Drilling costs drag down NZOG

The company says a substantial factor in the loss was the cost of drilling the Hochstetter prospect earlier this year.

The year to June result compares with a $1.436 million net profit last year. Sales revenue increased to $17.5 million against last year's $14.6 million.

Despite the deficit, the company says all three of its producing fields were profitable and cash positive during the year, with Ngatoro generating a $3.7 million profit after depreciation and amortisation.

Similarly the Western Australian fields of Tubbridgi and Chervil provided a $1.8 million dollar profit after depreciation and amortisation.

NZOG says a recently completed re-evaluation of seismic over the Ngatoro field is expected to lead to the drilling of an infill well this year, aimed at increasing reserves and production rates.

It says there is also further evaluation of the Tui and Hector prospects underway, and preliminary well planning has been carried out over the onshore Opito prospect.

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