NZOG is targeting growth opportunities while optimising the value of our existing asset base.
Since 2007 NZOG has been transformed as the company reaped the rewards from previous investments.
The Tui Area Oil Fields began producing in July 2007 and continue to provide a significant revenue stream.
The Kupe gas and oil development began production in December 2009.
Pike River Coal Ltd was successfully floated in 2007 and in October 2008 began producing its high quality coking coal. NZOG retains a shareholding of just under 30% in PRC.
In December 2008 NZOG acquired a 15% strategic stake in Pan Pacific Petroleum.
NZOG has expanded its exploration portfolio and continues to screen asset opportunities.
The NZOG Board has set ambitious reserve and production targets. The precise targets themselves are not so important. Of more importance is the signal that they send, about a company that is well resourced and firmly focused on a growth path.
Our focus is on growth through petroleum exploration and production. The upstream sector is where our knowledge and experience lies.
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 a logical development for the company is to also look further afield and we have been doing so, both within New Zealand and overseas.
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
- Establishing one or two new core areas (in addition to offshore Taranaki)
We are building on our solid base as we pursue growth opportunities to enhance shareholder value.
