Wednesday 17th December 2008
|Text too small?|
NZOG said it paid a premium to Pan Pacific's recent trading price for the shares and is seeking "to acquire a strategic stake." Australian Foreign Investment Review Board rules restrict NZOG from gaining more than 15% of the Australian oil company unless it gains clearance, which it isn't immediately seeking, NZOG said in a statement.
Pan Pacific holds 10% of the Tui oil field while NZOG has 12.5%. Investors have been awaiting moves by NZOG to acquire more reserves or make acquisitions.
Production from Tui began in July 2007 and proven and provable reserves were increased to 50.1 million barrels in June this year. It raised $190 million through the exercise of options in 2008, stoking its war chest, and said it is "actively pursuing" new growth opportunities.
"It is a time of opportunity to create greater wealth for shareholders and we are looking to use our strong position to secure attractive new ventures," chief executive David Salisbury said on Dec. 8.
In October, the company agreed to acquire an interest in a permit in the offshore Canterbury Basin, making it the biggest holder in permit PEP38259. The permit gives access to the Barque gas and condensate prospect, which NZOG estimates has recoverable resources of 600 billion cubic feet of gas and 58 million barrels of light oil.
NZOG's shares fell 0.8% to $1.32 today after crude oil for January delivery fell 1.7% to US$43.74 a barrel on the New York Mercantile Exchange
No comments yet
Debt-free NZ Oil and Gas will use cash buffer as it hunts for oil
NZ Oil and Gas cedes promising Kakapo permit after failing to attract farm-in partner
NZOG chair Griffiths backs director liability over health and safety failures
NZOG in trading halt, Tunisian oil field announcement due
NZOG returns to interim dividends after more than a decade
NZOG's first well outside NZ to spud in late Jan
NZ Oil and Gas buys interests in three Taranaki permits from Octanex
NZ Oil and Gas has $162 million to add oil and gas reserves
NZ Oil and Gas farms out quarter-stake in Kaheru prospect
NZ Oil and Gas misses out on stake in deepwater Taranaki permit