Company president and chief executive Mike Cvetanovic said from Singapore that he was very disappointed Pacific Tiger could not establish a presence in New Zealand. PEP 38463 was "an exciting exploration area and contains excellent growth portfolio parameters".

However, Cvetanovic said the default of former partner GEL Exploration Ltd's drilling obligations last July put Pacific Tiger in a position of having to form a new drilling partnership or fund a high-risk wildcat well.

"After September 11, the realities of a changed world have precluded either. We have not ruled out a future re-entry into New Zealand's oil rich Taranaki basin. In fact, the company remains a welcome investor with the New Zealand government and takes away a wealth of knowledge and experience. This will allow us to make an informed decision on exploration opportunities at such time as world markets make it feasible,", said Cvetanovic.

The company was redoubling its focus on its Thailand portfolio, which continued to generate steady cash flow. Last June Pacific Tiger made two discoveries in its Wichian Buri licence in onshore Thailand. Pacific Tiger and joint venture partner Carnarvon Petroleum were finalising plans for a four-well program at Wichian Buri from this June, added Cvetanovic

Another New Zealand connection was also involved in the original Wichian Buri discovery last decade, through former Fletcher Challenge Energy subsidiary Petrocorp Exploration.