New Zealand Oil & Gas Limited Annual Report 2020

We share this annual report at a time of unprecedented challenges.
The continued effects of the Covid-19 global health crisis are having a profound
impact on the way we live our lives, no matter where we call home. Most
importantly, many families are suffering through serious health and economic
consequences. Our industry has, of course, been uniquely affected by this crisis.
Energy producers throughout the world are dealing with the repercussions of
dramatic demand destruction that sent oil prices tumbling to below US$20 per
barrel in March. While prices have stabilised to a degree, producers are rethinking
their business plans and, in many cases, have been forced to make fundamental
changes to their operations as they cope with this new reality.

With this sobering backdrop, we are proud of the way our team has responded.
We were able to transition to a fully work-from-home operation with little
disruption. Our portfolio, which is weighted towards gas sold on fixed price
contracts, is well-insulated from the dramatic price swings that affected
many producers. Importantly, here in New Zealand, Kupe was recognised as an
essential service, so production continued uninterrupted. The company was well
prepared entering this crisis, both financially and operationally, so we remain on
solid footing despite the unprecedented turmoil.

The year also saw several tangible developments, including multiple reserve
upgrades. The highlight was the recently announced upgrade in Kupe reserves.
The reserves upgrade resulted from improved well performance following this
year's well perforation campaign, which our team pushed hard for, along with the
ongoing well compression project and a clearer picture of future development
opportunities. This year, Kupe will surpass the production forecast when its initial
development was first approved.

New Zealand Oil & Gas Annual Report 2020Our Cue subsidiary was also able to announce increased reserves from an
intervention programme at Sampang, in Indonesia, and contingent reserves
from a discovery at Paus Biru in the same tenement. Cue is targeting a Final
Investment Decision on the Paus Biru development later in the new fiscal year
and first gas in calendar year 2022.

Later this calendar year we expect to spud the Ironbark-1 exploration well off
Western Australia. This is an exciting opportunity for both New Zealand Oil & Gas
and Cue, as we work with world class partners to pursue a high-impact prospect
located adjacent to existing infrastructure. Regardless of the outcome, we hope
to find more opportunities to form strong partnerships like this in the future.

With the proposed scheme of arrangement having been voted down in 2019,
the board conducted a listening tour with certain of our larger shareholders.
We heard many consistent themes, including a desire to seek new investment
opportunities in Australia and New Zealand. With oil and gas producers cutting
capital expenditure budgets, tightening their geographical footprints, and faced
with a general shortage of available capital, we are optimistic that attractive
investment opportunities will present themselves. The team is hard at work
targeting new avenues for growth. Having increased our cash balance in FY20,
we are well positioned to act opportunistically.

In this annual report we present, for the first time, full Task Force on Climate
Related Financial Disclosures reporting that sets out the risks posed by climate
change and our response. I am proud of this work and the company’s broader
community contribution, as outlined in the sustainability section. It reflects
our ongoing commitment to being a constructive and reliable partner in the
communities in which we operate.

The board looks forward to the coming year, which promises many challenges
but also many exciting opportunities. We are confident that the company is well
positioned financially and has the right leadership to emerge from the current
crisis a stronger, more resilient company.

Samuel Kellner
Chairman

New Zealand Oil & Gas Annual Report 2020Production
and Reserves

Production

Production in 2019—20 was down moderately from
the previous year.

The main cause was the planned month-long
maintenance outage at Kupe, as well as a decline in well
performance that brought production below plateau.

Production was returned to capacity, 77 terajoules per
day, from early March following a successful wireline
campaign in February. During the wireline campaign all
three Kupe wells were logged with selective additional
perforations added.

A compression project has been approved. The pandemic
has caused delays to both onsite construction and global
logistical paths. Kupe first gas is now expected in the
second half of the 2021 calendar year.

Actual and Forecast 2P Production
millions of barrels of oil equivalent

Kupe

Maari

Oyong

Wortel

0.6

0.5

0.4

0.3

0.2

0.1

0.0

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

New Zealand Oil & Gas Annual Report 2020

Production
New Zealand Oil & Gas share (net)

Maari

Kupe

Sampang PSC

Some rounding. The New Zealand Oil & Gas interest in Maari and Sampang is held through Cue Energy. New Zealand Oil & Gas has a 50.04% interest in Cue.
Graphic shows Cue’s full interest.

201720182019120,000140,000160,000100,00080,00060,00040,00020,0000barrelsOilGasLPG1,8002,1002,4001,5001,2009006003000terajoulestonnes3,6004,2004,8003,0002,4001,8001,2006000152,201115,823130,2812017201820198981,0281,0222017201820193,1134,4033,9332017201820192,3501,507202093020204,05320201,2841,66220172018201945,84341,12246,32920172018201938,1213,0382020108,932202032,57720205,0213,207New Zealand Oil & Gas Annual Report 2020

Reserves
Upgrade

PROVED + PROBABLE (2P) RESERVES

Adjusted net 2P (proven and probable)
total reserves were increased by some
23% from 1.84 million barrels of oil
equivalent (mmboe) to 2.26 mmboe.

Following a review by the Kupe joint venture, developed reserves in the Kupe fields were
were materially upgraded.

Kupe 2P
Reserves
increased

23%

— Developed 2P reserves

increased 37%

— Undeveloped 2P reserves

increased 16%

Proved + Probable (2P) Reserves at 30 June 2020

Developed

Undeveloped

Total

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

4.05

17.83

0.55

0.12

0.55

0.93

5.86

25.77

0.00

0.16

0.00

1.33

0.00

9.91

43.60

0.55

0.29

0.55

2.26

Geographic area

New Zealand

Maari

Kupe

Indonesia

Sampang PSC

6.58

0.02

1.09

0.00

6.58

0.00

0.02

1.09

0.5

9
0
.
1

oe
b
m
m

0 .9 3
m m boe

1 .33
m mboe

1.09
mb o e
m

0.55

mmb

6
2 . 2
m m b

o e

As at evaluation date 30/06/2020. Some rounding. Includes 100 per cent of Cue’s interests
in Maari and Sampang. New Zealand Oil & Gas has a 50.04% interest in Cue. See statement Page 11.

Maari

Kupe

Sampang PSC

New Zealand Oil & Gas Annual Report 2020

PROVED (1P) RESERVES

1P (proven) total production adjusted
reserves associated with Kupe increased
by 61%, from 1.02 to 1.65 mmboe.

This reserve increase provides additional
volume from within the existing
development as well as from the planned
further development, including onshore
compression and future well(s).

Proved (1P) Reserves at 30 June 2020

Kupe 1P
Reserves

increased 61%

Developed

Undeveloped

Total

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

Gas
(PJ)

LPG
(kt)

Oil &
Condensate
(mmb)

Total
(mmboe)

2.40

10.55

0.24

0.08

0.24

0.56

4.84

21.29

0.00

0.13

0.00

1.09

0.00

7.24

31.84

0.24

0.21

0.24

1.65

Geographic area

New Zealand

Maari

Kupe

Indonesia

Sampang PSC

3.91

0.01

0.65

0.00

3.91

0.00

0.01

0.65

0.2
b

5
6
.
0

e
o
b
m
m

0.56
m bo
m

1 .09
m mboe

0.24 mmboe

0.6 5
m b o
m

1 . 6 5
m m b o e

As at evaluation date 30/06/2020. Some rounding. Includes 100 per cent of Cue’s interests
in Maari and Sampang. New Zealand Oil & Gas has a 50.04% interest in Cue. See statement Page 11.

Maari

Kupe

Sampang PSC

New Zealand Oil & Gas Annual Report 2020

Taranaki Basin

¬ Maari - Cue Energy 5%
¬ Kupe - New Zealand Oil & Gas 4%

Java

¬ Sampang PSC - Cue Energy 15%

New Plymouth

Madura Island

Wortel

Oyong

Jeruk

Sampang PSC

East Java

Maari

Kupe

Remaining Proven and Probable (2P) Oil & Gas Reserves as at 30 June 2020

Geographic area

Oil &
Condensate
(million barrels)

Natural Gas
(Petajoules)

LPG
(Kilotonnes)

Million
Barrels of Oil
Equivalent

r i

0.5 5 m m b o e

New Zealand

Maari

Kupe

Indonesia

Sampang PSC

Total

0.55

0.29

0.02

0.86

9.91

43.60

6.58

16.49

43.60

0.55

2.26

1.09

3.91

2.2

Kupe
6 m
mboe

1.0

Some rounding. Includes 100 per cent of Cue’s reserves. New Zealand Oil & Gas has a 50.04% interest in Cue.

Million barrels of oil equivalent have been calculated as the total oil equivalent of the oil, condensate/light oil, natural gas and LPG figures, using conversion
factors consistent with the Society of Petroleum Engineers (SPE) guidelines. Conversion factors used were: 163.40 terajoules of natural gas per barrel of oil;
8.15 barrels of oil equivalent per tonne of LPG.

New Zealand Oil & Gas Annual Report 2020

Reserves
Compliance
Statements

Oil and gas reserves,
and contingent
and prospective
resources, are
reported as at 30
June 2020 and
follow the SPE PRMS
Guidelines (2018).

The Kupe reserves estimate is based on approximately ten years of production data,
the results of the wireline intervention campaign conducted in 2H FY20, reprocessing
of seismic data, analytical and numerical analysis methods and deterministic reservoir
simulation models provided by the field operator, Beach Energy.

The Maari and Sampang reserves report is based on information provided by Cue Energy
Resources. Maari is assessed using deterministic well-by-well decline curve analysis.
The Sampang estimates are based on deterministic decline curve analysis.

For the conversion to equivalent units, standard industry factors have been used of 6Bcf
to 1mmboe, 1Bcf to 1.05PJ, 1 tonne of LPG to 8.15 boe and 1TJ of gas to 163.4 boe.

Proven (1P) reserves are estimated quantities of oil and gas which geological and
engineering data demonstrate with reasonable certainty (90% chance) to be recoverable
in future years from known reservoirs, under existing economic and operating conditions.

Probable (2P) reserves have a 50% chance or better of being technically and economically
producible. The oil price assumptions are based on the Bloomberg broker consensus mean
(excluding forecasts less than 90 days old), followed by a flat real price, with contracted
volumes of gas and LPG sold on current contract terms. For volumes in excess of current
contracts, a future base market price of $7/gigajoule, real terms, is assumed for gas sales
and LPG prices are linked to the mean forecast for oil.

Known accumulations are reserves or contingent resources that have been
discovered by drilling a well and testing, sampling or logging a significant quantity of
recoverable hydrocarbons.

Developed reserves are expected to be recoverable from existing wells and facilities.
Undeveloped reserves will be recovered through future investments (e.g. through
installation of compression, new wells into different but known reservoirs, or infill wells
that will increase recovery). Total reserves are the sum of developed and undeveloped
reserves at a given level of certainty.

All reserves and resources reported refer to hydrocarbon volumes post-processing and
immediately prior to point of sale. The volumes refer to standard conditions, defined as
14.7psia and 60°F. Tables combining reserves have been done arithmetically and some
differences may be present due to rounding.

This resources statement is approved by, based on, and fairly represents information
and supporting documentation prepared by New Zealand Oil & Gas Assets & Engineering
Manager Daniel Leeman. Daniel is a Chartered Engineer with Engineering New Zealand
and holds Masters degrees in Petroleum and Mechanical Engineering as well as a Diploma
in Business Management and has over 10 years of experience. Daniel is also an active
professional member of the Society of Petroleum Engineers and the Royal Society of
New Zealand.

New Zealand Oil & Gas reviews reserves holdings twice a year by reviewing data supplied
from the field operator and comparing assessments with this and other information
supplied at scheduled technical committee meetings.

New Zealand Oil & Gas Annual Report 202012

New Zealand Oil & Gas Annual Report 2020Sustainability,
social
responsibility
and climate
change report

New Zealand Oil & Gas Annual Report 2020New Zealand
Oil & Gas
Compass &
Values

WHO WE ARE

We are a New Zealand oil and gas business
with a global outlook. We are ethical,
values‑based, and nimble.

WHERE WE ARE GOING

We are creating a lean, Wellington‑based
exploration and production business,
managing a portfolio of oil and gas assets,
mostly as a non‑operated partner in production
that has development upside, and exploration
that fits our asset base, in markets where our
expertise can add value.

HOW WE WILL GET THERE

We use our technical capability, relationships,
values, shareholder support and flexibility to
create opportunities, execute reliably and in a
way that makes us proud so that high quality
people want to work with us.

New Zealand Oil & Gas Annual Report 2020OUR VALUES

Respect

— We operate safely without

harm to people or environment

— We respect the values, laws
and tikanga of the places
where we work

— We display respect and
understanding for other
people, opinions and cultures

— We are reliable. We do what

we say we will do

Collaboration & Communication

— We listen, we are open,
honest and transparent

— We collaborate actively

— We provide constructive
feedback and accept
feedback graciously

— We put big issues on the table

so they can be resolved

People & Passion

— We are inclusive

— We encourage, care for, and

motivate each other

— We actively seek out and

— We have fun and work

deliver ways to pitch in or help

with passion

Commercial Focus

— We are flexible and nimble

— We work with initiative

and imagination

— We develop mutually beneficial

— Our technical competencies

relationships with key
stakeholders and partners

are a source of advantage that
we continually seek to improve

New Zealand Oil & Gas Annual Report 2020Sustainability Framework 2020
NEW ZEALAND OIL & GAS
– Value Creation Process

SUSTAINABILITY FRAMEWORK 2019 – VALUE CREATION PROCESS

FINANCIAL
CAPITAL

Our strong ﬁnancial position, prudent ﬁnancial

management and ability to attract investment.

HUMAN
CAPITAL

Expertise, skills and engagement of our people.

FIXED
CAPITAL

Our physical infrastructure and assets, primarily

owned and operated through joint venture or other

commercial arrangements, are fundamental to the

delivery of our purpose.

INTELLECTUAL
CAPITAL

Our technical expertise, data, models,

brand and reputation.

NATURAL
CAPITAL

Inputs from the natural world including access

to oil and gas reserves, water, land and

minerals/materials required to support infrastructure

required in production.

SOCIAL &
RELATIONSHIP
CAPITAL

Relationships are crucial to our success.

Within NZOG, with our existing joint venture

partners, with our communities, regulators and

prospective commercial partners, our social

license to operate is key.

Bringing Energy

Helping to meet the world’s energy needs in a safe & responsible way

Respect

Collaboration &
Communication

People

& Passion

Commercial

Focus

Our team of technical and commer cial experts add value
to exploration and production oppor tunities, to deliver energy
under safe, environmentally sound and commercially successful terms,
with long-term values-driven partnerships

ENERGY

SECURITY AND

AFFORDABILITY

We help deliver energy value through the supply of

natural gas in New Zealand, which supports renewable

energy electricity (especially in dry years), and

internationally, by providing supply, price stability,

and aﬀordability.

∂ Leadership through

industry, policy and

regulatory forums

∂ Delivering gas to

market, in NZ, Australia

and beyond

A CLEAN AND

LOWER-CARBON

ECONOMY

We help deliver gas and light oil into the energy

system, bringing health and lower carbon beneﬁts.

∂ Reporting commercial

and non-commercial

value transparently

WEALTH

CREATION &

PRODUCTIVITY

Gas and light oil energy inputs help to produce

goods and services society needs to prosper.

We contribute to New Zealand’s wealth and

productivity through royalties and tax

contributions that help to fund hospitals,

schools and other essential social services.

∂ Delivering commercial

value via annual taxes

and royalties,

job creation,

shareholder value

COMMUNITY

WELLBEING

Local environments and communities are

strengthened through open engagement and

contributions particularly relating to science

education, energy eﬃciency and conservation.

∂ Community and

Iwi Engagement

∂ Community Partnerships

and Investment

$37.4

million revenue

2,214

TJ of
NATURAL GAS

146,000

barrels of oil

$40,000

for COMMUNITY

PROJECTS

3,564

Trees Planted

A GREAT PLACE

TO WORK

We are a highly engaged, skilled, safe, sustainable,

diverse and inclusive workplace

∂ Proactive diversity and

inclusion practices

∂ Greater environmental

contributions

4,403

tonnes of LPG 7

AWARDS

for YOUNG

SCIENTISTS

UN SustainableDevelopment Goals (UNSDGs)OUTPUTSOUR MAGICVALUETHROUGHOUTCOMESOURINPUTSOUR VALUESNew Zealand Oil & Gas Annual Report 2020

NEW ZEALAND OIL & GAS

SUSTAINABILITY FRAMEWORK 2019 – VALUE CREATION PROCESS

FINANCIAL

CAPITAL

Our strong ﬁnancial position, prudent ﬁnancial

management and ability to attract investment.

HUMAN

CAPITAL

Expertise, skills and engagement of our people.

FIXED

CAPITAL

Our physical infrastructure and assets, primarily

owned and operated through joint venture or other

commercial arrangements, are fundamental to the

delivery of our purpose.

INTELLECTUAL

CAPITAL

Our technical expertise, data, models,

brand and reputation.

NATURAL

CAPITAL

Inputs from the natural world including access

to oil and gas reserves, water, land and

minerals/materials required to support infrastructure

required in production.

SOCIAL &

RELATIONSHIP

CAPITAL

Relationships are crucial to our success.

Within NZOG, with our existing joint venture

partners, with our communities, regulators and

prospective commercial partners, our social

license to operate is key.

Bringing Energy

Helping to meet the world’s energy needs in a safe & responsible way

Respect

Collaboration &

Communication

People
& Passion

Commercial
Focus

ENERGY
SECURITY AND
AFFORDABILITY

We help deliver energy value through the supply of

natural gas in New Zealand, which supports renewable

energy electricity (especially in dry years), and

internationally, by providing supply, price stability,

and aﬀordability.

∂ Leadership through
industry, policy and

regulatory forums

∂ Delivering gas to
market, in NZ, Australia
and beyond

A CLEAN AND
LOWER-CARBON
ECONOMY

We help deliver gas and light oil into the energy

system, bringing health and lower carbon beneﬁts.

∂ Reporting commercial
and non-commercial
value transparently

WEALTH
CREATION &
PRODUCTIVITY

Gas and light oil energy inputs help to produce

goods and services society needs to prosper.

We contribute to New Zealand’s wealth and

productivity through royalties and tax

contributions that help to fund hospitals,

schools and other essential social services.

∂ Delivering commercial
value via annual taxes
and royalties,
job creation,

shareholder value

COMMUNITY
WELLBEING

Local environments and communities are

strengthened through open engagement and

contributions particularly relating to science

education, energy eﬃciency and conservation.

∂ Community and
Iwi Engagement

∂ Community Partnerships
and Investment

$37.4

million revenue

2,214

TJ of

NATURAL GAS

146,000

barrels of oil

$40,000
for COMMUNITY
PROJECTS

3,564

Trees Planted

A GREAT PLACE
TO WORK

We are a highly engaged, skilled, safe, sustainable,

diverse and inclusive workplace

∂ Proactive diversity and

inclusion practices

∂ Greater environmental
contributions

4,403

tonnes of LPG 7

AWARDS

for YOUNG

SCIENTISTS

UN SustainableDevelopment Goals (UNSDGs)OUTPUTSOUR MAGICVALUETHROUGHOUTCOMESOURINPUTSOUR VALUESNew Zealand Oil & Gas Annual Report 2020

Materiality

COMMUNITY PANELS

How Materiality was
Determined.

We sought feedback from a
range of stakeholders to identify
our material issues.

Materiality Matrix

HIGH

Our Southern Community Panels members are drawn from a cross-section of the
southern community where we have an interest in two offshore permits and bring
perspectives from their networks to the table. No work is progressing in those
permits, but we discussed our activities and current issues with Panel members
to gain an understanding of community perspectives.

INVESTORS

Our board conducted a listening tour with larger shareholders during the year.

STAFF

The Company surveyed staff to measure engagement and attitudes to key issues,
including sustainability.

STAKEHOLDERS

We considered feedback received from industry groups, officials, business
representatives at national and regional level, and community groups. We
participated in industry and business interactions with government and political
leaders. We also have signed relationship agreements with a range of community
organisations and we periodically meet them to determine key issues.

For this report we provide more detailed responses to the top four material
issues: Transparency and open communication; Environment, climate and energy
transition; Wellbeing of People; Commercial opportunities.

MOST MATERIAL

1 TRANSPARENCY AND

OPEN COMMUNICATION

∫ Inform, engage
our community

∫ Comply with community

expectations
∫ Be proactive about

disclosing our activities

∫ Be part of the

discussion about
energy transition

2 ENVIRONMENT, CLIMATE
AND ENERGY TRANSITION

∫ Be responsible about the

corporate environmental footprint

∫ Do our bit to reduce emissions
∫ TCFD reporting

4 COMMERCIAL
RETURNS

Influence of
the issue on
stakeholder’s
assessments
and decisions

GROWTH
OPPORTUNITIES

LESS MATERIAL

CRISIS PREPARATION

∫ Returns to investors
∫ Returns to NZ Inc
∫ Community Investment
∫ Local economic
development

3 WELLBEING OF PEOPLE
∫ Health and Safety
performance

∫ Diversity
∫ Opportunities for

personal development

LOW

Significance of issue to the Company

HIGH

New Zealand Oil & Gas Annual Report 2020RESPONSE TO MATERIAL ISSUES

Transparency And
Open Communication

— Inform, engage our community

— Comply with community expectations

— Be proactive about disclosing our activities

— Be part of the discussion about

energy transition.

Informing and engaging

We are proud of our activities and how we go about
them, and we invest in open dialogue and relationships.
We understand communities where we are active
legitimately want to know what impacts our activities
have, what steps we take to manage risk, and how the
benefits will be felt.

Our activities in New Zealand are currently limited. In
the South Island, no further progress is being made
on two deepwater permits there, but we keep in touch
with community interests there, including through our
Community Panel. We have formalised relationship
agreements with many community interests. These
agreements commit us to respectful engagement and to
learning from each other. In addition, we engage directly
and early with iwi, with mana whenua and mana moana, in
our common areas of interest as they arise.

We report openly on all of our activities, both to investors
and to the wider community, and we seek opportunities to
keep the industry, investors and the public informed.

We participate in discussions about energy transition
in business and industry forums, as well as directly
with government and political parties at ministerial
and officials levels. We make submissions on relevant
legislation and policy. We are members of reputable
national business representative groups such as
Business New Zealand and PEPANZ. We pay for research
and analysis on transition issues. All of our advocacy
documents are published on our website.

Environment, Climate
and Energy Transition

— Be responsible about the corporate

environmental footprint

— Do our bit to reduce emissions

— TCFD reporting

See our TCFD report on Page 27 for detailed reporting.

In summary: We support carbon budgets and emissions
pricing as the most efficient and effective tools to
manage carbon emissions. In our view, an economy-wide
response to the global issue of climate is more effective
than enterprise-level response, but we are responsible
about our own carbon footprint, supporting initiatives
such as recycling in our head office. The Company has
reduced or offset our emissions from corporate travel and
certain other office-related activities at our corporate
HQ. We have participated in a carbon-reducing tree
planting programme to offset our head office emissions.

In this year’s annual report, we have responded
to shareholder and community expectations of
comprehensive TCFD reporting, and we have arranged
training for executive management in TCFD compliance.

We are committed to responsible management practices
that minimise adverse environmental impacts from our
activities, using soundly-based science as the basis for all
our environmental decisions.

Excellence in environmental performance is essential
to our business success. We comply with all applicable
environmental laws and regulations and good practice
industry standards. We apply reasonable standards
where regulatory legislative requirements and standards
do not exist. We work to minimise pollution and the
cumulative environmental impact of our activities at a
local, regional and global level, and try to reduce waste
and improve resource use.

Our environmental management plans for all our
activities identify, assess and manage environmental
risks as low as is reasonably practical.

New Zealand Oil & Gas Annual Report 20203

Wellbeing of People

— Health and Safety performance

— Diversity

— Opportunities for personal development

Well-being of people regularly features
higher in internal materiality surveys than
in feedback from outside. Nevertheless, we
make safe operating and the health of our
workforce our top priority.

