New Zealand Oil & Gas has indicated the Pateke well currently being drilled could be worth more than $US70 million to it in revenue if its current promise is bourne out.
The company says it's cautiously optimistic the well will prove productive.
New Zealand Oil & Gas experienced a near $23 million cash outflow in the three months after spending more than $26 million on exploration and development.
It plans to ramp up exploration and development spending in the current quarter to more than $30.5 million dollars.
New Zealand Oil and Gas chief executive Andrew Knight said the three months to March were an exciting period for his company, even though its Matuku exploratory well was dry.