NZOG shares out of trading halt

Last updated 14:51 16/01/2014

Relevant offers

Industries

Sanford's green lipped mussels growing too big for bite size Massive bridge-building machine named Dennis reaches Auckland Motorway milestone Skinny inches it on price for average mobile user Fletcher gets go-ahead for Ihumatao special housing area Mainfreight posts record annual profit of $88 million The retailers who have taken Dick Smith's place Kiwis well-served in digital world, annual Commerce Commission report finds Fonterra announces next season Farmgate milk price forecast of $4.25kgMS More Wicked Campers slogans banned, behaviour concerns advertising watchdog Shewan Inquiry gets advice on tightening trust regime

Trading in New Zealand Oil and Gas shares has resumed after a brief halt earlier today.

NZOG said it believed its share price had been affected by its announcement on Tuesday that the primary target zone in the Matuku well had not encountered significant oil or gas shows.

The well is currently at a depth of 4307 metres and drilling is continuing to a total depth of 4750 metres, the company said.

"Until drilling is complete and testing analysed, geologists have not formed a complete view about the well or the implications for the play type in the Kahurangi trough, which was thought to be a source kitchen for a success case at Matuku," NZOG said.

NZOG chief executive Andrew Knight said a negative result in any well is always much more likely than a positive result.

"Most wells will not make commercial discoveries of oil and gas. Our company explores a portfolio of prospects in order to balance the investment risks around individual wells. In the near future, New Zealand Oil & Gas is involved in drilling in the Tui permit at Pateke and Oi, and next summer in the Kaheru prospect off South Taranaki."

Participants in the exploration permit which includes Matuku-1, PEP 51906, are OMV New Zealand, which holds a 65 per cent share, Octanex with 22.5 per cent and NZOG with 12.5 per cent.

If Matuku-1 is successful, either NZOG or Octanex may exercise an option for NZOG to acquire a further 5 per cent of Octanex's share, which would equalise each company's interest at 17.5 per cent.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content