NZOG raises NZ$192.7m in options take up

Tuesday 8th July 2008

New Zealand Oil & Gas raised NZ$192.7 million through the take up of options, with 92.5% exercised, boosting the oil explorer's reserves to pursue acquisitions.

Shareholders flocked to benefit from the opportunity to buy shares at NZ$1.50 apiece with zero brokerage fees in a company benefiting from revenue flowing from the Tui oilfield. The stock last traded at NZ$1.70.

"Together with the strong revenue flows 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," chief executive David Salisbury said in a statement.

A total of 128.5 million options were exercised of about 139 million on issue. NZOG now has 383.7 million ordinary shares, giving the company a market value of NZ$650 million.

NZOG is been reaping its 12.5% share of output from the Tui oilfield, which was 14.2 million barrels in the year ended June 30, sold at an average US$100 a barrel.

Crude oil for August delivery traded at $141.41 a barrel on the New York Mercantile Exchange, having dropped almost 3% yesterday. It reached a record $145.85 last week.

AWE is the operator of the field and largest participant, with 42.5%. Mitsui E & P Australia Pty has 35% and Pan Pacific Petroleum NL has 10%.

By Jonathan Underhill

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