New Zealand Energy Corp. (“NZEC” or the “Company”) (TSX VENTURE:NZ)(OTCQX:NZERF) today announced that the Company commenced oil production from two additional wells during March 2014. Workover activities on the TWN Licenses are on track as outlined in previous updates, with the expectation that two additional wells will further add to oil production during April.

“NZEC continues to focus on reducing costs while increasing production and cash flow,” said John Proust, Chief Executive Officer of NZEC. “We expect to report additional production increases in April, and continue to identify new low-cost opportunities on the TWN Licenses that could further add to production in the coming months.”

The Company also announced its 2013 year-end reserves, with Proved + Probable (2P) reserves estimated at 1.2 million barrels of oil (“bbl”) (1.6 million barrels of oil equivalent¹) with an after tax net present value, discounted at 10%, of $57.9 million.

“NZEC’s 2013 reserves estimate underscores the Company’s production potential,” said John Proust, NZEC’s Chief Executive Officer and Director. “NZEC’s Eltham Permit and TWN Licenses are estimated to hold 1.6 million boe of 2P reserves net to NZEC, valued at $57.9 million after the estimated costs to extract the reserves. In addition, the Company offers additional value through its interest in the Waihapa Production Station and other infrastructure, plus exploration upside from significant prospective resources identified on the Company’s property portfolio in both the Taranaki and East Coast basins.”

Highlights

Production

• Average daily production for March (including Waitapu-2 well): 233 bbl/d net to NZEC
• Waitapu-2 well: Recommenced Mt. Messenger oil production on March 6 (70 bbl/d net to NZEC)
• Waihapa-8 well: Reactivated Mt. Messenger oil production on March 29 (55 bbl/d net to NZEC, not included in March average daily production)
• Workover activities underway to prepare for additional oil production in April
  • Toko-2B well: Installing high-volume lift (ESP) to increase Tikorangi oil production
  • Waihapa-2 well: Installing artificial lift to commence Mt. Messenger oil production
• April production numbers are expected to include all existing wells plus all net production from Waihapa-8, Toko-2B (on ESP) and Waihapa-2

Reserves

• Proved + Probable reserves (2P) increased 145% compared to year-end 2012, following the acquisition of assets from Origin
• 2P reserves: 1,168,000 barrels of oil, 2.26 billion cubic feet of natural gas, 104,000 barrels of natural gas liquids, collectively 1,649,000 barrels of oil equivalent ¹
• Net present value of 2P reserves (after tax, 10% discount rate): $57,905,800

¹ Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. The boe conversion ratio of 6 Mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.