A “positive” small operating cashflow was achieved by New Zealand Energy Corporation (TSX-V: NZ) on its operations in the onshore Taranaki in 2017.
Wellington-based chairman James Willis said while the second half of the year was adversely affected by issues arising from equipment failures and unplanned maintenance.
Willis said 2017 was a year of consolidating changes made by the company (NZEC) in 2016 with a sustained increase in hydrocarbon production and managing costs, and increasing third party services and revenue.
“The results from early in 2018 are good, due to the positive results from the new pump and completion installed mid-February in the Copper Moki-1 well, which has been producing at an average of 160 boe/d (90% oil) since late February.
He said looking to later in 2018, the Waihapa/Ngaere joint venture has agreed, in principle, to proceed with the next phase of the Waihapa enhanced oil project — targeting installation in the second half of calendar 2018.
“This project, together with the existing production and revenue base, provide a sound basis to grow the business.”
Cash provided by operating activities was $C66,799, compared to 2016 when $C782,961 of cash was used in operations. The net loss for the 2017 year was $C4,536,800 compared with a loss for the previous year of $C5,225,884.
Included in the net loss was an impairment of $C1,591,776 (2016: $C2,955,857) mainly attributable to declines observed in the Copper Moki wells.
The company achieved average net daily production of 129 boe/day (87% oil) through 2017 compared to 219 boe/day (78% oil) in 2016.