New Zealand Oil and Gas is the latest company to tap its shareholders for extra capital.
File pic Photo: 123rf
The small exploration company is looking to raise up to $25 million to fund expansion of a gas field in Australia's Northern Territory, drill a new well at the Kupe gas field in Taranaki, and back further work by its subsidiary Cue Energy.
Current NZOG shareholders will get the right to buy 2.7625 new shares at 42 cents each, a 19 percent discount to the company's closing price yesterday.
NZOG chief executive Andrew Jeffries said high global energy prices made it the right time for the company to look at further development projects.
"In a time of global instability, in a world needing our energy, ethically sourced oil and gas from Australia and New Zealand offers new opportunities for continued growth at an attractive balance of risk and return."
The new money would be put into expanding production at the Amadeus Basin gas field in Australia's Northern Territory, a new well at the producing Kupe gas field in Taranaki, and potential support for its 50.04 percent owned Cue Energy.
NZOG's near 70 percent shareholder, Singapore based O G Oil and Gas, has committed to taking allocation and will take up any rights not taken up, subject to certain limits.
The company also announced it would move its primary stock exchange listing to the Australian exchange, and become a foreign exempt listing on the NZX, giving it an exemption from most NZX listing rules.
NZOG has all but deserted New Zealand, apart from its Kupe interests, giving up an exploration permit for a large area off the east coast of the South Island last year, which included the highly favoured Barque prospect.
It said unsuccessful drilling ventures, the high cost of drill rigs, and the government ban on new offshore exploration made it difficult to find overseas partners.
