corporate presentation newzealandenergy.com...

New Zealand Energy Corp.

Corporate Presentation December 2011

NewZealandEnergy.com TSX-V: NZ


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Forward-looking Statements

This presentation contains 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 “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “propose”, “should”, “believe” 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. The Corporation 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 the presentation should not be unduly relied upon. These statements speak only as of the date of the presentation. The presentation contains forward-looking statements pertaining to the following: business strategy, strength and focus; proposed expenditures under “Use of Proceeds”; the granting of regulatory approvals; the timing for receipt of regulatory approvals; the resource potential of the Properties; the estimated quantity and quality of the Corporation’s oil and natural gas resources; projections of market prices and costs and the related sensitivity of distributions; supply and demand for oil and natural gas; expectations regarding the ability to raise capital and to continually add to resources through acquisitions and development; treatment under governmental regulatory regimes and tax laws, and capital expenditure programs; expectations with respect to the Corporation’s future working capital position; capital expenditure programs; and abandonment and reclamation costs. With respect to forward-looking statements contained in the presentation, assumptions have been made regarding, among other things: future commodity prices; the Corporation’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the impact of any changes in New Zealand law; the regulatory framework governing royalties, taxes and environmental matters in New Zealand and any other jurisdictions in which the Corporation may conduct its business in the future; the ability of the Corporation's subsidiaries to obtain subsequent mining permits, access rights in respect of land and resource and environmental consents; the recoverability of the Corporation’s crude oil, natural gas and natural gas liquids resources; the applicability of technologies for recovery and production of the Corporation’s oil, natural gas and natural gas liquids resources; the Corporation’s future production levels; the Corporation’s ability to market crude oil, natural gas and natural gas liquids production; future development plans for the Corporation’s assets unfolding as currently envisioned; future capital expenditures to be made by the Corporation; future cash flows from production meeting the expectations stated herein; future sources of funding for the Corporation’s capital program; the Corporation’s future debt levels; geological and engineering estimates in respect of the Corporation’s resources; the geography of the areas in which the Corporation is exploring; the intentions of the Corporation’s board with respect to the executive compensation plans and corporate governance programs described herein; the impact of increasing competition on the Corporation; and the Corporation’s ability to obtain financing on acceptable terms, or at all. 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 presentation: 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 cots 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 Corporation 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 the other factors discussed under “Risk Factors”. Readers are cautioned that the foregoing lists of factors are not exhaustive. The material factors and assumptions used in developing the forward-looking statements are based on the assumptions contained in the Eltham Report, Castlepoint Report, Ranui Report and East Cape Report (as those terms are defined in the preliminary prospectus), including future commodity prices, costs and expected inflation, as well as the Corporation’s planned capital expenditure program, estimated drilling success rates and other prospects. Due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of the expenditures and other opportunities, which may become available to the Corporation. Accordingly, while the Corporation anticipates that it will have the ability to spend the funds available to it as stated in the presentation, there may be circumstances where, for sound business reasons, a reallocation of funds may be prudent. Statements relating to “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 presentation are expressly qualified by this cautionary statement. Except as required under applicable securities laws, the Corporation does not undertake or assume any obligation to publicly update or revise any forward-looking statements. None of the Corporation’s securities have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and the Corporation’s securities may not be offered or sold in the United States unless registered or exempt from such registration requirements. This presentation does not constitute an offer of securities in the United States or in any jurisdiction in which such an offer would be unlawful.


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NZEC Investor Highlights

• Developing and producing oil and natural gas • First discovery well commenced production in December 2011 • Producing 580 barrels of oil/day with US$90/barrel netback • Validated geological model exploration to repeat success

• Large conventional and unconventional prospective resource base3 • 194 million boe conventional • 478 million boe unconventional shales

• 5 permits4 covering 2 million acres • Low capital / high impact exploration model

• Multi-zone basins, oil focus in Brent pricing environment • Canadian leadership alongside New Zealand petroleum experts

1. American Petroleum Institute. 2. Thousand cubic feet. 3. AJM Petroleum Consultants Net Prospective Resource (best estimate). See Cautionary Note Regarding Resource Estimates. 4. East Cape permit pending Crown approval.

