New Zealand Oil and Gas has reported a half year loss, due to asset writedowns.
The energy explorer lost $10.5 million in the six months to December, compared with a net profit of $4 million, in the same period a year earlier.
The company said it wrote down the value of its Tui field by $13 million dollars, due to lower oil prices.
Revenue rose 5 percent to $54 million, driven by extra volumes from the explorer's larger share in the Tui field and the timing of shipments.
Lower oil prices have hit earnings, with New Zealand Oil and Gas saying sharp falls largely offset any volume gains.
But the chief executive of New Zealand Oil and Gas, Andrew Knight, said gas sales had not been affected in the same way and its business remains sound.
He said lower oil prices have resulted in buying opportunities, including its takeover bid for Cue Energy.
The company is pulling back on future exploration, returning two permits to the Government.
The company has no debt and $115 million in cash, but will return $63.2 million to shareholders on Friday.