NZO
22/12/2014 16:28
CAPREC
NOT PRICE SENSITIVE
REL: 1628 HRS New Zealand Oil and Gas Limited
CAPREC: NZO: Timing for final Court orders for capital return
Final court orders approving the return of approximately $60 million of
capital to shareholders by way of a Scheme of Arrangement under Part 15 of
the Companies Act 1993 are expected in late January.
New Zealand Oil & Gas has been advised by the High Court that the time line
is affected by the High Court closure over the Christmas and New Year holiday
period.
The expected record date for determining the entitlements of shareholders to
participate in the Scheme is expected to be early February 2015. Ten business
days notice will be given before that record date is set and five business
days after the record date, New Zealand Oil & Gas will cancel one in five
ordinary shares and pay to each holder of ordinary shares NZ75 cents for each
ordinary share cancelled, effectively returning capital of NZ15 cents per
share.
New Zealand Oil & Gas has received a binding ruling from Inland Revenue which
has confirmed that the proposed return of capital by New Zealand Oil & Gas to
its shareholders will not be treated as dividends and will not be subject to
tax.
Chief Executive Andrew Knight says the capital return will improve the
balance sheet performance of New Zealand Oil & Gas.
"The company has a robust balance sheet with no debt, and in the near term
expects increasing cash flows from increased levels of production from the
Tui oil fields. Consequently, the company's cash on hand will grow well
beyond what the business requires for its planned activities."
The scheme of arrangement will take effect if it receives approval from the
High Court in accordance with section 236 of the Companies Act 1993 and final
orders are granted.
John Pagani
External Relations Manager
+64 21 570 872
End CA:00259279 For:NZO Type:CAPREC Time:2014-12-22 16:28:11
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