Resources Production Cashflow Reserves


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• ~$22 million net working capital (September 2011) • Insider group owns ~ 40% of the fully diluted shares

Current Capitalization

NZEC Copper Moki-1 Discovery Well

Current Shares Outstanding 100,609,105

Options (Exercisable at $1.00) Advisor Warrants (Exercisable at $1.00)

4,828,000 657,315

Fully Diluted Shares Outstanding 106,094,420


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Senior Management and Directors

John A. Greig Chairman, Director

(42 years experience)

Celeste Curran VP, Corporate &

Legal Affairs (23 years experience)

Ian Brown Chief Operating

Officer (30 years experience)

D. Kenneth Truscott Director


Hamish J. Campbell Director


John G. Proust CEO, Director


Bruce G. McIntyre President, Director


Cliff Butchko VP, Engineering


Jeff Redmond Chief Financial

Officer (15 years experience)

Eileen Au Corporate Secretary


Rhylin Bailie VP, Communications & Investor Relations


• 3 Geologists • 1 Geophysicist • 2 Logistics Staff • 1 Office Manager

• Bringing WCSB expertise, technology and past success to New Zealand • New Zealand technical team with 26+ years experience providing

consulting services to explorers and producers, involved with most of the major reserve accumulations

http://en.wikipedia.org/wiki/File:Flag_of_New_Zealand.svg


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Why New Zealand?

• Proven hydrocarbon systems with multi-zone potential

• Favorable royalty and tax structure

• Brent pricing environment • Proactive Government

approach to oil and natural gas exploration and development

• Established infrastructure with capacity Taranaki Basin

East Coast Basin


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NZEC Asset Summary

Taranaki Basin • Proven producing basin

with conventional focus • 2 permits covering

152,066 net acres • First well producing 580

barrels of oil per day • Drilling two delineation

wells in near-term, multiple targets for 2012

• Over 33 prospects with 66.6 million barrels prospective resource2

• 730 million barrels OOIP3

East Coast Basin • World-class resource

potential in multiple shales

• 1.8 million net acres • 2 permits issued,

1 permit pending • 478 million barrels

unconventional prospective resource4

• 22.3 billion barrels OOIP1

Copper Moki-1 discovery well

1. See August 24, 2011 press release on www.newzealandenergy.com. 2. Net Prospective Resource as identified by AJM Petroleum Consultants (best estimate) assuming 9% recovery. 3. Net Undiscovered Petroleum Initially in Place (OOIP) as identified by AJM Petroleum Consultants. 4. Net Prospective Resource as identified by AJM Petroleum Consultants (best estimate) assuming 2% recovery.


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Taranaki Basin Oil and Gas Fields

• Taranaki Basin producing 55,000 bbl/day crude oil and 460 million cf/day natural gas from 18 fields

• NZEC exploration / production model 1. Identify prospects using proprietary

database and technical expertise 2. Offset known production and reserves 3. Explore multi-zone potential at minimal

incremental cost

• Mt. Messenger established as core production formation with Copper Moki-1 discovery well, 3+ additional formations identified

Gas Field Ultimate (Remaining) Reserves

~18,000 boe/d production surrounding NZEC permits

Alton Eltham

Oil Field Ultimate (Remaining) Reserves


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NZEC Taranaki Seismic Database

Taranaki Basin Focus Area Seismic Coverage

NZEC Seismic Database • Map depicts NZEC’s in-house database of 2D and

3D seismic covering Eltham, Alton, Cheal, Sidewinder and offsetting pools

• NZEC in-country technical team has organized, reprocessed and interpreted select seismic data

• Additional 2D and 3D planned for 2012 • Extensive database allows NZEC to quickly

evaluate prospects and opportunities

Taranaki Basin (West Coast) Seismic Coverage • 2D: 60,666 km • 3D: 5,702 km2

East Coast Basin Seismic Coverage • 2D: 14,535 km • 3D: 1,390 km2


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2011 Taranaki Activity

Sidewinder light oil and gas production

Alton Permit: 3D seismic survey in

2012 to confirm drilling targets

Copper Moki-1 oil and natural gas discovery, achieved production from Mt. Messenger in December 2011

Cheal area oil and gas production

TAG Oil NZEC

TAG embarking on 10-well development

drilling campaign

Next targets: • Copper Moki-2:

Mt. Messenger and Urenui formations

• Copper Moki-3: Mt. Messenger, Urenui and Moki formations

A

A’


