(The following statement was released by the company)
WELLINGTON, Sept 6 - NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing Rule 7.6.2, the intention to buy-back up to 8,500,000 of its fully paid ordinary shares.
The NZOG Board is of the view that the current share price is significantly below fair value and doesn't reflect a reasonable current valuation of the company, even without taking into account the growth prospects about which the Board and management are confident.
A buy-back of shares at this time is an opportunity to provide a return to shareholders in excess of NZOG's cost of capital.
NZOG will continue to maintain a strong balance sheet to fund capital expenditure for on-going growth initiatives.
The Board has authorised management to undertake buy-backs in accordance with the NZSX Listing Rules, the Companies Act 1993 and NZOG's Constitution.
NZOG has 389,092,572 listed ordinary shares. The maximum number of shares to be acquired in the buy-back is 8,500,000. Purchases may occur from 10 September 2010 and may continue up until 30 June 2011.
The shares acquired will be cancelled.
NZOG has appointed Goldman Sachs to act on its behalf in relation to the buy-back. COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WELLINGTON, Sept 6 - NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing Rule 7.6.2, the intention to buy-back up to 8,500,000 of its fully paid ordinary shares.
The NZOG Board is of the view that the current share price is significantly below fair value and doesn't reflect a reasonable current valuation of the company, even without taking into account the growth prospects about which the Board and management are confident.
A buy-back of shares at this time is an opportunity to provide a return to shareholders in excess of NZOG's cost of capital.
NZOG will continue to maintain a strong balance sheet to fund capital expenditure for on-going growth initiatives.
The Board has authorised management to undertake buy-backs in accordance with the NZSX Listing Rules, the Companies Act 1993 and NZOG's Constitution.
NZOG has 389,092,572 listed ordinary shares. The maximum number of shares to be acquired in the buy-back is 8,500,000. Purchases may occur from 10 September 2010 and may continue up until 30 June 2011.
The shares acquired will be cancelled.
NZOG has appointed Goldman Sachs to act on its behalf in relation to the buy-back. COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.