NZOG, which will have more than $50 million cash after the return of $63 million of capital from tomorrow, was scoping other companies which have been badly hit by plunging oil prices since the middle of last year.
"We have been for some time scanning the market looking at which companies have attractive assets that fit our portfolio well. Some of them we believe the pricing is right to make the investment, some of them we're waiting for other things to happen," said Knight, without specifying which were in NZOG's sights.
Hamilton Hindin Greene analyst James Smalley said the favourable exchange rate would open up more possibilities in Australia.
For the six months to December 31, NZOG reported a $10.5 million loss, after falling oil prices led to a $13 million write down on its Tui oil field.
This contrasted with a $4 million profit in the same period a year earlier.
Sales rose 5.2 per cent to $54.1 million, largely driven by its ownership of a larger stake in Tui, purchased in the past year, and stability in gas prices despite oil price falls.
Earnings before interest, tax, depreciation, amortisation and exploration expenses was $28.3 million, compared with $31.4 million in the previous comparable period.
Average oil prices earned by NZOG for the latest six months were $97.41 a barrel, down 28 per cent on the same period last year.
Knight said the soft oil prices were likely to continue for the next two years.
New Zealand Oil & Gas' share price was unchanged yesterday at 62c.