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Copper Moki-1 Discovery

A A’ Seismic Cross Section Cheal - Copper Moki - Taranaki Thrust Fault Zone


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Copper Moki Area Exploration Strategy

• Mt. Messenger 3D seismically defined targets in yellow

• Deeper Moki Formation seismically defined targets in orange

• NZEC strategy is to locate wells that will test Mt. Messenger development targets with deeper exploration potential

• Red lines show CM-1 and tracks for CM-2 and CM-3


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Taranaki Basin Exploration Strategy

• First discovery well tested 1,100 barrels of oil and 855 mcf natural gas per day • Validated NZEC geological interpretation

• Clear plan for repeated success in Mt. Messenger formation • 3D seismic has defined 6 targets on trend • 2D seismic yields 12 targets refine with 3D • Up to 1 million barrel potential per well • >$60 netbacks

• Multi-zone targets de-risk exploration • Drill to highly probable targets defined by 3D • Drill deeper in same well to examine potential

of other zones low incremental capital


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Copper Moki Path to Production

Copper Moki-1 extended production test to gain insight into reservoir characteristics under constant operating conditions

Production from Copper Moki-1 in December 2011 = cash flow

• Repeat success of Copper Moki-1 • Drill Copper Moki-2 and Copper Moki-3 • Additional targets based on 3D seismic in 2012

NZEC Taranaki Prospects OOIP1 Prospective Resource (9% Recovery Factor)2

Greater Copper Moki Area 124.0 mmboe 10.7 mmboe Kapuni / Kupe Trend 86.7 mmboe 7.8 mmboe Waihapa / Rimu / Kauri Trend 350.0 mmboe 31.5 mmboe

Other NZEC Prospects 168.8 mmboe 16.6 mmboe

TOTAL 729.5 mmboe 66.6 mmboe

1. Net Undiscovered Petroleum Initially In Place (OOIP) as identified by AJM Petroleum Consultants 2. AJM Petroleum Consultants Net Prospective Resource (best estimate)


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East Coast Basin

• Over 300 known oil and gas seeps sourced back to two shale formations

• East Coast Basin shales analogous to North American producing shales

• Apache has joint ventured on offsetting permits

• NZEC has two granted permits and one pending permit covering more than 1.8 million acres

• Exposure to 22.3 billion bbl OOIP1

• 478 million boe of unconventional prospective resource2

• 126 million boe of conventional prospective resource2

1. Net Undiscovered Petroleum Initially In Place (OOIP) as identified by AJM Petroleum Consultants.

2. AJM Petroleum Consultants Net Prospective Resource (best estimate) assuming 2% recovery.


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East Coast Basin Shale Potential

Waipawa Whangai Bakken Lias

Basin / JurisdictionEast Coast / New

ZealandEast Coast / New

Zealand

Willesden / North Dakota &

SaskatchewanParis / Fran

Quartz Content (%) 40 - 80 40 - 80 40 - 60 26 - 58Carbonate Content (%) 5 - 40 5 - 40 10 - 20 n.a.Clay Content (%) Unknown Unknown 5 - 20 n.a.Depth (meters) 0 - 5,000 0 - 5,000 2,700 - 3,500 1,650 - 3,5Thickness (meters) 10 - 70 300 - 600 10 - 50 1 - 50Porosity (%) 3 - 8 3 - 8 4 - 12 4 - 10Permeability (microdarcies) 10 - 200 10 - 110 5 - 1,000 50 - 500Kerogen Type Type II Type II Type II Type IITOC (%) 3.0 - 12.0 0.2 - 1.7 1.0 - 21.0 1.0 - 12.0Vit Reflectance (R) 0.3 - 0.4 0.4 - 1.4 0.7 - 1.1 0.5 - 1.3

Tmax (Celsius) 430 - 445 420 - 445 420 - 450 445 - 450

Geologic Age Late PaleoceneLate Cretaceous /

PaleoceneUpper Devonian Jurassic

Source: AJM Petroleum Consultants 16

• NZEC has completed two core holes to evaluate the Waipawa shale, commencing Whangai evaluation in December 2011


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East Coast Basin – Ranui-1 Re-entry

