Net petroleum income was only US$52,110 for the calendar year - compared with the US$782,422 of 2002.

Company chief executive Dave Bennett said the sharp decline was a consequence of the Goldie-1 well - which Austral drilled on a sole risk basis within the Ngatoro mining licence PMP 38148 in early 2001 - being shut-in for several months due to litigation. That High Court action was settled during the year.

Several months later Austral-Pacific sold its 5% stake in the Ngatoro licence, along with rights to all petroleum produced from Ngatoro and Goldie, to Greymouth Petroleum for an undisclosed sum, as well as settling all outstanding claims between the two companies.

These actions resulted in an overall net income for the year of US$47,616. General administration expenses were US$656,216 (US$634,353 in 2002), while working capital remained unchanged at US$1.77 million.

Austral received US$5.2 million proceeds from its public share float in New Zealand immediately after the end of the 2003 year.

"The year 2003 was a one of transition as the company settled its litigation challenges, recapitalised and positioned itself for an exciting 2004 drilling program," Bennett added.