nog's all cashed up, fill your boots

NZO
17/12/2008
GENERAL

REL: 0946 HRS New Zealand Oil and Gas Limited

GENERAL: NZO: NZOG Takes Shareholding in PPP

New Zealand Oil & Gas Ltd (NZOG) has disclosed to the NZX and ASX that by the
close of trading on the ASX yesterday it had acquired 5.77% of the issued
shares of Pan Pacific Petroleum NL (PPP).

NZOG is seeking to acquire a strategic stake in PPP so as to increase its
exposure to the attractive producing Tui area oilfields in offshore Taranaki.
The two companies are joint venture partners in Tui; NZOG with a 12.5% stake
and PPP with 10%.

The shareholding is being acquired at a premium to the recent market price of
PPP. NZOG Chief Executive David Salisbury said NZOG believes it is paying a
fair and attractive price to achieve a meaningful shareholding in PPP.

PPP is an Australian company and Australian Foreign Investment Review Board
(FIRB) requirements restrict NZOG to a shareholding below 15% unless FIRB
approval is received.

At this stage NZOG is focused on acquiring a strategic stake. In due course
NZOG will reassess its position to determine what, if any, further steps
might be taken.
End CA:00174300 For:NZO Type:GENERAL Time:2008-12-17:09:46:30
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