31 Jul 2008

Tui oil boosts revenue for NZ Oil and Gas

12:32 pm on 31 July 2008

New Zealand Oil & Gas says high prices for oil from its Tui field have boosted its full year revenue to $234.6 million.

That compares to revenue of $4.2 million in the previous year.

Nearly all of that came from the Tui field, in which the company holds a 12.5% stake. The field has produced over 15 million barrels since June last year.

NZOG chief executive David Salisbury says it's picking next year's revenue will be lower, about $NZ250 million, because of declining production levels and a depreciating New Zealand dollar.

Mr Salisbury says the company made sales of about $890,000 a day in the June quarter.

It's calculated a 1 cent change in the New Zealand dollar is worth about $NZ12,000 a day. A $US1 movement in the price of a barrel of oil is worth $NZ5000 a day.