Maiden profit for Oil and Gas

Press, 20 September 1982, Page 22

Maiden profit for Oil and Gas

PA Wellington New Zealand Oil and Gas. Ltd. has made a maiden profit of $1,894,092 on its investment in short term securities for the year to June 30.

The oil exploration company plans to use its investment income to lund exploration activity. N.Z.O.G. paid no tax. as spending on oil exploration is deductable from assessable income.

Extraordinary items included $222,437 preliminary and share issue expenses written off. and sundry income of $5OOO. Net profit after extraordinaries is $1,676,655. Group outside revenue (interest) was $2,384,920. The directors said that preliminary and share issue expenses will be amortised

over live years. Direct costs of acquisition of petroleum tenements and exploration are capitalised. If a licence area became a commercial discovery, exploration and development costs would be amortised over the anticipated life of the field. If a licence area was no longer considered prospective. costs would be written off "in the period such decision is made." A summarised balance sheet shows net current assets at $18,405,000 or 37c a share. Petroleum tenements and exploration expenditure is $6,430,000 or 13c a share. Fixed assets and resource investments are $952,000, or 2c a share, and intangible assets $890,000. or 1c a share. Total shareholders' funds come to $26,677,000. or 53c a share.