WELLINGTON, New Zealand – O.G. Oil & Gas (Singapore) has agreed to acquire all shares in New Zealand Oil & Gas (NZOG) that it does not already own.
Two independent directors nominated by NZOG’s board have recommended that the company’s shareholders accept the offer.
They cite various factors such as the changed operating environment for oil and gas investment in New Zealand following the government's decision in April 2018 to not award new offshore exploration acreage in the future; the company’s subsequent difficulty raising equity capital as a publicly listed oil and gas organization on the NZX; and the price decline in its shares following the government’s announcement.
Departures by major international players continue, NZOG pointed out, with various companies recently surrendering exploration acreage.
“Nevertheless, OGOG is willing to increase its investment in New Zealand Oil & Gas,” the company added.
Approval for the transaction is expected to go through by the end of November.