Staff incentives are linked directly to corporate health
and safety performance. Health and safety reporting
includes both our own sites, and non-operated sites
where we have an interest, and our supplier code sets
out requirements for companies that do business with
us. Performance is monitored daily and reported through
to an HSE weekly meeting, as well as to weekly executive
management meetings. The ORS committee reviews
performance and policies and reports on performance
to the board.

During the pandemic lockdown, we quickly implemented
initiatives to keep people safe. Our corporate office
adjusted successfully to working from home. On
returning to the office we adopted bespoke protocols
complying with the guidelines for each alert level that
involved social distancing measures, hand sanitising,
and travel restrictions. We have had no exposure to
Covid-19. The Kupe production station maintained
operations through lockdown as an essential service,
and had no incidences.

We have a diversity committee focused on improving
diversity in our workplace. We have achieved a Rainbow
Tick, diversity initiatives are reported at all staff
meetings, staff attitudes to diversity initiatives are
surveyed, and we regularly engage in cultural activities
that are meaningful to our staff.

We invest in the development of all our staff. Certain
training activities were cancelled or postponed because
of the pandemic this year, however some were able
to proceed online or re-scheduled. Regular coaching
and training opportunities continue to be provided
across the business.

New Zealand Oil & Gas Annual Report 20204

Commercial returns

— Returns to investors

— Returns to NZ Inc

— Community Investment

— Local economic development

Returns to investors are set out in the financial
statement in this report, from page 84.

Our social investment is guided by our
community, following recommendations
by our Community Panel. We ask for advice
about high priority projects, and we report
publicly on our performance in meeting the
Panel's expectations.

Through our social investment we live our values as
good partners, committed to enduring relationships
with our neighbours and wider community. We make
social investments that make a sustainable difference.
Unlike some companies, we don’t do social investment as
marketing in disguise.

Examples of community investment by New Zealand Oil &
Gas as a result of Panel recommendations include:

¬ The Cosy Homes Trust

¬ Dunedin Curtain Bank

¬ School Science Fairs.

We report in more detail about our community
investment on pages 24–25.

The best investment we can make in the community
is economic activity. The upstream oil and gas sector
contributes over $2.5 billion to New Zealand’s Gross
Domestic Product (GDP), the Government collects
approximately $500 million in royalties and income
tax from the sector annually, and oil exports are worth
approximately $1.5 billion a year. Oil and gas workers earn
twice the national average salary and create seven times
the average value earned per year, money that is spent in
local communities.

The Company adopted a policy on Capturing
Local Economic Benefits in response to an earlier
materiality survey.

The policy commits us to promoting local content
and capturing local benefits. We commit to studying
opportunities for the wider community to participate
commercially in our projects, and to producing a local
content plan for significant developments. We also
believe our expertise in areas such as health & safety
and international business processes can help local
enterprise compete on a commercial basis.

We want to find ways to improve entry to our industry
for people from diverse backgrounds, including women,
and people from cultural and social backgrounds that are
under represented in the industry.

New Zealand Oil & Gas Annual Report 2020Sustainable
Development
Goals

The UN’s 2030 Agenda for Sustainable Development represents the world’s plan
of action to end poverty, protect the planet and ensure prosperity for all. Its 17
Sustainable Development Goals has specific targets to be achieved by 2030.

IPIECA – the Global Oil and Gas Industry Association for Environmental and
Social Issues — produced a report in 2017: Mapping the Oil and Gas industry
to the Sustainable Development Goals: An Atlas. It encourages oil and gas
companies to incorporate SDGs into their business and operations, and
investigate how the industry can help to achieve the SDGs.

The 17 SDGs relevant to our sector are illustrated below and our activity related
to them is shown in the following table.

i
t

o
g
u
e

C
o
o
r
d

n
a
t

o
n

o
r
r
u

R
i
g

h
t
s

syste

m M
a

t
n
e
m
p
o
e
v
e
D

a
c
o
L

e
g
n
a
h
C
e
t
a
m
i
l
C

s
s
e
c
c

y A

g
r
e
n
E

Alignment of Activities
Shared-Use Infrastructure
Climate Change
Health Impact Assessments

Road Safety
W orker & C o

u nity Prote ctio n

n t e

n t S tr a t e
a l C
c
a
c
u
d
e E
W o
T e c h n o l o g y T r a i n i n g

t i o

MAPPING THE
OIL AND GAS INDUSTRY
TO THE SUSTAINABLE
DEVELOPMENT GOALS

e
nt

Mitigation Hierarchy
Biodiversity Offsets
Accident Prevention & Response
Environmental Assessments
Ocean Acidification Minimization

Resilience & Adaptive Capacity
E m i s s i o n s M i t i g a t i o n
r a t e g i c P l a n n i n g

S t

t
n
bilit y

e m e
g
a
a
u st ain

e M a
ain S

t W a
ply C

E ffi c i e

Pro d uct Ste w ardship
Cultural & Natural Heritage Protection
Operational Risk Assessment
Sustainable Urbanization
Impact Assessments

y
c
n
are
p
s
n
Tra

t
n
e
m
e
g
a
g
n
E

Gender-Sensitive Policies

Inclusive Decision-Making

Women’s Employment Opportunities
Water Strategy
Water Use Efficiency
Water Risk Management

atural G

erg

y E

tiv

ffi

cie

e
r
n

e
r
gie

T
e
c
h
n
o
l
o
g
y
T
r
a
n
s
f
e
r

S
h
a
r
e
d
U
s
e

n
f
r
a
s
t
r
u
c
t
u
r
e

S
u
s
t
a

n
a
b

n
f
r
a
s
t
r
u
c
t
u
r
e

i
l
l
s

KEY ISSUE AREAS FOR OIL AND GAS MAPPED TO THE SDGs

EXECUTIVE SUMMARY | ix

New Zealand Oil & Gas Annual Report 2020

Our business strategy of responsibly delivering energy
to help meet society’s energy needs supports the SDGs

Development
Goal

Initiatives by New Zealand Oil & Gas

The taxes and royalties we pay help the government fund essential
social services. Natural gas helps to keep energy costs affordable, and
produces less carbon than many alternatives in the global energy system

Affordable energy security is a crucial part of
New Zealand's agricultural exports to the world

More Information

Pages 84–112

Pages 6–11

Support for warm homes. Employee health
and well-being checks, safety focus

Pages 20, 24–25, 65, 76

www.nzog.com/dmsdocument/492

Support for primary and tertiary Science Fairs in Otago and Southland.

Working with O.G. Oil & Gas to deliver scholarships
and support industry research in 2019.

www.nzog.com/our-story/communities/
nzog-scholarships/the-eyal-and-marilyn-ofer-
family-foundation-scholarship-program/

Inclusive decision making through community engagement.

Pages 58–59

Diversity Policy, family-friendly and flexible work place focus.

Seeking Rainbow Tick

Commercial opportunities to help deliver energy
to meet societies changing needs

Pages 28–31

Our values - Ethics and Transparency

Pages 14–15

Capturing Local Economic Content Policy

www.nzog.com/dmsdocument/486

Socially responsible production

Pages 12–47

Advocate for regulatory change to support a price
on carbon and carbon capture and storage

Support for a price on carbon

TCFD reporting

Corporate office emissions reductions and offsets

Our values - Ethics and Transparency

Corporate Governance

Materiality Matrix and Stakeholder engagement

Promote industry sustainability reporting, and
industry use of SDGs and IPIECA material

Page 38

Pages 27–47

Pages 44–46

Pages 14–15

Pages 48–81

Page 18

This page and section from page 18

New Zealand Oil & Gas Annual Report 2020Supporting
Our Community

Southland
Warm Homes Trust

$70,000

Southern
Wildlife Hospital

$10,000

over past four years
towards insulating

150 +

houses

Dunedin
Curtain Bank

$10,000

to date, and

$40,000

more over the next 2 years

Dog Island
Motu Piu Trust

$10,000

Support for annual
Science fairs
in Dunedin and Invercargill

We funded the planting of

3,564 trees

New Zealand Oil & Gas Annual Report 2020Warmer homes through
Curtains in Dunedin

The Dunedin Curtain Bank up-cycles unwanted and
unused curtains, lines them, and distributes them to
those in need in our community.

Curtains make a significant difference to the warmth of
a home. A third of all heat loss in an uninsulated home
occurs through windows.

Over 7 years Dunedin Curtain Bank has given out 3,000
pairs of curtains. Last year it provided more than 450
pairs of curtains throughout Dunedin and its greater area.

On the recommendation of the Southern Community
Panel, New Zealand Oil & Gas proudly supported the
curtain bank with a grant of $10,000 with another
$40,000 committed over the next two years.

Warmer homes through
Cosy Homes Trusts

Many New Zealanders are living in cold,
damp houses and experience associated
health issues.

Since 2015 New Zealand Oil & Gas has been
helping South Island warm homes trusts,
after a recommendation from our Southern
Community Panel.

The trusts are delivering more energy
efficient homes and healthier living
environments.

Our support was matched by the Energy
Efficiency and Conservation Authority
(EECA) and other third-party funding to
provide insulation for over 150 homes
across Otago and Southland.

Supporting science education through
School Science Fairs

Since 2016 New Zealand Oil & Gas has supported
southern science fairs to help students understand
more about earth science, energy efficiency,
Mātauranga Māori, marine science, and much more.

New Zealand Oil & Gas Annual Report 2020Recognition
for our staff

New Zealand Oil & Gas congratulates
Paris Bree, New Zealand young in‑house
lawyer of the year.

New Zealand Oil & Gas General Counsel Paris Bree was recognised at the 2019
New Zealand Law Awards for New Zealand Young In-House Lawyer of the Year.

In a busy year of achievement, her work included pulling
together the complex Ironbark joint venture. Supporting
her nomination, Nick Baker, from leading Australian firm
Herbert Smith Freehills, said: “The transaction involved a
number of complex features and counter-parties working
across jurisdictions (including two ASX-listed companies
and UK-based BP, one of the world’s energy super-
majors). Paris Bree led the legal work and significant
components of the commercial negotiations. Her strong
understanding of commercial drivers, knowledge of the
full range of material issues, and her ability to negotiate
delicate and intricate issues with multiple counter-
parties set her apart. In our view Paris rates among the
best in- house lawyers we deal with at any age and stage
of their careers.”

All this, and much more, was accomplished while taking time out from parental
leave with her baby, then aged seven months.

New Zealand Oil & Gas Annual Report 2020Taskforce on
Climate‑related
Financial
Disclosures
(TCFD)
Statement

This section outlines the
New Zealand Oil & Gas
approach to climate change.

It addresses themes
recommended by the G20
Task Force on Climate-Related
Financial Disclosures (TCFD).

New Zealand Oil & Gas Annual Report 2020TCFDStatement from
the managing
director on
TCFD and
sustainability

New Zealand Oil & Gas is guided in everything
we do by our values. We believe we can help
to meet New Zealand's energy needs and run
our business in a responsible, ethical way.

We are proud to set a standard for our industry among smaller cap companies,
responding to climate challenges, and working on relationships in our community
to develop our energy needs for the future.

This report sets out our progress.

In 2019 we completed a review of Taskforce on Climate related Financial
Disclosures (TCFD) recommendations. As result, we have made changes to our
governance approach to climate-related risks and opportunities. These changes
have resulted in key climate risks and opportunities being considered in a
structured way. We now provide for review at board-level through the board
Operational Risk and Sustainability Committee (ORS).

New Zealand Oil & Gas Annual Report 2020TCFDSpecific changes made as a result of this review include:

— Staff regularly consider

climate issues in monthly
HSSE meetings;

— Climate risk and opportunities
are a standing item on the ORS
Committee agenda;

— Executive management

— Changes were made to

received TCFD specific training

the corporate risk register
to more clearly identify
climate-related risk.

— We made reporting more

transparent by changing to
follow the TCFD structure
where applicable.

The changes are outlined in more detail below following the TCFD structure:
Governance, Strategy, Risk Management and Metrics and Targets. The structure
is set out in the accompanying table.

New Zealand Oil & Gas accepts the science of climate change, and the role we
have in helping to reduce global emissions. The world needs us to reduce the
emission of carbon dioxide and methane from human activity.

In our own operations, we are taking steps to reduce our environmental footprint,
but there is limited difference we can make. Direct emissions are produced from
our small head office in Wellington, where we have reduced our carbon footprint,
and we paid for 3,564 trees to be planted - enough to remove about 811 tonnes
of carbon.

The broader challenge is around emissions from production of oil and gas, and
use of the products themselves. The division between our use, and use by others
are known in climate policy as Scope 1, 2 and 3 emissions. We can affect our
Scope 1 emissions; we have less influence over ultimate uses, and less visibility
over whether emissions are offset by the consumer and which alternative fuels
are displaced. For example, gas exported to Asia as methanol may substitute for
coal in the manufacture of petrochemicals or electricity generation, or it might
be purchased because it provides cheaper baseload than a renewable alternative.
Some of our production is re-sold in international markets, which sets a
boundary to emissions reporting in this document.

New Zealand Oil & Gas Annual Report 2020TCFDWe are pleased to set out in this section of our annual
report the targets we adopted this year for climate‑related
performance and our performance metrics.

Our review of climate risk indicated that relevant risks were already carefully
considered as part of our previous risk management framework. For example,
risks of increasingly severe and frequent weather events are routinely
considered in asset management risk plans. Risks of long term changes in
demand and prices, access to investment capital and risks of regulatory
responses to climate, have long been a standard feature of sensitivity testing
in our economic models. However, as a result of the TCFD process, we have
explicitly identified these risks as climate-related.

Caution is needed in giving undue weight to specific causes of risk.
A couple of examples

— A pandemic was a predictable

— As there is no feasible

(and predicted) event,
even if the particular
covid-19 outbreak was not.
The resulting general impact
on demand is predictable
as well. However, unlike
climate-related risk, there
is no clamour to highlight
health-related risks within our
risk reporting.

path to transition without
gas substituting for coal
in global energy systems,
this strategy offsets
financial risk, if any, from
disinvestment in the sector.

We weigh risks methodically, and we caution readers that the introduction
of a special section emphasising climate-related risk in this report reflects
regulatory trends more than changes in the underlying weighting of particular
categories of risk for our Company.

We have responded to climate risk also by supporting our industry and
business groups to promote economically efficient carbon trading because
a trading scheme is the fairest, most effective and responsible policy for
reducing carbon emissions.

New Zealand Oil & Gas Annual Report 2020TCFDIn forecasting demand, we have been guided by International Energy Agency
reports, which find the demand for natural gas is growing and will reach a
market share of about a quarter of all global energy demand.

Natural gas and LNG are crucial to reducing carbon emissions. Emerging
economies are looking to substitute lower carbon alternatives like natural
gas for higher emission coal. To illustrate: If we can locate more natural gas
at Ironbark in Western Australia later this year, and develop a discovery, we
may be able to export LNG into Asian markets. Experts believe Australian
LNG exports could reduce global emissions of CO² by up to 300 million
tonnes a year. That's three times as much as Australia’s annual emissions
reduction target under the Paris Agreement. A big natural gas discovery could
materially reduce global carbon emissions.

Natural gas is the best form of thermal back up for
renewables ‑ renewable energy systems literally cannot
meet modern energy needs without them.

Just as importantly, plants such as Kupe in south Taranaki, New Zealand,
produce natural gas as ethically as just about anywhere on Earth. Labour
standards and environmental performance compare favourably to third
world coal mines, or the world's lithium and cobalt sources (key ingredients
in batteries).

Unlike some of the oil that comes from the world's largest producing
jurisdictions, revenues from Kupe do not fund terrorism, criminal enterprises
or political corruption. We pay our taxes and we observe the rules and laws of
the places we work.

Our activities help to make the world a better place. We do our work by a set
of values that make us proud, and which contribute to a healthier, wealthier,
more sustainable world. I am pleased to commend our activities to you and
set out our approach below.

Andrew Jefferies
Chief Executive

New Zealand Oil & Gas Annual Report 2020TCFDExecutive
Summary

TCFD report

Our Climate Commitment

We recognise that climate change is a significant issue affecting society, which
demands a transition to a low-carbon economy, global political collaboration and
citizen action.

We believe that we help the world move towards a low-carbon economy by being
part of the energy mix that is required to deliver secure, reliable, sustainable and
affordable energy.

We recognise and support global efforts to reduce climate change through clear
and meaningful policy and market settings.

Our Climate Change policy

www.nzog.com/dmsdocument/493

New Zealand Oil & Gas Annual Report 2020TCFDOur Action

WE WILL

Actively identify, manage and mitigate
material climate risk to our business,
and report our governance, strategy,
risk management and targets and
metrics transparently

Actively promote the benefits of gas
as a lower-emitting transition fuel
that supports energy reliability and
affordability, and is a strong companion
for the uptake of renewables

Meet the carbon reporting
requirements of the regions
we operate in

Actively review and implement
opportunities to reduce the carbon
impact of our own operations

Support our joint venture partners
to look for and implement low
carbon solutions

Respond meaningfully to stakeholder
views and expectations around climate
change as it pertains to our activities

WHAT WE HAVE DONE

Aligned risk management processes,
governance and reporting with
Taskforce for Climate Financial
Disclosures framework. Include
TCFD statements in Sustainability/
Annual Report

Commenced analysis of an internal
price on carbon to inform TCFD risk and
commercial decisions

Developed and adopted
a climate policy

We planted 3,564 trees to offset our
Scope 1 emissions

New Zealand Oil & Gas Annual Report 2020TCFDGovernance

Strategy

Disclose the organisation's
governance around climate‑
related risks and opportunities.

Disclose the actual and
potential impacts of climate‑
related risks and opportunities
on the organisation’s
businesses, strategy, and
financial planning where such
information is material.

Recommended Disclosures

Describe the board’s oversight
of climate-related risks
and opportunities.

Describe management’s
role in assessing and
managing climate-related
risks and opportunities.

Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium, and long term.

Describe the impact of climate-
related risks and opportunities
on the organisation’s business,
strategy, and financial planning.

Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower scenario.

See our response pages 36—37

Our responses pages 38—40

New Zealand Oil & Gas Annual Report 2020TCFDRisk Management

Metrics & Targets

Disclose how the organisation
identifies, assesses, and
manages climate‑related risks.

Disclose the metrics and targets
used to assess and manage
relevant climate‑related risks
and opportunitieswhere such
information is material.

Recommended Disclosures

Describe the organisation’s
processes for identifying and
assessing climate-related risks.

Describe the organisation’s
processes for managing
climate-related risks.

Describe how processes for
identifying, assessing, and
managing climate-related risks are
integrated into the organisation’s
overall risk management.

Disclose the metrics used
by the organisation to
assess climate-related risks
and opportunities in line
with its strategy and risk
management process.

Disclose Scope 1, Scope 2,
and, if appropriate, Scope 3
greenhouse gas (GHG) emissions,
and the related risks.

Describe the targets used
by the organisation to
manage climate-related
risks and opportunities and
performance against targets.

See pages 41—43

Pages 44—47

New Zealand Oil & Gas Annual Report 2020TCFDGovernance

Climate risks are
understood and
managed.

Ultimately, the board has responsibility for reviewing all risks, including
climate-related risk and opportunities, and ensuring these are appropriately
managed to support delivery of our business strategy. The board’s charter
requires it to:

“Understand the material risks faced by the Company and ensure the
Company has appropriate risk management strategies and control
measures in place and is actively managing these.”

The process for considering risks is set out in the risk management system
framework. The framework aligns with International Standard ISO 31000
Risk Management - Principles and Guidelines and meets the requirements
of the ASX Corporate Governance Principles and Recommendations,
Principle 7: Recognise and Manage Risk.

This governance process is outlined in the graphic below.

BOARD OF DIRECTORS

— Board Charter

— New Zealand Oil & Gas

Risk Management System

— ISO 31000 Risk
Management

— NZX Listing Rules and
Corporate Governance
Code eg. principle 6 -
Risk Management

— Reviews Risk analysis

received from
ORSC and adjusts
strategy accordingly

— ASX Corporate Goverance
Principles eg. 7 Recognise
and Manage Risk

BOARD OPERATIONAL RISK AND
SUSTAINABILITY COMMITTEE (ORS)

— Reviews risks annually including changes

derived from Risk Owners and the
management team

— Reports risk and opportunites to board

MANAGEMENT TEAM

— Regularly to review risks
and update Risk Register

— Report Risk Register to

ORS Committee

STAFF HEALTH, SAFETY AND
ENVIRONMENT COMMITTEE

— Meets weekly and monthly to

identify and review HSE incidents
(actual or potential) and where
appropriate, feed these into
the Risk Register

New Zealand Oil & Gas Annual Report 2020TCFDThe board Operational Risk and Sustainability
Committee monitors risk and reviews the Company’s
policies, including its response to climate change, and
climate-related risk.

A series of formal policies and risk management
processes relate to climate issues, including the climate
change policy, environment policy, risk management
framework and sustainability framework.

The Company’s risk register assesses climate impacts,
both as stand alone risks, and as risks embedded in
individual management plans. For example, asset
management plans assess risks of increased severe
weather impacts and coastal erosion effects that are
forecast effects of climate change.

As outlined here, the Company adopted specific
measurable targets in support of climate policy.
These include:

—

Making climate risks that were implicit in the risk
register identifiable as climate-related risks.

Assessing the Company’s emissions and
purchasing trees that offset carbon emitted by the
Company’s activities.

Emphasising natural gas and LPG in its strategy.
As gas emits much less carbon than coal, the IEA
and other forecasters expect robust demand for
gas for decades.

Management is responsible for identifying, assessing
and managing risk and reporting this to the board
through the ORS committee. Management risk owners
continuously identify and manage risks. Management
reviews the corporate risk framework including the
risk register, regularly. The ORS committee receives
a report on updates to the register.

Checklist

The Company Health, Safety and Environment
committee meets weekly and more formally
monthly to identify and review actual or potential
HSE incidents, including those at partner operated
facilities. These reviews are integrated into the risk
register, where appropriate. Climate-related risks
may be raised in these processes.

Members of the Management Team, including
the Chief Financial Officer and General Counsel
undertook TCFD training in 2019.

At an operational level, responsibility for day-to-day
oversight of climate risk and opportunity (including
managing climate objectives and targets that sit
within the Sustainability Framework), rests with the
General Counsel.

All corporate charters and policies are available in the
corporate governance section of the Company’s website.

The Operational Risk and Sustainability Committee charter

www.nzog.com/dmsdocument/370

Environment policy

www.nzog.com/dmsdocument/491

The risk management system framework

www.nzog.com/dmsdocument/
1-risk-management-procedure

Recommendation

✔ ❘ ✗

Explanation of non-compliance

Disclose the organisation’s
governance around climate-
related risks and opportunities

Describe the board’s oversight
of climate related risks and
opportunities

Describe management’s role in
assessing and managing climate-
related risks and opportunities

✔

New Zealand Oil & Gas Annual Report 2020TCFDStrategy

Low carbon
opportunity for
the Company.

The TCFD requires a description of climate-related risks and opportunities
that the organisation has identified over the short, medium and long term,
and a description of the impact of these risks on businesses, strategy and
financial planning;

The relevant risks are shown in the table below, on Pages 42–43.

The main strategic impact of the risks and opportunities identified is that
the Company has a preference for natural gas in its strategic planning
processes. There is consensus across reputable modelling and projections,
including the well-regarded World Energy Outlook produced by the
International Energy Agency (IEA), that global energy demand will increase
by a quarter to a third over the next 20 years. This demand will be met by
renewables increasing quickly, along with a slower, but still increasing,
supply of gas in the global energy supply.

The IEA World Energy Outlook projects more than two-thirds of global oil and
gas imports will flow to Asia by 2040. The market for natural gas exported
from New Zealand or Australia would be expected to be Asia. Imports of gas
into China, India, Japan and South Korea will replace coal-fuelled electricity,
or coal used to create methanol. A large gap in energy supply for Asia will not
be filled with renewables, even with massive growth expected in renewable
energy. Natural gas is therefore likely to avoid an expansion of coal use,
which would be likely in the absence of natural gas availability.

This opportunity is a strategic focus for the Company. We anticipate
increasing regulation, a higher price on carbon, and other limits to
emissions and incentives for renewable energy uptake.

In anticipation of higher
carbon prices, the
Company is looking at
these measures:

Applying a shadow carbon
price to understand the
potential impact of a carbon
charge; and

The application of an internal
levy to fund carbon mitigation
projects

Initial investigation of a shadow carbon price appears to offer little
analytical advantage, as price sensitivity is already a fundamental feature
of the Company’s economic models.

