New Zealand Energy Corp. provide an operational update on production and exploration activities on its 100%-owned Eltham Permit in the Taranaki Basin of New Zealand's North Island.

Highlights

• Current production is 1,000 barrels of oil per day ("bbl/d") from the Mt. Messenger formation, with an additional 341 barrels of oil equivalent per day ("boe/d") of natural gas plus associated liquids to be tied in by the end of Q2-20121 • Management reiterates guidance of 3,000 boe/d production by year end • Copper Moki-1 well ("CM-1") has produced more than 62,000 barrels of oil to date • Copper Moki-2 well ("CM-2") is currently producing ~700 bbl/d and ~850 thousand cubic feet of natural gas per day ("mcf/d")1 • Copper Moki-3 well ("CM-3") encountered 12 metres of net pay in the Mt. Messenger formation and 15 metres of net pay in the Moki formation; NZEC plans to complete and flow test both formations • Copper Moki-4 ("CM-4") has been drilled to target depth of 2,125 metres • 100 km2 3D seismic survey underway across the Eltham and Alton permits

Tags: New Zealand Energy Corp.