Bigger loss by NZ Pet.

Press, 7 August 1985, Page 36

Bigger loss by NZ Pet.

New Zealand Pelroleum Company, Ltd, incurred a loss of $530,000 in the 15 months to May 31, but it hopes to strike oil in 1986, according to its exploration manager, Mr Dan Brown. The company incurred a loss of $230,000 in the previous 12 months. Income from interest and dividends totalled $144,000 ($37,000 previously). Mr Brown said that like any exploration company, New Zealand Petroleum hoped to strike oil, and that it hoped that the Amoco programme came up with some good prospects. New Zealand Petroleum announced yesterday that it had reached an agreement under which Amoco New Zealand Exploration Company will take an interest in a Southland prospecting

licence. Mr Brown said that Amoco would be acquiring and processing 1000 km of seismic data. It would be starting almost immediately and the programme would not be completed until well into 1986. If Amoco considered that the area was worth drilling, it would take up an additional 30 per cent in the prospecting licence, giving it a holding of 60 per cent, he said. The Press Association reports that Amoco has the option to earn the additional 30 per cent interest in PPL 38074 by drilling two exploration wells before March, 1987. New Zealand Petroleum said it estimated the total cost of the seismic and drilling programme would be SNZ3O million if the entire earning programme contemplated by the farm-out agreement is completed.