Higher exploration costs have hit New Zealand Oil and Gas' bottom line.
The energy explorer's underlying profit, which strips out foreign exchange losses, dropped 75% to $13.8 million.
The company spent more than $30 million on exploration during the year, but none of the four wells it drilled in offshore Taranaki - Albacore, Hoki, Tui Southwest, and Kahu - were commercially viable.
Revenue dropped 28% to $99 million, largely due to less income from its producing Tui well, near Taranaki.
However the nearby Kupe oil and gas well began producing in December and has since generated $31 million in sales revenue.
