New Zealand Oil & Gas, which has interests in the Tui and Kupe fields, said the recent slide in its share price may reflect its report this week that no significant gas or oil shows were found at its Matuku well near Taranaki. The stock fell further after a trading halt was lifted.
The Wellington-based company's share price fell 3.6 percent on Tuesday when it gave the update, and was recently at 78 cents, down 3.7 percent on the day. NZOG believed its share price has been affected by the Matuku update, which it has a 12.5 percent stake alongside OMV New Zealand and Octanex, which has yet to show any significant find for the energy explorer, it said in a statement.
"Most wells will not make commercial discoveries of oil and gas," chief executive Andrew Knight said. "Our company explores a portfolio of prospects in order to balance the investment risks around individual wells."
The Matuku well is currently at a depth of 4,307 metres, with drilling ahead to a total depth of 4,750 metres. Until that's completed and testing analysed geologists haven't formed a final view on the well.
NZOG is also involved in drilling in the Tui permit at Pateke and Oi, and has plans next summer for the Kaheru prospect off South Taranaki, it said.