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2011 NZOG Annual Report 2009

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2 3 5 6 7 8 9 10 12 13 48 49 53 57

Chairman’s Review CEO’s Review Reserves and Production Directors Declaration Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cashflow Notes to the Financial Statements Audit Report Corporate Governance Statement Shareholder Information Corporate Directory

NZOG Annual Report 2011

Chairman’s Review
During the year ended 30 June 2011 the company faced a very challenging time in dealing with the adverse flow-on impact of its investments in Pike River Coal Ltd (PRCL), whose mine near Greymouth suffered from explosions and a tragic loss of lives in November 2010. However, despite the resultant losses on NZOG’s investments in PRCL, which have been provided for in the financial statements, NZOG still ended the year in a very sound financial position and having an expanded outlook overall for its oil and gas operations. sands. There is potential for a sizeable discovery. NZOG holds a 90% interest in PEP 51311 but is amenable to farming down its equity to around 50%. As an adjunct to these and other New Zealand activities, which still form the core of NZOG’s operations, the company has now acquired interests overseas, through the award of a prospecting permit in offshore Tunisia and a joint study area in onshore Indonesia (Sumatra). In Tunisia the Diodore permit encompasses the Alyane prospect over which it is intended to acquire new seismic data before the end of calendar 2011. NZOG was successful in obtaining this area 100% and will look to have a partner join it ahead of drilling this very interesting prospect.

Management
The recruitment process to select a new chief executive for NZOG is well under way, following David Salisbury’s

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