New Era Energy Slams "Baseless" New Mexico Lawsuit Amid AI Pivot

MIDLAND, TX – December 29, 2025 – New Era Energy & Digital, Inc. (Nasdaq: NUAI) has issued a forceful rebuttal to a civil complaint filed by the State of New Mexico, labeling the lawsuit a "baseless and uninformed attack" on the company and its leadership. In a detailed statement, the Midland-based developer of digital infrastructure and power assets vowed to aggressively defend itself and its Chairman and CEO, E. Will Gray II, against what it calls "false allegations."

The company, which is navigating a significant strategic pivot from traditional energy assets to next-generation digital infrastructure, urged its investors to consider the context of the lawsuit, which it claims focuses on assets that are no longer central to its business model. The legal challenge from the New Mexico Attorney General and the New Mexico Oil Conservation Division comes at a pivotal moment for New Era as it consolidates its focus on the burgeoning AI and data center market.

The Disputed Wells: A Question of Materiality

At the core of New Era's defense is the argument that the assets targeted by the lawsuit are inconsequential to its current and future operations. The complaint references 87 specific oil wells, which the company describes as "immaterial to our current business."

According to the company's statement, these wells "no longer align with the Company’s business model," and a process to divest them was already underway before the lawsuit was filed. This move is part of a broader corporate strategy to shed legacy energy assets and concentrate resources on its high-growth digital infrastructure division.

This strategic shift was highlighted by a major transaction announced just days ago. On December 23, 2025, New Era entered into a binding agreement to acquire the remaining 50% ownership interest in Texas Critical Data Centers LLC (TCDC) from Sharon AI. This acquisition will bring the flagship 1+ gigawatt hyperscale data center development, located in Ector County, Texas, under New Era's single ownership. The company stated its primary focus is on advancing this Texas-based facility into its next phase of development, reinforcing its commitment to "driving value for our investors" through its digital business.

A Tale of Two Strategies: From Oil Wells to AI Hubs

New Era's response paints a picture of a company in transition, moving decisively away from the very assets the New Mexico lawsuit targets. While the legal complaint focuses on its past in oil and gas, New Era is casting its gaze firmly toward the future of digital power and computing.

The company's ambitions in the digital space are not limited to Texas. In its statement, New Era revealed it has also entered into a land option purchase agreement for approximately 3,500 acres in Lea County, New Mexico. This site is intended for the development of a massive, large-scale seven-gigawatt hyperscale AI data center campus. This planned investment in New Mexico stands in stark contrast to the allegations in the lawsuit, suggesting a long-term commitment to the state's economic future, albeit in a different sector.

The company used this planned project to underscore its role as a responsible corporate citizen in New Mexico. New Era stated that, through its operating entity Solis Partners, it has already contributed more than $10 million to the state through taxes and spending with local businesses since its inception. This dual narrative—divesting from old energy while investing heavily in new digital infrastructure—forms a critical pillar of the company's public defense.

Allegations of Factual Errors and Procedural Failures

Beyond arguing the irrelevance of the disputed wells, New Era launched a direct assault on the credibility of the lawsuit itself, claiming it "contains myriad factual errors and misstatements." The company expressed confidence that it will refute these allegations in detail as the legal process unfolds.

A significant point of contention for New Era is the alleged lack of communication from the plaintiffs before the complaint was filed. "The Attorney General and the New Mexico Oil Conservation Division made no attempt to contact us," the company stated. "Had the plaintiffs reached out to us, we would have answered their questions. They provided us with no opportunity to refute what we believe are inaccuracies and falsehoods contained in the Lawsuit."

Furthermore, New Era vehemently denied a key premise it claims is central to the state's legal theory. The company asserted that "Neither New Era, nor Chairman and CEO Will Gray, have ever been affiliated with Acacia Operating Company, LLC or Acacia Resources, LLC." It argues that this lack of affiliation renders a large portion of the lawsuit's narrative about supposed fraudulent "schemes" involving New Era and its CEO as "meaningless."

By highlighting these alleged procedural and factual failings, New Era seeks to undermine the foundation of the state's case and portray the legal action as misguided and poorly researched. The company made its position clear, stating, "we want to make crystal clear that we do not intend to allow any misrepresentations to stand unaddressed."

The statement concluded with a resolute message to stakeholders, affirming that New Era "will not be distracted by misguided attacks." The company emphasized its dedication to executing its business plans, particularly the continued development of its Ector County data center complex, and its overarching goal of delivering value to its investors. New Era has promised to provide further updates on its core business as it reaches key milestones in its transformation into a major operator of digital infrastructure.