Ranui-1 Well – Extend to Bottom of Whangai

Ranui-1 Well

• Drilled in 2008, encountered 200+ metres of prospective pay in Whangai shale

• NZEC will start to re-drill and core well in Q4-2011 • Identify shale characteristics to unlock production

potential

• Ranui Permit • 969.0 million boe unconventional OOIP1

• 22.5 million boe unconventional prospective resource2

1. Net Undiscovered Petroleum Initially In Place (OOIP) as identified by AJM Petroleum Consultants 2. AJM Petroleum Consultants Net Prospective Resource (best estimate) assuming 2% recovery


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East Coast Basin Value Drivers

• Advance technical understanding of shale targets • Q3-2011 – Completed two

stratigraphic wells on Castlepoint Permit, results pending

• Q4-2011 – Start to re-drill Ranui-1 well to collect data and evaluate full extent of shale formation

• 2012 – Shoot 50km of 2D seismic on Castlepoint Permit, reprocess existing data, determine Ranui-1 development plans

• Apply modern North American technology to unlock production potential


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Rapidly Executing on Corporate Milestones

2010 • NZEC founded April • Castlepoint Permit • East Cape Permit

Application • Eltham Permit

Application

2011 • $7M private placement @ $0.25 • Drilled and cased Copper Moki-1 • $5.3M private placement @ $0.75 • Ranui Permit, Eltham Permit • Acquired NZ technical team • Alton Permit • $21.9M IPO @ $1.00 • Trading on TSX-V • Drilled 2 strat wells in East Coast shales • Copper Moki-1 production

Aggressive and Efficient Strategy to Become Major Oil & Gas Player


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Near-term Value Drivers

• Copper Moki-1 Well (Mt. Messenger and Urenui formations) Extended production test Production in Q4-2011 = cash flow

• Copper Moki-2 Well (Mt. Messenger and Urenui formations)

• Copper Moki-3 Well (Mt. Messenger, Urenui and Moki formations)

• Re-drill Ranui-1 Well to evaluate shale opportunities

• Use in-country expertise to target strategic acquisition and exploration targets

• Use North American expertise to advance prospects to production


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Appendix


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2011 Taranaki Activity

1. See August 24, 2011 press release. 2. Net Undiscovered Petroleum Initially In Place (OOIP) as identified by AJM Petroleum Consultants. 3. AJM Petroleum Consultants Net Prospective Resource (best estimate). 4. BOE conversion rate of 6mcf:1bbl is based on energy conversion method and does not represent value equivalency at the wellhead.

TAG’s Sidewinder light oil & gas discovery • Sidewinder-1, 2, 3 & 4 flowed natural gas

with light oil • Total flow rate approx 5,065 boe4/day

(30.39 million cf natural gas/day

May 2011: NZEC acquires 50% Interest & Operatorship in Alton Permit • 59,600 net acres in Taranaki Basin • 380 million bbl net OOIP3

• 35 million bbl net prospective resource2 • 3D seismic survey to confirm 2012

drilling targets

Q3-2011: NZEC Copper Moki-1 Well • 48-hour test flowed 41.8 API oil at

consistent rate of 1,100 barrels/day and 855 mcf natural gas/day1

• Oil test volumes sold at premium to Brent

TAG’s Cheal Area oil & gas discoveries • Targeting multi-zone Miocene prospects • Discoveries in Urenui, Mt. Messenger

and Moki formations • Producing approx 850 boe4/day

Alton Permit

Eltham Permit

Near-term Plans – Copper Moki Area Copper Moki-1: Production in Q4-2011 • Copper Moki-2: Drill through Mt.

Messenger and Urenui formations • Copper Moki-3: Drill through Mt.

Messenger, Urenui and Moki formations

Rimu

Kauri

TAG’s 2011 Program • Six successful exploration wells • Embarking on 10-well development

drilling campaign

TAG Oil Ltd. New Zealand Energy Corp.


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Management

Name Expertise Experience

John G. Proust, C.Dir CEO

•Proven track record of building companies from grass roots to advanced development. Specializes in identifying undervalued assets on a global basis

•Chairman, CEO & Director, Southern Arc Minerals Inc. •Chairman, Canada Energy Partners Inc. • Executive Chairman, Superior Mining International Corp.

Bruce G. McIntyre, P.Geol.

President

•Professional petroleum geologist with over 30 years of proven exploration and development oriented value creation

•President, CEO Sebring Energy Inc. •President, CEO TriQuest Energy Corp. •President, CEO BXL Energy Ltd., • Exploration Manager Gascan Resources Ltd.

