Listed New Zealand Oil & Gas does not believe it can meet its growth objectives in New Zealand and is considering offshore acquisitions and exploration.
Chief executive David Salisbury told shareholders in Christchurch at the company's annual meeting yesterday NZOG was fortunate to be able to look ahead for several years, with its income stream from its stake in the Tui and Kupe fields underpinning its pursuit of growth opportunities.
NZOG had a year-end cash balance of $142 million.
NZOG shares remained steady around $1.30 after the announcement.
Mr Salisbury said the year had seen many successes, and some headline failures, leaving the year-end result a financial loss of $3.3 million.
"Unfortunately, our exploration efforts this year did not yield commercial success, but that is part of the risk we take as an oil and gas explorer and producer," he said.
Several potential offshore investments, including corporate deals, asset purchases and exploration acreage, were assessed during the year.
"Our very thorough screening process rejected most of these opportunities, generally because the prize was too small, or the risk too great.
"However, several overseas investment opportunities remain under active consideration and we remain hopeful of progressing one or more in the coming months," he said.
Two "scouts" for NZOG in Canada and the United Kingdom were looking at several opportunities, ranging from exploration, asset development, already producing fields and corporate acquisitions. A minority holder in Tui and Kupe, NZOG expects a further 2.6 million barrels of oil out of Tui, while Kupe remains its main revenue stream, with recently increased estimates in gas, LPG and light oil reserves.
Mr Salisbury noted NZOG has contributed a total of $85 million to development of West Coast specialist coking coal producer Pike River Coal, which it spun off and listed in May 2007.
NZOG remains its largest share and debt holder.
Its 29.4% stake in Pike was worth about $120 million and it had 17 million share options it could take up in 2011, he said.
NZOG, with 389 million shares in the market, is continuing with its buy-back announcement in September to purchase a total 8.5 million shares in small tranches over time.
