NZOG takes $5m uplift for historical royalties

Andrew Knight, New Zealand Oil & Gas Chief Executive
New Zealand Oil & Gas 12-month price history (NZX.com)

New Zealand Oil & Gas [NZX: NZO] has completed protracted negotiations over historic royalties owed by Genesis Energy on its share of the Kupe oil and gas field's production, giving the company a one-off $5 million after tax lift to earnings in the current financial year and an expected increase in ongoing revenue of between $1 million and $2 million a year.

The company continues to negotiate the over-riding royalty issue with Origin Energy, the other major stakeholder in Kupe.

The royalties issue originated from transactions in the 1980's, when National Petroleum acquired 89 percent of the Kupe permit and agreed to pay over-riding royalties to the parties it acquired the licence interest from.

"Complex corporate reorganisations and transfers since have affected tolse arrangements," said NZOG in a statement to the NZX.

Meanwhile, Austrian oil and gas producer OMV has lodged an application under the new legislation governing activity in New Zealand's offshore Exclusive Economic Zone, to continue drilling up to seven wells in the Maari permit.

While drilling currently under way was covered by transitional provisions in the EEZ Act, those ceased on June 28 and requires a consent to continue drilling beyond that date.

Its marine consent application is now open for public submissions.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6638 0.0001 0.02%
AUD 0.9358 0.0001 0.01%
EUR 0.5964 0.0008 0.13%
GBP 0.4572 -0.0003 -0.07%
HKD 5.1689 -0.0019 -0.04%
JPY 77.9340 0.3010 0.39%

Commods

Commodity Price Change Time
Gold Index 1157.7 17.750 2016-02-05T00:
Oil Brent 34.8 1.070 2016-02-05T00:
Oil Nymex 30.8 -0.810 2016-02-05T00:
Silver Index 14.8 -0.070 2016-02-05T00:

Indices

Symbol Open High Last %
NZX 50 6137.7 6153.8 6137.7 0.26%
NASDAQ 4491.5 4493.2 4509.6 -3.25%
DAX 9375.3 9469.7 9393.4 -1.14%
DJI 16418.0 16423.6 16416.6 -1.29%
FTSE 5898.8 5945.9 5898.8 -0.86%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16620.9 17099.0 16819.6 1.10%