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.