NZOG increases Tui reserves

New Zealand Oil & Gas Ltd (NZOG), an independent public company listed on both the NZX and ASX, announces that the initial proved and probable (2P) reserves for the Tui Area Oil Fields have been further increased from 47 million to 50.1 million barrels, following a detailed field reassessment by the Operator.

New Zealand Oil & Gas Ltd’s share of the additional reserves is almost 400,000 barrels. Using current oil prices and exchange rates, this has a gross value to NZOG of around NZ$70 million.

This latest increase is consistent with the strong field performance since commencement of production on 30 July 2007.

Total field production from that date until end of the financial year on 30 June is now forecast to be 14.2 million barrels.

Tui continues to perform above expectations with production so far this month averaging 42,500 barrels per day.

Production for the 2008/9 financial year is now forecast to be 9 million barrels.

NZOG’s share of production in 2008/09 is now forecast to be 1.13 million barrels, an increase of 370,000 barrels.