Nzog shareholders approve Aussie deal
New Zealand Oil and Gas (Nzog) on June 24 said it had received shareholders approval for the acquisition of Sydney-listed Central Petroleum’s 50% interest in three Amadeus basin producing fields in Australia.
The deal, involving Central's Mereenie, Palm Valley and Dingo oil and gas fields, was announced last month. Central announced it had sold the stake in three fields to Nzog and Cue Energy for A$85mn ($66mn). Central will remain as operator and manage gas sales from the assets on behalf of Nzog and Cue under a joint marketing agreement.
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Nzog said the acquisition will increase its 2P reserves by five-fold, by 14.5mn barrels of oil equivalent. It will add 8.6mn boe to net 2C resources.
“These assets have a proven production track record. They are linked by pipeline into markets hungry for gas. They offer multiple development opportunities that are manageable for our balance sheet and cash flows,” the company said. “We look forward to working collaboratively with Central Petroleum and Cue Energy, who will join us in this transaction, in a joint venture that is well-aligned and squarely focused on long-term valuation creation.”