Ann: HALFYR: NZO: 3 cent interim dividend in HY13

• Release Date: 01/03/13 17:21
• Summary: HALFYR: NZO: 3 cent interim dividend in HY13
• Price Sensitive: No
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NZO
01/03/2013 15:21
HALFYR

REL: 1521 HRS New Zealand Oil and Gas Limited

HALFYR: NZO: 3 cent interim dividend in HY13

Shareholders in New Zealand Oil & Gas will receive a fully imputed interim
dividend of 3 cents per share.

With its producing assets continuing to perform as expected, the company
today announced net profit after tax of $7.7 million for the six months to 31
December 2012, up from $1.7 million in the corresponding previous six month
period. [All figures in NZD].

A trading halt was requested on Thursday because NZOG recognised that
decisions relating to expensing its Cosmos assets produced a result
materially different to expectations.

The company's two producing assets, Kupe and Tui, contributed net operating
cashflows of $25.2 million for the six months, compared to net operating
cashflows of $26.5 million in the prior year.

The $6.0 million increase in net profit after tax is largely a result of
changes in two net finance cost items: The prior period included impairment
losses relating to Pike River Coal Limited, while the strengthening New
Zealand dollar resulted in a fall in the value of USD holdings.

The company has also fully expensed its investment in the Cosmos South
development plan in Tunisia. NZOG's assessment of the current development
plan for the project does not meet the company's investment criteria and on
that basis NZOG would not proceed.

Earnings before interest, tax, depreciation, amortisation and exploration
(EBITDAX) were $27.9 million ($33.0 million in the comparable six months to
December 2011.)

New Zealand Oil & Gas ended the period with a net cash position at 31
December of $171.0 million.

The half-year result was achieved despite a scheduled maintenance shutdown at
the Kupe production facility in October, which reduced revenue for the period
to $47.9 million ($54.6 million in the six months to 31 December 2011.)
Revenue reductions were largely offset by savings in amortisation, which is
based on the Kupe field's production profile.

The company has decided to move to paying its dividend in interim and final
stages.

Shareholders at 15 March 2013 will receive a fully imputed interim dividend
of 3 cents per share, which will be paid on 5 April 2013.

Shareholders can reinvest dividends free of brokerage charges through the
company's dividend reinvestment programme, but a discount previously offered
through the plan will no longer be applied.

Operating Performance
New Zealand Oil & Gas has a 15 per cent interest in the Kupe gas and oil
field. Kupe contributed $31.2 million in revenue in the six month period. The
company's share of Kupe production for the period was 1.3 PJ of sales gas;
5,323 tonnes of LPG; and 112,976 barrels of light oil.

The Tui area oil fields contributed revenue of $16.6 million in the six month
period for the 12.5 per cent stake held by New Zealand Oil & Gas. The
company's share of Tui production for the period was just over 114,000
barrels of oil.

Portfolio development
During the half year, New Zealand Oil & Gas significantly stepped up
activity.

It acquired interests in four new offshore Taranaki permits - one through the
Government's 2012 Block Offer, and three in a deal with Octanex NL.
Exploration drilling in one of those, the Matuku prospect offshore from
Taranaki, will begin in the coming drill season. New Zealand Oil & Gas also
acquired an onshore Taranaki prospect in the Block Offer.

In October New Zealand Oil & Gas farmed out the Kaheru permit it operates,
where drilling will also begin in the coming 2013-14 drill season.

Drilling has begun in the Kisaran Production Sharing Contract in onshore
Sumatra, Indonesia, where NZOG has a 22.5% interest.

For further information please contact:
John Pagani, External Relations Manager, D: +64 4 471 8333 M: +64 21 570 872
End CA:00233669 For:NZO    Type:HALFYR     Time:2013-03-01 15:21:51