NZOG March quarter revenue $58.2m

By NZPA

Tuesday 29th April 2008

New Zealand Oil & Gas has reported March quarter revenue of $58.2 million, lifting revenue for the nine months to $153.7 million, including revenue of $141.8 million from the Tui oil field.

The company said today that the Tui field, in which it owns a 12.5% stake, was continuing to produce at a rate well above pre-production modelling predictions.

Total production for the quarter was over four million barrels, taking production since start-up to 10.46 million barrels -- NZOG's share over 1.3 million barrels.

NZOG is rewarding its long-suffering shareholders with their first dividend in a decade, a 5 cents a share dividend announced previously.

The dividend, which will be fully imputed, was only the second in the company's 27-year history.

The directors said the dividend "recognises an extremely successful period and provides shareholders with an immediate share of that success".

Other companies involved in Tui are AWE New Zealand Pty with 20%, New Zealand Overseas Petroleum Pty with 22.5%, Mitsui E & P New Zealand with 35% and Pan Pacific Petroleum, with 10%.

NZOG also said today that the Kupe Project had made significant progress and was now over two-thirds complete. Two of the three development wells had reached their final depths by the end of the quarter and the nearby Momoho prospect would be drilled once the development wells were completed.

The Kupe joint venture, in which NZOG owns a 15% stake, is planning to start drilling in May at Momoho, 6km south of the Kupe gas field and within the Kupe permit area, using the Ensco 107 drilling rig.

Momoho has the "right address" and if a commercial gas discovery it could be developed via the Kupe facilities, NZOG said.

NZOG also owns 15% of Momoho.

NZOG shares were down 5c by early afternoon today to $1.55, having traded between 93 cents and $1.64 in the last 12 months.

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