31 Jul 2012

NZOG has more than $200m cash holdings

1:58 pm on 31 July 2012

New Zealand Oil and Gas says its cash holdings exceed $200 million, helped by stronger demand for gas from Genesis during the last quarter.

The listed energy explorer sold $27.3 million worth of oil and gas from its Kupe and Tui fields in the three months to the end of June.

Earlier this month, the potential amount of oil and gas in Kupe's field was raised by 13%, lifting New Zealand Oil and Gas's income from the field.

New Zealand Oil and Gas chief executive Andrew Knight says it's been another solid performance from the Kupe field, in which it has a 15% stake.

Mr Knight says its production is declining at its Tui field, but it's still pumping out 5.5 barrels of oil a day.

The company, which is exploring in Tunisia and Indonesia to broaden its portfolio, now has $209 million in cash at the end of the quarter.

It reduced debt slightly and now owes its bank, Westpac, nearly $47 million, which it expects to repay in full by March 2015. The company's net cash position is $162 million.