NZOG holds its cash

18:37, Jan 30 2013

New Zealand Oil & Gas needs to retain its cash balance of more than $200 million to pay for possible exploration and field developments in coming years, and won't dip into it to pay a higher dividend.

The company yesterday reported operating revenue of $18.3 million for the December quarter, down from just over $25m in the December quarter of 2011.

Chief executive Andrew Knight said the company was maintaining a "significant cash reserve" while it looked at investment opportunities in Indonesia and Tunisia, as well as lifting activity in New Zealand.

It signalled it was likely to pay an interim dividend, after last year paying a full- year dividend of 6 cents a share. That could be broken into two payments, but the board had yet to finalise the amount. Fairfax NZ

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