NZOG reports $234.6m full year revenue

New Zealand Oil and Gas (NZOG) is reporting full year revenue of $234.6 million, up from $4.2 million the year before due to earnings from the Tui area oilfields off the Taranaki coast.

The company has a 12.5 percent holding in Tui, from which its revenue for the year to the end of June was $222.8m.

There was also a gain recognised form the successful float of Pike River Coal and some other small non-Tui revenue items.

Tui began production almost exactly a year ago, on July 30, 2007, and so far had produced more than 15.2 million barrels of oil, NZOG said.

Tui's initial proven and probable reserves were upgraded twice during the June quarter; first to 47 million barrels and then to 50.1 million barrels.

For the three months to the end of June, NZOG's revenue was $80.9m. Tui's expected production for the 2008/09 financial year had been upgraded from 6 to 9 million barrels of oil, of which NZOG's share would be 1.125 million barrels.

That would provide continuing strong revenue and cash flows ahead of commercial production starting in mid-2009 from the Kupe project, NZOG said.

A capital raising on the NZX this year completed during the June quarter, raised $190.8m. Along with the Tui revenue, that had contributed to a substantial cash balance.

Cash in hand at June 30 was $256.5m, and with further option payments received in July, the current cash balance was about $280m.

"NZOG is on a very sound financial footing and we are focused on maximising value from our existing assets, as well as identifying attractive new investments," chief executive David Salisbury said.

"This includes looking beyond New Zealand, as the opportunities currently available here are too few to confidently satisfy our growth targets."

NZOG's full financial statements for the 2007/08 financial year will be released at the end of August.

NZOG's share price was up 8c in early trade today to $1.61, having ranged between $1.91 and 97c in the past year.

- NZPA