New Zealand Energy Forms Joint Venture with L&M Energy to Explore and Operate TWN Licenses and Waihapa Production Station,

New Zealand Energy Forms Joint Venture with L&M Energy to Explore and Operate 
TWN Licenses and Waihapa Production Station, Secures $18.25
Million Toward Acquisition of Assets from Origin Energy 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/30/13 -- New
Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) ("NZEC" or the
"Company") has signed a binding Letter Agreement with L&M Energy
Limited ("LME") whereby LME will pay NZEC C$18.25 million to form a
50/50 joint venture ("TWN Joint Venture") to explore, develop and
operate the Tariki, Waihapa and Ngaere Petroleum Mining Licenses
("TWN Licenses"), the Waihapa Production Station and associated
pipelines and infrastructure. The parties intend to finalize the
definitive agreements shortly with the objective of closing the
transaction contemporaneously with closing of the acquisition of the
assets from Origin Energy Resources NZ (TAWN) Ltd. ("Origin") (the
"Waihapa Assets Acquisition"). NZEC will become the operator of the
TWN Licenses and the Waihapa Production Station. Decisions regarding
exploration, development and operations of the Waihapa Assets will be
made by management committees with equal representation from both
NZEC believes the Waihapa Assets Acquisition and TWN Joint Venture
will provide significant benefit to its shareholders, transforming
NZEC into a fully integrated upstream/midstream company with the cash
flow, infrastructure and inventory to support long-term growth.
Closing the two transactions will bring a number of near-term
catalysts and longer-term benefits to NZEC: 

--  Immediately increase NZEC's reserves by 150% with the addition of 1.07
    million boe of Proven plus Probable Reserves with a before tax net
    present value (10% discount) of $31.4 million(1) 
--  Immediate production and cash flow with reactivation of six existing
    Tikorangi wells using existing gas lift system, with subsequent
    production increases from installation of high volume lift 
--  Near-term production and cash flow growth potential with new Tikorangi
    wells and uphole Mt. Messenger completions in existing wells 
--  Access to exploration targets in deeper, high-impact prospects 
--  Large inventory of development opportunities across multiple horizons 
--  High-capacity full-cycle production facility central to NZEC's portfolio
    of exploration and development opportunities 
--  Optimization of NZEC's existing Taranaki exploration and production

"L&M Energy's $18.25 million investment is a significant show of
confidence in NZEC's exploration and development plans for the TWN
Licenses and Waihapa Production Station," said John Proust, Chief
Executive Officer and Director of NZEC. "LME has been exploring and
operating in New Zealand since 1969 and brings financial strength
combined with business and technical expertise to the joint venture.  
"With the $18.25 million purchase commitment from L&M Energy, NZEC is
continuing to pursue a number of strategic options to fund the
remaining $12 million required to close the acquisition of assets
from Origin and add to existing working capital," continued Mr.
Proust. "NZEC has developed an exploration and development program
for the TWN Licenses, to be funded 50% by L&M Energy as an equal
partner, which will bring both immediate value and long-term growth
to the Company. We look forward to closing the acquisition of assets
from Origin and executing our development strategy for the benefit of
our partners and shareholders."  
LME will pay NZEC $18.25 million, comprising half of the purchase
price for the Waihapa Assets plus half of NZEC's costs incurred to
date. Closing the TWN Joint Venture is subject to government and
regulatory approvals, obtaining the additional funding and the
closing of the Sale and Purchase Agreement with Origin, as announced
by NZEC on June 17, 2013. Once the conditions precedent have been met
and both the TWN Joint Venture and the Waihapa Assets Acquisition are
complete, NZEC and LME will each own 50% of the TWN Licenses
comprising 23,049 acres in the Taranaki Basin of New Zealand's North
Island. NZEC and LME will also each hold a 50% interest in the
Waihapa Production Station and associated oil and gas gathering and
sales pipelines and other infrastructure associated with the TWN
Licenses and the Waihapa Production Station.  
"I have been watching this transaction unfold with interest," said
Geoff Loudon, owner of LME. "I have long believed that the TWN
Licenses and infrastructure hold great potential, both from an
exploration perspective and with the strategic marketing and business
opportunities presented by the Waihapa Production Station. I look
forward to unlocking the value of these assets in partnership with

