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NZOG looks offshore

New Zealand Oil and Gas has stepped up its scout for Northern Hemisphere investment options, as it says New Zealand is unlikely to provide a ‘stream of opportunities'.
The listed company (NZX:NZO) has hired two senior ‘explorationists' to sco

Andrea Deuchrass
Mon, 22 Mar 2010

New Zealand Oil and Gas has stepped up its scout for Northern Hemisphere investment options, as it says New Zealand is unlikely to provide a ‘stream of opportunities’.

The listed company (NZX:NZO) has hired two senior ‘explorationists’ to scout less-risky opportunities in the Northern Hemisphere.

NZOG has interests in both the Tui and $1.3 billion Kupe fields, but company spin-doctor Chris Roberts said it was unlikely a stream of opportunities would become available in New Zealand.

It had signalled its overseas search for some time but had taken another step in hiring consultants to work on its behalf.

UK-based Nick Johnston and Canadian-based Tim England had already put “half a dozen” opportunities across the desk since early this year, he said.

“We’re not at the stage of announcing an offshore investment, but they are certainly providing opportunities.”

NZOG was not interested in frontier basins or high-risk areas. “We’re not about to go into Iraq or anything of that nature. But in more politically stable areas we’re certainly interested.

“There’s a whole sector of smaller opportunities that the larger companies overlook and available to companies of our size.”

A joint venture arrangement would be likely, he said. “We’re not looking to go in fresh without a local partner.”

While it had considered opportunities over the last 12 months, none had made economic sense. At the moment, it had several “live” offshore projects under consideration.

“As soon as something stacks up, we will go ahead and announce that to the market.”

In the six months to December 2009, NZOG reported a net loss of $6.5 million, compared to a net profit of $54 million a year earlier.

NZOG shares last traded down once cent to $1.56.

Andrea Deuchrass
Mon, 22 Mar 2010
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NZOG looks offshore
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