Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZOG returns to interim dividends after more than a decade

NZOG returns to interim dividends after more than a decade

Jan 30 (BusinessDesk) - New Zealand Oil & Gas says its war-chest is full enough and its cashflows steady enough to return to paying interim dividends for the first time in perhaps 15 years, but there's no prospect of an increase on the current annual payout of six cents a share.

The company will also halt the 2.5 percent discount previously offered in dividend reinvestment scheme, saying it doesn't need to raise capital at the moment and the discount disadvantaged non-participating shareholders.

Recently appointed chief executive David Knight wasn't sure how long it was since NZOG last paid interim dividends, but suggested it was about 15 years ago.

The announcements came in NZOG's operations report for the three months to December 30, and follow yesterday's disclosure of the intention to drill two new wells in the Tui prospect, one a development well to get better production from the Pateke resource, and an exploration well in a prospective tenement known as Oi.

Those wells will be drilled by the Kan Tan IV semi-submersible rig, due in New Zealand waters later this year, but NZOG is also looking for a jack-up rig to undertake drilling in the Kaheru prospect, where NZOG is the operator with a 35 percent interest, and is joined by Australia's Beach Energy (35 percent) and TAG Oil (40 percent).

However, while New Zealand portfolio development continues, the company's near-term prospects for substantial new cashflows are in its Tunisian offshore oil resource known as Cosmos, where a final investment decision is likely in March, with first oil to flow by late 2014.

A proven resource of 9.2 million barrels of oil has been assessed in the "A" lobe of the Cosmos find.

Knight said that, on the current plan, the company's $209 million of gross cash holdings would meet its capital needs over the next five years.

"We would invest that cash balance and receive considerably more than that back in the five years. With Cosmos, the simple payback on a cashflow basis will be a year or 18 months, similar to Tui."

Total revenues for the quarter were $18.3 million, of which $11.4 million came from NZOG's share of the Kupe oil and gas field, and $6.9 million from the declining Tui field. The company paid down some $4.8 million of its standing debt facility with Westpac.

Gross cash on hand stood at $209 million, or $171 million net.
Knight said that while splitting the dividend into two annual payments reflected the company's improved position, there was no prospect of the rate of payout increasing at present.

The board has yet to consider the proposal. NZOG shares rose 0.57 percent this morning to 87.5 cents.

Meanwhile, London-based explorer Kea Petroleum announced it would begin drilling the rest of the 3,400 metre Mauku-1 well, onshore Taranaki, in about three weeks when a second rig would be operational on the site, while the Puka-2 well recommenced drilling on January 28 and should be at target depth by mid-February.

New 3-D seismic readings from the Puka prospect would now be processed, with initial interpretation in the second quarter of this year, while the company was making progress on a farm-out for Mauku.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news