Some carbon mitigation is underway. The Company is offsetting its own
travel emissions and some other office-related emissions. Few efficient
policy mechanisms exist for offsetting Scope 3 emissions, which are
emissions of carbon from use of the oil and gas that the Company sells.
As carbon prices are applied to production of hydrocarbons (or to the import
of oil in destination markets), further emissions offsets would double count
the emissions impact.

New Zealand Oil & Gas Annual Report 2020TCFDResilience of the
organisation’s strategy
in different climate
related scenarios.

The TCFD requires a description of the resilience of the Company’s strategy,
taking into consideration different climate related scenarios including a 2°C
or lower scenario.

The Company keeps up to date with the International Energy Agency’s World
Energy Outlook, and models produced by other industry leaders such as the
BP Energy Outlook. To further support our modelling assumptions, we seek
information from our JV partners and potential commercial opportunities
relating to management of climate change risk, including scenario analysis
where undertaken, following the structure of TCFD. This investigation
should alert us to climate change risk and opportunities across the
jurisdictions we are active in.

Domestically, the Company applies analysis from the Business Energy
Council of New Zealand’s energy outlook scenarios.

Sensitivity testing is applied by checking outlooks against the IEA
‘sustainable energy’ scenario. In that model, policy mechanisms would
be sufficient to reduce carbon emissions to a point where temperature
increases would be limited to 1.5 degrees above long term natural
averages). It states:

The Sustainable Development Scenario maps out a way to meet sustainable
energy goals in full, requiring rapid and widespread changes across all parts
of the energy system. This scenario charts a path fully aligned with the Paris
Agreement by holding the rise in global temperatures to “well below 2°C
… and pursuing efforts to limit [it] to 1.5°C”, and meets objectives related
to universal energy access and cleaner air. The breadth of the world’s
energy needs means that there are no simple or single solutions. Sharp
emission cuts are achieved across the board thanks to multiple fuels and
technologies providing efficient and cost-effective energy services for all.

…

In the Sustainable Development Scenario, natural gas consumption
increases over the next decade at an annual average rate of 0.9% before
reaching a high point by the end of the 2020s. After this, accelerated
deployment of renewables and energy efficiency measures, together with a
pickup in production of biomethane and later of hydrogen, begins to reduce
consumption.

By 2040, natural gas demand in advanced economies is lower than current
levels in all sectors apart from transport, where demand remains broadly
similar to the level reached in the Stated Policies Scenario. In developing
economies, gas growth in the power sector rises to 2030 but falls back due
to a growing share of renewables, while growth in industrial demand is half
the level of the Stated Policies Scenario. Although absolute consumption
falls, natural gas gains market share at the expense of both coal and oil in
sectors that are difficult to decarbonise, such as heavy-duty transport and
the use of heat in industry. Even though natural gas-fired power generation
declines, capacity grows compared with today as a consequence of the role
of gas in providing power system flexibility.

New Zealand Oil & Gas Annual Report 2020TCFDFuture demand for gas exported from the Company’s areas of interest is
heavily dependent on likely future demand for LNG. The IEA comments:

Developing economies in Asia are the main engines of LNG growth, with the
market share of LNG in total gas demand growing from 20% in 2018 to 40%
by 2040. By 2040, the average gas molecule travels over 5 000 kilometres to
reach consumers in developing Asian markets, nearly twice as far as today.

There is significant uncertainty, however, as to the scale and the durability
of demand for imported LNG. Emerging markets in Asia face higher costs for
imports than for domestically produced gas. Even though spot gas prices fell
to record lows in 2019 on the back of ample LNG supplies, over the long-term
end-user prices generally seem set to rise.

The World Energy Outlook

www.iea.org/reports/world-energy-outlook-2019

The Company’s strategy, which focuses on natural gas,
aligns with this modelling.

By delivering gas and condensate into Asian markets, the Company is helping
provide security of supply and downward price pressure that is contributing to
reduced use of coal, and the poorer health outcomes and higher emissions that
go with coal.

Checklist

Recommendation

✔ ❘ ✗

Explanation of non-compliance

Disclose the actual and potential
impacts of climate-related
risks and opportunities on the
organisation’s businesses, strategy
and financial planning where
such information is material.

Describe the climate related risks and
opportunities the organisation has
identified over the short, medium and
long term.

Describe the impact of these
risks on businesses, strategy and
financial planning.

Describe the resilience of the
organisation’s strategy, taking into
consideration different climate
related scenarios including a 2°C or
lower scenario.

✔

New Zealand Oil & Gas Annual Report 2020TCFDRisk
Management

The TCFD requires the Company to disclose how climate-related risks are
identified, assessed, and managed, and how the processes for climate risk
are integrated into wider risk management processes.

An integrated
and active risk
management
approach

The Company’s Risk Management System Framework applies consistent
and comprehensive risk management practices.

Risks, including climate risks, are recorded in the central risk register,
which considers the risks, reviews the controls, assigns ownership of a risk
and tracks treatment plans. Risk assurance and oversight of climate risk
management is provided through internal review by the board Operational
Risk and Sustainability Committee. The full climate risks are considered
as part of the normal risk management process. See the discussion under
Governance, at page 36–37 in this section, and the discussion of the Risk
Management System Framework in the corporate governance section
on page 76.

Responsibility for identifying, documenting and managing risks and
opportunities is delegated to the appropriate level of management. The
General Counsel has responsibility for climate risk. Asset managers are
responsbile for risks to individual assets, and the Chief Financial Officer has
management responsibility for financial and investment risks associated
with climate change.

Climate risks are identified on an ongoing basis. Consideration is given
to industry and peer discussion, shareholder and community feedback,
regulatory changes, and expertise of our own staff.

Primary risks to New Zealand Oil & Gas from climate change fall into the
following broad categories: Policy and Legal, Physical (acute and chronic),
Financial, Social/Political/Regulatory, and Technological. All these risks have
potential financial and operational implications due to lost profitability and
increased delays.

A summary of the main risks and mitigations, their time horizon
(categorised as short, medium or long-term), and the strategy response to
these is included in table on the following page.

New Zealand Oil & Gas Annual Report 2020TCFDThe table uses the following time horizon categroies

S short 0-5 years M medium 5-10 years

L long 10+ years

Risk Type

Non
physical
risks

Policy and
legal risks

Description

Time

Control

S M L

Robust internal processes.

Litigation against companies
and/or directors on climate
grounds (claiming causation
or seeking greater action to
mitigate effects) could have
reputational, development
and operating cost impacts.

Changing regulations including
bans and restrictive regulations,
taxes and emissions limits
across all jurisdictions
risk viability of projects

Ensure board and management
understand their fiduciary duties
around climate change risk.

Update internal processes, including due
diligence of commercial opportunities
and joint venture processes to
identify and manage climate risk.

Monitor the jurisdictions where we
undertake activities. Look to invest in a
number of jurisdictions to mitigate changes
to any individual regulatory environment.

Actively participate in New Zealand’s
environmental regulation framework
through our industry advocacy bodies
PEPANZ, Business New Zealand and
the Business Energy Council.

Develop evidence for environmental
business cases, including the role of
natural gas in a net carbon-zero future.

Strengthen corporate
environmental performance through
sustainability framework.

Report value-add prominently, and
engage skilled energy professionals
in carbon response.

Reputational
and social
license risks

Increased stakeholder
disengagement and oppositional
activism. Loss of social
license, leading to project
delays or stoppages.

S M L

Financial
risks

Recruitment and retention risk.

Risk of partner misalignment
from divergent approaches
to carbon management.

Divestment movement
increases, affecting availability
and cost of capital.

Insurance premiums increase.
Potential for classes of
assets and locations to
become uninsurable.

Capital cost increases if new
environmental standards
require more expensive supplies
relative to alternatives).

M L

Due diligence screening of commercial
opportunities and joint venture processes
to identify and manage climate risk.

Consider whether an internal shadow price
on carbon helps to mitigate carbon price
changes, or affects investment decisions.

S M L

Seek to align with JV partner approaches
to achieve consistency in analysis.

Due diligence screening of commercial
opportunities and joint venture processes
to identify and manage climate risk.

Undertake assurance relating
to insurance forecasts.

Carbon pricing adopted
across jurisdictions, or
inconsistently between them.

Changes to price and cost
forecasts result in stranded
assets or reserves.

S M L

Have access to a range of funding
options, including strong relationships
with lending institutions, and access
to liquid capital markets.

Robust reporting on ESG matters,
including TCFD compliant reporting.

Jurisdictional diversification to avoid impact
of sudden, unilateral changes, confiscation
or value destruction by regulation.

New Zealand Oil & Gas Annual Report 2020TCFDRisk Type

Physical risks

Acute &
Chronic

Time

M L

Description

Physical assets, especially
our coastally-located gas
production plant, may be subject
to increased frequency and
intensity of extreme weather
events such as storms, flooding,
coastal inundation, lack of
water availability, or slips.

Opportunities Commercial

Offshore drilling and
production delayed or shut in
by increased weather events.

Global reduction in high
carbon sources such as coal
is increasing demand for
natural gas as a lower carbon
partner to renewables.

S M L

Strategic preference for natural gas.

Control

Robust engineering for anticipated
environmental conditions.

Embedding internal procedures to
ensure potential climate impacts are
considered in development design.

Carbon policy provides for review
of climate issues in strategic and
operational decisions. Examples
include mitigation of operational
emissions (flaring, fugitive emissions,
use of renewable sources on site).

Our role as non-operator but active JV
partner presents opportunities to partner
with and provide greater support for our
joint venture partners in pursuing low
carbon innovations on site, including
addressing fugitive emissions.

Review opportunity set to broaden
exposure to lower emission possibilities,
where New Zealand Oil & Gas has, or could
realistically develop, competitive strengths.

Further develop, evidence and
communicate the environmental business
case for gas displacing coal in Asia.

Maintain local relationships and
discussions about contributing to socially
desirable low carbon outcomes.

Reputational

Partnering with local
communities to support
low carbon initiatives.

S M L

Checklist

Recommendation

✔ ❘ ✗

Explanation of non-compliance

Disclose how the organisation
identifies, assesses and manages
climate-related risks

Describe the process for identifying
and assessing climate risks.

Describe processes for managing
climate risks.

Describe how processes for
identifying, assessing and managing
are integrated into overall risk
management.

✔

New Zealand Oil & Gas Annual Report 2020TCFDMetrics &
Targets

Our targets reflect
our current level
of activity and
the current size of
the business

The TCFD requirement is to disclose the measures we use to assess
climate-related risks and measure them, disclose emissions
(by Scope 1,2 and 3), and describe the targets that we use to manage
climate-related risk.

Risk management systems are described above.

Scope 1 emissions relate to New Zealand Oil & Gas-operated activities.
Currently these include corporate office activities only.

Kupe emissions are included because they are material. Cue Energy
emissions are the subject of Cue’s reporting, and are not included in
this statement.

Scope 2 emissions from power purchased for our head office are at such
a low scale we consider a reduction target for this aspect would not be a
meaningful use of resources. The Company intends to review an appropriate
basis for an emissions targets if it commences significant exploration or
other operational activity.

The Company has not reported Scope 3 emissions.

However, air travel by our people prior to covid-19 was significant.
Accordingly, we attempt to offset emissions from corporate air travel.

Read about tree planting carbon offsets

grow.treesthatcount.co.nz/funders/nzog#plantings

At reporting date

funded

planters

to plant

estimates

3,564

trees

811

tonnes of carbon
will be removed

The Trees That Count marketplace provides a place for all New Zealanders to
fund or gift native trees. This support is matched with planters throughout
the country who are restoring, and growing, precious wildlife corridors or
pockets of native forest, turning small projects into mighty ones.

New Zealand Oil & Gas Annual Report 2020TCFDHere are some of the
projects we have helped

Town Belt Kaitiaki

678trees

Aotea Conservation Volunteers

527trees

Halo Project

642trees

Town Belt Kaitiaki is a long-term, student-led
education programme currently involving 14
Dunedin schools and early childhood centres (over
5000 young people). The space they have adopted is
the 204 ha Dunedin Town Belt. The aim is to engage,
inspire and empower young people so that they can
make an active difference in their local community
right now. Schools are involved in planting, predator
control and raising the profile of the Town Belt,
a vision that was set by the Student Leadership
Team that runs the programme.

Read more about this project

grow.treesthatcount.co.nz/planters/
jamestweed#funding

New Zealand Oil & Gas Annual Report 2020TCFDFocus Area

Target

Impact

Measured by

Risks of carbon
pricing reflected
in financing and
investment decisions.

Management reporting
to Operational Risk and
Sustainability board
committee.

Delivery of TCFD training
module to ORS and
Management in 2020

Investigate applying a shadow carbon
price to understand the potential
impact of a carbon charge.

Investigate applying an internal levy
to fund carbon mitigation projects.

Undertake regular scan of regulatory
and market impacts of climate change
across operational jurisdictions,
reported to the Operational Risk and
Sustainability board committee.

Ensure board and management
understand duties around
climate change risk.

Review risk management processes and
governance.

Align risk management
reporting with
TCFD framework.

TCFD statements in Annual
Report and posted online.

Environmental contribution through tree
planting programme.

Helps to offset Scope
1 emissions from
corporate air travel

Reporting of offset
of annual emissions
from flights.

Deliver natural gas, LPG and condensate
energy into New Zealand, Australia and
Asian markets.

Baseload stability to
support the uptake
of renewables.

Public reporting of
production, quarterly and
annually.

Carbon mititgation
through Trees That Count
methodology.

Ensure internal
processes account
for carbon risk 1

Ensure internal
processes account
for carbon risk 2

Mitigate the
Company’s
operational
emissions 3

Provide alternative
to energy sources
associated with
high emissions
and poor human
health outcomes
(eg coal, heavy oil),
especially in Asia. 4

1 The potential purpose of an internal carbon price is to make more
transparent the risks of long term changes in demand and prices,
access to investment capital and risks of regulatory responses to
climate such as carbon pricing. Risks to these factors are a standard
part of the Company’s economic modelling, which apply sensitivity
testing to long-term prices, and market forecasts. Jurisdictional
risk is a standard part of due diligence and risk management.
Consequently, the Company has been able to identify little advantage
from labelling a component of these risks as an internal carbon
price. The issue is being kept under review, however, because further
information is being collected.

2 This report. Alignment commenced 9 March 2020, with the upload of

initial TCFD statement, available here:
www.nzog.com/assets/Uploads/TCFD-statement-NZOG.pdf

3 See pages 44–45

4 See Production data, pages 6–10

New Zealand Oil & Gas Annual Report 2020TCFDChecklist

Recommendation

✔ ❘ ✗

Explanation of non-compliance

Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities where such
information is material.

Disclose the metrics used by the
organisation to assess climate
related risks and opportunities
in line with its strategy and risk
management process.

Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse gas
emissions, and the related risks.

Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.

✔

The Company does not disclose
Scope 3 emissions, as the
information is not obtainable.

New Zealand Oil & Gas Annual Report 2020TCFDCorporate Governance
Best Practice Codes

The Company regularly reviews and assesses
governance processes, policies, and its compliance
with corporate governance best practice. This
includes assessing compliance with the NZX Listing
Rules and Corporate Governance Code 1 January
2020 (NZX code).

This section of the report is structured to report
performance against the principles of the NZX
Code. Information presented under each principle
is followed by the NZX Corporate Governance
checklist.

In complying with the NZX Code, the Company’s
corporate governance outcomes also substantially
meet the principles of the FMA Corporate
Governance Handbook. The Company is compliant
with these rules and guidelines except as otherwise
noted in the following pages.

This statement was approved by the board on
28 August 2020.

Corporate
Governance
Statement

New Zealand Oil & Gas Limited
(the Company) is a limited
liability company registered
under the New Zealand
Companies Act 1993.

The Company is listed and its
shares quoted on the Main Board
equity security market operated
by NZX Limited (NZX) under the
code “NZO”. The Company has
applied for foreign-exempt listing
on the ASX. If it is approved it will
again be listed on the ASX (this
time as a foreign exempt entity).

This statement sets out the main
corporate governance practices
adopted by the Company.

It is current to 30 June 2020
(except where a more recent
date is expressly stated), and has
been approved by the board.

New Zealand Oil & Gas Annual Report 2020Principle 1

Code of Ethical
Behaviour

“Directors should set high
standards of ethical behaviour,
model this behaviour and hold
management accountable for
these standards being followed
throughout the organisation.”

New Zealand Oil & Gas Limited is committed to
the highest standards of corporate governance
and aspires to continuous improvement in its
governance performance.

The board’s overarching governance objectives are:

Code of Business Conduct and Ethics

The Company’s Code of Business Conduct and Ethics
sets out values and ethics expected of the Company’s
directors, management, employees and contractors.

The Company strives to create a strong culture of
honesty, integrity, loyalty, fairness, forthrightness and
ethical behaviour.

Company representatives are required to:

¬ act with high standards of honesty, integrity, fairness,
and equity in all aspects of their involvement with the
Company;

¬ comply fully with the content and spirit of all laws

and regulations governing the Company’s operations,
business environment, and employment practices;

¬ not knowingly participate in illegal or unethical activity;

¬ actively promote compliance with laws, rules,

regulations, and the Company’s Code of Business
Conduct and Ethics; and

¬ Ensure solid foundations for management

¬ not do anything that would be likely to negatively affect

and oversight.

the Company’s reputation.

¬ Deliver high standards of transparency, and ethical and

responsible decision-making.

¬ Structure itself to add value.

¬ Make timely and balanced disclosure.

¬ Respect the rights of shareholders.

¬ Safeguard integrity in financial reporting.

¬ Recognise and manage risks.

¬ Encourage enhanced performance.

¬ Promote a corporate culture that upholds

Company values.

The Code addresses in detail issues such as:

¬ conflicts of interest and corporate opportunities;

¬ protection and proper use of Company assets;

¬ confidential and proprietary information;

¬ intellectual property;

¬ competition and fair dealing;

¬ business entertainment and gifts;

¬ anti-bribery and corruption;

¬ cash koha;

¬ insider trading or tipping, and

¬ reporting of Code violations.

The Code of Business Conduct and Ethics is available in the
corporate governance section of the Company's website at

www.nzog.com/dmsdocument/487

New Zealand Oil & Gas Annual Report 2020Securities Trading Policies

Protected Disclosures (Whistleblower) Policy

The Company’s Securities Trading Policies set out
procedures about when and how an employee, dedicated
contractor or director can deal in Company securities.

These policies are consistent with the Financial Markets
Conduct Act 2013 and its insider trading procedures, and
they comply with the NZX listing rules.

The board ensures that these policies are up-to-date and
compliant at all times with changes to the law and to NZX
listing rules.

The Company has a Protected Disclosures
(Whistleblower) Policy that provides a procedure for
employees and contractors to raise concerns or make
disclosures about what they observe happening at work.

The purpose is to facilitate disclosure and investigation
of serious wrongdoing. It provides a mechanism for
concerns being raised and dealt with at an early stage and
in an appropriate manner. The person making the report
is protected from any adverse consequences where the
concern is raised in good faith.

The Securities Trading Policies are available on the Company’s
website at:

The protected Disclosures (Whistleblower) Policy is available in
the corporate governance section of the Company's website at

For directors

www.nzog.com/dmsdocument/496

For employees and contractors

www.nzog.com/dmsdocument/497

www.nzog.com/dmsdocument/495

New Zealand Oil & Gas Annual Report 2020Compliance with NZX Code Recommendations

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

Training is generally provided regularly. During the
reporting period training was not specifically provided to
employees on the Company’s Code of Business Conduct
and Ethics policy. However, the policy is readily available to
all employees via the intranet system. Staff are regularly
engaged in activities to remind them of the Company’s
values, including through performance management
systems. These practices are incorporated into short
term incentives. Staff are actively informed about trading
blackouts and insider trading obligations.

1.1

The board should document minimum standards of
ethical behaviour to which the issuer’s directors and
employees are expected to adhere (a code of ethics).

The code of ethics and where to find it should be
communicated to the issuer’s employees. Training should be
provided regularly. The standards may be contained in a single
policy document or more than one policy.

The code of ethics should outline internal reporting
procedures for any breach of ethics, and describe the issuer’s
expectations about behaviour, namely that every director and
employee:

acts honestly and with personal integrity in all actions;

declares conflicts of interest and proactively advises of
any potential conflicts;

undertakes proper receipt and use of corporate
information, assets and property;

in the case of directors, gives proper attention to the
matters before them;

acts honestly and in the best interests of the issuer,
shareholders and stakeholders and as required by law;

adheres to any procedures around giving and receiving
gifts (for example, where gifts are given that are of value
in order to influence employees and directors, such gifts
should not be accepted);

adheres to any procedures about whistle blowing (for
example, where actions of a whistle blower have complied
with the issuer’s procedures, an issuer should protect and
support them, whether or not action is taken); and

manages breaches of the code.

1.2

An issuer should have a financial product dealing
policy which applies to employees and directors.

✔

New Zealand Oil & Gas Annual Report 2020Principle 2

Board Composition
and Performance

“To ensure an effective board,
there should be a balance of
independence, skills, knowledge,
experience and perspectives.”

Board of Directors

Samuel Kellner
Board Chair

Samuel Kellner has held a variety of senior executive
positions with Ofer Global since joining the group in
1980. He has been deeply involved in various Ofer Global
business lines, with a particular emphasis on offshore
oil and gas, shipping and real estate, and has advised
Ofer Global companies on investments in a variety of
investment managers, hedge funds and private equity
funds. Most recently, Mr Kellner served as president of
Global Holdings Management Group (US) Inc where he
led North American real estate acquisition, development
and financing activities. Mr Kellner serves as a director
of O.G. Energy, O.G. Oil & Gas and Cue Energy Resources
where he chairs the Audit Committee. He is also an
executive director of the main holding companies for
the Zodiac shipping group and Omni Offshore Terminals,
a leading provider of floating production, storage and
offloading (FSO and FPSO) solutions to the offshore oil
and gas industry. As a member of the O.G. Energy Senior
Management Committee, he helps drive the strategy for
Ofer Global's energy activities. Mr Kellner graduated with
a BA degree from Hebrew University in Jerusalem. He
has an MBA from the University of Toronto, and taught at
the University of Toronto while working toward a PhD in
Applied Economics.

Mr Kellner was appointed in December 2017. He is the
chair of the board of directors and a member of the
Nomination and Remuneration Committee.

Dr Rosalind Archer
Independent Director

Dr Rosalind Archer joined the board of New Zealand Oil
& Gas in November 2014. Dr Archer graduated with a BE
from University of Auckland. Dr Archer holds a PhD in
Petroleum Engineering, and PhD minor in Geological and
Environmental Studies from Stanford University. She is
a professor at the University of Auckland, and head of
its Department of Engineering Science. Dr Archer runs
a consulting practice as a reservoir engineer with
clients locally and internationally. She regularly speaks
on reservoir engineering topics at international
conferences. Dr Archer is also a Chartered Member of
the Institute of Directors, a director of the University of
Auckland Geothermal Institute, and Vice President of
Engineering New Zealand. She chairs the Nomination and
Remuneration Committee and is a member of the Audit
Committee and the ORS Committee.

Marco Argentieri
Director

Marco Argentieri is Senior Vice President and General
Counsel for O.G. Energy, and a member of the board of
directors of O.G. Energy, O.G. Oil & Gas and Cue Energy
Resources. As a member of the O.G. Energy Senior
Management Committee, he helps drive the strategy for
Ofer Global’s energy activities. Mr Argentieri serves as
the chief legal counsel for the O.G. Energy group, where
he advises on financing activities, acquisitions, and other
commercial and corporate matters. Mr Argentieri has
worked for Ofer Global since 2006, where he previously
served as chief legal counsel responsible for Ofer Global's
finance activities, with a particular focus on the Group’s
offshore oil services and shipping businesses. Prior to
joining Ofer Global, Mr Argentieri was an attorney at the
New York offices of Latham & Watkins LLP and Skadden,
Arps, Slate, Meagher & Flom LLP. He holds a BA from the
University of Rochester, a JD from New York University,
and an MBA from Columbia University.

Mr Argentieri joined the board in July 2018.

