NZ Oil & Gas lifts stake in Pan Pacific to 14.9%
Dec. 22 – New Zealand Oil & Gas Ltd., whose shares have gained 10% this year while the NZX 50 Index tumbled, has lifted its holding in Pan Pacific
Petroleum to 14.9% after announcing plans to buy a strategic stake in its drilling partner.
The acquisition increases NZOG’s exposure to the Tui oil field, one of its most lucrative ventures. Australian Foreign
Investment Review Board rules restrict NZOG from gaining more than 15% of the Australian oil company unless it gains
clearance, which it isn’t immediately seeking, NZOG said in a statement last week.
Pan Pacific holds 10% of the Tui oil field while NZOG has 12.5%. Investors have been awaiting moves by NZOG to acquire
more reserves or make acquisitions.
Production from Tui began in July 2007 and proven and provable reserves were increased to 50.1 million barrels in June
this year. It raised NZ$190 million through the exercise of options in 2008, stoking its war chest, and said it is
“actively pursuing” new growth opportunities.
In October, the company agreed to acquire an interest in a permit in the offshore Canterbury Basin, making it the
biggest holder in permit PEP38259. The permit gives access to the Barque gas and condensate prospect, which NZOG
estimates has recoverable resources of 600 billion cubic feet of gas and 58 million barrels of light oil.
NZOG’s shares fell 0.8% to NZ$1.27 today after crude oil for January delivery edged lower to US$36 a barrel on the New
York Mercantile Exchange on Friday.
Chief executive David Salisbury declined to comment on the purchase.
(Businesswire)
ENDS