In Q1-2012, the Company continued its development plans by drilling Copper Moki-2 and Copper Moki-3. In addition, the Company entered into an agreement to increase its interest by 15% within the Alton Permit and completed a bought deal financing for gross proceeds of $63.5 million during the first quarter through issuance of 21,160,000 common shares at a price of $3.00/share. During Q2-2012, the Company reached commercial production with Copper Moki-2, initiated testing of Copper Moki-3 and drilled Copper Moki-4. Copper Moki-3 produced and sold 7,456 barrels of oil during the start-up and testing phase and recorded recoveries of $759,280. During Q2-2012, the Company also entered into the Origin Agreement with Origin to acquire upstream and midstream assets for $42 million in cash, payable in the US$ equivalent of US$40.6 million applying a fixed C$/US$ exchange rate of 1.0349, and such other adjustments as may be required at closing. A $5 million deposit was paid with the remainder due on closing, which is anticipated to occur in Q2-2013. During Q3-2012, the Company reached commercial production with Copper Moki-3, and commenced drilling the first of eight wells planned in the Company's second Eltham/Alton drill program. During Q4-2012 the Company drilled a total of four exploration wells. The Waitapu-2 well reached commercial production towards the end of the quarter. The Waitapu-1 well was suspended pending further evaluation or potential sidetrack. As at the end of Q4-2012 the Company issued a reserve update based on reservoir and production data from the Copper Moki-1, Copper Moki-2, Copper Moki-3 and Waitapu-2 wells, resulting in a 151% increase to 2P reserves compared to year-end 2011. During Q4-2012 the Company also expanded its exploration portfolio by 230,673 net acres and entered into two strategic partnerships; the Company entered into an agreement with Westech to acquire 80% and assume operatorship of the Wairoa Permit in the East Coast Basin, and entered into a joint arrangement with NZOG to explore the Manaia Permit in the Taranaki Basin.
Since the Company's inception, general and administrative costs have been incurred to assist in establishing the operating structure, setting up offices in both Canada and New Zealand, securing key personnel and general business development.
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 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. 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 www.newzealandenergy.com or by emailing firstname.lastname@example.org.
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