NZOG numbers pegged by higher exploration costs

Maari oilfield off the coast of Taranaki. Photo / Supplied

New Zealand Oil & Gas has reported a full year net loss of $3.3 million, compared to a $53.2 million profit a year earlier, after exploration costs ate into earnings.

None of the four offshore Taranaki exploration wells in which the company participated during the past year had made commercial discoveries, NZOG said.

The bottom line for the year to June was affected by $30.7 million of exploration costs, unrealised exchange rate losses of $8 million, and an $11.5 million share in the loss of associate company Pike River Coal.

Revenue for the year fell 28 per cent to $99.4 million, while the normalised profit after tax was $13.8 million - adjusted for the foreign exchange and Pike losses- down from $54.5 million.

With good current and forecast cashflows from the Kupe and Tui developments in offshore Taranaki, and sufficient imputation credits available, a fully imputed dividend of 5c per share would be paid, NZOG said. The company was working on its strategy to develop new core areas, in addition to offshore Taranaki.

A range of potential offshore investments had been assessed, with most being rejected because the prize was too small, or the risk too great, NZOG said. "But, several overseas investment opportunities remain under consideration."

It reminded investors that exploration had high risks, but that the rewards of success could be "very large".

The NZOG share price closed unchanged on $1.19 last night.

- NZPA