The Wellington-headquartered company told the NZX this morning that the 2004 net loss resulted primarily from a US$5.3 million write-off of oil and gas properties (US$0.9 million in 2003), including a write-off of the onshore Taranaki Kahili gas-condensate field that was shut-in several months ago.
But Austral also reported an increase in total assets to US$17.9 million for the December 2004 year, compared to US$12.1 million for 2003; with cash and cash equivalents totalling US$11.2 million, compared to US$2.2 million in 2003. Total stockholders' equity increased to US$16 million from US$9.6 million.
“The company's security holders have continued to demonstrate confidence in the company by providing an additional US$4.5 million through the conversion of warrants and options in the fourth quarter 2004,” the NZX statement stated.
“The financial position of the company is strong and the going-forward plan is exciting. Management expects that 2005 will be a defining year... and there is every reason to expect that the [onshore Taranaki]Cardiff and Cheal properties will be independently confirmed as having significant hydrocarbons.”
Production testing has yet to start at the Cardiff-2 wellsite as Austral waits for testing and fraccing equipment to become available. Austral has said the Cardiff prospect, in PEP 38738, could contain 1tcf of more of deep gas (at the Eocene-aged Kapuni level).
In the same permit, the Cheal prospect, in which Austral holds a 36.5% interest, has produced over 20,000 barrels of oil so far this year.
Kahili was discovered in PEP 38736 in late 2002 and initial estimates of recoverable reserves ranged as high as 14 mmbbls of oil and 18 bcf of gas. But commercial production flows later faltered and Canadian independent petroleum engineering consultants Sproule International recently wrote net proved and probable reserves associated with the Kahili-1A/B well (which Austral also operates with a 45% interest) down to zero.
But the Sproule report did recognise a Kahili-2 well might establish new reserves higher on the structure.
Austral chief executive Dave Bennett is in Europe at present and could not be contacted for comment today. The company has interests in many New Zealand blocks, as well as some Australian and Papua New Guinea licences.
