New Zealand Oil and Gas says it hasn't ruled out investing more in Pike River Coal, despite its own shareholders raising concerns about the extent of the company's involvement in the coal miner.
The oil explorer is the largest shareholder in Pike River, with a near 30% stake.
It's also the miner's largest debt holder, after investing in $US29 million worth of bonds, and lending $25 million to the cash-strapped company.
Investors in New Zealand Oil and Gas labelled the company's performance last year as the most disappointing ever, after four exploration wells failed to produce anything.
However it was the company's near one-third share in Pike River Coal that raised the most concern among shareholders .
Pike River's ambition to become a large scale producer has been plagued by a series of production delays and cost blow outs.
Last year, New Zealand Oil and Gas was forced to write down an $11.5 million loss in relation to its investment in Pike River.
At the company's annual meeting in Auckland on Thursday, investors questioned why the board continued to support the coal miner, and in particular the recent loan made to the company.
New Zealand Oil and Gas chairman Tony Radford told them that although Pike River hadn't been as successful as the board hoped, it has no intention of selling its stake, as it's still a good investment in the medium term.
Mr Radford says he can't rule out further investment in Pike River in the future.
Meanwhile, in addition to drilling more exploration wells in New Zealand over the next two years, New Zealand Oil and Gas says it's also working on what it called a number of active overseas investment opportunities, and hopes to announce the details of at least one in the next few months.
