New Zealand Energy Corp has gained a six-week extension in its vexed efforts to complete the purchase of gas production assets from Origin Energy.

The exchange it will add an extra $Can1 million ($A1.06m) to the $Can5m non-refundable deposit it has already made.

The Vancouver-based company announced to the Toronto Stock Exchange that Origin had agreed to extend the deadline for meeting finance conditions from Wednesday to September 30, and the government approval deadline from September 13 to October 14.

The extension comes amid reports that company executives have been scrambling to find backers for a further $Can12m required to complete the deal and boost working capital after a partial solution to its funding problems emerged on August 1.

That announcement saw serial oil and minerals investor Geoff Loudon’s L&M Energy commit $NZ18.25m to create a 50/50 joint venture between NZEC and L&M to run the so-called TWN assets and the Waihapa production station.

TWN refers to the Tariki, Waihapa and Ngaere gas fields, onshore Taranaki, which NZEC first committed to buy from Origin in June last year for $Can42.5m.

A restructured deal, announced in June this year, saw the price drop $Can9m, removed the Ahuroa licence area from the original purchase, and saw NZEC become operator of Contact Energy’s Ahuroa gas storage facility.

NZEC’s troubles stem from depleting working capital while pursuing a string of missed production targets, leaving it around $Can17m short when trying to complete its deal with Origin Energy to buy the TWN assets.

NZEC listed on the Toronto Stock Exchange in August 2011, raising just over $Can21.9m in its initial public offering.

The company raised almost $Can63.5m in March 2012, though its market capitalisation has tumbled over the past 12 months, with its shares falling from a peak of $Can3.19 to as low as 32 Canadian cents, wiping about $Can350m off the value of the company.