- New Zealand Oil & Gas (NZO) receives the remaining approvals required to buy interests in three producing Northern Territory assets from Central Petroleum (CTP)
- Announced in May, with the deal is set to be completed on October 1
- NZO will purchase a 25 per cent interest in the Mereenie oil and gas fields, a 50 per cent stake in Palm Valley and a 50 per cent in the Dingo gas field
- The acquisition will cost NZO and its Cue Energy subsidiary $29 million
- Shares have closed 2.38 per cent in the green at 43 cents on September 20
New Zealand Oil & Gas (NZO) has received all third party approvals required to purchase interests in three producing Northern Territory assets from ASX-lister Central Petroleum (CTP).
The deal was initially announced back in May this year and has an effective economic date of July 1, 2020.
It will see the company acquire assets in the Amadeus Basin to increase its proved and provable reserves by 14.5 million barrels of oil equivalent, representing a near five-fold increase with further exploration upside potential.
Specifically, the purchase comprises a 25 per cent interest in the Mereenie oil and gas fields, a 50 per cent interest in the Palm Valley gas field and a 50 per cent stake in the Dingo gas field.
These interests will be bought by both NZO and its part-owned Cue Energy subsidiary for a total of $29 million, with NZO putting forward $20.3 million and Cue $8.7 million.
Further, New Zealand Oil & Gas and its subsidiary will also fund CTP’s share of exploration costs, appraisal and development up to a capped total of $40 million.
Central Petroleum is set to remain the operator, with development expected to include four well re-completions and up to 10 wells.
The company said that with all conditions precedent satisfied, the parties would move ahead to complete the transaction on October 1.
NZO’s CEO Andrew Jeffries commented on the progress.
“It’s beaut to see these final conditions fall away so we can seal this deal,” he said.
“A deal that delivers on the strategy our board announcement last year, gas into an excellent market, with development upside, in a place we understand, with partners of quality and appropriately sized.”
Shares closed 2.38 per cent in the green at 43 cents on September 20, 2021.