VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/26/13 -- New Zealand Energy Corp. ("NZEC" or the "Company") (TSX VENTURE: NZ)(OTCQX: NZERF) is pleased to announce that the Company has received approval from New Zealand's Overseas Investment Office for the planned acquisition of the 49-hectare site upon which the Waihapa Production Station is situated.
As previously announced, NZEC has entered into an agreement with Origin Energy Resources NZ (TAWN) Limited ("Origin") to acquire the Waihapa Production Station and associated gathering and sales infrastructure as well as four petroleum licenses in the main Taranaki Basin production fairway (the "TAWN Assets"). The Waihapa Production Station is located on a portion of the 49-hectare site and surrounded by additional acreage.
The Overseas Investment Office assesses applications from overseas investors who wish to acquire non-urban land exceeding 5 hectares in area, to ensure that the investment is likely to provide substantial and identifiable benefits to New Zealand. The criteria for consent include assessment of benefits such as job opportunities and the introduction of new technology or business skills and additional investment.
Receiving approval from New Zealand's Overseas Investment Office is a significant step toward concluding the acquisition of Origin's TAWN Assets. Four additional conditions related to the acquisition must be met to close the transaction, and all are well advanced. NZEC has received conditional approval from the TSX Venture Exchange, and New Zealand Petroleum & Minerals has voiced its support for the transaction. Origin has recommissioned the TAWN LPG plant and the plant has been certified for operation. NZEC is working diligently to finalize agreements with Contact and Origin related to use of the Ahuroa gas storage facility and the Waihapa Production Station, and the Company expects to meet all conditions precedent and conclude the transaction in Q2-2013.
Concurrent with closing the transaction, NZEC is considering a number of options to increase its financial capacity including increasing cash flow from oil production, credit facilities, joint ventures, commercial arrangements or other financing alternatives.
NZEC's objective is to increase production and cash flow while reducing exploration expenses, and the Company believes that opportunities exist on the petroleum licenses to achieve this objective.
On behalf of the Board of Directors
John Proust, Chief Executive Officer and 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 pending permits) 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, and takes a multi-disciplinary approach to value creation with a track record of successful discoveries. 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 firstname.lastname@example.org.
This news release 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 "planned", "step toward", "must be met", "expects to", "is considering", "to increase", "increasing", "achieve", 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, including without limitation, the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas resources; uncertainties in both daily and long-term production rates and resulting cash flow; volatility in market prices for oil and natural gas; 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; the need to obtain various approvals before exploring and producing oil and natural gas resources; uncertainty regarding timing to close the acquisition of assets from Origin, or the Company's ability to close the transaction at all; the need to obtain additional consents and approval before exploring or developing the petroleum licenses; uncertainty in the timing of receipt of permits and the Company's ability to extend the permits if required; exploration hazards and risks inherent in oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; 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 as disclosed in documents released by NZEC as part of its continuous disclosure obligations.
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. NZEC 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 this news release should not be unduly relied upon. These statements speak only as of the date of this news release and NZEC does not undertake to update any forward-looking statements that are contained in this news release, except in accordance with applicable securities laws.
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.
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