Ann: FLLYR: NZO: New Zealand Oil & Gas 2013 Annua

• Release Date: 27/08/13 10:57
• Summary: FLLYR: NZO: New Zealand Oil & Gas 2013 Annual Results
• Price Sensitive: No
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NZO
27/08/2013 08:57
FLLYR

REL: 0857 HRS New Zealand Oil and Gas Limited

FLLYR: NZO: New Zealand Oil & Gas 2013 Annual Results

Cashflows fund growing exploration portfolio

New Zealand Oil & Gas Limited today announced a fully imputed final dividend
of 3 cents per share.

The company today released financial results for the year to 30 June 2013.

Strong cash flows through the year funded increasing exploration and dividend
distributions.

Exploration and evaluation expenditure for the year was up strongly to
NZ$42.2 million, from NZ$9.5 million the previous year, as NZ Oil & Gas looks
to replace its producing Taranaki assets.

Net profit after tax for the year was NZ$25.9 million, up 30 per cent from
NZ$19.9m last year due to abnormal items.

Revenue, EBITDAX and underlying profit fell as the Tui oil field enters its
decline phase and because the Kupe gas and oil field was shut down for part
of the year for a planned maintenance outage.

Revenue for the year was NZ$99.3 million (NZ$116.4m last year). Earnings
before interest, tax, depreciation and amortisation, and exploration expenses
(EBITDAX) were NZ$67.8 million (NZ$70.5m last year).

Normalised after tax profits were NZ$16.7 million, compared to NZ$33.1
million the year before.

New Zealand Oil & Gas is in a sound financial position, with NZ$158 million
in cash on hand at balance date and no debt after the company repaid all
NZ$46.6 million of debt in the year (NZ$16.5 million last year).

The company says it's using its cash to fund more exploration and continue to
pay a dividend.

During the year an interim dividend of 3 cps was paid after the half-year
result. The final 3 cps dividend will be paid on 27 September to shareholders
on record at 13 September 2013.

PRODUCING ASSETS
The company's two producing assets, Kupe and Tui, delivered 1.0 million
barrels of oil equivalent. The average price achieved over the year for oil
and light oil was US$108.8 per barrel (1.1 mmboe produced in 2012 at an
average price of US$114.8 per barrel).

The Kupe field, in which NZ Oil & Gas holds a 15 per cent interest, produced
revenue of NZ$68.8 million for the company, down from NZ$74.3 million the
previous year, mainly due to planned maintenance outages.

The Tui field has entered its natural decline phase and earned NZ Oil & Gas
NZ$30.4 million in the full year from its 12.5 per cent share (NZ$42 million
in 2012).

The company also received a capital return of NZ$5.6 million from Pan Pacific
Petroleum.

EXPLORATION
The first overseas well the company has been involved in recently was drilled
during the financial year in the Kisaran Production Sharing Contract in
onshore Sumatra, Indonesia. While currently drilling is continuing at the
Parit Minyak-3 well, oil was recovered to the surface in PM-2 where further
testing is underway.

Preparations have advanced for drilling in offshore Taranaki, at Matuku in
September, then at Pateke and Oi (Tui) following Matuku, and at Kaheru in
early 2015.

Interests in four new exploration permits were acquired offshore from
Taranaki: Matuku, Takapou, and Taranga were acquired by farming in, and Waru
in the Government's 2012 New Zealand Block Offer, where the company also
picked up an onshore permit, Manaia. In offshore Canterbury New Zealand Oil &
Gas farmed into the Clipper permit.

Around a thousand square kilometres of seismic data was acquired: 595 km2 of
3D seismic at Takapou; 298 km2 of 3D seismic at Taranga; and 101 km2 of 3D
seismic at Kanuka.
NZ$6.2 million was expensed for the company's interest in the Kakapo permit
(PEP 51311), which was handed back to the Crown in July. In February the
company announced its intention to withdraw from its Cosmos concession in
Tunisia resulting in NZ$8.8 million being expensed over the year.

John Pagani
External Relations Manager
M: +64 21 570 872
T: +64 4 471 833
End CA:00240218 For:NZO    Type:FLLYR      Time:2013-08-27 08:57:21