Sharechat Logo

NZ Oil & Gas shares slump by a third on Pike explosion as trading halt lifts

Tuesday 23rd November 2010

Text too small?

New Zealand Oil & Gas shed as much as a third of its market value when the shares resumed trading after being halted for the Pike River Coal mine explosion.

NZOG shares slumped 36 cents to 84 cents and earlier sank to 80 cents, the lowest since April 2005. The oil and gas company owns 29% of Pike's shares, which remain on trading halt, 17 million options, $29 million of convertible bonds and a short-term funding facility with $13.1 million outstanding. It also has an option until March 2013 to purchase Pike coal at market prices.

"NZOG is continuing to honour the short term funding facility and arrangements are being implemented for PRC to draw down the balance of the facility, being $12 million, on the understanding that all secured creditors will approve a stand-still period of 90 days," chairman Tony Radford said in a statement.

NZOG's statement said while the investment in Pike was 'significant' the majority of its assets were in oil and gas holdings and cash.

There's still no word on the 29 miners trapped in the South Island mine since a gas explosion on Friday. Pike is close to completing an inspection bore hole though a New Zealand Army bomb disposal robot conked out just 500 metres into the mine earlier today. Efforts are being made to secure a more high-tech robot.PRC chief executive Peter Whittall told reporters at a briefing today that the 29 miners were likely in two main groups within the mine, having been conducting various tasks during a break in actual mining on Friday. Dangerous levels of explosive gas are preventing any rescue teams entering the mine.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO