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NZOG plans $25m rights issue, eyes ASX primary listing

Author
NZ Herald ,
Publish Date
Wed, 27 Apr 2022, 10:42AM
 (Photo / File)
(Photo / File)

NZOG plans $25m rights issue, eyes ASX primary listing

Author
NZ Herald ,
Publish Date
Wed, 27 Apr 2022, 10:42AM

NZ Oil and Gas (NZOG) said it planned to raise $25 million to invest in growth projects in New Zealand and Australia.

Dual-listed NZOG also plans to make the ASX its primary listing.

NZOG plans a one for 2.7625 renounceable rights offer at $0.42 per share, against its last traded price of $0.52 a share.

The company said the capital raise would enable a cycle of investment in growth projects at its producing assets in Australia and New Zealand and the opportunity to take part in exploration.

Growth projects include immediate and future activities, including:

  • Investment into growing production at the Amadeus Basin in Australia's Northern Territory.
  • A new well at the producing Kupe gas field in New Zealand, where potential new gas would be un-contracted, from October 1, 2023, and sold into what is expected to be a strong market.
  • Potential support for Cue, which is 50.04 per cent owned by NZOG, if Cue decides to further develop its assets.

NZOG chief executive Andrew Jefferies said that with oil and gas prices being very strong, the timing was right to invest in growth of the company's assets.

"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," he said.

Funding would strengthen the NZOG's balance sheet and provide cashflow to deliver for investors through development of producing assets with the chance of exploration upside.

NZOG's cornerstone shareholder, O.G. Oil & Gas (Singapore) indicated it intends to take up 100 per cent of its entitlement, subject to regulatory restrictions.

At the same time, NZOG would move from a full listing to a foreign exempt listing on the NZX.

Chairman Samuel Kellner says the ASX market has deep understanding of oil and gas stocks.

"The company intends to convert its listing status after the close of the offer.

"It will then have full listing status on the ASX and a foreign exempt listing on the NZX."

The change in listing status is expected to take place by mid-June. -- Staff Reporter

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