CANADA based New Zealand Energy Corporation (NZEC) will carry out low cost development activities on the Tariki, Waihapa and Ngaere licences (TWN) as well as its Copper Moki concession in Taranaki basin across the rest of 2015.

NZEC holds operating 50 per cent stakes in Petroleum Mining Licences 38138, 38140 and 38141, known as the TWN licences, as well as a 65% stake in PEP 51151, known as the Alton permit, all in a joint venture with L&M Energy.

All of the company’s assets, including the wholly owned Copper Moki permit, PMP 55491, and the Eltham permit, PMP 51150, are located in the Taranaki basin.

In its second quarter results, NZEC said the company had been aiming to reduce its costs and “right-size the business” in the first half, with lower cost developments planned for the remainder of the year.

“Focus will also be given to opportunities for development of gas resources within the concessions,” the report said.

“The company will pursue opportunities to expand its financial capacity to enable it to undertake operations required to further exploit the permits and licences it holds, with the objective of increasing petroleum production.”

“The company’s ability to continue as a going concern is dependent on its ability to expand its financial capacity to the point where it is generating positive cash flow from operations,” NZEC said.

NZEC is also assessing exploration opportunities in the Eltham permit and has applied to regulator New Zealand Petroleum & Minerals to defer a commitment to drill an exploration well on the Alton permit to 22 November 2016.

The company recorded a loss of C$1.2 million for the second quarter of 2015, including non-cash charges of C$376,590 for depreciation and C$508,235 for an impairment following the offloading of NZEC’s East Cape permit in May.

This compared with a loss of C$10.2 million, including C$867,327 in depreciation and C$9,331,014 for an impairment in the second quarter of 2014.

NZEC’s total revenue for the quarter was C$1.2 million, down from the C$3 million recorded over the same period in 2014 on the back of lower processing revenues from Waihapa production station.

This was due to a one-off establishment fee of C$47,000 establishment fee for a third party gas transportation contract and turnaround fees of C$83,000 at the Ahuroa gas storage facility.

Sales of 11,049 barrels in the quarter was also lower, down on the 20,390 barrels sold the previous year, falling on the back of natural declines, the company said.