New Zealand Oil & Gas (NZOG) have received the green light from the Australian Foreign Investment Review Board to go ahead with the acquisition of Central Petroleum’s assets in the Amadeus Basin, Northern Territory.
In May the company agreed to purchase interests in three producing Northern Territory assets from Central.
The acquisition will increase the NZOG’s 2P (proved and probable) reserves by 14.5 million barrels of oil equivalent – a near five-fold increase, with further exploration upside potential.
The transaction comprises a 25 per cent interest in the Mereenie oil and gas fields, a 50 per cent interest in the Palm Valley gas field and a 50 per cent interest in the Dingo gas field.
The company will acquire 70 per cent and Cue Energy Resources (NZOG’s 50.04 per cent owned subsidiary) will acquire 30 per cent, of assets sold by Central Petroleum.
Central Petroleum will remain as operator and manage the gas sales function on behalf of NZOG and Cue Energy under a joint marketing agreement.
NZOG executive Andrew Jefferies said the acquisition fits the company’s strategy for growing the business by acquiring production.
“The acquisition utilises the company’s cash and balance sheet strength. The assets have multiple development and exploration pathways to growth, which this deal will unlock. It also helps achieve value for Cue shareholders, including NZOG, and puts our business on a growth trajectory,” he said.
“The fields are in Australia, where we are already listed, and produce gas for markets where prices are strong. They have an excellent seasoned operator in Central Petroleum with scale, culture, values, and technical skillsets that are an ideal fit with ours. Like NZOG, Australia values clean burning locally produced natural gas as a key part of the transition to a low carbon future.”
Last week NZOG shareholders voted 99.99 per cent in favour of the transaction which satisfied another key condition precedent.