30 Jan 2009

Revenue down at oil exploration company

12:30 pm on 30 January 2009

The low price of oil is crimping revenue at New Zealand Oil & Gas but the exploration company says it's in a strong position to take advantage of opportunities offered.

Operating revenue dropped by just over half in the December quarter, to $NZ30.9 million compared with the previous period.

New Zealand Oil & Gas says it still has no debt and is operating profitably despite dwindling oil prices, with cash reserves of $212 million.

Chief executive David Salisbury says the company is considering six potential projects, but with oil at $US80 per barrel in the December quarter, the company is making only a $US10 profit compared to $US45 in October.

He says the company expects annual revenue to decrease due to low oil prices.