NEW ZEALAND Oil & Gas (NZOG) has reported a fall in revenues in the March quarter due to a lower oil price, as well as the timing of shipments at Tui and lower sales volumes.
NZOG operating revenue for the quarter was NZ$25.2 million, down on the NZ$30.3 million earned in the December quarter.
Revenues made from the sale of gas, liquified petroleum gas and light oil from the Kupe oil and gas field was NZ$13.1 million, up from the NZ$9.5 million recorded in the December quarter, but down from the NZ$15.9 million earned in the March quarter of 2015.
Production from Kupe, which is operated by 50 per cent owner Origin Energy but in which NZOG has a 15% stake, was higher in the March quarter due to a 28 day shutdown in the December quarter – with gas production 9% higher in March to 1.69 petajoules, while oil production was 6% lower at 205,200 barrels.
NZOG said it expected a recommendation on a second phase of development at the Kupe field would be made by Origin in the second quarter of 2016.
No shipments took place in the March quarter from the AWE-operated Tui oilfield, in which NZOG holds a 27.5% stake, with production also lower, in line with company expectations.
The company also has agreed a forward work program for work on the Clipper field in the Canterbury-Great South basin, of which it is operator with a 50% stake, with plans to drill by the first quarter of 2019.
Studies of NZOG’s Galleon field, also in the Canterbury-Great South basin, has identified new concepts which it is investigating for farm-in potential, the company added.
NZOG’s drilling of the Te Kiri well and Cue Energy Resources’ drilling of a well at Mahakam Hilir in Indonesia contributed to exploration costs of NZ$10.3 million for the quarter.
Cue Energy, which is 48.11% owned by NZOG, generated NZ$1.75 million in revenue from oil sales at the Maari field, in which it has a 5% stake.