[ad_1]
New Zealand Oil & Gas shares have resumed trading, and the company announced that it had found no gas in deepwater drilling off the Australian coast.
In November, Andrew Jefferies, CEO of the company, said that if the Ironbark-1 well was a success, it would be a “company change.”
Trading in NZOG shares was suspended at the beginning of the trading day, but was adjourned at 2pm.
“Man… a very disappointing result for all of us. Ironbark was a global prospect in a highly prospective direction and needed drilling. We got a response, but it was not what we wanted,” Jeffries said in his statement to the market.
READ MORE:
* New Zealand oil and gas acquisition looming
* Rich lister sues the Minister of Energy and the coalition over oil and gas movements
* Opinion: gas exports would reduce global emissions
* Singapore firm launches takeover bid for NZOG
The Ironbark-1 well is located 170 kilometers off the coast of Karratha in Western Australia, and NZ Oil & Gas owns a stake in it through its 50% stake in Australian gas exploration company Cue Energy Resources.
GOOGLEMAPS / Things
New Zealand Oil & Gas will announce on December 31st whether its Ironbark-1 drilling for gas off the coast of Western Australia has been successful.
Drilling “started” in November – the industry term for the start of drilling – with BP conducting the drilling, which had reached a depth of 5,202m on December 22 in seas just over 300m deep.
Operations to plug and abandon the well were beginning, Jefferies said.
“While operations are not yet complete, I would like to thank Operator BP for their safe and professional operations while drilling the well, as well as our JV partners and our shareholders for their continued support,” he said.
NZ Oil & Gas minority shareholders in New Zealand have had a difficult year, with the Covid-19 pandemic causing a massive drop in demand for oil.
In January, the company’s shares reached 70 cents, but fell to 43 cents on March 24.
Since then, they have made their way as the company regained favor with investors, hitting 74 cents on Christmas Eve.
Minority shareholders also turned down a low-profile takeover offer from Singapore-based OG Oil and Gas, the majority owner of the company, but the offer angered them.
“Many of the largest shareholders in the company were strongly opposed to the plan,” President Samuel Kellner said in November.
Part of the opposition among minority shareholders was that Ironbark-1’s prospects for success were undervalued in the takeover offer.
