NZ Oil & Gas chalked up a $2.86 million half-year loss as it spent $41 million on three big development projects.
The loss compared to a surplus of $2.3 million the previous year and included a provision for writing off the $2.5 million costs of drilling the unsuccessfulTieke-1 exploration well.
Tieke-1 is suspended pending a possible move to a deeper target.
General manager Gordon Ward said yesterday the "small loss" was reflective of the company's transition from being largely an exploration operation to one moving to production.
NZOG's main projects are the offshore Tui oil and Kupe gas and light oil fields, and the Pike River coal field on the West Coast of the South Island.
"The first development to come into production will be Tui, with first oil due in just over three months' time," said executive chairman Tony Radford.
"This income stream will also utilise a significant portion of the company's accumulated tax losses."
The company raised $42 million during the half-year, with net tangible assets rising from 53c to 66c a share.
Meanwhile, NZOG said that McDouall Stuart was to be the lead manager for its long-delayed Pike River Coal float.
Documentation for the offer was to be lodged with the New Zealand and Australian exchanges in the next week. The amount to be sought and the target listing date have not been announced, however, Pike River is expected to cost nearly $175 million to develop.