New Zealand Oil & Gas Annual Report 2020Andrew Jefferies
Managing Director

Mr Jefferies started his career with Shell in Australia
after graduating with a BE Hons (Mechanical) from the
University of Sydney in 1991, an MBA in technology
management from Deakin University in Australia , and
an MSc in petroleum engineering from Heriot - Watt
University in Scotland. Mr Jefferies is also a graduate of
the Australian Institute of Company Directors (GAICD),
and a Certified Petroleum Engineer with the Society of
Petroleum Engineers. He has worked in oil and gas in
Australia, Germany, the United Kingdom, Thailand and
Holland. He is a director of Cue Energy and the Petroleum
Exploration and Production Association of New Zealand
(PEPANZ). Mr Jefferies joined New Zealand Oil & Gas in
2013 and became chief executive in 2016. He joined
the board in December 2017. He is a member of the
Commercial Committee and the ORS Committee.

Alastair McGregor
Director

Alastair McGregor has been actively involved in the oil &
gas sector since 2003. He is currently chief executive
of O.G. Energy, which holds Ofer Global’s broader energy
interests, and O.G. Oil & Gas Limited, a company that
holds directly or indirectly oil & gas exploration and
production interests onshore and offshore. He leads
the O.G. Energy Senior Management Committee,
driving the strategy for Ofer Global’s energy activities.
Mr McGregor is also the chair of the board of directors
of Cue Energy Resources.

In addition, Mr McGregor is chief executive of Omni
Offshore Terminals Limited, a leading integrated provider
of floating production and storage and offloading (FPSO
& FSO) solutions to the offshore oil & gas industry. Omni’s
operations span the globe from New Zealand, Australia,
South East Asia, Middle East and South America. Prior
to entering the oil & gas industry Alastair spent 12 years
as a banker with Citigroup and Salomon Smith Barney.
Alastair holds a BEng from Imperial College, London and
an MSc from Cranfield University in the UK. Mr McGregor
joined the board in October 2017. He is a member
of the Commercial Committee, the Nomination and
Remuneration Committee and the ORS Committee.

Rod Ritchie
Independent Director

Rod Ritchie joined the board of New Zealand Oil & Gas in
2013 and is also a director of Cue Energy. He graduated
with a BSc from the University of Tulsa. He began his
career as a petroleum engineer with Schlumberger
where he worked for 28 Years. In 2012 he joined OMV
as the Exploration and Production HSSE manager,
where he worked for a further 12 years. Mr Ritchie has
over 40 years of global experience in leadership roles
and as a Health, Safety, Environmental and Security
(HSSE) executive in the oil and gas industry - including
being the corporate Senior Vice President of HSSE and
Sustainability at OMV based in Vienna, Austria. He has
also worked closely with the International Association
of Oil and Gas produces (IOGP) to create industry best
practise standards for the oil and gas industry. He is an
active leadership and cultural change consultant, and an
author on the subject of safety leadership. He has had
several Society of Petroleum Engineers papers published
on the subject of HSSE and safety leadership. He chairs
the Operational Risk and Sustainability Committee and he
is a member of the Audit Committee and the Nomination
and Remuneration Committee.

New Zealand Oil & Gas Annual Report 2020Composition of the Board

Independent Directors

The number of directors is specified in the constitution
as a minimum of three and up to a maximum of seven.
At least two directors must be ordinarily resident in
New Zealand. Dr Archer, Mr Jefferies and Mr Ritchie are
ordinarily resident in New Zealand.

The board has determined in terms of the NZX Listing
Rules that as at 30 June 2020, Dr R Archer and Mr R
Ritchie are independent directors as none of the factors
described in the NZX Code that may impact independence
are applicable to either.

The Company’s constitution was amended at the
December 2019 Annual Meeting to align with new NZX
Listing Rules that require directors to retire at the
third Annual Meeting since their last appointment, or
every three years (whichever is longer). If eligible, each
retiring director may offer themselves for re-election.

Directors holding office during the accounting period

Mr Kellner, Mr Argentieri, and Mr McGregor are not
independent because of their association with O.G. Oil
& Gas Limited, which is a substantial shareholder in
New Zealand Oil & Gas Ltd.

Mr Jefferies is not independent because he is the
managing director of New Zealand Oil & Gas.

Directors

Date Elected

Date Retired

Board Gender Composition

Dr Rosalind Archer

2 November 2018

Marco Argentieri

2 November 2018

Rebecca DeLaet

2 November 2018

20 December 2019

Andrew Jefferies

2 November 2018

Samuel Kellner

2 November 2018

Alastair McGregor

30 October 2017

Rod Ritchie

12 December 2019

ir
s

t A

oin
t

e
nt

2018

ir
s

t A

2019

2020

Male

Female

oin
t

e
nt

2018

In addition to information about directors in this
Annual Report, information is also made available on
the Company’s website.

New Zealand Oil & Gas Annual Report 2020

Board skills

Role of the Board

The NZX Code recommends that, to ensure an effective
board, there should be a balance of independence, skills,
knowledge, experience and perspectives.

Board skills are set out in the accompanying chart. Board
members’ experience and knowledge are set out in the
biographical information in this section.

Number of Directors with Specific Skillset

The board is responsible for the overall corporate
governance of the Company including strategic direction,
determination of policy, and the approval of significant
contracts, capital and operating costs, financial
arrangements and investments.

In addition to statutory and constitutional requirements,
the board has a formal charter that sets out its functions
and structure.

Oil & Gas

Finance & Economics

Engineering
& Operations

Exploration

M&A

Legal

HSSE

Executive Management

The Board Charter is available in the corporate governance
section of the Company's website at

www.nzog.com/dmsdocument/371

ORS

Committee

S
h
a
r
e
h
o
d
e
r
s

B
o
a
r
d

C
ommit
omme

tee
rcial

N
o

C
o
m

R
e
m
min
u
mittee
n
eration
ation &

e
f

E
x
e
c
u
t
i
v
e

M
a

n
a
g
e
m
e
n
t
a
n
d
S
t
a
ﬀ

New Zealand Oil & Gas Annual Report 2020

Board Proceedings

Responsibilities of the Board

The board operates under a written charter which sets
out the roles and responsibilities of the board. The board
charter clearly distinguishes and discloses the respective
roles and responsibilities of the board and management.

A copy of the charter is available in the corporate governance
section of the Company’s website at

www.nzog.com/dmsdocument/371

The procedure for nomination and appointment of
directors to the board is set out in the Charter.

The board meets on a formal scheduled basis four times
per year, and holds other meetings as required.

The Commercial Committee establishes the agenda for
each board meeting.

The chief executive keeps the board informed of material
or potentially material matters between meetings
and provides a weekly update on all relevant matters
to the board. A report is prepared for each meeting
that includes:

¬ updates on exploration and production activities and

financial management;

¬ summaries of new business opportunities;

¬ an update on human resources and facilities;

¬ an investor relations report;

¬ updates on stakeholder engagement, media and

sustainability; and

¬ other reports as relevant.

Key strategic issues and opportunities are also presented
to the board by management as part of each meeting.

To ensure that independent judgement is achieved
and maintained, the board has adopted a number
of processes in respect of its decision making.
These include:

¬ any director may, with the prior consent of the chair
of the Audit Committee (or in the case of the Audit
Committee chair’s absence, the prior consent of the
chair of the board), obtain independent advice at the
Company’s expense where the director considers it
necessary to carry out their duties and responsibilities
as a director. Such consent shall not be withheld
unreasonably; and

¬ directors must comply with the Directors’ Interests
Policy. It addresses disclosable interests, conflicts
of interest, director information obligations, board
review and determination obligations, and the rules for
participation in board deliberations in the event of a
conflict of interest.

On appointment, each director has also acknowledged
their individual disclosure obligations.

New Zealand Oil & Gas Annual Report 2020The board is accountable for the performance of
the Company. The specific responsibilities of the
board include:

¬ approving corporate strategy and performance

objectives;

¬ establishing policies appropriate for the Company;

¬ oversight of the Company, including its control and

accountability systems;

¬ approving major investments and monitoring the

return of those investments;

¬ the overall risk management and control framework

for the Company and ensuring appropriate risk
management systems are established and applied;

¬ appointing, removing and evaluating the performance

of the chief executive;

¬ reviewing the performance of senior management;

¬ appointing and removing the company secretary;

¬ setting broad remuneration policy;

¬ reviewing implementation of strategy and ensuring

appropriate resources are available;

¬ nominating and appointing new directors to the board;

¬ evaluating the performance of the board, committees

of the board, and individual directors;

¬ reviewing and ratifying systems of risk management,

internal compliance and control, codes of conduct, and
legal compliance;

¬ approving and monitoring the progress of any

major capital expenditure, capital management and
acquisitions and divestitures;

¬ reviewing and ratifying HSSE Sustainability and

Operational Risk policies, the HSSE Sustainability and
Operational Risk Management System and monitoring
its implementation and performance;

¬ approving and monitoring financial and other reporting;

¬ ensuring that the Company provides continuous
disclosure of information such that shareholders
and the investment community have available
all information to enable them to make informed
assessments of the Company’s prospects;

¬ overall corporate governance of the

consolidated entity;

¬ determining the key messages that the Company

wishes to convey to the market from time to time; and

¬ monitoring information commitments and continuous

disclosure obligations.

Delegation to Management

While the board has overall and final responsibility for the
business of the Company, it has delegated substantial
responsibility for the conduct and administration of
the Company’s business and policy implementation to
the chief executive and his management team. Board
approved policies and procedures are in place to set
parameters for the delegated responsibilities, including:

¬ Health and Safety Policy;

¬ Environment Policy;

¬ Climate Change Policy;

¬ Community Engagement Policy;

¬ Capturing Local Economic Benefit Policy;

¬ Code of Business Conduct and Ethics;

¬ Communications, Market Disclosure and Social Media

Policy;

¬ Securities Trading Policies for Directors, Employees and

Dedicated Contractors;

¬ Directors’ Interests Policy;

¬ Protected Disclosure (Whistleblower) Policy;

¬ Diversity Policy;

¬ Delegated Authorities Manual;

¬ Remuneration and Performance Appraisal Policy;

¬ Treasury Policy;

¬ Email and Internet Use Policy;

¬ Anti-Harassment Policy;

¬ Drugs and Alcohol Policy;

¬ Paid Parental Leave Policy; and

¬ Workplace Flexibility Policy.

These policies are reviewed regularly. The board may
establish other policies and practices to ensure it fulfils
its functions.

Delegated Authorities Manual

The board has established formal limits of authority to
provide clarity to the chief executive and management so
that they are in a position to carry out the business of the
Company efficiently and effectively within the parameters
of proper corporate governance. The Delegated
Authorities Manual set limits to financial commitments
and other decision-making, and is monitored by the board
through the audit function.

New Zealand Oil & Gas Annual Report 2020Diversity Policy

Through its Diversity Policy the Company is committed to
an inclusive workplace that embraces diversity.

The Company values, respects and leverages the unique
contributions of people with diverse backgrounds,
experiences and perspectives.

Diversity is about commitment to equality and treating all
individuals with respect, and includes, but is not limited
to, gender, age, disability, ethnicity, marital or family
status, religion, sexual orientation, gender identity/
expression and cultural background.

The board monitors the scope and currency of the
Diversity Policy.

The policy provides that the Company will recruit from a
diverse pool of candidates, who will be considered with no
conscious or unconscious bias that might discriminate
against certain candidates. It takes into account the
domestic responsibilities of employees and adopts
flexible work practices.

The Company supports the determination of self-identity
by all employees including using the titles, names and
pronouns of their choice, and seeking advice from
external organisations to appropriately support staff.

The board establishes measurable objectives for
achieving gender diversity. The board may establish
measurable objectives for other aspects of diversity,
and will assess annually both the set objectives and the
progress in achieving them.

The Nomination and Remuneration Committee makes
an annual assessment of success in achieving and
implementing the policy and the set objectives, then
reports to the board with recommendations.

The board has determined that the Company has
complied with the Diversity Policy and with the NZX Code
recommendation 2.5, which provides that an issuer
should have a written diversity policy, including:

¬ requirements for measurable objectives for achieving

diversity which, at a minimum, should address
gender diversity;

¬ annual assessment of both the objectives and the

entity’s progress in achieving them.

The Diversity Policy is available in the corporate governance
section of the Company's website at

www.nzog.com/dmsdocument/490

The following chart shows gender diversity across the
Company (excluding contractors) as at 30 June 2020, and
compares that to numbers as at 30 June 2019.

Diversity 2019 & 2020

2 020

2 019

Board

2 020

2 019

Senior
Managers

2 020

2 019

Other
Employees

Male

Female

New Zealand Oil & Gas Annual Report 2020
Measurable objectives for 2019/2020

The Company adopted the measurable objectives set out in the table below. These were the
highest priority recommendations arising from a staff survey of attitudes to diversity initiatives.

FY19-20 Measurable objective

Status

Progress

Investigate pay parity and develop
an appropriate pay parity strategy.

Ongoing

The Company has initiated a salary review
led by an outside consultancy.

Promote staff engagement
with diversity initiatives.

Progressed
and ongoing

Initiatives in the reporting period include:

— The Company is a participant in Diversity Works

and staff have participated in workshops,
webinars and networking opportunities;

— The Diversity Committee has initiated companywide
celebration of events that have cultural, religious or
spiritual meaning to staff members, including Christmas/
Easter, St Patricks Day, Independence Day, and Diwali.

Promote awareness about and
engagement with pro-diversity policies.

Progressed
and ongoing

Pro-diversity initiatives have been promoted actively at
all-staff meetings and directly communicated to staff.

Flexible working arrangements have been
exercised well during the pandemic.

Several staff have long-term flexible working arrangements,
which is expected to increase as a result of the success
of working from home during the pandemic.

Family-friendly policies and diversity policy are available
on the website and feature in recruitment advertising.

Staff have made use of family sick leave.

A carpark is allocated to a staff member to
assist with commuting requirements that are
determined by childcare requirements.

New Zealand Oil & Gas Annual Report 2020FY19-20 Measurable objective

Status

Progress

Considering diversity when
analysing applications for the
Eyal and Marilyn Ofer Family
Foundation Scholarship Program.

Support attraction and retention
of a diverse range of people in
to the petroleum sector, and in
science and engineering careers.

Providing talent management
support for female leaders and
further staff specific development
and training opportunities,
with a particular emphasis on
overcoming cultural challenges.

Investigating a Rainbow
Tick and achieving, if
determined to be of value.

Completed

Company staff made diversity recommendations
relating to the scholarships.

Completed

The Company has continued its support of the Otago and
Southland Science Fairs and sponsors a prize that raises
awareness of the importance of Warm and Efficient Homes.

Due to the current global environment and the Company’s needs,
no new staff are being recruited and departing staff are not replaced.

Progressed
and ongoing

Coaching and training opportunities have been arranged.
Some training scheduled for the year was delayed due
to the pandemic, and has been re-scheduled.

Completed

The Company has received a Rainbow Tick.

New Zealand Oil & Gas Annual Report 2020NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

Compliance with NZX Code Recommendations

No.

2.1

2.2

2.3

2.4

2.5

The board of an issuer should operate under
a written charter which sets out the roles
and responsibilities of the board. The board
charter should clearly distinguish and disclose
the respective roles and responsibilities
of the board and management.

Every issuer should have a procedure
for the nomination and appointment
of directors to the board.

An issuer should enter into written agreements
with each newly appointed director establishing
the terms of their appointment.

Every issuer should disclose information about
each director in its annual report or on its website,
including a profile of experience, length of
service, independence and ownership interests.

An issuer should have a written diversity
policy which includes requirements for the
board or a relevant committee of the board
to set measurable objectives for achieving
diversity (which, at a minimum, should
address gender diversity) and to assess
annually both the objectives and the entity’s
progress in achieving them. The issuer should
disclose the policy or a summary of it.

2.6

Directors should undertake appropriate
training to remain current on how to best
perform their duties as directors of an issuer.

✔

✗

✔

✗

Upon appointment to the Company’s boad, directors are advised of
salient requirements.

Obligations such as disclosure of interests, managing conflicts, and
share trading are managed through policies.

Governance arrangements reflect that a majority of the board is
not independent.

Independent directors received detailed advice and training about
their responsbilities during multiple previous takeover offers and
a scheme of arrangement, including training and advice about the
specific scheme proposed in 2019 and their role in negotiating the
scheme. That training and advice was specifically implemented
during the scheme process.

Further training about how to best perform their duties as directors
was not facilitated by the Company during the reporting period as
the Company has robust policies around director duties and the
board’s skills are appropriate.

Applicable reports and advice was provided to directors
about reporting on Taskforce on Climate-related
Financial Disclosures (TCFD).

New Zealand Oil & Gas Annual Report 2020NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

No.

2.7

The board should have a procedure
to regularly assess director, board
and committee performance.

✔

The board does have a procedure. The board charter states: The board
shall undertake regular reviews of the operations and performance of
the board, its committees and individual directors. Where appropriate,
the board may engage external consultants to conduct this review. In
addition to compliance with each committee’s individual charter, the
review shall consider:
∫ the skills required by the board, including processes to satisfy any

skill-gaps;

∫ how the required skills are best represented on the board; and
∫ the process for identifying suitable candidates for appointment to

the board.

Reviews are undertaken by way of a questionnaire submitted
to directors. Responses are collated and reviewed by the chair
of the Nominations and Remuneration Committee or delegated
representative. The chair of the Nominations and Remuneration
Committee (or delegated representative) then undertakes an
overall review on the outcomes and produces a written report which
is reviewed by the full board. Individual director performance is
addressed by one-on-one review with the chair of the Nominations
and Remuneration Committee (or delegated representative).

For this financial year the above process has been followed, led by the
chair of the Nominations and Remuneration Committee.

✗

Two out of six directors are independent. In considering the
appropriate board composition account will be given to whether
or not the company has a shareholder that owns a majority of the
shares in the company. The board composition is a consequence of
the Company’s ownership structure.

The chair is not independent, reflecting the ownership structure of
the Company. The chair and CEO are different people.

2.8

A majority of the board should be
independent directors.

2.9

The chair of the board should be independent.
If the chair is not independent, the chair
and the CEO should be different people.

New Zealand Oil & Gas Annual Report 2020Principle 3

Board Committees

Meetings during lockdown

“The board should use
committees where this will
enhance its effectiveness in
key areas, while still retaining
board responsibility.”

A scheduled board meeting occurred by video call during
New Zealand’s lockdown (in April) and the Commercial
Committee continued to meet throughout.

New Zealand Oil & Gas staff, working from home.

New Zealand Oil & Gas Annual Report 2020Board Committees

The board has four formally constituted committees to
provide specialist assistance with defined aspects of
governance:

¬ the Audit Committee;

¬ the Commercial Committee;

¬ Operational Risk and Sustainability Committee (ORS);

and

¬ the Nomination and Remuneration Committee

Each committee has a written charter setting out its roles and
responsibilities, which is available from the Company’s website at

www.nzog.com/investor-information/
corporate-governance

Audit Committee
Alastair McGregor (Chair)
Rod Ritchie

What the Committee does

Dr Rosalind Archer

The Audit Committee, together with the chief executive, is
responsible to the board for overseeing the financial and
internal controls, financial reporting and audit practices of
the Company.

The chair of the Audit Committee also oversees and
authorises any trading in securities by directors, employees
or contractors.

Restrictions on trading are outlined in the Securities
Trading Policy and Guidelines for Directors, and in the
Securities Trading Policy and Guidelines for Employees and
Dedicated Contractors.

Committee composition

As recommended by the NZX Code, a majority of members
of the audit committee are independent and none are
executive directors. The chair of the audit committee,
Mr McGregor, is not the chair of the board, and has a
financial background.

Committee meetings

Meetings of the Audit Committee are held at least twice
a year.

The chair of the board, directors, the chief executive and
other staff may be invited by the Audit Committee to attend
these meetings.

The Audit Committee can meet with the external auditors
and senior management in separate sessions. An annual
process considers engagement of auditors, having regard
to the auditors’ independence and policies for rotation
of partners.

Read the Audit Committee Charter here

www.nzog.com/dmsdocument/372

New Zealand Oil & Gas Annual Report 2020The Nominations and Remuneration
Committee
Dr Rosalind Archer (Chair)
Alastair McGregor

Samuel Kellner
Rod Ritchie

Operational Risk and Sustainability
Committee
Rod Ritchie (Chair)
Andrew Jefferies

Dr Rosalind Archer
Alastair McGregor

What the Committee does

The Nomination and Remuneration Committee is
responsible to the board for:

¬ providing recommendations to the board in relation to
the director selection and appointment practices of
the Company;

¬ evaluation and remuneration of directors and

board succession;

¬ Chief Executive remuneration, appointment,

performance criteria and review;

Reviewing and providing recommendations to the board
in relation to:

¬ senior executive and key staff succession plans;

¬ the Company’s remuneration, recruitment, retention

and termination policies and procedures for
all employees;

¬ implementing the Company’s Diversity Policy and

achieving any associated measurable objectives; and

¬ other relevant matters identified from time to time by

the board.

Committee composition

As recommended by the NZX Code, the Committee
comprises at least three non-executive directors of the
board. The chair, Dr Archer, is independent.

The Committee meets as required, at least twice per year,
and it may invite executive directors or management to
participate in all or part of meetings.

NZX Code Principle 3.4 recommends that a majority of the
nomination committee should be independent directors.
Half of the committee is independent, and the committee
is chaired by an independent director. A majority of the
board is not independent and the composition of the
committee also reflects this.

Read the Committee's Charter here

www.nzog.com/dmsdocument/373

The Operational Risk and Sustainability Committee’s
role is to advise and support the board in meeting its
responsibilities in relation to health, safety, security,
environment, sustainability, operational risk and
community engagement matters arising out of the
activities and operations of the Group.

The committee’s responsibilities include:

¬ Monitoring the performance and effectiveness of the
Company’s Risk Management Framework, compliance
with the framework and the adequacy of risk controls.

¬ Setting, reviewing and agreeing operational risk

and sustainability policies, practices, frameworks
and targets, including performance against these,
including:

— Sustainability performance framework, targets

and reporting;

— Community and Iwi engagement;

— Environmental policies and programmes including

Climate Change responses.

¬ Seeking assurance of the Company’s compliance

with all operational risk and sustainability
legislative requirements, licence conditions and
stakeholder commitments.

¬ Supporting the board and management in

defining the Company’s operational risk and
sustainability objectives.

¬ Working with management to agree how operational
risk and sustainability objectives will be achieved,
monitored and reviewed.

¬ Supporting a culture of continuous improvement
by reviewing significant incidents and system
failures and monitoring actions and measures to
minimise recurrence.

¬ Ensuring the necessary skills are obtained and
maintained to achieve operational risk and
sustainability objectives.

¬ Providing leadership to the board and support the

Company in aspiring to proactively manage ORS issues.

¬ Ensuring that significant issues are brought to the

attention of the full board.

New Zealand Oil & Gas Annual Report 2020

Company policies, frameworks and strategies relevant to
this Committee:

Commercial Committee
Alastair McGregor

Andrew Jefferies

¬ Health and Safety Policy

¬ Environment Policy

¬ Capturing Local Economic Benefits Policy

¬ Community Engagement Policy

¬ HSSE Management Framework and Management

System

¬ Risk Register

¬ Risk Management Procedure

¬ Sustainability Framework

¬ Climate Change Policy

Committee composition

As recommended by the NZX Code, the Committee
comprises at least three board members. The chair is a
non- executive director.

Read the committee's charter here

www.nzog.com/dmsdocument/370

Board and Committee meeting attendance 2

1 July 2019 to 30 June 2020

What the Committee does

The committee exists to allow management to bring
commercial opportunities to a state that they can be
brought to the full board for final investment decision.

The committee may approve routine budgets and
contracts, including due diligence budgets, for projects
and opportunities.

The committee includes the chief executive and one
director appointed by the board. Other directors may be
invited to join the Committee from time to time with the
approval of the board.

The Committee meets twice weekly as required,
and generally resolves its business by email
or teleconference.

