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

 

Geoff Loudon swoops on NZ Energy Corp in gas deal

Geoff Loudon swoops on NZ Energy Corp in gas deal

By Pattrick Smellie

Aug 1 (BusinessDesk) - Serial oil and minerals investor Geoff Loudon's L&M Energy has done a deal to help get Toronto-based New Zealand Energy Corp out of a financial hole while securing a half-share of the long-producing gas fields known as TWN, and the associated Waihapa production station.

NZEC has been looking for months for a solution to its problem, which arose when the company ripped through working capital due to a string of missed production targets, leaving it around C$17 million short when trying to complete its deal with Origin Energy to buy the TWN assets.

The solution that has emerged is an $18.25 million investment by L&M Energy to create a 50/50 joint venture to "explore, develop and operate the Tariki, Waihapa and Ngaere licences, the Waihapa production station and associated pipelines and infrastructure," NZEC said in a statement to the Toronto Stock Exchange.

NZEC will be the operator for the TWN joint venture licences and "decisions regarding exploration, development and operations of the Waihapa assets will be made by management committees with equal representation from both companies," NZEC chief executive John Proust said.

However, NZEC still needs a further $12 million to complete the Origin deal and add to existing working capital and is "continuing to pursue a number of strategic options," Proust's statement said.

NZEC originally agreed in June 2012 to pay Origin C$42.5 million for the Taharoa, Ahuroa, Waihapa and Ngaere oil and gas field licences and production facilities, onshore Taranaki.

However, a restructured deal, announced in June this year, saw the price drop $C9 million, removed the Ahuroa licence area, and saw NZEC become operator of Contact Energy's Ahuroa gas storage facility.

"I've been watching this transaction unfold with interest," said Loudon, who owns L&M Energy. "I have long believed the TWN licences and infrastructure hold great potential, both from an exploration perspective and with the strategic marketing and business opportunities presented by the Waihapa production station."

NZEC listed on the Toronto Stock Exchange in August 2011, raising just over C$21.9 million in its initial public offering. The company raised almost C$63.5 million in March 2012, though its market capitalisation has tumbled over the past 12 months, with its shares falling from a peak of C$3.19 to as low as 33 Canadian cents, wiping about C$350 million off the value of the company. Its shares fell in trading since the announcement, down 1.5 percent yesterday to C32 cents.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>