Ann: FLLYR: NZO: Annual Result and Dividend

• Release Date: 26/08/14 08:30
• Summary: FLLYR: NZO: Annual Result and Dividend
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					NZO
26/08/2014 08:30
FLLYR

REL: 0830 HRS New Zealand Oil and Gas Limited

FLLYR: NZO: Annual Result and Dividend

- Revenue up; operating cashflow up 62% to NZ$88 million
- Production up 26%
- NPAT NZ$10.1 million after exploration expenses and FX
- Cash of $135 million, no debt
- Dividend maintained at six cents per share for the full year
- Fully funded exploration program in prime acreage
- Successful oil intersection in the Pateke-4H well adds to Tui production

New Zealand Oil & Gas annual accounts show revenue for the financial year
ended 30 June 2014 was up 4.7 percent to NZ$104 million, reflecting a strong
operating performance from the company's key assets.

Cashflows from operations were up 62 per cent to $88 million for the
financial year.
Earnings before interest, tax, depreciation and amortisation, and exploration
expenses (EBITDAX) were up 12.4 per cent to NZ$76 million from NZ$68 million
last year.

Net profit after tax was NZ$10.1 million for the 2013-14 year, down from
NZ$26 million last year mainly because of a sharp increase in exploration
expenses and some FX losses on USD cash holdings.

The company will pay a final unimputed dividend of 3 cents per share,
bringing the total for the year to 6 cents per share. The final 3 cents per
share dividend will be paid on 26 September to shareholders on record at 12
September 2013.

Chief Executive Andrew Knight said, "Operational performance over the last
year has been excellent and this is reflected in the strong production and
operating cashflow results."

Production was up 26 per cent on a barrel of oil equivalent basis as a result
of a return to full production at Kupe following a planned maintenance outage
last year, and the company taking a larger stake in the producing Tui asset.
The company's share of the Tui asset from 12.5 percent to 27.5 percent
effective from 1 October 2013. The cost of the acquisition has already been
recovered from additional production and associated net operating earnings.

Further commercial success was achieved through the settlement of
negotiations with Genesis Energy regarding overriding royalty revenue from
Kupe. This delivered an additional NZ$7 million revenue for the year. The
settlement relates to 20 per cent of Genesis Energy's 31 per cent interest in
the Kupe asset. Negotiations with Origin Energy (relating to 10 per cent out
of its 50 per cent equity share) have reached an advanced stage, resulting in
the recognition of additional revenue.

During the year the company made a significant investment in exploration and
evaluation with an active programme of drilling and seismic surveys.
Exploration and evaluation investment was up 77 per cent, to NZ$75 million,
compared to NZ$42 million the previous year. Looking forward, exploration
expenditure is expected to be around US$35 million per year.

Two successful wells were drilled during the year at Pateke-4H and Kisaran in
Sumatra, Indonesia, adding to the future production profile for the company.
A further two wells were plugged and abandoned.

The Pateke-4H well intersected an oil-bearing reservoir adjacent to existing
operations at the Tui field. Pateke-4H has been suspended and planning is
underway to install subsea infrastructure and a tie-line back to the Tui
FPSO, Umuroa, with production expected in the current financial year.

New seismic surveys were completed in the Clipper and Galleon permits in the
Canterbury Basin, in the Waru and Matuku permits off Taranaki, and one
commenced at Bohorok in Sumatra, Indonesia. Processing and interpretation of
the resulting seismic data will continue into 2015.

A plan of development is being finalised for the Kisaran wells in onshore
Sumatra, Indonesia, with a final investment decision expected before the end
of 2014.

High grading of the exploration portfolio continued with the acquisition of
four new permits during the year, two in deep water through the New Zealand
2013 Block Offer and a further two in Indonesia. Permits were relinquished
during the year at Kanuka, Kakapo, onshore Manaia and Diodore in Tunisia.

"It is pleasing to see our commitment to New Zealand values along with our
knowledge and experience in the local petroleum industry is attracting
partners such as Woodside," Andrew Knight said.

"The company will continue to use its strong cash generation capability and
enduring community partnerships to deliver growth through exploration
investment while delivering value to shareholders."

John Pagani
External Relations Manager
+64 21 570 872
End CA:00254370 For:NZO    Type:FLLYR      Time:2014-08-26 08:30:34