New Zealand Oil & Gas turned to a first-half
profit on reduced impairments from Pike River Coal 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 $99m a year earlier,
when the company took Pike-related impairments of $98.6m.
Sales rose 35 per cent to $54.6m.
NZOG
took a further $22.2m 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 on Wednesday.
NZOG had a 29.4 per cent stake in Pike River Coal, whose West Coast mine exploded in November 2010, killing 29 men.
The
Kupe field is NZOG's biggest cash generator, contributing $37.1m in
sales and $14.4m in earnings before interest and tax in the first half.
The Tui field, where reserves are in decline, had sales of $17.5m and
EBIT of $9.4m.
NZOG has a 15 per cent interest in Kupe and its
share of production was 1.45 petajoules of gas, 6,300 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 seeking 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.
In Tunisia, the
company has completed a 2D seismic survey of its prospecting area of
1,236 square kilometres in the Mediterranean's southern Gulf of Gabes,
which is surrounded by producing oil and gas fields. The data is still
being processed.
The company also has several study agreements and an exploration permit in Indonesia.
NZN