The Wellington-headquartered company today said the decrease was mostly due to no net gains on petroleum exploration permit sales, US$215,033 of write-offs to oil and gas properties relating to permits, and US$11,153 of stock option compensation expenses.
Operating activities provided US$439,870 (US$1,489,926 in 2003), with increasing sales volumes of 7144 barrels (1340 barrels) and gas production revenues of US$109,809 (US$13,644) due to the Kahili gas-condensate field starting production last August.
General and administrative expenses decreased to US$941,358 (US$2,902,998) due to a decrease in litigation, settlement and insurance costs, and an increase in recovery of general and administrative expenses. These gains were partially offset by unrealised foreign exchange losses though.
Austral said its working capital (US$6,812,568) was sufficient to fund its obligations regarding ongoing work programs. However, it was insufficient for its total commitments (US$21,378,800) and Austral would be seeking to significantly reduce this commitment by further farmouts. Alternatively, Austral might seek further investor funds to meet its commitments.
Ongoing discussions, which might lead to project funding arrangements, were underway regarding several of the company's New Zealand, Papua New Guinea and Australian assets.
