A non-cash gain of $5.4 million on the distribution of Pan-Pacific shares helped put the company back in the black.

NZOG told the market that lower average oil prices of $NZ47 per barrel compared to $NZ65 bbl in the previous year saw sales revenue from the Ngatoro field drop 26% to $6.1 million.

NZOG also said that during the year it spent around $5.6 million on oil and gas exploration, which was funded by net operating cashflows of $5.2 million. It also received $1.4 million with a new issue of 72.2 million 2005 options.

The company's annual general meeting is scheduled for the 29 November and will be held at the Crown Plaza Hotel in Auckland.