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 2.25 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 or by emailing 
About L&M Energy and Geoff Loudon 
Mr. Loudon is a New Zealand based international investor with family
roots going back to the Hokitika, NZ gold fields in 1875. He was the
former Chairman of L&M Energy (ASX, NZX) and completed a NZ$48
million takeover bid for LME in January 2013 through his privately
owned company, New Dawn Energy Limited. L&M Energy holds a number of
petroleum exploration permits on the North and South Islands of New
Zealand, including a 35% interest in NZEC's Alton Permit. Mr. Loudon
is Chairman of Nautilus Minerals Inc. (TSX), a Canadian based seabed
minerals exploration company; a founding director from 1995 to 2010
of Lihir Gold Limited (ASX, TSX, NASDAQ), a PNG gold miner; and a
founder and investor in Peru Copper Inc. (TSX, AMEX). He is a mining
professional with qualifications in geology, engineering and
international finance and is a Fellow of the Australasian Institute
of Mining & Metallurgy (AIMM), a Member of the Canadian Institute of
Mining (CIM) and a Member of the American Institute of Mining
Engineers (AIME).  
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", "intend", "objective", "become",
"transforming", "potential", "continuing", "pursue", "subject to",
"look forward", "unlocking" 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: business strategy, strength and focus; the granting of
regulatory approvals; the timing for receipt of regulatory approvals;
geological and engineering estimates relating to the resource
potential of the properties; the estimated quantity and quality of
the Company's oil and natural gas resources; supply and demand for
oil and natural gas and the Company's ability to market crude oil,
natural gas and; expectations regarding the ability to raise capital
and to continually add to reserves and resources through acquisitions
and development; the Company's ability to obtain qualified staff and
equipment in a timely and cost-efficient manner; the ability of the
Company to obtain the necessary approvals and secure the necessary
financing to conclude the acquisition of assets from Origin on
schedule, or at all; the ability of the Company to obtain the
necessary approvals to conclude the TWN Joint Venture on schedule, or
at all; the ability of the Company's subsidiaries to obtain mining
permits and access rights in respect of land and resource and
environmental consents; the recoverability of the Company's crude
oil, natural gas reserves and resources; and future capital
expenditures to be made by the Company. 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, such as the speculative nature of exploration, appraisal
and development of oil and natural gas properties; uncertainties
associated with estimating oil and natural gas resources; 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; operating hazards and risks inherent
in oil and natural gas operations; volatility in market prices for
oil and natural gas; 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.  
Readers are cautioned that the foregoing list of factors is not
exhaustive. Statements relating to "reserves and resources" are
deemed to be forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the
resources described can be profitably produced in the future. 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. 
Cautionary Note Regarding Reserve and Resource Estimates 
The oil and gas reserve and resource calculations and net present
value projections were estimated in accordance with the Canadian Oil
and Gas Evaluation Handbook ("COGEH") and National Instrument 51-101
("NI 51-101"). The term barrels of oil equivalent ("boe") may be
misleading, particularly if used in isolation. A boe conversion ratio
of six Mcf: one bbl was used by NZEC. This conversion ratio is based
on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the
wellhead. Reserves are estimated remaining quantities of oil and
natural gas and related substances anticipated to be recoverable from
known accumulations, as of a given date, based on: the analysis of
drilling, geological, geophysical, and engineering data; the use of
established technology; and specified economic conditions, which are
generally accepted as being reasonable. Reserves are classified
according to the degree of certainty associated with the estimates.
Proved Reserves are those reserves that can be estimated with a high
degree of certainty to be recoverable. It is likely that the actual
remaining quantities recovered will exceed the estimated proved
reserves. Probable Reserves are those additional reserves that are
less certain to be recovered than proved reserves. It is equally
likely that the actual remaining quantities recovered will be greater
or less than the sum of the estimated proved plus probable reserves.
Revenue projections presented are based in part on forecasts of
market prices, current exchange rates, inflation, market demand and
government policy which are subject to uncertainties and may in
future differ materially from the forecasts above. Present values of
future net revenues do not necessarily represent the fair market
value of the reserves evaluated. 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. These
statements are based on current expectations that involve a number of
risks and uncertainties, which could cause the actual results to
differ from those anticipated. Contingent resources are those
quantities of oil and gas estimated on a given date to be potentially
recoverable from known accumulations using established technology or
technology under development, but which are not currently considered
to be commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters, or a lack of
markets. Prospective resources are those quantities of oil and gas
estimated on a given date to be potentially recoverable from
undiscovered accumulations. The resources reported are estimates only
and there is no certainty that any portion of the reported resources
will be discovered and that, if discovered, it will be economically
viable or technically feasible to produce. 

(1)       Reserves estimated by Deloitte LLP with an effective date of April
          30, 2013. See NZEC press release dated June 17, 2013 and          
          Cautionary Note Regarding Reserve and Resource Estimates.         

New Zealand Energy Contacts
North American toll-free: 1-855-630-8997
John Proust - Chief Executive Officer & Director
Bruce McIntyre - Executive Director
Rhylin Bailie - Vice President Communications
& Investor Relations 
New Zealand: 64-6-757-4470
Chris Bush - New Zealand Country Manager