Read the committee's charter here

www.nzog.com/investor-information/
shareholders-information/corporate-governance

Director

Samuel Kellner

Dr Rosalind Archer

Marco Argentieri

Rebecca DeLaet1

Andrew Jefferies

Alastair McGregor

Rod Ritchie

Board Meeting

Audit Committee

Nominations &
Remuneration
Committee

Operational Risk
and Sustainability
Committee 3

5/5

1/1

5/5

2/2

1/2

2/2

1/2

2/2

1/2

2/2

¹ Ms DeLaet retired on 20 December 2019.

² The Commercial Committee generally met twice per week.

³ The HSSE Committee was re-named on 13 December 2019.

New Zealand Oil & Gas Annual Report 2020

Compliance with NZX Code Recommendations

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

3.1

3.2

3.3

3.4

3.5

3.6

An issuer’s audit committee should operate under a written
charter. Membership on the audit committee should be
majority independent and comprise solely of non-executive
directors of the issuer. The chair of the audit committee
should be an independent director and not chair of the board.

Employees should only attend audit committee
meetings at the invitation of the audit committee.

An issuer should have a remuneration committee which
operates under a written charter (unless this is carried out
by the whole board). At least a majority of the remuneration
committee should be independent directors. Management
should only attend remuneration committee meetings
at the invitation of the remuneration committee.

An issuer should establish a nomination committee to
recommend director appointments to the board (unless
this is carried out by the whole board), which should
operate under a written charter. At least a majority of the
nomination committee should be independent directors.

An issuer should consider whether it is appropriate to have
any other board committees as standing board committees.
All committees should operate under written charters.
An issuer should identify the members of each of its
committees, and periodically report member attendance.

The board should establish appropriate protocols that
set out the procedure to be followed if there is a takeover
offer for the issuer, including any communication between
insiders and the bidder. The board should disclose the scope
of independent advisory reports to shareholders. These
protocols should include the option of establishing an
independent takeover committee, and the likely composition
and implementation of an independent takeover committee.

✔

✗

✔

✗

Compliant except that the chair of the Audit Committee is
not an independent director.

Half of the committee is independent, and the
committee is chaired by an independent director.
A majority of the board is not independent and
the composition of the committee reflects
the composition of the board as a whole.

Director appointments are a matter for the whole board.

No formal takeover committee exists. Given the
Company’s shareholder structure, the likelihood
of further takeover proposals is remote.

The Company and its staff are highly familiar with
the processes and appropriate protocols.

The board formed a committee of independent
directors to respond to multiple takeover offers
and a proposed scheme of arrangement in 2019,
which further deepened the Company’s experience
and processes for responding to takeovers.

New Zealand Oil & Gas Annual Report 2020Principle 4

Reporting &
Disclosure

“The board should demand
integrity in financial and non
financial reporting, and in the
timeliness and balance of
corporate disclosures.”

The Company is committed to maintaining a high
standard of communication and to providing timely,
full and accurate information to shareholders and
other stakeholders.

The Company is committed to compliance at all times
with its obligations, as an NZX-listed Company, to
provide continuous disclosure to the market. It strives
to make those disclosures in a way that is clear, concise
and effective.

Communications, Market and Social Media
Disclosure Policy

The Communications, Market Disclosure and Social Media
Policy’s purpose is to:

¬ reinforce the Company’s commitment to the

continuous disclosure obligations imposed by law and
stock exchange rules;

¬ describe the processes to ensure compliance;

¬ outline the Company’s general communications
approach aimed at ensuring timely and accurate
information is provided to shareholders, market
participants and market observers; and

¬ provide ground rules for the use of social media.

The Communications, Market and Social Media Disclosure
Policy is available in the corporate governance section of the
Company's website at:

www.nzog.com/dmsdocument/488

See also Principle 8, Shareholders’ Rights, on page 64.

Reports and policies are easily available

The Company publishes an Annual Report and quarterly
reports. Condensed financial statements are announced
for the half-year.

Security holders can elect to receive the Annual Report
in printed or electronic format. Quarterly reports are
published electronically.

These documents are also posted on the Company’s
website in a clearly marked Company Reports section,
which is located within the investor section. A link to
the latest quarterly and annual reports is provided
prominently on the front page of the website.

Along with reports, the company’s Code of Business Conduct
and Ethics, board and committee charters and the policies
recommended in the NZX Code are published in the Corporate
Governance section of the website:

www.nzog.com/investor-information/shareholders-
information/corporate-governance

New Zealand Oil & Gas Annual Report 2020Continuous Disclosure

Non-financial reporting

New Zealand Oil & Gas is committed to meeting the
continuous disclosure obligations required by the
Listing Rules.

The Listing Rules contain general and continuous
disclosure requirements based on principles which
encompass investor protection, the need to protect
the reputation of the market and the interests
of listed entities.

The company promptly and without delay releases to
the market information that a reasonable person would
expect to have a material effect on the price of its
securities. The only exceptions to this disclosure principle
are those permitted under the Listing Rules.

The board is responsible for monitoring commitments
and continuous disclosure obligations and initiating
action as warranted to ensure reporting is fair
and reasonable.

The chief executive is accountable for the release
of information.

The continuous disclosure policy is found in the wider
Communications, Market Disclosure and Social Media Policy,
available online here:

www.nzog.com/dmsdocument/488

Compliance with NZX Code Recommendations

The Company publishes sustainability performance as
part of the Annual Report.

Sustainability reporting includes material exposure
to environmental, economic and social sustainability
risks and other key risks. It explains how the Company
manages those risks and how operational or non-financial
targets are measured.

Aspects of sustainability reported include:

¬ a summary of the company’s values, including analysis

of our performance in living up to them;

¬ the Company’s sustainability and corporate

responsibility strategy;

¬ a summary of the company’s approach to stakeholder

engagement, including formal feedback from the
company’s Southern Community Panel;

¬ summary of for the company’s contribution to local

communities;

¬ a materiality matrix.

The Sustainability section of this report is
on pages 27–47.

Information about the Company’s sustainability activity is
available at:

www.nzog.com/sustainability

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

✔

4.1

4.2

4.3

An issuer’s board should have a written
continuous disclosure policy.

An issuer should make its code of ethics, board and
committee charters and the policies recommended
in the NZX Code, together with any other key
governance documents, available on its website.

Financial reporting should be balanced, clear and objective.
An issuer should provide non financial disclosure at
least annually, including considering material exposure
to environmental, economic and social sustainability
factors and practices and other key risks. It should
explain how operational or non-financial targets are
measured. Non-financial reporting should be informative,
include forward-looking assessments, and align with
key strategy and metrics monitored by the board.

New Zealand Oil & Gas Annual Report 2020Principle 5

Remuneration

Director’s remuneration

At the 2008 Company Annual Meeting, shareholders
approved a resolution that director’s fees be set at a
maximum of $600,000 per annum, being the combined
total for all non-executive directors. There has been no
increase in the fee level since 2008 and in March 2016 the
board and directors volunteered a reduction in their fees.
OGOG representative directors have not yet drawn any
fees for their their services.

Directors do not receive any performance-based
remuneration.

Mr Jefferies does not receive fees because he is the
chief executive.

The total remuneration and other benefits to directors for
services in all capacities during the year ended 30 June
2020 was:

Dr R Archer

Mr M Argentieri

Ms R DeLaet¹

Mr A Jefferies²

Mr S Kellner

Mr A McGregor

Mr R Ritchie

¹ Retired, 20 December 2019

² Includes remuneration as chief executive

92,388.50

794,232.00

92,388.50

“The remuneration of directors
and executives should
be transparent, fair and
reasonable.”

New Zealand Oil & Gas aims to attract, retain and
motivate professional staff capable of achieving the goals
of the Company.

The Company wants to encourage and reward its staff
fairly and appropriately within the market to reflect
performance and contribution.

Remuneration and Performance
Appraisal Policy

The Remuneration Policy sets out a process to assess the
competitiveness of remuneration level.

The Nomination and Remuneration Committee is
responsible for receiving and making recommendations
on remuneration policies for the chief executive and
senior managers based on assessment of relevant
market conditions and linking remuneration to the
Company’s financial and operational performance and
individual performance.

Executive remuneration may comprise salary, short-term
incentive payments and share options.

Options to acquire ordinary shares are issued in accordance with
the Scheme Rules, which are available here:

www.nzog.com/dmsdocument/480-nzog-share-
option-scheme-rules-pdf

New Zealand Oil & Gas Annual Report 2020Directors’ Interests Policy

Directors’ Interests Register

The directors are required to recognise that the
possibility of conflict of interest exists, and are expected
to declare potential conflict of interest situations to the
board and manage conflicts of interest in accordance
with the Directors’ Interests Policy, the Code of Business
Conduct and Ethics, and the Company’s Constitution.
The Company maintains an interests register in
compliance with the Companies Act 1993, which
records particulars of certain transactions and matters
involving directors.

The Director's Interests Policy is available in the corporate
governance section of the Company's website at:

www.nzog.com/dmsdocument/489

Directors’ Securities Interests

The interests of Directors in securities of the Company at
30 June 2020 were:

Direct Interest

Indirect Interest

Mr A Jefferies

25,000

1,000,000 partly paid
ESOP shares.

532,315 share options.

Directors’ interests recorded in the Interests Register
of the Company as at 30 June 2020 are detailed below.
Notices given or adjusted during the financial year ended
30 June 2019 are marked with an asterisk (*). Each such
Director will be regarded as interested in all transactions
between the Company and the disclosed entity.

Mr S Kellner

O.G. Oil & Gas Ltd

O.G. Energy Holdings Ltd

Omni Holdings Ltd

Cue Energy Resources Ltd

Mr M Argentieri

O.G. Energy Holdings Ltd

O.G. Oil & Gas Ltd

OGOG (Kohatukai) Ltd

Director

OGOG (Otway) Holdings Pty Ltd

Director

OGOG (Otway) Pty Ltd

OGOG (1) Limited *

OGOG (2) Limited *

OGOG (3) Limited *

OGOG (4) Limited *

OGOG (5) Limited *

OGOG (GOM 1) Inc. *

OGOG (GOM
Management) Inc. *

Director

Vice-
President/
Treasurer/
Secretary/
Director

OGOG (Management) Limited *

Director

OGOG (GOM NZ) Limited *

Cue Energy Resources Ltd

Director

New Zealand Oil & Gas Annual Report 2020Dr R Archer

Engineering New Zealand

University of Auckland
Geothermal Institute

Capricorn Solutions Ltd

Mr A Jefferies

Tuatara Energy Limited

Petroleum Exploration and
Production Association
of New Zealand

CGX Energy

Sacgasco

Ansila Energy *^

Far Ltd *^

Central Petroleum *

Horizon Oil *

Pancontinental Oil *

Warrego *^

Cue Energy Resources Ltd

Vice
President

Director

Shareholder

Director &
Shareholder

Cue (Ashmore Cartier) Pty Ltd

Director

Cue Exploration Pty Ltd

Cue Mahakam Hilir Pty Ltd

Cue Mahato Pty Ltd

Cue Sampang Pty Ltd

Cue Taranaki Pty Ltd

Mr R Ritchie

Cue Energy Resources Ltd

SPARC NZ consulting

Coromandel Pure Honey

Sparc (Aust) Pty Ltd

SacGasCo

*^ Name change from previous declaration

Director

Shareholder

Mr A McGregor

Cue Energy Resources Ltd

Cue Kalimantan Pte Ltd

Omni Holdings Limited

Omni Offshore
Terminals Pte Ltd

Omni Offshore Terminals
(Operations) Pte Ltd

Omni Offshore Terminals
(Manora) Pte Ltd

Omni Offshore Terminals
(Nong Yao) Pte Ltd

Omni Offshore Terminals
Malaysia Sdn Bhd

Gading Megah Sdn Bhd

Omni Offshore Terminals
(Operations) (Thailand) Co Ltd

Aurora FSO Ltd

Manora FSO Ltd

O.G. Oil & Gas
(Singapore) Pte Ltd

O.G. Oil & Gas Ltd

O.G. Energy Holdings Ltd

OGOG (Kohatukai) Ltd

OGOG (Otway) Pty Ltd *

OGOG (Otway)
Holdings Pty Ltd *

OGOG (1) Limited *

OGOG (2) Limited *

OGOG (3) Limited *

OGOG (4) Limited *

OGOG (5) Limited *

O.G. Oil & Gas
(Oceania) Pte. Ltd *

OGOG (GOM 1) Inc. *

OGOG (GOM
Management) Inc. *

Director

President/
Director

OGOG (GOM NZ) Limited *

Director

OGOG (GOM Management)
Limited *

President/
Director

New Zealand Oil & Gas Annual Report 2020Directors’ and Officers’ Liability Insurance

Employees Remuneration

The Company and its subsidiaries have arranged policies
of directors’ and officers’ liability insurance, which,
together with a deed of indemnity, seek to ensure to the
extent permitted by law that directors and officers will
incur no monetary loss as a result of actions legitimately
taken by them as directors and officers.

Chief Executive’s Remuneration

Salary paid

Benefits 1

Cash STI 2

LTI: Share Options3

Total

584,052

43,619

136,810

29,751

794,232

1 Benefits include Kiwisaver at 3% and health insurance

2 STI for 2019-20 to be paid August 2020, 50% of the STI is based on

company performance and 50% on personal performance assessed by
the Nominations and Remunerations Committee. Half of the personal
performance criteria is determined by behaviours, and half by performance
measures agreed at periodic intervals throughout the year between the CEO
and the Nominations and Remunerations committee.

3 The chief executive participates in the employee share options scheme, the
Rules for which are available at www.nzog.com/dmsdocument/480-nzog-
share-option-scheme-rules-pdf

During the reporting period the chief executive was awarded 532,315
options. The value of the options in this table is calculated using the Black
Scholes valuation method. The scheme rules provide that share options are
allocated at the direction of the board. The board allocated share options to
the chief executive as a long term incentive to promote retention and align
the chief executive’s incentives with those of shareholders.

During the year ended 30 June 2020 18 New Zealand Oil
& Gas employees (including the chief executive) received
individual remuneration over $100,000.

$110,001 – $120,000

$130,001 – $140,000

$140,001 – $150,000

$160,001 – $170,000

$180,001 – $190,000

$190,001 - $200,000

$200,001 - $210,000

$210,001 - $220,000

$260,001 - $270,000

$300,001 - $310,000

$310,001 - $320,000

$390,001 - $400,000

$480,001 - $490,000

$790,001 - $800,000

Short Term Incentive

Officers of the company may receive payments under a
short term incentive scheme.

50% of the STI is based on company performance and
50% on personal performance. Half of the personal
performance criteria is determined by behaviours,
and half by performance measures agreed at periodic
intervals throughout the year between the CEO and direct
reports.

In 2019-20 the company factors affecting short term
incentive payments were

Acquisitions

Financial Performance

Reserves replacement

Exploration

HSSE

37.5%

7.5%

20%

15%

20%

New Zealand Oil & Gas Annual Report 2020Officers’ Securities Interests

The board may issue share options to senior managers
from time to time as part of a strategy to align their
interests with the interests of shareholders, and to assist
retention of key personnel. During the reporting period,
options were issued to senior manager/company officers
subject to the Scheme Rules available at www.nzog.
com/dmsdocument/480-nzog-share-option-scheme-
rules-pdf

Each Option is an option to acquire one fully paid ordinary
share. Option holders will be able to exercise the Options
in the period from 30 June 2022 until 30 June 2025.
The exercise price for the Options is $0.61 per Option.
Shares issued on the exercise of Options will be issued
on the same terms and will rank equally in all respects
with ordinary shares currently on issue. Options do not
carry voting rights or any entitlement to receive dividends
unless and until exercised and converted to shares. The
Board may permit participants to exercise Options by
way of a cashless exercise, through which the company
would only issue to a participant the number of shares
equal in value to the difference between the exercise
price otherwise payable in respect of the Options and the
market value of shares at the time of exercise. 2019-20
was the first year that share options have been awarded.

Compliance with NZX Code Recommendations

The interests of the current Company Officers
(excluding the Chief Executive) in securities of the
Company at 30 June 2020 were:

Number of shares at 30
June 2019

Number of shares at 30
June 2020

Officer

Paris Bree

Dr Chris McKeown

–

Catherine McKelvey

7,500

Michael Wright

–

223,075 share
options

361,488 share
options

223,075 share
options and 7,500
ordinary shares

293,151 share
options

ESOP

The Company formerly operated an Employee Share
Option Plan (ESOP), under which options to purchase
shares were granted to employees at the discretion
of the board.

Since February 2017 the Company has not allocated
any shares.

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

5.1

5.2

5.3

An issuer should recommend director remuneration
to shareholders for approval in a transparent
manner. Actual director remuneration should be
clearly disclosed in the issuer’s annual report.

An issuer should have a remuneration policy for
remuneration of directors and officers, which
outlines the relative weightings of remuneration
components and relevant performance criteria.

An issuer should disclose the remuneration arrangements
in place for the CEO in its annual report. This should include
disclosure of the base salary, short term incentives
and long term incentives and the performance criteria
used to determine performance based payments.

✔

New Zealand Oil & Gas Annual Report 2020Principle 6

Risk Management

“Directors should have a sound
understanding of the material
risks faced by the issuer and
how to manage them. The Board
should regularly verify that the
issuer has appropriate processes
that identify and manage
potential and material risks.”

Recognising and Managing Risk

The Company has a risk management system
framework, which outlines the Company’s approach to
risk management. It provides a framework for applying
consistent and comprehensive risk management
practices across all functional areas of the business.

The Risk Management System Framework is available in the
corporate governance section of the Company’s website at:

www.nzog.com/dmsdocument/1

A central Company risk register, which considers the
risks, reviews the controls, assigns ownership of a
risk and tracks treatment plans, is maintained. Risk
assurance is provided through a prioritised programme of
audits and internal review.

The board’s accountabilities include overseeing
the effectiveness of the risk management system
framework, monitoring compliance and approving
polices and systems for the ongoing identification and
management of risks. The board’s responsibilities include
approving the Company’s risk capacity and appetite,
reviewing material risks and reviewing the risk register.
The board allocates oversight of risk management in
relation to health, safety and environment and company
operations to the HSSE Committee and oversight in
relation to accounting standards and principles, financial
statement compliance and reliability and the audit
process to the Audit Committee.

Responsibility for identifying, documenting and managing
risks and opportunities is delegated to the appropriate
level of management. The chief executive is responsible
for such things as integrating risk management into
core business processes, managing the Company’s
corporate strategic risks and opportunities, and regularly
reviewing the Company’s risk profile. The chief executive
has ultimate responsibility to the board for design,
development and improvement of the risk management
framework system and maintains the Company’s
risk register.

The Company does not have an internal audit function.
The process employed for evaluating and improving the
effectiveness of risk management and internal control
processes is:

¬ risks are formally reviewed by risk owners;

¬ management regularly reviews the risk register to
ensure adherence and continuous improvement;

¬ the ORS Committee regularly reviews the risk register,
with a particular emphasis on reducing key risks to as
low as reasonably practicable;

¬ for specific operational activities (including seismic

acquisition campaigns), the board reviews the
intended operational activity against activities related
to elements of the Company’s HSSE management
framework to ensure a compliant work programme,
achieving desired objectives safely; and

¬ after-action reviews (AAR) of an operational phase of a
project are undertaken by the HSSE Advisor and project
team, to identify improvement in control processes.
The AAR is then reviewed by the HSSE Committee.

The ORS Committee reviews specific risks at each
meeting of the committee and, at least annually, reviews
the risk register and framework document to satisfy itself
that the system continues to be sound.

The Board Operational Risk and Sustainability Committee
Charter, is available in the corporate governance section of the
Company's website at:

www.nzog.com/dmsdocument/370

TCFD Risk disclosure

TCFD risks, and the framework for managing risk, are
comprehensively reported in the section beginning
page 27 of this document.

New Zealand Oil & Gas Annual Report 2020Health and Safety

Environment

The Company values our natural environment and is
committed to responsible management practices
that minimise environmental impacts arising from our
activities, using soundly-based science as the basis for all
of our environmental decisions.

All employees, contractors and joint venturers engaged
in activities under the Company’s operational control
are responsible for applying the Environment Policy. The
Company’s managers are responsible for promoting the
policy in non-operated joint ventures.

The full Environment Policy is available in the corporate
governance section of the Company's website at:

www.nzog.com/dmsdocument/491

The Company is fully committed to the provision of a safe
and healthy work environment. The Company aspires to
a ‘no one gets hurt plus no incidents’ standard under its
Health and Safety Policy.

All employees, contractors and joint venture parties
engaged in activities under the Company’s operational
control are responsible for the application of the Health
and Safety Policy.

All employees are responsible for taking all practical
steps to avoid harm to themselves or to others in the
workplace. They must report any potentially hazardous
situations, maintain good housekeeping in all areas and
comply with safe work practices and procedures.

The Company’s managers are responsible for
promoting the Health and Safety Policy in non-operated
joint ventures.

The full Health and Safety Policy is available in the corporate
governance section of the Company's website at:

www.nzog.com/dmsdocument/492

Compliance with NZX Code Recommendations

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

6.1

6.2

An issuer should have a risk management framework for its
business and the issuer’s board should receive and review
regular reports. An issuer should report the material risks
facing the business and how these are being managed.

An issuer should disclose how it manages its health
and safety risks and should report on its health and
safety risks, performance and management.

✔

New Zealand Oil & Gas Annual Report 2020Principle 7

Auditors

“The board should ensure the
quality and independence of the
external audit process.”

Oversight of the Company’s external audit is the
responsibility of the Audit Committee, which
also oversees financial and internal controls and
financial reporting.

The external auditor of New Zealand Oil & Gas is KPMG.
The Audit Committee reviewed the appointment in
February 2020.

An External Auditor Independence Policy was adopted by
Board in June 2018

Total fees paid to KPMG in its capacity as group auditor in
FY 2020 were $219,000, which includes fees earned as
Cue’s auditor. Fees for audit services for New Zealand Oil
& Gas Limited were $115,000.

Total fees paid to KPMG for other professional services
were $109,000. Other services included:

¬ Tax advice.

¬ Tax compliance.

¬ Other assurance services.

The NZX and New Zealand Oil & Gas require rotation of
Lead Audit Partners every five years.

In 2020 the lead partner changed after a
five year rotation.

KPMG has supplied the Company with a written
statement confirming its independence, and systems use
to ensure independence is maintained.

The external auditor attends the Annual Meeting
to answer questions from shareholders in relation
to the audit.

New Zealand Oil & Gas Annual Report 2020Compliance with NZX Code Recommendations

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

7.1

The board should establish a framework for the
issuer’s relationship with its external auditors.

The should include procedures:

for sustaining communication with the issuer’s external
auditors;

to ensure that the ability of the external auditors to
carry out their statutory audit role is not impaired, or
could reasonably be perceived to be impaired;

to address what, if any, services (whether by type or
level) other than their statutory audit roles may be
provided by the auditors to the issuer; and

to provide for the monitoring and approval by the
issuer’s audit committee of any service provided by
the external auditors to the issuer other than in their
statutory audit role.

7.2

The external auditor should attend the issuer’s
Annual Meeting to answer questions from
shareholders in relation to the audit.

7.3

Internal audit functions should be disclosed.

✔

✗

The Company does not have an internal audit
function. The process employed for evaluating and
improving the effectiveness of risk management
and internal control processes is:
∫ risks are formally reviewed by risk owners;
∫ management regularly reviews the risk register to
ensure adherence and continuous improvement;

∫ the Operational Risk and Sustainability

Committee regularly reviews the risk register,
with a particular emphasis on reducing key
risks to as low as reasonably practicable;

∫ for specific operational activities (including seismic

∫ after action reviews (AAR) of an operational phase of a
project are undertaken by the HSSE Advisor and project
team, to identify improvement in control processes.
The AAR is then reviewed by the ORS Committee.

New Zealand Oil & Gas Annual Report 2020Principle 8

Shareholder Rights
& Relations

“The board should respect the
rights of shareholders and foster
constructive relationships with
shareholders that encourage
them to engage with the issuer.”

New Zealand welcomes shareholder participation, aims
to provide regular update of useful information about
its activities and seeks opportunities to engage with
shareholders directly.

Shareholder participation

The Company encourages shareholder participation at
the annual meeting by inviting questions in advance and
discussion from the floor. Materials are posted on the
Company’s website. In 2020, the annual meeting will be
held online so that all shareholders could participate
despite restrictions on travel.

