NZ Oil and Gas (NZX: NZO) shares have risen on news that the company intends to buy back up to 8.5 million fully paid ordinary shares.

The maximum purchase would be worth nearly $10.5m at the last traded price of $1.23.

In a statement to NZX today, the NZOG board expressed its view that current share prices are significantly below fair value and fail to reflect a reasonable current valuation of the company - even without taking into account growth prospects.

Sir Ron Brierley’s Guinness Peat Group has caught the eye of a famous Southeast Asian banking family, which now owns more than 5% of the NZX-listed company.

GPG, also listed on the London and Australian stock exchanges, says it has received substantial shareholding notices from Tan Chin Tuan Limited (TCTL) and Dr (Mrs) Tan Kheng Lian.

TCTL is an investment vehicle owned by interests associated with the wealthy and influential Tan family of Singapore.