KEY POINTS:
New Zealand Oil & Gas has posted a surge in full year net profit to $97.2 million on the back of production from the Tui oilfields off the Taranaki coast.
"This outstanding result was built on a combination of high oil prices and higher than expected production from Tui," NZOG said today.
The result for the year to the end of June compares with a figure of $6.8m the year before, restated for new accounting rules.
Revenue for the year rose to $234.1m from a restated $4.2m in the previous 12 months.
Earnings before interest, tax, depreciation, amortisation and royalties were $187.7m, with total revenue from Tui of $222.8m and a gain of $10.8m from the float of Pike River Coal.
Production from Tui started on July 30 last year, with total production for the financial year at 14.2m barrels, of which NZOG's share was 1.8 million barrels and the average net sales price just under US$100 ($144.44) a barrel, the company said.
NZOG achieved project "payback" - recovery of all exploration and development costs for the Tui Area Oil Project - by December, just 4-1/2 months from production start-up.
The company's cash balance had risen to $285m from $256m at June 30, and it was well positioned to pursue new investment opportunities.
NZOG chairman Tony Radford said the company had been systematically screening opportunities, in this country and overseas, and looked forward to bringing the best of those into its portfolio, starting in the current financial year.
A fully imputed dividend of 5 cents per shares was to be paid, on top of 5cps paid in April, NZOG said.
Also important to NZOG's near and medium-term future was the progress made on the Kupe gas project, which at year end was 80 per cent complete.
Preliminary analysis of three development wells off the Taranaki coast confirmed that the wells and the reservoir had met expectations, NZOG said.
The Kupe project, in which NZOG has a 15 per cent interest, is due to commence commercial production in mid 2009.
In July 2007, NZOG also sponsored the public float of Pike River Coal, which is developing a West Coast coal mine, as a separate company listed on the NZX and ASX. NZOG retains a stake of just over 30 per cent in Pike.
NZOG shares closed at $1.62 yesterday, having ranged between $1.91 and 97c in the past year.
- NZPA
