Kupe transaction completed

Posted on 5 January 2017

The sale of the 15 per cent New Zealand Oil & Gas interest in the Kupe gas field off Taranaki, New Zealand, was completed on 1 January.

New Zealand Oil & Gas received $168 million from Genesis Energy in the transaction, which was resoundingly approved at a special meeting of shareholders on 16 December 2016.

Chairman Rodger Finlay says work is underway to return $100 million of capital to shareholders by May this year.

“Shareholders' strong endorsement at the special meeting emphasises that the transaction realises a healthy premium for the asset.

“The value received for the asset was at the higher end of our valuation range, exceeds the high end of the independent valuation range and produced an immediate increase in the share price from around 50 cents per share to around 62 cents when it was announced.

“New Zealand Oil & Gas has achieved the present value of future cashflows through the sale without taking on the risk of exposure to a single large asset dominating its portfolio.

“Fresh acquisition opportunities are being actively screened and the transaction allows the company to better diversify to create further value for our shareholders," Rodger Finlay said.