NEW ZEALAND Energy Corporation (NZEC) has recorded a net loss of C$10 million for 2015, a net improvement on the C$84.1 million loss it recorded the year before.

Company revenue was down to C$4.9 million for the year, despite lower production costs, with the company recording C$5.8 million of impairments and non-cash charges of C$8.2 million.

NZEC production was down in 2015, falling from 72,938 barrels in 2014 to 42,012 barrels in 2015, which the company attributed to natural declines following flush production in 2014.

Oil sales of $2.7 million were realised in 2015, down from C$7.9 million the year before, though processing revenue was up – to C$2 million from C$1.5 million in 2014.

Non-cash charges of C$8.2 million contributed to the loss, with NZEC recording an impairment of C$1.67 million against the carrying value of its Copper Moki PMP asset.

NZEC also recorded a C$3.7 million impairment against the Alton exploration and evaluation CGU and another C$508,235 reflecting the relinquishment of the East Cape permit in May 2015.

NZEC had recorded C$77 million in impairments in 2014, of which C$37.1 million was attributable to the Eltham Exploration and Evaluation CGU – also contributing to that year’s non-cash charges of C$82.4 million.

Exploration opportunities in that permit are currently being assessed, as NZEC aims to integrate seismic data from the adjacent Kapuni licence into its database ahead of making a well decision this year.

NZEC’s move to start a water flood project in the Copper Moki pool in November, and replacement of the downhole pump in the Copper Moki 2 well in mid-December, saw production increase from 48 barrels of oil equivalent per day in November to 163 barrels per day for the last 10 days of December.

Since then, production has averaged 280 barrels of oil equivalent per day over the three months from January to March 2016.

In an announcement, NZEC chief executive Mike Adams said focused technical work and the innovative and efficient implementation of production enhancement activities had caused an improvement in its production performance.

“The results from the Copper-Moki pools have been particularly satisfying and the success of the low cost waterflood project is a highlight,” he said.

NZEC plans to renew its Tariki, Waihapa and Ngaere licences in 2016, pending approvals from New Zealand Petroleum and Minerals (NZP&M).

It will also seek out opportunities for low cost developments that do not require capital intensive works.