and Ngaere Petroleum Mining Licenses totaling 23,049 acres in the main
Taranaki Basin production fairway, as well as the Waihapa Production Station and
associated gathering and sales infrastructure (collectively, "TWN Assets"). On
closing, NZEC and L&M will form a 50/50 joint venture to explore, develop and
operate the TWN Assets.


NZEC now awaits approval for the Acquisition from the New Zealand government,
which is the final condition for completion of the Acquisition. Completing the
Acquisition will transform NZEC into a fully integrated upstream/midstream
company, positioning NZEC for increased production and cash flow with the
infrastructure and drilling inventory to support long-term growth. 


Non-brokered Private Placement 

With financing of the Acquisition in place, the Company continues to fill orders
for the private placement announced on September 19, 2013 (the "Offering") with
the objective of raising up to an additional $7.1 million in general working
capital. To date the Company has closed $7.9 million and issued 23.8 million
subscription receipts (the "Subscription Receipts").


The balance of the Offering consists of up to 21.7 million Subscription Receipts
at a price of $0.33 per Subscription Receipt. The Subscription Receipts are
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. 


A director of NZEC subscribed for 3,030,303 Subscription Receipts in compliance
with Multilateral Instrument 61-101 ("MI 61-101"). NZEC relied on exemptions
from the formal valuation and minority approval requirements under MI 61-101
based on a determination that neither the fair market value of the Subscription
Receipts being issued to the related party, nor the consideration being received
for such Subscription Receipts, exceeds either $2.5 million or 25% of NZEC's
market capitalization. NZEC was not able to give prior notice of the
subscription as a result of the timing of the requirement to meet the financing
condition precedent to the Acquisition. The Offering was approved by all
directors of NZEC.


The funds will be held in escrow and released on closing of the Acquisition. If
the Company is unable to close the Acquisition, the funds held in escrow will be
returned to the subscribers, L&M and NZEC.


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 issuance of Subscription Receipts. 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 comprising 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 2.27 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 info@newzealandenergy.com.


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", "objective",
"continues" 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 ability of the Company to close the Offering; the ability of the
Company to close the Acquisition; the granting of regulatory approvals; the
timing for receipt of regulatory approvals; the ability of the Company to obtain
the necessary approvals to conclude the Acquisition on schedule, or at all; and
the ability of the Company to raise sufficient funds to execute its development
plans. 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 execute its development plans; 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


New Zealand Energy Corp.
Bruce McIntyre
Executive Director


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
info@newzealandenergy.com
www.newzealandenergy.com

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