NZ Oil & Gas turns in first-half profit

Improved revenue from the Tui and Kupe oil fields helped to lift NZOG profit. Photo / Supplied

New Zealand Oil & Gas turned in a first-half profit on reduced impairments from the failed Pike River Coal venture and improved revenue from the Kupe and Tui oil fields.

Net profit was $2.3 million in the six months ended December 31, from a loss of $99 million a year earlier, when the company took Pike-related impairments of $98.6 million.

Sales rose 35 per cent to $54.6 million, just below the $55.5 million estimate from brokerage Forsyth Barr.

NZOG took a further $22.2 million impairment against the value of its remaining Pike River debt, reflecting "the ongoing cost of the receivership, the highly conditional nature of further receipts and uncertainty regarding timing," it said yesterday.

The Kupe field is NZOG's biggest cash generator, contributing $37.1 million in sales and $14.4 million in earnings before interest and tax in the first half. The Tui field, where reserves are in decline, had sales of $17.5 million and ebit of $9.4 million.

NZOG has a 15 per cent interest in Kupe and its share of production was 1.45 petajoules of gas, 6300 tonnes of LPG and 139,000 barrels of light oil in the first half. Tui, which is 12.5 per cent owned, provided NZOG with 148,000 barrels of oil, it said.

The company is looking to build its energy reserves, and is currently in the hunt for a joint-venture partner for its Kakapo prospect in the southern offshore Taranaki basin.

It is also looking for another partner for the Barque joint venture in the offshore Canterbury Basin.

Both these permits have "drill or drop" deadlines this year.

In Tunisia's Gulf of Gabes the company completed a 2D seismic survey this month.

NZOG shares closed up 1c at 74.5c. BusinessDesk