6 Sep 2010

NZOG to buy-back up to 8.5 million shares

12:35 pm on 6 September 2010

New Zealand Oil & Gas Ltd will buy-back up to 8.5 million of its own shares, saying the current share price is well below what it thinks the company is worth.

The buy-back represents 2% of the 389 million shares on offer.

New Zealand Oil & Gas says the current share price of $1.20 each is well below fair value and does not reflect the company's worth, even without taking into account the company's growth prospects.

NZOG says it will continue to maintain a strong balance sheet to fund capital expenditure for on-going growth initiatives.

The buyback period starts on Friday and runs until the end of June next year.