Ian R. Brown, DEng MIPENZ

Chief Operating Officer

•Professional geological engineer •Management of technical teams

•Director, Ian R Brown Associates Ltd since 1985 •Director, Hugh Green Energy Ltd •Consultant on many resource appraisal and development

projects in New Zealand

Cliff Butchko P.Eng, MBA (Hon)

VP Engineering

•Professional engineer with over 30 years experience evaluating and managing oil and gas resources

•President Omni Oil and Gas Inc. •Vice President Lexoil Inc. •Partner and Co-founder TIFF advisory group • Senior technical positions in several resource companies

Jeff Redmond, CA Chief Financial Officer

• Finance, mergers & acquisitions, and taxation •Public company reporting and assurance

• Former Director of Finance, acting CFO for Western Coal Corp •Controller for hi-tech publicly listed company •Auditor with KPMG LLP

Celeste M. Curran, B.A. (Hon), L.L.B.

VP Corporate & Legal Affairs

•Over 20 years of legal and negotiating experience specializing in major projects

•Vice President, Corporate & Legal Affairs, J. Proust & Associates • Lead counsel for City of Vancouver and City of Richmond for the

2010 Olympic and Paralympic Winter Games • Senior Solicitor, City of Vancouver

Rhylin Bailie, B.ES. VP Communications &

Investor Relations

•Nearly 16 years of experience in the resource industry, in both finance and investor relations

•Professional writer and editor

•Director Communications & Investor Relations, NovaGold Resources Inc.

• Supervisor Treasury Administration, Placer Dome Inc.


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Directors

Name Expertise Experience

John A. Greig, M.Sc., P.Geo

Chairman

• Founder and financier of numerous mining and oil and gas companies. Specializing in recognizing undervalued geological assets

• Founder, Director & Officer Sutton Resources, Cumberland Resources Ltd., Eurozinc Mining Corp., Crown Resources Corp.

John G. Proust, C.Dir. CEO

Director

•Proven track record of building companies from grass roots to advanced development. Specializes in identifying undervalued assets on a global basis

•Chairman, CEO & Director, Southern Arc Minerals Inc. •Chairman, Canada Energy Partners Inc. • Executive Chairman, Superior Mining International Corp.

Bruce G. McIntyre, P.Geol.

President, Director

•Professional petroleum geologist with over 30 years of proven exploration and development oriented value creation

•President, CEO Sebring Energy Inc. •President, CEO TriQuest Energy Corp. •President, CEO BXL Energy Ltd., • Exploration Manager Gascan Resources Ltd.

D. Kenneth Truscott Director

• Senior executive with over 30 years of corporate development and negotiation experience in the Canadian oil and gas industry

• Senior Vice President, Land & Business Development Crew Energy Inc.

• Founder, CEO Morpheus Energy Corp.

Hamish J. Campbell B.Sc. (Geology),

MAusIMM Director

•Professional geologist with 30 years of experience managing exploration programs, evaluation and assessment of joint ventures and acquisitions

•Director of a number of New Zealand limited liability mineral and petroleum companies

•Principal Indonesian mining service company • Executive Vice President, Southern Arc Minerals Inc.


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New Zealand Technical Team

Name Qualifications Expertise

Dr. Ian Brown D. Eng Chief Operating Officer; professional geological engineer

June Cahill B.Sc, B. Applied Econ. Acquisition, management, and analysis of complex geoscience data

Bill Leask B.Sc (Hons) M.Sc (Hons) Petroleum geology related to the East Coast and other New Zealand basins

Dr. Simon Ward B.Sc (Hons) Ph.D Petroleum geology related to the Taranaki and other New Zealand basins

Ian Calman B.Sc (Hons) Seismic data acquisition, processing, and interpretation

Sam Pryde B.Sc Post. Grad. Dip. Geological investigations in the East Coast basin area

Peter Wood B.E, B.Sc (Hons) M.Sc (Hons)

Management and development of computing resources for geoscience applications


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Exploration & Development Budget

$19.7 million exploration and development plan – Year 1 • Achieve commercial production from Copper Moki-1 well • Drill and evaluate 2 additional Taranaki wells • Re-drill, core and evaluate Ranui-1 well

