Tui Project Partners NZOG and Pan Pacific Raise Funds

Two of the partners in the Tui oil field project in offshore Taranaki have announced successful fund raisings.

Wellington-based New Zealand Oil & Gas Ltd (NZOG) said it has finalied the private placement of approximately 13.3 million shares to institutional and other qualifying investors to a total value of NZ$12 million.

The funds raised will supplement existing capital to advance NZOG's oil and gas projects. As well as the Tui project and other petroleum exploration activities NZOG is a partner in the Kupe offshore gas field project, and in the Pike River underground coal mine on the West Coast of the South Island.

Sydney-based Pan Pacific Petroleum NL, one of Tui joint venture partners, said it has entered into a finance facility agreement with a major resources bank, to support the company's financial obligations under the Tui Development's FPSO vessel charter contract.

Petroleum mining permit 38158, which encompasses an area of 504 sq km including the Tui Area field and satellite prospects, was granted to the Tui joint venture partners recently for a term of 20 years.

Pan Pacific said it is negotiating a full project loan facility to supplement the company's equity contributions to the Tui development, which is primarily being sourced from its recent A$13 million rights issue.