New Zealand Energy Awarded a 100% Interest in the East Cape Permit

New Zealand Energy Corp. (NZEC) has been awarded a 100% interest in the East Cape Permit in the Raukumara region of the East Coast Basin, on the northeast tip of New Zealand's North Island.

The East Coast Basin is considered highly prospective with significant resource potential from both conventional Miocene sands and unconventional oil shales, NZEC said in a statement.

According to the company, there are more than 300 onshore oil or natural gas seeps in the East Coast Basin. Many have been sourced to two oil shale packages that are rich in total organic carbon and locally naturally fractured: the Waipawa and Whangai shale formations.

The company's work program for the permit includes technical studies, reprocessing 145 km of 2D seismic and acquiring 40 km of new 2D seismic data, and drilling an exploration well by Q2-2016.

"With the backdrop of heightened interest in oil shales worldwide, NZEC now controls the largest exploration portfolio in New Zealand's East Coast Basin, with more than 2 million acres from which to explore and unlock the potential of these highly prospective oil shale packages," said John Proust, Chief Executive Officer of NZEC.

Additional plans for the East Coast Basin include drilling exploration wells on both the Castlepoint and Wairoa permits in 2014. The company will focus its exploration efforts on the East Cape, Castlepoint and Wairoa permits, and will make a decision regarding potential relinquishment of the Ranui Permit before year-end 2013.

The company said that is actively looking for a partner to participate in the funding, exploration and development of its East Coast Basin permits.

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