The Notice of Annual Meeting of Shareholders is posted
as it is available and at least 20 working days prior to
the meeting.

Shareholders can directly message the Company at any
time through the website and it aims to respond promptly.

The Company makes available key staff and directors to
answer questions about major initiatives.

Shareholders have the right to vote on major decisions
that change the nature of the company’s activities. All
shares participate equally with other shares on the basis
of one share, one vote. There are no special voting rights
attached to any stock nor any restricted stock.

Voting is conducted by poll, not by show of hands, as
recommended by the NZX Code in order to respect the
principle of one share, one vote.

In 2020 the board undertook a listening tour
with a number of larger shareholders about the
Company’s strategy.

Website

The Company maintains a website, nzog.com,
where comprehensive information about its activities
is maintained.

Shareholders and interested parties can subscribe via
the website to receive notice of the Company’s market
announcements by email.

The dedicated investor relations section of the website
makes available share price information, detail about
shareholdings, statutory reports, corporate governance
information and details about the Company’s activities.

New Zealand Oil & Gas Annual Report 2020Compliance with NZX Code Recommendations

No.

NZX Code Recommendation

✔ ❘ ✗

Explanation of non-compliance

8.1

8.2

8.3

8.4

8.5

An issuer should have a website where investors
and interested stakeholders can access financial
and operational information and key corporate
governance information about the issuer.

An issuer should allow investors the ability to easily
communicate with the issuer, including providing the option
to receive communications from the issuer electronically.

Quoted equity security holders should have the right
to vote on major decisions which may change the
nature of the company in which they are invested.

If seeking additional equity capital, issuers of quoted
equity securities should offer further equity securities
to shareholders of the same class on a pro rata basis,
and on no less favourable terms, before further
equity securities are offered to other investors.

The board should ensure that the notices of annual
or special meeting of shareholders is posted on
the issuer’s website as soon as possible and at
least 20 working days prior to the meeting.

✔

New Zealand Oil & Gas Annual Report 2020Shareholder
Information

Top 20 Shareholders

As at 14 August 2020

Stock Exchange Listing

The Company’s securities are listed on the Main Board
equity security market operated by NZX Limited.

Securities On Issue

As at 14 August 2020 New Zealand Oil & Gas Limited had
the following securities

Listed Ordinary Shares

Options to acquire ordinary shares

164,420,718

2,832,0481

1 Options have been issued subject to the Scheme Rules available here:

www.nzog.com/dmsdocument/482

Each Option is an option to acquire one fully paid ordinary share.
Option holders will be able to exercise the Options in the period from
1 July 2022 until 1 July 2025. The exercise price for the Options is
$0.61 per Option. Shares issued on the exercise of Options will be
issued on the same terms and will rank equally in all respects with
ordinary shares currently on issue. Options do not carry voting rights
or any entitlement to receive dividends unless and until exercised
and converted to shares. In the event of a change of control event,
generally the vesting date of Options will accelerate and the Options
will become exercisable. Options are generally forfeited by a
participant on the occurrence of a lapse event, which includes when
the participant ceases to be an employee of the company.

Security Holder

Units

O.G. Oil And Gas Singapore
Pte. Ltd

Resource Nominees Limited

Accident Compensation
Corporation - NZCSD

Sik-On Chow

Asb Nominees Limited
<414354 Ml - A/C>

Riuo Hauraki Limited

Amalgamated Dairies Limited

Moon Chul Choi + Keum Sook
Choi

Richard Bruce Lees

Ruihui Zhang

New Zealand Depository
Nominee Limited

Murray Ion Denholm

Asb Nominees Limited

Clinton John Trass + Kasturi
Chitranjali Trass

New Zealand Oil & Gas Limited -
GNA Trustee

Anz Custodial Services New
Zealand Limited - NZCSD

Roy Anthony Radford

JBWERE (NZ) Nominees
Limited

Chin-Yi Lin + Yu-Ching
Lin-Chao

114,876,016

69.86

3,334,000

3,212,373

2,140,000

2,040,379

1,400,000

706,334

618,750

564,000

562,783

530,092

515,500

514,585

2.03

1.95

1.30

1.24

0.85

0.43

0.38

0.34

0.32

0.31

500,000

0.30

474,603

0.29

405,800

0.25

392,000

390,000

0.24

364,000

0.22

Tribal Nominees Limited

352,500

0.21

Totals: Top 20 Holders Of
Ordinary Shares

Total Remaining Holders
Balance

133,893,715

81.43

30,537,003

18.57

New Zealand Oil & Gas Annual Report 2020Substantial Shareholders

Share Buy-backs

Substantial Product Holder Notices are received pursuant
to the Financial Markets Conduct Act 2013. Shareholders
are required to disclose their holding to the issuer and the
issuer’s registered exchanges when:

¬ they have a substantial holding (5% of more of the

listed voting securities);

¬ subsequent movements of 1% or more in a substantial

holding from prior notification;

¬ any change is made in the nature of any relevant

interest in the substantial holding; and

¬ they cease to have a substantial holding.

According to the company’s records and Substantial
Product Holding Notices previously released to NZX, as
at 30 June 2020, no Substantial Product Holder Notices
were received since the date of the last Annual Report, in
respect of holdings of ordinary shares of New Zealand Oil
& Gas Limited.

No shares were bought back in the period.

Distribution of Security Holders As at 15 August
2020

Range

1 - 99

100 - 199

200 - 499

500 - 999

1,000 - 1,999

2,000 - 4,999

5,000 - 9,999

10,000 - 49,999

50,000 - 99,999

100,000 - 499,999

500,000 - 999,999

1,000,000 - 9,999,999

10,000,000 Over

Total
holders

1,191

962

1,023

460

465

Units

332

920

2,570

831,842

1,335,962

3,164,516

3,083,942

9,064,218

4,683,845

10,747,759

4,512,044

12,126,752

% of
Issued
Capital

0.00

0.51

0.81

1.92

1.88

5.51

2.85

6.54

2.74

7.37

114,876,016

69.86

Total

4,266

164,430,718

100.00

New Zealand Oil & Gas Annual Report 2020Trading Statistics

Dividend Payments and Reinvestment Plan
Dividend Payments

For the 12 months ended 30 June 2020

NZX (Trading Code NZO)

High

0.725

Low

0.430

Dividend Payments

No dividend payments have been made during the
financial year.

Dividend Reinvestment Plan

The Dividend Reinvestment Plan will not apply to future
dividends until advised otherwise.

Direct Crediting of Dividends Payments

To minimise the risk of fraud and misplacement
of dividend cheques shareholders are strongly
recommended to have all payments made by way of
direct credit to their nominated New Zealand or Australian
bank account. This can be done by simply giving written
notice to the share registry, Computershare Investor
Services Ltd, Private Bag 92119, Auckland, New Zealand.
Email: enquiry@computershare.co.nz

Share Registries

Details of the company’s share registry are given in
the Corporate Directory on the inside back cover of
this report. Shareholders with enquiries about share
transactions, changes of address or dividend payments
should contact the share registry.

Donations

There were no donations during the year. See pages 24
and 45 for details of community contributions.

New Zealand Oil & Gas Annual Report 2020Consolidated
Financial
Statements

The Board of Directors of New Zealand
Oil & Gas Limited authorise these
consolidated Financial Statements for
issue on 28 August 2020.

For and on behalf of the Board.

Samuel Kellner
Chairman

28 August 2020

Rosalind Archer
Director

28 August 2020

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020Consolidated Statement
of Cash Flows

For the year ended 30 June 2020

Cash flows from operating activities

Customer receipts

Production and marketing payments

Supplier and employee payments (inclusive of GST)

Interest received

Income taxes paid

Royalties paid

Other

Net cash inflow from operating activities

Cash flows from investing activities

Exploration and evaluation expenditure

Oil and gas asset expenditure

Property, plant and equipment expenditure

Net cash outflow from investing activities

Cash flows from financing activities

Issue of shares

Forfeited shares

Lease liabilities principal element payments

Net cash outflow from financing activities

Net increase in cash, cash equivalents and funds held in escrow

Cash and cash equivalents at the beginning of the year

Exchange rate effects on cash, cash equivalents and funds held in escrow

Cash, cash equivalents and funds held in escrow at end of the year

Notes

2020
$000

2019
$000

38,163

(10,724)

(11,652)

1,580

(4,555)

(3,069)

1,164

10,907

(5,458)

(2,690)

(199)

(8,347)

(7)

(242)

(249)

2,311

105,586

2,857

110,754

46,570

(10,968)

(11,744)

2,297

(4,131)

(2,506)

1,787

21,305

(12,115)

(1,740)

(87)

(13,942)

(17)

(11)

7,352

98,010

224

105,586

The notes to the financial statements are an integral part of these financial statements

New Zealand Oil & Gas Annual Report 2020Consolidated Statement of Cash Flows

For the year ended 30 June 2020

Reconciliation of loss for the year to net cash inflow from operating activities

Notes

Loss for the year

Depreciation and amortisation

Deferred tax

Exploration expenditure included in investing activities

Asset impairment

Net foreign exchange differences

Unwind of discount on rehabilitation provision

Share based payments

Other

Change in operating assets and liabilities

Movement in receivables

Movement in payables

Movement in inventories

Movement in other financial assets

Movement in provisions

Movement in tax payable

Net cash inflow from operating activities

2020
$000

(772)

8,410

454

3,615

2,856

2019
$000

(2,889)

8,818

559

8,224

7,202

(2,365)

(1,217)

414

341

(58)

1,142

(508)

207

(597)

(258)

(1,974)

10,907

221

281

3,777

(2,462)

(314)

(977)

21,305

The notes to the financial statements are an integral part of these financial statements

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020Consolidated Statement
of Comprehensive Income

For the year ended 30 June 2020

Revenue

Operating costs

Exploration and evaluation expenditure

Other income

Other expenses

Results from operating activities excluding amortisation,
impairment and net finance costs

Amortisation of production assets

Asset impairment

Net finance income

Profit before income tax and royalties

Income tax expense

Royalties expense

Loss for the year

Loss for the year attributable to:

Loss attributable to shareholders

Profit attributable to non-controlling interest (NCI)

Loss for the year

Other comprehensive income:

Items that may be classified to profit or loss

Foreign currency translation reserve (FCTR) differences

Total other comprehensive profit/(loss) for the year

Total comprehensive profit/(loss) for the year is attributable to:

Equity holders of the Group

Non-controlling interest

Total comprehensive profit/(loss) for the year

Loss per share

Basic loss per share (cents)

Diluted loss per share (cents)

Notes

16 & 17

2020
$000

37,270

(9,894)

(3,615)

1,980

2019
$000

43,323

(9,305)

(8,224)

2,450

(12,241)

(12,389)

13,500

15,855

(7,956)

(2,856)

3,455

6,143

(4,211)

(2,704)

(772)

(1,382)

610

(772)

(8,457)

(7,202)

3,162

3,358

(3,674)

(2,573)

(2,889)

(7,480)

4,591

(2,889)

1,660

888

(5,262)

(8,151)

(68)

956

888

(0.8)

(12,517)

4,366

(8,151)

(4.5)

The notes to the financial statements are an integral part of these financial statements

New Zealand Oil & Gas Annual Report 2020Consolidated Statement
of Financial Position

For the year ended 30 June 2020

ASSETS

Current assets

Cash and cash equivalents

Funds held in escrow

Receivables and prepayments

Inventories

Right-of-use assets

Total current assets

Non-current assets

Exploration and evaluation assets

Oil and gas assets

Property, plant and equipment

Other intangible assets

Other financial assets

Right-of-use assets

Total non-current assets

Total assets

LIABILITIES

Current liabilities

Payables

Lease provision

Current tax liabilities

Total current liabilities

Non-current liabilities

Rehabilitation provision

Other provisions

Deferred tax liability

Total non-current liabilities

Total liabilities

Net assets

EQUITY

Share capital

Reserves

Retained earnings

Attributable to shareholders of the Group

Non-controlling interest in subsidiaries

Total equity

Net asset backing per share (cents)

Net tangible asset backing per share (cents)

The notes to the financial statements are an integral part of these financial statements
* Comparative numbers have been restated. Refer to note 4.

Notes

2020
$000

2019*
$000

97,904

12,850

6,604

2,388

132

93,540

12,046

7,996

2,595

119,878

116,177

6,549

52,237

294

128

6,123

65,422

3,646

58,609

374

5,526

68,203

185,300

184,380

5,467

217

2,340

8,024

27,909

1,793

29,718

37,742

5,975

4,314

10,289

26,449

1,309

27,758

38,047

147,558

146,333

211,901

4,111

(80,445)

135,567

11,991

147,558

87.9

83.9

211,908

2,460

(79,071)

135,297

11,036

146,333

87.2

85.0

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020Consolidated Statement
of Changes in Equity

For the year ended 30 June 2020

Share
capital
$000

Reserves
$000

Retained
earnings
$000

Non-
controlling
interest
$000

Total
$000

Total equity
$000

Balance as at 1 July 2018

211,917

7,561

(74,578)

144,900

6,670

151,570

(Loss)/profit for the year

Foreign currency translation differences

Shares issued

Partly paid shares issued

Share based compensation expense

Exercised and expired ESOP awards

FCTR on disposals

(17)

(7,480)

(2,132)

(82)

(2,905)

2,905

(7,480)

(2,132)

4,591

(225)

(2,889)

(2,357)

(17)

Balance as at 30 June 2019

211,908

2,460

(79,071)

135,297

11,036

146,333

(Loss)/profit for the year

Foreign currency translation differences

Partly paid shares issued

Share based compensation expense

Exercised and expired ESOP awards

(7)

(1,382)

1,315

344

(8)

1,315

(7)

344

610

345

(772)

1,660

(7)

344

Balance as at 30 June 2020

211,901

4,111

(80,445)

135,567

11,991

147,558

The notes to the financial statements are an integral part of these financial statements

New Zealand Oil & Gas Annual Report 2020Basis of consolidation

Subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date
that control ceases. Consistent accounting policies
are employed in the preparation and presentation of
the Group financial statements. Intra-group balances,
transactions, unrealised income or expenses arising from
intra-group transactions and dividends are eliminated
in preparing the Group financial statements. A list of
subsidiaries and associates is shown in notes 14 and 15.

Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of
such transactions and from the translation at year
end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
the income statement, except when deferred in the
statement of comprehensive income and held in equity
reserves as qualifying cash flow hedges and qualifying
net investment hedges. Translation differences on non-
monetary items, such as equities classified as fair value
through other comprehensive income, are included in the
statement of comprehensive income and held in the fair
value reserves in equity.

Notes to Financial
Statements

1 Basis of accounting

Reporting entity

New Zealand Oil & Gas Limited (the Group) is a company
domiciled in New Zealand, registered under the
Companies Act 1993 and listed on the New Zealand Stock
Exchange (NZX). The Group is an FMC reporting entity
for the purposes of the Financial Markets Conduct Act
2013. The financial statements presented are for New
Zealand Oil & Gas Limited, its subsidiaries and interests
in associates and jointly controlled operations (together
referred to as the “Group”).

The ultimate parent company is O.G. Oil & Gas (Singapore)
Pte. Ltd. (OGOG), a company incorporated in Singapore
and forms part of the Ofer Global Group.

Basis of preparation

The financial statements have been prepared in
accordance with New Zealand Generally Accepted
Accounting Practices (‘NZ GAAP’) and the Financial
Reporting Act 2013. They comply with the NZ equivalents
to International Financial Reporting Standards (‘NZ IFRS’)
as appropriate for profit-oriented entities, and with
International Financial Reporting Standards (‘IFRS’).

The presentation and reporting currency used in the
preparation of the financial statements is New Zealand
dollars (NZD or $) rounded to the nearest thousand unless
otherwise stated. The financial statements are prepared
on a goods and services tax (GST) exclusive basis except
billed receivables and payables which include GST.

These financial statements are prepared on the basis of
historical cost except where otherwise stated in specific
accounting policies contained in the accompanying notes.

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 20202 Critical accounting estimates

and judgements

3 Adoption status of relevant new financial
reporting standards and interpretations

The preparation of financial statements requires
management to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from
these estimates.

The estimates and assumptions that have the most
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year relate to:

∫ Recoverability of exploration and evaluation assets
and oil and gas assets. Assessment includes future
commodity prices, future cash flows, an estimated
discount rate and estimates of reserves. Management
performs an assessment of the carrying value of
investments at each reporting date and considers
objective evidence for impairment on each investment
taking into account observable data on the investment,
the fair value, the status or context of capital markets,
its own view of investment value and its long term
intentions (refer to note 16, 17 and 24(a)(ii)),

∫ Provision for rehabilitation obligations includes
estimates of future costs, timing of required
rehabilitation and an estimated discount rate
(refer to note 20); and

∫ Recoverability of deferred tax asset includes an

assessment of the ability of entities in the Group to
generate future taxable income (refer to note 10).

In March 2020, the World Health Organisation declared
the outbreak of a novel coronavirus (COVID-19) as a
pandemic, which continues to spread globally, including
New Zealand. COVID-19 has caused significant volatility
and uncertainty around the breadth and duration of
business disruption in both domestic and international
markets. The pandemic presents strategic, operational
and commercial uncertainties for the Group. There are
increased uncertainties around the duration, scale and
impact of the COVID-19 outbreak, however given the
continued uncertainties the future financial impact, if
any, cannot be determined. The Group is taking various
measures to mitigate the impact on its operations,
however to date the Group has lower revenues and
assets, due to lower oil prices. The Maari asset has been
impaired accordingly (refer to note 17).

NZ IFRS 16 Leases

The Group has adopted NZ IFRS 16 from 1 July 2019.
The standard replaces NZ IAS 17 'Leases' and for lessees
eliminates the classifications of operating leases and
finance leases. Except for short-term leases and leases of
low value assets, right-of-use assets and corresponding
lease liabilities are recognised in the statement of
financial position. Straight-line operating lease expense
recognition is replaced with a depreciation charge for
the right-of-use assets (included in other expenses) and
an interest expense on the recognised lease liabilities
(included in finance costs). For classification within the
statement of cash flows, the interest portion is disclosed
in operating activities and the principal portion of the
lease payments are separately disclosed in financing
activities. For lessor accounting, the standard does not
substantially change how a lessor accounts for leases.

Impact on application

The Group has adopted NZ IFRS 16 using the modified
retrospective approach whereby the consolidated
entity has recognised the cumulative effect of initially
applying this standard as an adjustment to the opening
balance of equity as at 1 July 2019. Accordingly, the
Group has not restated comparative balances in the
financial statements.

On adoption of NZ IFRS 16, the Group recognised lease
liabilities in relation to leases which had previously been
classified as ‘operating leases’ under the principles of
NZ IAS 17 Leases. These liabilities were measured at
the present value of the remaining lease payments,
discounted using the lessee’s incremental borrowing
rate as of 1 July 2019. The weighted average incremental
borrowing rate applied to the lease liabilities on 1 July
2019 was 3.3%. The associated right-of-use assets
were measured at the amount equal to the lease liability
relating to that lease at 1 July 2019, with no overall
change to net assets.

Impact on application ($000)

1 July 2019

Right-of-use assets

Lease liabilities

Accumulated losses

455

(455)

New Zealand Oil & Gas Annual Report 20203 Adoption status of relevant new financial reporting

4 Restatement of comparatives

standards and interpretations (continued)

Correction of error

Cue Energy Resources Limited (Cue), through its wholly
owned subsidiary, Cue Sampang Pty Ltd (Cue Sampang),
contributed to the Abandonment and Site Restoration
(ASR) fund as agreed by the Indonesian Government
through SKK Migas. Cue Sampang contributed $5.6
million to the ASR fund up to 30 June 2019. Historically,
Cue did not recognise the funded portion of the ASR on its
balance sheet.

During 2020 financial year, Cue reviewed the contractual
agreement and concluded that a prior year restatement
is required to gross up the funded portion of the
rehabilitation provision, as Cue Sampang retains the
obligation to fully fund its share of the rehabilitation.
As such, Cue retrospectively recognised other
financial asset of $5.5 million as at 30 June 2019, with
corresponding adjustments for production properties
($0.1 million) and rehabilitation provision ($5.6 million).
There was no impact to the statement of profit or loss
and other comprehensive income.

Statement of profit or loss and other
comprehensive income

When there is a restatement of comparatives, it is
mandatory to provide a statement of profit or loss and
other comprehensive income for the year ended 30
June 2019. However, as there were no adjustments
made, the consolidated entity has elected not to
show the statement of profit or loss and other
comprehensive income.

Statement of financial position at the beginning
of the earliest comparative period

When there is a restatement of comparatives, it is
mandatory to provide a third statement of financial
position at the beginning of the earliest comparative
period, being 1 July 2018.

Right-of-use assets

A right-of-use asset is recognised at the commencement
date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease
liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any
lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an
estimate of costs expected to be incurred for dismantling
and removing the underlying asset, and restoring the site
or asset.

Right-of-use assets are depreciated on a straight-
line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the
shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the
depreciation is over its estimated useful life. Right-of-
use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.

Lease liabilities

A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made
over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Group's incremental borrowing rate.
Lease payments comprise of fixed payments less any
lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to
be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option
is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the
period in which they are incurred.

Lease liabilities are measured at amortised cost using
the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future
lease payments arising from a change in an index or a
rate used; residual guarantee; lease term; certainty of a
purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the
corresponding right-of use asset, or to the profit and loss
if the carrying amount of the right-of-use asset is fully
written down.

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 20204 Restatement of comparatives (continued)

5 Segment information

2018
$000

ASSETS

Reported

Adjustment

Restated

Non-current assets

Oil and gas assets

Other financial assets

64,848

Total non-current assets

72,811

(12)

5,130

5,118

64,836

5,146

77,929

Total assets

184,846

5,118

189,964

LIABILITIES

Non-current liabilities

Rehabilitation provision

18,642

5,118

23,760

Total non-current
liabilities

19,439

5,118

24,557

Total liabilities

33,276

5,118

38,394

All operating segments’ operating results are reviewed
regularly by the Group’s chief executive officer (CEO),
the entity’s chief decision maker, and have discrete
financial information available. Segment results that are
reported to the CEO include items directly attributable
to a segment as well as those that can be allocated on
a reasonable basis. Unallocated items comprise mainly
corporate assets, office expenses, and income tax assets
and liabilities.

The following summaries describe the activities within
each of the reportable operating segments:

∫ Kupe oil and gas field (Kupe): development, production
and sale of natural gas, liquefied petroleum gas (LPG)
and condensate (light oil) in the petroleum mining
permit area of PML 38146 located in the offshore
Taranaki basin, New Zealand. The Group purchased a
4% interest from Mitsui E&P Australia Pty Limited with
an acquisition date of 8 December 2017.

Net assets

151,570

∫ Oil & gas exploration: exploration and evaluation

of hydrocarbons in the offshore Taranaki basin and
offshore Canterbury basin in New Zealand as well as in
Australia and Indonesia.

∫ Cue: the Group acquired a controlling interest in Cue
during the 2015 financial year. Management have
treated this as a separate operating segment.

2019
$000

ASSETS

Reported

Adjustment

Restated

Non-current assets

Oil and gas assets

Other financial assets

58,507

Total non-current assets

62,583

102

5,517

5,620

58,609

5,526

68,203

Total assets

178,760

5,620

184,380

LIABILITIES

Non-current liabilities

Rehabilitation provision

20,829

5,620

26,449

Total non-current
liabilities

22,138

5,620

27,758

Total liabilities

32,427

5,620

38,047

Net assets

146,333

New Zealand Oil & Gas Annual Report 20205 Segment information (continued)

2020
$000

Kupe
oil & gas

Oil & gas
exploration

Other &
unallocated

Cue Energy
Resources Ltd

Total

Sales to external customers - New Zealand

Sales to external customers - other countries

Total sales revenue

Other income

Total sales revenue and other income

Impairment of oil and gas assets

Segment result

Other net finance income

Profit before income tax and royalties

Income tax and royalties expense

Loss for the year

Segment assets

Unallocated assets

Total assets

Included in segment results:
Depreciation and amortisation expense

2019*
$000

Sales to external customers - New Zealand

Sales to external customers - other countries

Total sales revenue

Other income

Total revenue and other income

Segment result

Other net finance income

Profit before income tax and royalties

Income tax and royalties expense

Loss for the year

Segment assets

Unallocated assets

Total assets

9,884

2,150

12,034

198

12,232

1,282

25,236

500

25,736

(2,856)

6,439

(2,064)

(8,132)

6,445

9,884

27,386

37,270

1,980

39,250

(2,856)

2,688

3,455

6,143

(6,915)

(772)

32,245

1,622

24,919

58,786

126,514

185,300

3,451

341

4,618

8,410

Kupe
oil & gas

Oil & gas
exploration

Other &
unallocated

Cue Energy
Resources Ltd

11,933

3,928

15,861

15,919

239

27,462

2,153

29,615

10,267

(12,960)

(10,349)

13,238

Total

11,933

31,390

43,323

2,450

45,773

196

3,162

3,358

(6,247)

(2,889)

32,712

29,453

62,255

122,125

184,380

Included in segment results:
Depreciation and amortisation expense

3,798

351

4,669

8,818

* Comparative numbers have been restated. Refer to note 4.

