NZOG is targeting growth opportunities while optimising the value of our existing asset base.
Since 2007 NZOG has been a petroleum producer generating significant cash flows which allow for sensible reinvestment in new opportunities.
The production comes from the offshore Taranaki Basin, New Zealand.
The Tui Area Oil Fields began producing in July 2007 and production is expected until around 2020.
The Kupe Gas and Oil Field began production in December 2009 and is now NZOG's main source of revenue. The field has an expected life of 15-20 years.
In 2008 NZOG acquired a 15% strategic stake in Pan Pacific Petroleum.
NZOG has a promising New Zealand exploration portfolio. NZOG has planned for an average spend of NZ$20-30m pa on exploration (although this will vary from year to year). Exploration is high risk, high reward and there is no guarantee of success. However, this level of spend allows the best prospects to be drilled and can be comfortably achieved from projected cashflows.
In 2011, NZOG established a presence in both Tunisia and Indonesia.
Opportunities
The potential deals are many and varied. We are looking at exploration opportunities within our existing permit holdings; opportunities to ‘farm-in' to permits held by other companies; new exploration permits; asset purchases; and corporate acquisitions.
NZOG believes there are further opportunities to be exploited in Taranaki. But there are unlikely to be sufficient opportunities in Taranaki alone to meet our growth objectives, so a logical development for the company is to also look further afield. We have been successful in establishing a foothold in both Tunisia and Indonesia which we intend to develop as new core areas of focus.
We are targeting opportunities that are robust and comfortably fit within our financial capability. Our criteria for investment include:
Proven hydrocarbon systems- Quality business partners
- Suitably attractive fiscal regime
- Access to markets and infrastructure
- Manageable regulatory and political risk
- Manageable financial exposure
- Near term payback as opposed to long term horizons
We are building on our solid base as we pursue growth opportunities to enhance shareholder value.
