Sharechat Logo

NZ Oil & Gas shares rise to 6-week high on plan to buyback 2.5% of stock

Tuesday 1st November 2011

Text too small?

New Zealand Oil & Gas shares rose to a six-week high after the company announced plans to buy back 2.5 percent of its stock over the next 12 months because the market was under-valuing their worth.

NZ Oil & Gas will buy back as many as 10 million shares between Nov. 7 and Oct. 31 next year, it said in a statement.

The shares rose 2.9 percent to 72 cent and have climbed 16 percent since Oct. 26, when chairman Tony Radford told shareholders at the company’s annual meeting that the price was “ridiculously low”.

They sank as low as 58 cents in August, when it reported a $75.9 million loss, reflecting a charge for its stake in the failed Pike River Coal venture.

“The NZOG board is of the view that the current share price is significantly below fair value and does not reflect a reasonable current valuation of the company or its prospects for further growth,” the company said today. NZOG “will continue to maintain a strong balance sheet to fund capital expenditure for on-going growth initiatives.”

Shares bought back will be cancelled, the company said.

It has hired Goldman Sachs to manage the buyback.

  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:

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