It is down from $8.5 million in profit for the half year to December 31, 2011.

The company said the loss was due to a $7.2 million decrease in profit from the Maari operations in New Zealand; an increase in mark-to-market re-evaluation of the convertible bond conversion rights of $6.6 million, arising from a material increase in the company's share price; and an increase in tax payments of $2.9 million.

Revenue was lower in the half year because of reduced production due to unreliable performance of downhole pumps, combined with lower oil prices.

Revenue came mostly from the sale of crude oil from the Maari field.