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 20205 Segment information (continued)

8 Other expenses

$000

2020

2019

CLASSIFICATION OF OTHER
EXPENSES BY NATURE

Audit fees paid to the
Group auditor - KPMG

Audit fees paid to other
auditors - BDO

Directors’ fees

Legal fees

Consultants’ fees

Employee expenses

Depreciation

Amortisation of intangible assets

Share based payment expense

IT and software expenses

Pre-permit expenditure

Registry and stock exchange fees

219

337

1,094

1,367

6,098

454

341

811

141

253

110

124

294

878

1,515

6,229

120

241

557

143

Other

Total other expenses

1,126

12,241

2,161

12,389

FEES PAID TO THE GROUP AUDITOR

Audit and review of
financial statements

Tax compliance services

Tax advisory services

Other assurance services

Total fees paid to Group auditor

FEES PAID TO OTHER AUDITORS

Audit and review of subsidiary
financial statements

Tax compliance services

Total fees paid to other auditors

219

328

110

294

124

134

Major customers

The Group provides products to four external customers.

6 Revenue and other income

Sales comprise revenue earned from the sale of
petroleum products, when the significant risks and
rewards of ownership of the petroleum products have
been transferred to the buyer. Revenue is recognised
at the fair value of the consideration received net of
the amount of GST.

$000

2020

2019

REVENUE

Petroleum sales

Total revenue

OTHER INCOME

Insurance proceeds

Reimbursement of
Ironbark back costs

Other income

Performance bond receivable*

Total other income

Total income

37,270

43,323

1,561

419

1,980

39,250

1,125

947

378

2,450

45,773

* During the year ending 30 June 2020, Texcal Mahato EP Ltd (Texcal),

operator of the Mahato PSC refused to refund Cue’s share of the
PSC performance bond, amounting to approximately $0.4 million
(US$0.3 million) which was released by the Indonesian Government
on completion of the PSC work commitment. The return of the bond
is governed by a separate agreement with Texcal and is unrelated to
the claims being made by Texcal under the Joint Operating Agreement
('JOA'). Cue continues to assert its rights under the agreement which
governs the performance bond and is evaluating its available options.

7 Operating costs

$000

Production and sales
marketing costs

Carbon emission expenditure

Insurance expenditure

Movement in inventory

Total operating costs

2020

2019

During the year the auditors of Cue changed to KPMG.

(8,221)

(8,965)

(476)

(626)

(571)

(413)

(456)

529

(9,894)

(9,305)

New Zealand Oil & Gas Annual Report 20209 Net finance income and costs

$000

2020

2019

2020

2019

INCOME TAX EXPENSE

$000

Bank fees

Provision unwind of
discount on provision

Lease interest expense

Total finance costs

(9)

(414)

(9)

(432)

(221)

(230)

Interest income

1,522

2,175

Exchange gains on foreign
currency balances

Total finance income

Net finance income

10 Taxation

2,365

3,887

3,455

1,217

3,392

3,162

Current and deferred tax is calculated on the basis of the
laws enacted or substantively enacted at balance date.

Current tax is the expected tax payable on the taxable
income for the year and any adjustment to tax payable in
respect of previous years.

Current and deferred tax are recognised in profit or loss
except when the tax relates to items recognised in other
comprehensive income, in which case the tax is also
recognised in other comprehensive income.

Current tax

Deferred tax

3,757

454

3,115

559

a) Total income tax expense

4,211

3,674

INCOME TAX EXPENSE
CALCULATION

Profit before income
tax and royalties

6,143

3,358

Less: royalties expense

(2,704)

(2,573)

Profit before income tax

Tax at the New Zealand
tax rate of 28%

Tax effect of amounts which
are not deductible/(taxable):

Difference in overseas tax rate

Non-deductible expenses

Foreign exchange adjustments

Unrealised timing differences

Unrecognised tax losses

Other

Adjustment recognised for
current tax in prior periods

b) Total income tax expense

3,439

963

1,288

348

(154)

(630)

2,641

445

4,901

(690)

4,211

785

220

(445)

298

(198)

433

1,645

2,475

4,429

(755)

3,674

During the year, Cue was notified that it had been
successful in an Indonesian Tax Court case against the
Indonesian Tax Department for over-payment of $0.7
million in taxes relating to 2011, resulting in a partial
refund of $0.5 million which was received in December
2019. The remaining balance was accrued at year end.

During the prior year Cue had an Indonesian tax matter
relating to a notice of amended assessment which was
being disputed by Cue Kalimantan Pte Ltd on behalf of
SPC E&P Ltd (SPC). Cue is indemnified by SPC for any
losses arising from this dispute and has recognised a
tax liability as well as a receivable in the Consolidated
Statement of Financial Position.

At 30 June 2020 no imputation credits were held for
subsequent reporting periods (2019: nil).

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020

10 Taxation (continued)

c) Deferred tax

Deferred taxation is recognised in respect of temporary
differences between the tax bases of assets and
liabilities and their carrying amounts in the financial
statements. Deferred tax assets and future tax benefits
are recognised where realisation of the asset is probable.
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.

Deferred tax is not recognised for the following temporary
differences: the initial recognition of assets or liabilities
in a transaction that is not a business combination and
that affects neither accounting nor taxable profit, and
differences relating to investments in subsidiaries to
the extent that they probably will not reverse in the
foreseeable future. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary
differences when they reverse.

The utilisation of the deferred tax asset is dependent on
future taxable profits in excess of the profits arising from
the reversal of existing temporary differences. As at 30
June 2020 the Group have accumulated losses in New
Zealand of $43.2 million (30 June 2019: $41.7 million),
together with unclaimed tax deductions for production
and development expenditure incurred previously.
The Group has not recognised a New Zealand deferred
tax asset as under current oil price assumptions it is
not expected that sufficient future taxable profits will
be generated. The future availability of accumulated
tax losses remains subject to the Group satisfying
the relevant business and shareholder continuity
requirements for each jurisdiction.

$000

2020

2019

THE BALANCE COMPRISES
TEMPORARY DIFFERENCES
ATTRIBUTABLE TO:

Deferred Tax Assets

Non-deductible provisions

Deferred Tax Liabilities

Exploration & evaluation assets

Oil & gas assets

Other items (including
lease assets)

5,988

5,645

(2,164)

(5,604)

(14)

(6,954)

(7,782)

(6,954)

Net deferred tax liabilities

(1,793)

(1,309)

MOVEMENTS:

Net deferred tax liability at 1 July

(1,309)

Recognised in profit and loss

(454)

(797)

(559)

Recognised in other
comprehensive income

(30)

Closing balance at end of year

(1,793)

(1,309)

11 Royalties expense

Royalty expenses incurred by the Group relate to
petroleum royalty payments to the New Zealand
Government in respect of the Kupe and Maari oil and gas
fields, and are recognised on an accrual basis.

New Zealand Oil & Gas Annual Report 202012 Cash and cash equivalents and

funds held in escrow

Cash and cash equivalents comprise cash on hand, cash
at bank, short-term deposits and deposits on call with an
original maturity of three months or less.

$000

Cash at bank and in hand

Deposits at call

Short term deposits

Share of oil and gas interests’ cash

Funds held in escrow - WA-359-P
Drilling Programme Account*

Total cash and cash
equivalents at end of year

2020

18,524

4,110

74,774

496

2019

12,006

4,590

76,602

342

12,850

12,046

110,754

105,586

* The WA-359-P Drilling Programme Account represents cash held
under the Ironbark funding arrangement of the WA-359-P joint
agreement and is not available as free cash for the purposes of the
Group's operations until BP Developments Australia Pty Limited, as the
operator, draws down on the balance for the purposes of the drilling
work programme as agreed by all parties.

Cash and cash equivalents
denominated by currency $000

Base
Currency

NZD
Equivalent

2020

NZ dollar

US dollar

AU dollar

ID rupiah

Total cash and cash
equivalents at end of year

2019

NZ dollar

US dollar

AU dollar

ID rupiah

Total cash and cash
equivalents at end of year

29,929

48,651

4,493

2,840,563

32,439

45,635

4,774

1,187,789

29,929

75,710

4,808

307

110,754

32,439

68,032

4,990

125

105,586

Deposits at call and short-term deposits

The deposits at call and short term deposits are currently
bearing interest rates between 0.06% and 0.50% (2019:
1.60% and 2.70%).

13 Receivables and prepayments

$000

Trade receivables

Share of oil and gas
interests' receivables

Prepayments

Other

2020

4,136

2,097

361

2019

6,492

1,328

124

Total receivables and
prepayments at end of year

6,604

7,996

Receivables and prepayments
denominated by currency $000

Base
Currency

NZD
Equivalent

2020

NZ dollar

US dollar

AU dollar

ID rupiah

Total receivables and
prepayments at end of year

2019

NZ dollar

US dollar

AU dollar

ID rupiah

Total receivables and
prepayments at end of year

1,530

3,163

135

208,275

2,322

3,776

181,098

1,530

4,907

144

6,604

2,322

5,617

7,996

14 Investments in subsidiaries

Subsidiaries are entities controlled by the Group. The
Group controls an entity when it has power over the
entity, has exposure or rights to variable returns from this
involvement and when it has the ability to use its power to
affect the amount of the returns.

At 30 June 2020 the Group holds a 50.04 per cent interest
in Cue Energy Resources Limited (30 June 2019: 50.04
per cent). Cue entities on the next page reflect the
Group’s 50.04 per cent interest in Cue subsidiaries.

Non-controlling interests in the results and equity of
subsidiaries are shown separately in the Consolidated
Statement of Comprehensive Income and Consolidated
Statement of Financial Position respectively.

The financial statements of each of the Group’s entities
are measured using the currency of the primary economic
environment in which the entity operates ("the functional
currency"). The functional currency of the subsidiaries
within the Group are shown on the next page.

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 202014 Investments in subsidiaries (continued)

The consolidated financial statements incorporate the assets, liabilities and results of the following entities:

Name of entity

NEW ZEALAND OIL & GAS

Australia and New Zealand Petroleum Limited

NZOG Onshore Limited

NZOG Canterbury Limited

NZOG 2013 O Limited

NZOG Bohorok Pty Limited

NZOG Devon Limited

NZOG 2013T Limited

NZOG Energy Limited

NZOG Palmerah Baru Pty Limited (i)

NZOG Offshore Limited

NZOG Pacific Holdings Pty Limited

NZOG Pacific Limited

NZOG Services Limited

NZOG Taranaki Limited

Petroleum Resources Limited

NZOG MNK Bohorok Pty Limited

NZOG Asia Pty Limited (ii)

Pacific Oil & Gas (North Sumatera) Limited (ii)

NZOG (Ironbark) Pty Limited

CUE ENERGY RESOURCES

Cue Energy Resources Limited

Cue Mahakam Hilir Pty Limited

Cue (Ashmore Cartier) Pty Ltd

Cue Sampang Pty Limited

Cue Taranaki Pty Limited

Cue Kalimantan Pte Ltd

Cue Mahato Pty Ltd

Cue Exploration Pty Limited

Country of
incorporation

Equity Holding

2020

2019

Functional
Currency

New Zealand

Australia

New Zealand

Australia

New Zealand

Australia

New Zealand

Australia

Bermuda

Australia

Singapore

Australia

100%

50.04%

100%

90%

100%

50.04%

NZD

USD

NZD

USD

NZD

USD

NZD

USD

AUD

USD

AUD

USD

AUD

(i)
This company was sold during the 2018 financial year subject to regulatory approval; the sale was completed on 17 April 2020
(ii) These companies were sold during the 2018 financial year subject to regulatory approval; the sale was completed on 24 April 2020.

The Group previously determined that in accordance with NZ IAS 21 Effects of Changes in Foreign Exchange Rates, the
Group’s interest in foreign operations Cue Sampang (Indonesia) and Cue Taranaki (New Zealand) are held in USD functional
entities. During the current period the Group reviewed its functional currency translation practices and identified prior
period errors in the translation of certain balances residing in these USD functional entities. These errors were not material
and accordingly have been corrected in the 30 June 2020 financial statements through an adjustment of $0.9 million to
increase production properties (refer note 15) and a corresponding credit to the functional currency translation reserve.

New Zealand Oil & Gas Annual Report 202015 Oil and gas interests

The Group has interests in a number of joint arrangements which are classified as joint operations. The Group financial
statements include a proportional share of the oil and gas interests’ assets, liabilities, revenue and expenses with items of a
similar nature on a line by line basis, from the date that joint control commences until the date that joint control ceases.

The Group held the following oil and gas production, exploration, evaluation and appraisal interests at the end of the year.

Name

Type

Country

2020

2019

Ownership

NEW ZEALAND OIL & GAS

PML 38146 – Kupe

PEP 52717 – Clipper

PEP 55794 - Toroa

Palmerah Baru PSC (i)

Bohorok PSC (ii)

WA-359-P

Kisaran PSC (iii)

CUE ENERGY RESOURCES *

WA-359-P

WA-389-P

WA-409-P

Mahakam Hilir PSC

PMP 38160 – Maari

Sampang PSC

Mahato PSC

Mining Licence

Exploration Permit

New Zealand

4.0%

50.0%

4.0%

50.0%

New Zealand

100.0%

Production Sharing Contract

Indonesia

Production Sharing Contract

Indonesia

Exploration Permit

Australia

Production Sharing Contract

Indonesia

0.0%

25.0%

15.0%

0.0%

36.0%

25.0%

15.0%

22.5%

Exploration Permit

Australia

21.5%

100.0%

20.0%

Production Sharing Contract

Indonesia

100.0%

Mining Permit

New Zealand

Production Sharing Contract

Indonesia

Production Sharing Contract

Indonesia

5.0%

15.0%

12.5%

5.0%

15.0%

12.5%

(i)

(ii)

On 12 December 2018 an agreement was signed to sell the entity which held the Palmerah Baru PSC to Bow Energy Limited replacing a prior
agreement of 23 April 2018. The sale was completed on 17 April 2020.

On 12 December 2018 an option agreement was signed to sell the Group's interest in the Bohorok PSC to Bukit Energy Bohorok Pte Ltd
(an entity now owned by Bow Energy).

(iii)

On 18 March 2019 an option agreement was signed which in effect relinquished control of the interests in the Kisaran PSC to Pacific Oil & Gas
(Kisaran) Limited. The sale was completed on 24 April 2020.

represents the percentage interest held by Cue Energy Resources Limited. The Group interest is 50.04% (2019: 50.04%) of the Cue interest.

100

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 202016 Exploration and evaluation

The Group uses the successful efforts method of
accounting for oil and gas exploration costs. All general
exploration and evaluation costs are expensed as
incurred except the direct costs of acquiring the rights
to explore, drilling exploratory wells and evaluating the
results of drilling. These direct costs are capitalised
as exploration and evaluation assets pending the
determination of the success of the well. If a well does not
result in a successful discovery, the previously capitalised
costs are immediately expensed.

Key judgement: recoverability of exploration
and evaluation assets

Assessment of the recoverability of capitalised
exploration and evaluation expenditure requires certain
estimates and assumptions to be made as to future
events and circumstances, particularly in relation to
whether economic quantities of reserves have been
discovered. Therefore, such estimates and assumptions
may change as new information becomes available. If
it is concluded that the carrying value of an exploration
and evaluation asset is unlikely to be recovered by future
development or sale, the relevant amount will then be
expensed in the profit and loss.

Capitalised exploration and evaluation assets,
including expenditure to acquire mineral interests
in oil and gas properties, related to wells that find
proven reserves are classified as development assets
within oil and gas assets at the time of sanctioning the
development project.

$000

Opening balance

Impairment of exploration asset

Capitalised exploration costs

Revaluation of foreign currency
exploration and evaluation assets

Total exploration and evaluation
assets at end of year

2020

3,646

2,820

2019

7,243

(7,202)

3,646

(41)

6,549

3,646

Two exploration wells have been drilled in the Mahato PSC.
The operator, Texcal, and other joint venture parties are
claiming to have excluded Cue from participation in these
operations. These claims are disputed by Cue as having
no basis under the Joint Operating Agreement (JOA). Cue
continues to assert all its legal rights under the JOA and is
currently evaluating its available options.

On 16 April 2020, the Indonesia regulator, SKKMigas made
a public announcement of a 61.8 million OOIP (original oil
in place) barrel oil discovery in the Mahato PSC.

The plan of development (POD) for the Paus Biru
discovery was approved on the 30 July 2020. Nothing
has come to the attention of the Group to indicate future
economic benefits will not be achieved.

101

New Zealand Oil & Gas Annual Report 202017 Oil and gas assets

Development

Development assets include construction, installation
and completion of infrastructure facilities such as
pipelines and development wells. No amortisation is
provided in respect of development assets until they are
reclassified as production assets.

Production assets

Production assets capitalised represent the
accumulation of all development expenditure incurred
by the Group in relation to areas of interest in which
petroleum production has commenced. Expenditure on
production areas of interest and any future estimated
expenditure necessary to develop proven and probable
reserves are amortised using the units of production
method or on a basis consistent with the recognition
of revenue.

Subsequent costs

Subsequent costs are included in the assets carrying
amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic
benefits associated with the asset will flow to the Group
and the cost of the item can be measured reliably.
All other repairs and maintenance are expensed in the
income statement during the financial period in which
they are incurred.

Impairment

The carrying value is assessed for impairment each
reporting date. An impairment loss is recognised if the
carrying amount of an asset or its cash generating unit
exceeds its recoverable amount. A cash generating unit is
the smallest identifiable asset group that generates cash
flows that are largely independent from other assets and
groups. Impairment losses are recognised in the profit or
loss and in respect of cash generating units are allocated
first to reduce the carrying amount of any goodwill
allocated to the units and then to reduce the carrying
amount of the other assets in the unit (group of units) on
a pro rata basis.

The recoverable amount of an asset or cash generating
unit is the greater of its value in use and its fair value less
costs to sell. In assessing value in use, the estimated
future cash flows are discounted to their present value
using a post-tax discount rate that reflects current
market assessments of the time value of money and the
risks specific to the asset.

Impairment losses recognised in prior periods are
reassessed at each reporting date and the loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation
or amortisation, if no impairment loss had been
recognised previously.

$000

Opening balance

Expenditure capitalised

Impairment

Amortisation for the period

Revaluation of foreign
currency oil and gas assets

Rehabilitation provision

Total oil and gas assets
at end of year

2020

58,609

2,760

(2,856)

(7,956)

1,391

289

2019*

64,836

1,695

(8,384)

(1,245)

1,707

52,237

58,609

* Comparative numbers have been restated. Refer to Note 4.

At 30 June 2020 the Group assessed each asset to
determine whether an indicator of impairment existed.
Indicators of impairment include changes in future selling
prices, future costs and reserves. It was determined that
price indicators existed due to a drop in oil prices as a
result of COVID-19.

Estimates of recoverable amounts are based on the
assets’ value-in-use, determined by discounting each
asset’s estimated future cash flows at asset specific
discount rates. The discount rate applied was 10%. The
oil price assumptions used were based on forward prices,
rising to consensus mean after 4 years.

The recoverable amounts of the Maari cash generating
unit were formally reassessed and an impairment of the
Maari oil field development in New Zealand of $2.9 million
was recognised. This is primarily as a result of reduced oil
prices (refer to note 2).

102

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 202018 Other financial assets

19 Payables

During the 2020 financial year, the Group reviewed the
contractual agreement and concluded that a prior year
restatement is required to gross up the funded portion
of the rehabilitation provision, as Cue Sampang retains
the obligation to fully fund its share of the rehabilitation.
As such, the Group retrospectively recognised another
financial asset of $5.3 million as at 30 June 2019 (refer to
note 4), with a corresponding adjustment required to the
rehabilitation provision.

$000

Trade payables

Royalties payable

Share of oil and gas
interests’ payable

Other payables

Total payables at end of year

2020

1,451

703

2,577

736

5,467

2019

1,573

909

2,568

925

5,975

Cue Sampang contributed a further $0.5 million to the
ASR fund during the year ended 30 June 2020.

Payables denominated
by currency $000

Base
Currency

NZD
Equivalent

2020

NZ dollar

US dollar

AU dollar

ID rupiah

Total payables at end of year

2019

NZ dollar

US dollar

AU dollar

ID rupiah

Total payables at end of year

3,594

916

394

271,452

3,594

1,421

423

5,467

4,627

695

346

100,035

977

361

5,975

Other financial assets are initially measured at fair value.
Transaction costs are included as part of the initial
measurement, except for financial assets which are
measured at fair value through profit or loss. Such assets
are subsequently measured at amortised cost.

Financial assets are derecognised when the rights to
receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially
all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a
financial asset, it's carrying value is written off.

$000

Opening balance

Security deposits

Abandonment and Site
Restoration Fund - Cue
Sampang rehabilitation

Total other financial
assets at end of year

2020

5,526

2019*

5,146

587

371

6,123

5,526

* Comparative numbers have been restated. Refer to Note 4.

103

New Zealand Oil & Gas Annual Report 202020 Rehabilitation Provision

21 Share capital

Provisions for rehabilitation have been recognised where
the Group has an obligation, as a result of its operating
activities, to restore certain sites to their original
condition. There is uncertainty in estimating the timing
and amount of the future expenditure. The provision is
estimated based on the present value of the expected
expenditure. The discount rate used is the risk-free
interest rate obtained from the country related to the
currency of the expected expenditure. In the current
year, the discount rate used to determine the provision
was 0.92%. The initial provision and subsequent
re-measurement are recognised as part of the cost of the
related asset. The unwind of the discount is recognised in
finance costs in profit or loss.

$000

2020

2019*

Carrying amount at start of year

26,449

23,760

(Reduction)/addition in
provision recognised

Unwind of discount on provision

Revaluation of foreign currency
rehabilitation provision

Total rehabilitation
provision at end of year

(25)

414

2,362

415

1,071

(88)

27,909

26,449

* Comparative numbers have been restated. Refer to Note 4.

Number
of shares
000s

$000

Balance at 1 July 2018

167,849

211,917

Shares issued during the year

Partly paid ESOP shares exercised

Partly paid ESOP shares expired

(10)

(17)

Balance at 30 June 2019

167,849

211,908

Partly paid ESOP shares expired

(7)

Balance at 30 June 2020

167,849

211,901

Composed of:

Fully paid shares

Partly paid shares

164,431

211,891

3,418

Balance at 30 June 2020

167,849

211,901

The Group retains 2.4 million of unallocated partly paid
shares that have not yet been cancelled. During the year
$7,000 of partly paid shares expired (2019: $17,000).

Partly paid shares are entitled to a vote in proportion to
the amount paid up. Information relating to the ESOP,
including details of shares issued under the scheme, is
set out in note 26.

All fully paid shares have equal voting rights and share
equally in dividends and equity.

