New Zealand Oil & Gas exits Kupe field

New Zealand Oil & Gas (NZOG) has completed the sale of its 15 percent interest in the Kupe gas field off Taranaki, New Zealand.

To remind, the company decided to sell its stake in the Kupe project to Genesis Energy in November 2016.

NZOG said on Wednesday that the transaction was completed on January 1, 2017, which is also the effective transaction date.

The company received NZ$168 million ($116.3 million) from Genesis Energy for the Kupe stake. The transaction was approved at a special meeting of shareholders on December 16, 2016.

Chairman Rodger Finlay said that work was underway to return NZ$100 million of capital to shareholders by May this year.

“Shareholders’ strong endorsement at the special meeting emphasizes that the transaction realizes a healthy premium for the asset.

“The value received for the asset was at the higher end of our valuation range, exceeds the high end of the independent valuation range and produced an immediate increase in the share price from around 50 cents per share to around 62 cents when it was announced.

“Fresh acquisition opportunities are being actively screened, and the transaction allows the company to diversify¬†and to create further value for our shareholders,” Finlay said.

First discovered in 1986, Kupe entered production in 2009. It is operated by Origin Energy, which has a 50 percent interest. After the acquisition of NZOG’s stake, Genesis Energy now holds a 46 percent interest, and Mitsui E&P holds the remaining four percent.

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