NZOG treasury bursting at the seams Neil Ritchie, New...

NZOG treasury bursting at the seams

Neil Ritchie, New Zealand
Tuesday, 8 July 2008

NEW Zealand Oil & Gas has raised more than $NZ190 million (about $A150 million) with its latest options exercise, leaving it with a “sizeable war chest”, according to broker McDouall Stuart, to spend on exploration, acquisitions and creating further value for shareholders.

Wellington-headquartered NZOG this morning said that a further tranche of 1,491,020 ordinary shares were allotted yesterday evening, taking the total number of exercised $NZ1.50 options to more than 128.4 million of the just under 139 million options available for conversion to ordinary shares.

This represented a 92.5% uptake of the $NZ1.50 options that closed on June 30. NZOG shares were this morning trading on the Australian Securities Exchange for about $A1.33-1.34 and on the New Zealand Exchange for about $NZ1.69-1.70.

NZOG said its issued capital is now 383,698,721 ordinary shares, giving it a market capitalisation of about $NZ650 million ($A513 million).

NZOG chief executive David Salisbury said the company was extremely pleased with the support shown by investors.

“To raise almost $NZ200 million in the current investment climate is a significant statement of faith in New Zealand Oil & Gas.

“Together with the strong revenue flows coming from the Tui oilfields, the capital injection gives us the opportunity – and the challenge – of aggressively pursuing sensible investment opportunities in the oil and gas sector.

“The company is very focused on maximising value from its existing assets and identifying new, value adding investments.”

Company public affairs manager Chris Roberts recently told PetroleumNews.net that there were no imminent deals to be announced, but that NZOG continued to explore all potential opportunities.