Copper Moki-2CM-1 Completion Copper Moki-3

Talon-1 Ranui-1 5 Wells TotalQ3 Q4 Q1 Q2

Sept 30'11 Dec 31'11 Mar 31'12 Jun 30'12 Next 4 Q's

Eltham Permit 51150 5,050 1,550 - - 6,600

Alton Permit 51151 4,500 2,000 - - 6,500

Ranui Permit 38342 2,500 675 - - 3,175

Castlepoint Permit 52694 250 250 125 - 625

East Cape Permit 52976 - 150 140 - 290

Acquisition Opportunities - 2,500 - - 2,500

Corporate G&A 767 787 920 892 3,366

13,067 7,912 1,185 892 23,056

12 MONTH USE OF PROCEEDS ($000s)


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New Zealand Market for Oil • Significant net importer of oil

• Production of ~55,000 bbl/d exclusively from the Taranaki Basin

• Current demand is ~150,000 bbl/d • Premium pricing environment

• NZEC oil production sold at Brent • Premium to WTI

New Zealand Market for Gas • Demand and infrastructure supported 460 million cf/d of

production and sales within domestic marketplace in 2009 • Excess demand environment

• Methanex methanol production facility at 40% capacity, requires additional ~120 million cf/d for full capacity

New Zealand Market for Oil and Gas

Oil Infrastructure

Shell Operated Export Hub

Source: IEA


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Alton Permit Prospects

Talon-1 well drilled in Q3-2011 • Intersected 75 metres of good Manutahi reservoir but only minor

amounts of natural gas – well will not be completed

Refining 2D targets with 3D seismic survey to confirm 2012 exploration program

Alton Permit Working Interest 50% Net Permit Acreage 59,600 Resources – Recoverable(1) 34.6 million bbl Year 1 Planned Capex $6.5 million Target Depth 1,500-2,500 metres

Alton Key Prospects (2) Well Spud Target Fm. Net Resources Recoverable(1)

1) Horoi 2012 Mt Messenger/Urenui 9,435 2) Morea 2012 Mt Messenger/Urenui 6,701 3) Ohangai TBD Mt Messenger/Urenui 5,834 4) Makaria TBD Manutahi 824

(1)Resource estimates based on May 2011 AJM report P50 Best Estimate and represent prospective resources for each

lead that have not been adjusted for risk based on chance of discovery or chance of development. Figures shown as mstb.

(2)“Lead” is geologically based information which indicates potential for hydrocarbon bearing formations. Additional

technical information is required to confirm the lead prior to drilling a well.


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Eltham Permit Prospects

• Copper Moki-1 discovery well completed in August 2011, advancing toward Q4-2011 production

• Remainder of 2011 program includes • Advancing Copper Moki-1 into production • Drilling Copper Moki-2 and Copper Moki-3 • Acquiring and processing 50 km of 2D seismic data

Eltham Permit Working Interest Net Permit Acreage Resources - Recoverable (1)

Year 1 Planned Capex Target Depth

100% 92,467

32.1 million bbl $6.6 million

1,500 - 2,500 metres

Eltham Key Prospects(2) Well Spud Target Fm.

Resources - Recoverable(1)

1) Copper Moki Discovery 2011 Mt. Messenger / Moki 872 3) Ararata 2012 Moki 433 4) Inaha 2012 Kiore 12,770 5) Tangahoe 2012 Moki 6,914 6) Rawhitiroa TBD Mt. Messenger 2,832 7) Maata TBD Mt. Messenger 146 8) Karimoi TBD Moki 2,362 21 Additional Ancillary (2) Mt. Messenger / Moki 899

(1) Resource estimates based on March 2011 AJM report P50 Best Estimate and represent prospective resources for each lead that have not been adjusted for risk based on chance of discovery or chance of development. Figures shown as mstb.

(2) "Lead" is geologically based information which indicates potential for hydrocarbon bearing formations. Additional technical information is required to confirm the lead prior to drilling a well.


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Cautionary Note Regarding Resource Estimates

A prospective resource is defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.


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Contact New Zealand Energy Corp.

Vancouver Office Rhylin Bailie Vice President, Communications & Investor Relations Tel: + 604-601-2010 Toll-free: 1-855-601-2010 [email protected]

New Zealand Office Tel: + 64-4-471-1464 Toll-free: 0800-469-363 www.NewZealandEnergy.com

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