104

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 202022 Reserves

a) Reserves

$000

Share based payments reserve

Foreign currency
translation reserve

Total reserves at end of year

Movements:

$000

SHARE-BASED
PAYMENTS RESERVE

Opening balance at 1 July

Share based payment
expense for the year

Exercised and expired
ESOP awards

Closing balance at end of year

FOREIGN CURRENCY
TRANSLATION RESERVE

23 Loss per share

Loss attributable to
shareholders ($000)

Weighted average number
of ordinary shares (000)

2020

2019

(1,382)

(7,479)

167,849

Basic loss per share (cents)

(0.8)

(4.5)

Options over ordinary shares (000)

2,832

Diluted loss per share
and options (cents)

(0.8)

24 Financial risk management

Exposure to credit, interest rate, foreign currency, equity
price, commodity price and liquidity risk arises in the
normal course of the Group’s business.

a) Market risk

Foreign exchange risk

2020

419

3,692

4,111

2019

2,377

2,460

2020

2019

344

(8)

419

147

(82)

Opening balance at 1 July

2,377

7,414

Impact on foreign currency
translation reserve of disposals

Other foreign currency
translation differences
for the year

Closing balance at end of year

(2,905)

1,315

3,692

(2.132)

2,377

b) Nature and purpose of reserves

Foreign currency translation reserve

Exchange differences arising on translation of
companies within the Group with a different functional
currency to the Group are taken to the foreign currency
translation reserve. The reserve is recognised in other
comprehensive income when the net investment is
disposed of.

The Group is exposed to foreign currency risk on
cash and cash equivalents, oil sales, recoverable
value of oil and gas assets and capital
commitments that are denominated in foreign
currencies. The Group manages its foreign
currency risk by monitoring its foreign currency
cash balances and future foreign currency cash
requirements. The Group may enter into foreign
currency hedge transactions in circumstances
where the risk-adjusted returns to shareholders
are enhanced as a consequence.

ii)

Commodity price risk

Commodity price risk is the risk that the Group’s
sales revenue and recoverable value of oil and
gas assets will be impacted by fluctuations in
world commodity prices. The Group is exposed
to commodity prices through its petroleum
interests. The Group may enter into oil price
hedge transactions in circumstances where
the risk-adjusted returns to shareholders are
enhanced as a consequence. The Group had no
call option contracts at 30 June 2020 (2019: nil).

iii)

Concentrations of interest rate exposure

The Group has no external bank debt and
therefore its main interest rate risk arises from
short-term deposits held.

105

New Zealand Oil & Gas Annual Report 2020

24 Financial risk management (continued)

b) Credit risk

Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a
policy of only dealing with credit worthy counterparties
and obtaining sufficient collateral where appropriate
as a means of minimising the risk of financial defaults.
Financial instruments which potentially subject the
Group to credit risk consist primarily of securities
and short-term cash deposits, trade receivables and
short-term funding arrangements. The credit risk on
liquid funds is limited because the counterparties are
banks with high credit ratings, with funds required to
be invested with a range of separate counterparties.
The Group’s maximum exposure to credit risk for trade
and other receivables is its carrying value.

The Group may be exposed to financial risk if one
or more of their joint venture partners is unable to
meet their obligation in relation to the rehabilitation
costs for jointly owned oil and gas assets. Under the
joint venture operating agreement if one or more

partners fails to meet their financial obligation, the
other partners may become proportionately liable
for their share of the financial obligations but would
have contractual rights of recovery against the
defaulting party.

As disclosed in note 4, the Group retrospectively
recognised an other financial asset of $5.5 million
as at 30 June 2019 for the funded portion of the
rehabilitation provision. Cue Sampang contributed
a further $0.5 million to the restoration fund during
the year ended 30 June 2020. The Group assessed
the credit risk as low, given the funds are held in
an Indonesian state owned bank account, jointly
controlled by the Indonesian government and its
agency, SSKMigas.

c) Liquidity risk

Liquidity risk represents the Group’s ability to meet
its contractual obligations. The Group evaluates its
liquidity requirements on an ongoing basis. In general,
the Group generates sufficient cash flows from its
operating activities to meet its obligations arising
from its financial liabilities and has liquid funds to
cover potential shortfalls.

The following table sets out the contractual cash flows for all non-derivative financial liabilities and for derivatives
that are settled on a gross cash flow basis:

$000

30 JUNE 2020

Payables

Total non-derivative liabilities

30 JUNE 2019

Payables

Total non-derivative liabilities

6 months
or less

6–12
months

1–2 years

2–5 years

More than
5 years

Contractual
cash flows

5,467

5,975

5,467

5,975

At 30 June 2020 the Group had no derivatives to settle (2019: nil).

106

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020

24 Financial risk management (continued)

f) Recognised assets and liabilities

The fair value of financial assets and financial liabilities
must be estimated for recognition and measurement
for disclosure purposes.

g) Financial instruments by category

$000

ASSETS

Cash and cash equivalents

Funds held in escrow

Trade and other receivables

LIABILITIES

Payables

2020
Carrying
value

2019
Carrying
value

97,904

12,850

6,242

93,540

12,046

7,871

116,996

113,457

5,467

5,975

The fair value and amortised cost of financial
instruments is equivalent to their carrying value.

d) Capital management

The Group manages its capital through the use of cash
flow and corporate forecasting models to determine
its future capital requirements and maintains a flexible
capital structure which allows access to debt and
equity markets to draw upon and repay capital as
required. In July 2009 the Group established a Dividend
Reinvestment Plan which applies to dividends declared
after 29 July 2009. The Group has an adequate capital
base and significant cash reserves.

e) Sensitivity analysis

The Group’s reporting result at the end of each year is
sensitive to financial risks from fluctuations in interest
rates, commodity prices and foreign currency exchange
rates. The sensitivity table below shows the impact of
exchange rate changes on current assets and liabilities
and the impact of interest rate changes on current
cash balances.

Risk area

Sensitivity

2020

2019

Impact on Group
profit before tax

Exchange
rate

Impact on
foreign currency
translation
reserves in
equity

+5% (2.2)

(2.1)

-5%

2.5

2.4

+5% (1.6)

(1.5)

-5%

1.8

1.7

Impact on
interest income

Interest
rate

+1%

0.5

-1% (0.5)

(0.5)

107

New Zealand Oil & Gas Annual Report 2020

25 Related party transactions

26 Share-based payments

Related parties of the Group include those entities
identified in notes 14 and 15 as subsidiaries and oil and
gas interests. All transactions and outstanding balances
with these related parties are in the ordinary course of
business on normal trading terms.

On 23 May 2019 New Zealand Oil & Gas Limited farmed
into the WA-359-P permit forming a joint venture with
Cue, BP and Beach. Transactions related to Cue have been
eliminated from the Group financial statements.

During the year certain activities were undertaken
between the Group and OGOG. The inter-group services
agreement, which was entered into on 21 June 2019,
allows the Group to provide technical services and related
activities to OGOG. For the year ended 30 June 2020 $0.9
million (30 June 2019: $0.03 million) of income has been
included in the profit and loss.

A number of directors are also directors of other
companies and any transactions undertaken with
these entities have been entered into as part of the
ordinary business of the Group. Directors' fees are
disclosed in note 8. No directors' fees are charged for
the three representatives of OGOG who are directors of
the Group. During the year additional fees were paid to
the independent directors in relation to the scheme of
arrangement. Directors' expenses are reimbursed and are
not separately disclosed as they are not material.

Key management personnel have been defined as the
directors, the chief executive and the executive team
for the Group. Key Cue management personnel have
been included.

$000

Short term employee benefits

Share based payments

Post employment benefits

2020

3,384

142

113

2019

3,438

123

Total related party transactions

3,639

3,572

Accounting policy

Share-base payments are equity or cash settlements to
employees in exchange for services. Equity transactions
are settled in shares or options over shares. Cash
settlements are determined by the share price.

The cost of equity settled transactions are measured
at fair value on grant date. Fair value is independently
determined using either the binomial or Black- Scholes
option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the
share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the
risk free interest rate for the term of the option, together
with non-vesting conditions that do not determine
whether the consolidated entity received the services
that entitle the employees to receive payment no account
is taken of any other vesting conditions.

Market conditions are taken into consideration in
determining fair value. Therefore any awards subject to
market conditions are considered to vest irrespective
of whether or not that market condition has been met,
provided all other conditions are satisfied.

Equity transactions are recognised as an expense with
the corresponding increase in equity over the vesting
period. The cumulative charge to a profit or loss is
calculated based on the grant date fair value of the award,
the best estimate of the number of awards that are likely
to vest and the expired portion of the vesting period.

If the non-vesting condition is within the control of the
consolidated entity or employee the failure to satisfy the
condition is treated as a cancellation. If the condition
is not within the control of the consolidated entity or
employee as is not satisfied during the vesting period,
any remaining expense for the award is recognised
over the remaining vesting period, unless the award is
forfeited. Cancellations are accounted for on the date of
cancellation, as if it had vested.

108

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 202026 Share-based payments (continued)

a) New Zealand Oil & Gas Share Option Scheme

The Company has the following share based
payment schemes:

a) New Zealand Oil & Gas Share Option Scheme -

established 19 March 2020.

b) Cue Energy Share Option Scheme -

established July 2019.

c) Employee Share Option Plan (ESOP) - this scheme

was terminated in 2017, however there is one tranche
remaining which expires in 2022.

On 19 March 2020, the Group issued 2,832,048
unlisted options to eligible New Zealand Oil & Gas
Limited employees under the share option scheme.
The options are exercisable at $0.61 (61 cents) per
option, will vest on 1 July 2022 and expire on 1 July
2025. The exercise price was determined by adding
a 20% premium to the average market price on the
date of the offer (being the volume weighted average
market price over the previous 10 business days)
at 30 June 2019.

The service commencement date of these options was
deemed to be 1 July 2019. The options were valued
using Black-Scholes option pricing model, $0.2 million
of share-based payment expense was recorded in
relation to these options for the financial year ending
30 June 2020.

Set out below are summaries of options granted under the plan:

Grant date

Expiry date

Exercise
price

Balance at the
start of the year

Granted

Exercised

Expired/
forfeited/ other

Balance at the
end of the year

19/03/2020

1/07/2025

$0.61

Weighted average exercise price

2,832,048

$0.61

2,832,048

$0.61

For the options granted during the current financial year, the valuation model inputs used to determine the fair value at
the grant date, are as follows:

Grant date

Expiry date

Share price at
grant date

19/03/2020

1/07/2025

$0.48

Exercise
price

$0.61

Expected
volatility

30%

Dividend yield

Risk-free
interest rate

Fair value at
grant date

0.69%

$0.11

109

New Zealand Oil & Gas Annual Report 2020

26 Share-based payments (continued)

b) Cue Energy Share Option Scheme - shown in AU dollars

8,131,186 options were granted during the financial year to 30 June 2020 (2019:nil).

On 29 July 2019, Cue issued 4,277,888 unlisted options to eligible employees under the share option scheme.
The options are exercisable at $0.07 (7 cents) per option, will vest on 1 July 2021 and expire on 1 July 2023. The service
commencement date of these options was deemed to be 1 July 2018. The options were valued using Black-Scholes
option pricing model. $34,255 of share-based payment expense was recorded in relation to these options for the financial
year ending 30 June 2020.

On 4 October 2019, Cue issued 3,853,298 unlisted options to eligible employees under the share option scheme. The
options are exercisable at $0.09 (9 cents) per option, and will vest on 1 July 2022 and expire on 1 July 2024. The options
were valued using Black-Scholes option pricing model. $0.1 million of share-based payment expense was recorded in
relation to these options for the financial year ending 30 June 2020.

Set out below are summaries of options granted under the plan:

Grant date

Expiry date

2020

29/07/2019

1/07/2023

4/10/2019

1/07/2024

Exercise
price

Balance at the
start of the year

Granted

Expired/
forfeited/ other

Balance at the
end of the year

$0.070

$0.090

4,277,888

(493,863)

3,784,025

3,853,298

4,277,888

3,853,298

(493,863)

7,637,323

Weighted average exercise price

$0.07

$0.09

$0.07

$0.08

2019

29/07/2019

1/07/2023

$0.070

Weighted average exercise price

4,277,888

$0.00

$0.07

4,277,888

$0.07

For the options granted during the current financial year, the valuation model inputs used to determine the fair value at
the grant date, are as follows:

Grant date

Expiry date

29/07/2019

1/07/2023

4/10/2019

1/07/2024

Share price at
grant date

$0.092

$0.115

Exercise
price

$0.070

$0.090

Expected
volatility

55.00%

53.00%

Dividend yield

Risk-free
interest rate

Fair value at
grant date

0.99%

0.64%

$0.040

$0.059

110

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020

26 Share-based payments (continued)

c) Employee Share Option Plan (ESOP)

The Employee Share Option Plan (ESOP) was
terminated in 2017, of which there is one remaining
shareholder. No allocations of new ESOP shares
were made in the financial year ending 30 June
2020 (2019: nil). The details below relate to the old
scheme which will end as final dates are reached
and shares expire.

The Group's ESOP was open to nominated employees.
Under the plan there are currently 3.4 million (2019:
3.4 million) partly paid shares for which employees
have paid $0.01 per share. After 2 years, and under
certain conditions, the employee has the option to
fully pay for the shares. This option lasts for 3 years.
The cost of the ESOP to the Group is calculated using
the Black Scholes option pricing model. As there
was no new allocation of ESOP shares during the
year, no new valuation took place and nothing was
expensed through the Consolidated Statement
of Comprehensive Income (2019: $0.02 million).
No shares were exercised in the year ending June 2020
(2019: 0.01 million) and no expired/forfeited shares
were converted to ordinary shares and sold (2019: nil).

Participation in the ESOP was open to any employee
(including a non-executive director) of the Group
to whom an offer to participate was made by the
Nomination and Remuneration Committee. The
Nomination and Remuneration Committee, in its
discretion, was responsible for determining which
employees were to be offered the right to participate
in the ESOP, and the number of partly paid shares
that could be offered to each participating employee.
Under the ESOP partly paid shares were issued on the
following terms:

Restriction periods - each partly paid share was
issued on terms that require an escrow period to
pass before the holder can complete payment for,
and thereafter transfer, the shares. This was usually
2 years. There was also a date 5 years after the offer
date by which the issue price for the shares must be
paid (this is called the "Final Date").

Issue price – this was set for each partly paid share at
the time the offer was made to the participant and was
the lesser of:

ii)

20% premium to the average market price on
the date of the offer (being the volume weighted
average market price over the previous 20
business days); and

The last sale price of the Group's ordinary shares
on the business day prior to the Final Date (or
such greater amount that represents 90% of the
weighted average price of the Group's ordinary
shares over the 20 Business Days prior to the
Final Date).

The pricing model ensures that the participant
does not receive a share at a discount to market
price at the time the final payment is made but
does provide some protection if the market price
reduces after the original offer date.

Rights - the rights attached to partly paid shares
issued under the ESOP are the same as those attached
to ordinary shares in the Group. The partly paid shares
rank equally with the ordinary shares in the Group.
However, the rights of each partly paid share to vote
on a poll, and to dividends or other distributions of
the Group, are a fraction, equal to the proportion
represented by the amount paid up in respect of the
share as against the issue price set under the ESOP.

The fair value of partly paid shares issued to
employees is recognised as an employee expense, with
a corresponding increase in equity over the period in
which the employees become unconditionally entitled
to the partly paid shares. The amount recognised as
an expense is adjusted to reflect the actual number of
partly paid shares that vest.

There is one remaining tranche of awards with a final
date of August 2022. There remains 1 million partly
paid shares with a weighted average exercise price of
$0.74 and 2.4 million unallocated partly paid shares.

111

New Zealand Oil & Gas Annual Report 2020

27 Commitments and contingent assets

28 Events occuring after balance date

and liabilities

a) Exploration expenditure commitments

In order to maintain the various permits in which the
Group is involved the Group has ongoing operational
expenditure as part of its normal operations. The
actual costs will be dependent on a number of factors
such as joint venture decisions including final scope
and timing of operations.

Commitments relating to Australian permit WA-359-P,
which contains the Ironbark prospect, consist of
$19.8 million from NZO and $28.3 million from Cue.
Of Cue's commitment, approximately $16.4 million
will be funded by a free carry arrangement, including
$3.7 million from NZO. The remaining $11.9 million will
be funded from Cue's cash reserves which have been
escrowed for this purpose. The commitments are
reduced by amounts paid to date.

b) Contingent assets and liabilities

The Directors are not aware of any contingent assets
or contingent liabilities as at 30 June 2020.

On 17 July 2020, Cue announced that the Environment
Plan (EP) for the Ironbark-1 exploration well in
exploration permit WA-359- P had been approved by the
National Offshore Petroleum Safety and Environment
Management Authority (NOPSEMA).

On 17 August 2020,the Group announced an upgrade to
its developed reserves in the Kupe gas and light oil field
off Taranaki, New Zealand. Following a review by the joint
venture partners, the Groups’ share of total reserves
have increased.

On 19 August 2020, Cue announced the Indonesian
Government approval of the Paus Biru gas field Plan of
Development in the Sampang PSC and an independent
certification of the contingent resources in the field.

No other events have occurred after balance date.

112

Notes to Financial StatementsNew Zealand Oil & Gas Annual Report 2020

Independent
Auditor’s Report

To the shareholders of New Zealand Oil and Gas Limited

Report on the consolidated financial statements

Opinion

In our opinion, the accompanying consolidated
financial statements of New Zealand Oil & Gas Limited
(the ’company’) and its subsidiaries (the 'group')
on pages 84 to 112

ii.

present fairly in all material respects the group’s
financial position as at 30 June 2020 and its financial
performance and cash flows for the year ended on
that date; and

comply with New Zealand Equivalents to International
Financial Reporting Standards and International
Financial Reporting Standards.

We have audited the accompanying consolidated financial
statements which comprise:

—

the consolidated statement of financial position as at
30 June 2020;

the consolidated statements of comprehensive
income, changes in equity and cash flows for the year
then ended; and

—

notes, including a summary of significant accounting
policies and other explanatory information.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.

113

New Zealand Oil & Gas Annual Report 2020Independent Auditor's Report

Basis for opinion

Scoping

We conducted our audit in accordance with International
Standards on Auditing (New Zealand) (‘ISAs (NZ)’).
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.

The consolidated financial statements include the
50.04% shareholding in Cue Energy Limited (‘Cue’) and
its two production assets, Sampang PSC in Indonesia and
Maari in New Zealand, in addition to the Kupe asset held
by the parent company.

We are independent of the group in accordance with
Professional and Ethical Standard 1 (Revised) Code
of Ethics for Assurance Practitioners issued by the
New Zealand Auditing and Assurance Standards Board
and the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants
(‘IESBA Code’), and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the IESBA Code.

Our responsibilities under ISAs (NZ) are further described
in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.

Our firm has also provided other services to the group in
relation to tax compliance and advisory services. These
matters have not impaired our independence as auditor
of the group. The firm has no other relationship with, or
interest in, the group.

The scope of our audit is designed to ensure that we
perform adequate work to be able to give an opinion on
the consolidated financial statements as a whole, taking
into account the structure of the group, the financial
reporting systems, processes and controls, and the
industry in which it operates.

In establishing the scope of audit work to be performed
by the component auditor for group consolidation
purposes, we determined the nature and extent of work
to be performed would be a full scope audit. We kept
in regular communication with the component audit
team throughout the year with discussions and formal
instructions, including review of their work performed,
where appropriate. We also ensured that the component
audit team had the appropriate skills and competencies
which are needed for the audit.

Materiality

The scope of our audit was influenced by our application
of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole.
The materiality for the consolidated financial statements
as a whole was set at $1.3 million (2019: $1.3 million)
determined with reference to a benchmark of group
total assets.

114

New Zealand Oil & Gas Annual Report 2020Key audit matters

Other information

The Directors, on behalf of the company, are responsible
for the other information included in the entity’s Annual
Report. Other information may include the Chairman
and Chief Executive’s report, production and reserve
information, corporate governance and statutory
information. Our opinion on the financial statements does
not cover any other information and we do not express
any form of assurance conclusion thereon.

The Annual Report is expected to be made available to
us after the date of this Independent Auditor's Report.
Our responsibility is to read the Annual Report when
it becomes available and consider whether the other
information it contains is materially inconsistent with
the financial statements, or our knowledge obtained in
the audit, or otherwise appear misstated. If so, we are
required to report such matters to the Directors.

Use of this independent auditor's report

This independent auditor’s report is made solely to
the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders
those matters we are required to state to them in
the independent auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other
than the shareholders as a body for our audit work, this
independent auditor’s report, or any of the opinions we
have formed.

Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the consolidated financial statements in
the current period. We summarise below those matters
and our key audit procedures to address those matters
in order that the shareholders as a body may better
understand the process by which we arrived at our audit
opinion. Our procedures were undertaken in the context of
and solely for the purpose of our statutory audit opinion
on the consolidated financial statements as a whole
and we do not express discrete opinions on separate
elements of the consolidated financial statements

The key audit matter

RECOVERABILITY OF OIL
AND GAS ASSETS

Refer to Note 17 to the
Financial Report.

The recoverability of oil and gas
assets is a key audit matter
due to the judgement involved
in assessing the recoverable
value of the oil and gas assets.
Key judgements include:

— future oil and gas prices;

— oil and gas reserves, and
future production levels;

— discount rate; and

— future operating and

capital costs.

The COVID-19 pandemic has
led to increased uncertainty
associated with future oil and
gas prices, which are inherently
subjective and inherently
more uncertain during times
of economic uncertainty.

How the matter was
addressed in our audit

The procedures performed to
assess the reasonableness of
the recoverable value of the
oil and gas assets included:

— comparing future oil price
assumptions with third
party forecasts and publicly
available forward price curves;

— comparing future gas
price assumptions to
either contracted gas or
third-party forecasts;

— comparing the production
profiles and proved and
probable reserves to third
party reserve report;

— challenging the discount
rate used by engaging
valuation specialists to
assess the appropriateness
of the discount rate
applied, and comparing to
market participants and
industry research; and

— assessing estimated future
costs by comparing to
approved budgets and, where
applicable, third party data
and historical trends.

115

New Zealand Oil & Gas Annual Report 2020A further description of our responsibilities for the audit
of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:

http://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/

This description forms part of our independent auditor’s
report.

The engagement partner on the audit resulting in this
independent auditor's report is Brent Manning.

For and on behalf of

KPMG
Wellington
28 August 2020

Independent Auditor's Report

Responsibilities of the Directors for the
consolidated financial statements

The Directors, on behalf of the company, are
responsible for:

—

the preparation and fair presentation of the
consolidated financial statements in accordance
with generally accepted accounting practice in
New Zealand (being New Zealand Equivalents to
International Financial Reporting Standards) and
International Financial Reporting Standards;

implementing necessary internal control to enable
the preparation of a consolidated set of financial
statements that is fairly presented and free from
material misstatement, whether due to fraud or
error; and

assessing the ability to continue as a going concern.
This includes disclosing, as applicable, matters
related to going concern and using the going concern
basis of accounting unless they either intend to
liquidate or to cease operations, or have no realistic
alternative but to do so.

Auditor’s responsibilities for the audit of the
consolidated financial statements

Our objective is:

—

to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or
error; and

—

to issue an independent auditor’s report that includes
our opinion.

Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement
when it exists.

Misstatements can arise from fraud or error. They are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements.

116

New Zealand Oil & Gas Annual Report 2020Corporate
Directory

Registered and Head Office

Level 1, 36 Tennyson Street
Wellington 6011, New Zealand

Telephone
Email

+64 4 495 2424
enquiries@nzog.com

Auditors

KPMG

Level 9, 10 Customhouse Quay
PO Box 996
Wellington, New Zealand

Share Registrar

Computershare Investor Services Ltd
Level 2, 159 Hurstmere Road
Takapuna
Private Bag 92119
Auckland 1142
New Zealand

Telephone
Freephone
Facsimile
Email

+64 9 488 8777
0800 467 335 (within NZ)
+64 9 488 8787
enquiry@computershare.co.nz

117

New Zealand Oil & Gas Annual Report 2020

Get the latest
investor news at
nzog.today

New Zealand Oil & Gas Ltd
Level 1, 36 Tennyson Street
Wellington 6011, New Zealand
+64 4 495 2424

www.nzog.com

Other annual reports

2024 Report ↗ 2023 Report ↗ 2022 Report ↗ 2021 Report ↗ 2020 Report ↗

Peers & competitors

DWSN Dawson Geophysical Company ↗ PRSEF Prosafe SE ↗ ETOLF Enterprise Group, Inc. ↗ NOA.TO North American Construction Group Ltd. ↗ RES RPC, Inc. ↗