N.Z. Oil and Gas earns $936,414 for half

Press, 19 February 1983, Page 18

N.Z. Oil and Gas earns $936,414 for half

PA Wellington New Zealand Oil and Gas recorded a net profit of $936,414 for the six months to the end of December, the company said in a statement yesterday. Comparative figures for the previous year — the company's first of operation — were not provided. Group profit before extraordinary items was $1,047,631 with a zero tax deduction. The group net profit was arrived at after preliminary expenses of $111,217 were written off. Group outside revenue of $1,730,287 arose from interest earned on invested funds. Maturing short term funds

surplus to current requirements are being invested for longer periods to maximise income return from investments, the company said. The company added that although there was a notional liability for taxation of $80,630 at December 31. it was expected that the liability would not exist at the annual balance date. June 30. Preliminary and share issue expenses are being amortised over five years. Thirty per cent of the total preliminary and share issue expenses have been amortised at December 31, the company said. Direct costs of acquisition of petroleum tenements and exploration are capitalised.

In the event a licence area is subject of a commercial discovery, the exploration and development costs will be amortised over the anticipated life of the field. In cases where exploration work should demonstrate a licence area to be no longer prospective, costs in respect of such licence area will be written off in the period such decision is made. During the six months, exploration expenditure capitalised amounted to $505,640. After relinquishment of petroleum prospecting licence 38.110 total costs incurred in that licence of $171,574 have now been written off against current profits.