New Zealand Energy Corp. Files Second Quarter Financial Statements and Provides Operational Update

New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") is pleased to report the filing of its financial results for the six-month period ending June 30, 2026. A copy of the Company's financial statements, and management discussion and analysis for the period ending June 30, 2026, are available on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.newzealandenergy.com).

For the three months ending June 30, 2026, NZEC reported net income of $708,775, compared to a net loss of $1,635,593 in the corresponding period of 2025, on revenue of $2,160,454 (Q2 2025: $225,659). The Company ended the quarter with positive working capital of $1,446,232 and cash and cash equivalents of $2,055,176, following completion of a $3,500,000 private placement during the period.

Oil production for the quarter increased to 10,950 barrels (NZEC share), compared to 1,685 barrels in the corresponding period of 2025, reflecting higher production from the Waihapa-Ngaere fields and continued production from Copper Moki. Oil sales revenue rose to $1,802,492 on sales of 13,001 barrels, at an average realized price of $138.65 per barrel, compared to $119,678 on sales of 1,342 barrels at $89.25 per barrel in Q2 2025. During the quarter, the Company also successfully restarted and flow-tested the Tariki-5A and Tariki-1A wells using new well kick-off technology, producing approximately 120 MMSCF of gas and 1,600 barrels of condensate over 64 days of flow. Subsequent to quarter end, the Copper Moki-1 well was returned to production on July 4, 2026, at approximately 45 barrels of oil per day (gross).

NZEC continues to advance the Tariki gas storage business. Significant progress has been made with respect to commercialization, overall design parameters, and advancing geological interpretation. The 3D reprocessing and mapping of the reservoir will help further refine the gas-in-place numbers. The long-term production test at Tariki-1A and the very low pressure drop observed in the reservoir give the Company strong indications that more cushion gas may be present than previously thought.

NZEC plans to restart Tariki gas production in September 2026. The Company will undertake a workover to enhance the production capability of the Tariki-1A well, with gas and condensate production expected to exceed the approximately 3 mmcf/d (gross) the well averaged in May and June 2026. NZEC will also begin further flow testing of the Tariki-5A well with sand catcher equipment to better understand the well's potential long-term flow rates.

Debottlenecking of the production facilities continues, and extensive planning is underway in preparation for multiple workovers, well activities and production enhancements expected to occur in the fourth quarter of 2026.

Finally, the Company is participating in several applications for additional acreage onshore Taranaki, New Zealand.

The Company will provide further updates on these initiatives as they arise.

About New Zealand Energy Corp.

NZEC is a publicly listed energy company focused on the development of oil, gas, and gas-storage opportunities in New Zealand. The Company holds interests in multiple heritage assets and development-stage projects, including the Tariki Gas Storage Project in Taranaki. With a 50% ownership stake in the Waihapa production station, the Company can quickly tie in any near-term production and sell directly to market. For more information, please visit www.newzealandenergy.com.

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 Statements

This news release contains certain statements and information that constitute forward-looking statements and forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws, including National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). All statements in this release, other than statements of historical fact, are forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "potential", "continue", "may", "will", "should" or "could", or the negative of these terms or similar expressions. Forward-looking information in this release includes, but is not limited to, statements regarding: the anticipated commercialization, design parameters and further development of the Tariki gas storage project; the results of the 3D reprocessing and mapping of the reservoir and any resulting refinement of gas-in-place estimates; the presence and volume of cushion gas within the reservoir; the timing and results of the planned restart of Tariki gas production in September 2026; the timing, scope and results of the planned workover of, and anticipated gas and condensate production from, the Tariki-1A well; the timing and results of further flow testing of the Tariki-5A well; the timing, scope and results of debottlenecking of the production facilities and of planned workovers, well activities and production enhancements expected in the fourth quarter of 2026; and the outcome of the Company's applications for additional acreage onshore Taranaki, New Zealand.

This forward-looking information is based on certain material factors and assumptions, including, without limitation: the continued performance of the Company's existing wells and facilities consistent with past performance; the successful completion of planned workovers, flow tests and facility upgrades within the timelines anticipated; the accuracy of the Company's geological and engineering interpretation of the Tariki reservoir, including gas-in-place and cushion gas estimates; the availability of drilling, workover and other equipment, personnel and services on acceptable terms; and the receipt in a timely manner of any required regulatory, environmental and third-party approvals. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, without limitation: volatility in oil and natural gas prices and foreign exchange rates; the inherent uncertainties in estimating gas-in-place, cushion gas and other resource volumes, which are based on limited well control and reservoir data and may be revised as additional information becomes available; the risk that reservoir performance, including production and pressure-test results, may not be indicative of future performance; the ability to convert gas-in-place and other resource estimates into reserves or commercially recoverable volumes; drilling, completion, workover and facility risks; unanticipated operating events; delays in obtaining, or the inability to obtain, required regulatory, environmental or other third-party approvals, including in respect of acreage applications; the availability of capital, equipment and qualified personnel on acceptable terms; and other risks associated with oil and gas exploration, development, production and storage activities generally.

References in this release to "gas-in-place" and "cushion gas" are estimates of petroleum initially-in-place and are not, and should not be confused with, estimates of reserves or of contingent or prospective resources prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. There is no certainty that any portion of such volumes will be discovered, and if discovered, there is no certainty that it will be commercially viable to produce any portion of such resources. These estimates are internal, unaudited and preliminary, have not been evaluated by an independent qualified reserves evaluator, and remain subject to further technical evaluation and revision; actual volumes may vary materially from these estimates. Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Accordingly, readers should not place undue reliance on forward-looking statements. NZEC does not undertake any obligation to update forward-looking statements, except as required by applicable securities laws. This release is for information purposes only and does not constitute an offer or solicitation to buy or sell any securities.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312292