New Zealand Oil & Gas Ltd

NZOG is an independent, Wellington-based publicly traded oil/gas exploration & production company with a market capitalisation in excess of $300 million, dual listed on the New Zealand and Australian Stock Exchanges. NZOG has interests in the producing Tui Oilfield and the Kupe Gas/Condensate Field development and has an exciting portfolio of exploration prospects. NZOG have around 12,000 shareholders. Institutional shareholders hold approximately 17% of the company with individual shareholders holding the balance. NZOG has two key Oil & Gas assets and an exploration portfolio providing a solid and diversified platform for growth:

Tui Oil Fields Project:

NZOG has a 12.5% interest in the Tui oil fields project. The Tui oil fields commenced producing on 30 July 2007 from the Tui, Amokura and Pateke oil accumulations. The Tui oil fields project is the first stand-alone offshore oil development in New Zealand, and was fast-tracked into production (only 4 years from initial discovery to production phase). Production is via a Floating Production, Storage and Offloading vessel (FPSO) called the Umuroa, from four subsea completed wells. Total production up to 08 June 2008: 13.5 million barrels. 13.1 million barrels have been shipped. NZOG's share of production to date: approximately 1.7 million barrels.

Kupe Gas/Light Oil Condensate Project:

NZOG has a 15% interest in the Kupe gas/light oil condensate project. The Kupe Field was discovered by NZOG in 1986. The development decision for the development of the central field area (CFA) was made in June 2006. Recoverable proved and probable (2P) reserves in the CFA are estimated at 254 petajoules of sales gas, 14.7 million barrels of light oil/condensate and 1.1 million tonnes of LPG. The project schedule is for the field to be producing by mid-2009. With cost pressures driven by strong worldwide petroleum development, the June 2006 development budget of NZ$980 million is now expected to increase by around 10 percent. Development plans include an unmanned offshore platform with a production pipeline tied to onshore for processing and shipping of petroleum products.

Exploration Activities:

New Zealand Oil & Gas Ltd (NZOG) has existing exploration acreage in Taranaki and is actively looking for other opportunities. NZOG and its Kupe Project partners are planning to drill the Momoho prospect in 2Q 2008. This is one of several mapped prospects with potential significant hydrocarbon accumulations located adjacent to the Kupe Central Field Area. Any discoveries could potentially be developed via the existing Kupe facilities. There are also promising prospects adjacent to the Tui Area Oil Project. A 3D marine seismic survey set over the permit area is currently being remapped and is expected to better define leads such as Oi and Kahu. Drill-mature prospects could be drilled in a potential 2009 drilling campaign. In mid-2007 NZOG and its Tui area partners acquired offshore block PEP38499, which lies to the south of Tui. The permit contains numerous leads including Toke, Matuku and Kakapo. A 2D seismic survey has been shot and is currently being processed, which should be completed in 2Q 2008. Drill-mature prospects could be drilled in a potential 2009 drilling campaign.