Taranaki best bet for driller

New Zealand Oil and Gas is pinning its hopes on a big oil find off Taranaki in the Tui and Opito prospects.

"The best chance for a really big leap forward will be a major new oil find in the Taranaki," chairman Tony Radford told the annual meeting.

"That is why we are very keen to drill the Tui and Opito prospects, where success could have a large impact on the company's fortunes during 2001."

He said NZOG and its wholly owned subsidiaries traded profitably during the September quarter.

"That situation continues, assisted by high oil prices."

By the end of this year, NZOG's liquid funds were likely to be around $12 million, a significant improvement after the failed Hochstetter well situation. Funds should be "more than enough" for foreseeable drilling costs next year.

In 2001, drilling and reservoir management was likely to enhance oil recoveries from the Ngatoro field and increase reserves, he said.

In July, NZOG reported a net loss for the year to June 30 of $10.75 million. The loss, which stemmed from exploration writeoffs, compared with a $1.44 million profit for the previous financial year. NZOG last traded at 29c.

- NZPA