New Zealand O&G Sells Stake in Ngatoro Joint Venture

New Zealand Oil & Gas Ltd has agreed to sell its minority stake in the Ngatoro joint venture to Greymouth Petroleum for approximately NZ$8.3 million. The agreement is subject to usual regulatory approvals which are expected to be received by the end of this month.

Executive Chairman Tony Radford said: "While Ngatoro has been a good source of revenues for many years, the field is about to enter a secondary recovery phase to restore reservoir pressure, which required a decision whether or not to make the necessary investment and stay with the asset for some further time. The fundamental differences within the venture in the last two years also influenced NZOG's decision to sell."

"We have other, potentially much bigger, fish to fry in the Kupe development, Pike River coal and the offshore prospects we'll start drilling just next month" he said.

General Manager Gordon Ward stated: "The sale of Ngatoro will realize a profit of NZ$6.5m for the company. Together with proceeds from the recent sale of a small equity in Kupe, NZOG will hold cash in excess of NZ$20 million to advance its various projects.

We have budgeted an outlay of NZ$1.9m for the drilling of the Amokura and Pukeko offshore prospects during March-May" he said.