In the six months to 31 December 2016, New Zealand Oil & Gas (NZOG) booked half year revenue of NZ$29.3 million compared with $41.1 million a year earlier.
The firm incurred a net loss of $25.4 million during the period compared with NZ$45.2 million year-over-year.
The loss was primarily due to Cue's $7.7 million impairment of its Maari asset; a $2 million loss on Cue's sale of its loss-making Pine Mills field in the US; lower receipts from the Tui field due to production decline; production outages at Kupe and Maari; and $9.5 million of deferred tax assets related to Tui and Kupe.
The Wellington-based said the half year accounts does not include profits from the sale of its interest in the Kupe gas field, which was sold for $168 million, nor the disposal of its interest in the Tui oil field.
Since both transactions were completed 1 January 2017, the full year financials will give a more appropriate picture of the 2016-17 financial position.
During 1H, NZOG reduced corporate costs considerably compared to the previous year. Overheads were down by $2 million, exploration expenses were $4 million, down from $9.4, and capital spending on oil and gas assets was $3 million, down from $7.7 million.
Chairman Rodger Finlay said, “In the twelve months to 24 February 2017, as NZOG realized value from its assets and focused on reducing its overheads, its share price increased by 49.43%. This was one of the best share price performances last year among NZX companies with a market capitalization in excess of $150 million. In addition, shareholders received a fully imputed 4 cents per share dividend in October.”
“In New Zealand, we are participating in two potentially transformational deepwater prospects off the South Island, including the Barque prospect that we estimate could hold 11 Tcf of gas and 1.5 billion bbl of oil or gas condensate liquid. This prospect alone could transform the national economy if it is successfully drilled with partners to help share drilling costs,” added chief executive Andrew Jefferies.
Image: Map of Barque prospect / NZOG