O.G. Oil & Gas increases the stakes in NZOG takeover bid

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SINGAPORE-based O.G. Oil & Gas (OGOG) has upped the ante in its bid to woo New Zealand Oil & Gas (NZOG) shareholders with an improved, partial takeover offer to acquire 67.55% of each class of NZOG shares It does not already hold or control.

OGOG’s initial offer was NZ$0.77 per share on September 19 and the latest offer, according to NZOG, increased by one per cent per share.

NZOG has unanimously recommended that shareholders accept OGOG’s offer.

If shareholders agree to do so, OGOG will acquire up to 67.55% of NZOG shares for a price of NZ$0.78 per share.

New Zealand Oil & Gas said it would send the offer document, including personalized acceptance forms, as well as a target company statement to shareholders.

OGOG said its takeover bid was motivated by three essential criteria:
“Now is the right time in the exploration and development cycle to invest in the oil and gas sector. After many years of lean investment, we feel there is a unique opportunity for companies that are willing and able to prudently deploy resources toward new exploration.

“In our view, NZOG is in an enviable position to take advantage of this attractive point in the exploration and development cycle,” the company said.

“NZOG has the right leadership to cultivate the substantial value embedded in the company. It was through the Maari FPSO project that we first met members of NZOG’s management and executive team and came to appreciate their values and capabilities. Our experience on the Maari FPSO project and our more recent opportunities to work in conjunction with the NZOG team, have confirmed our belief that OGOG can work successfully with NZOG in the future.

“Given Ofer Global’s experience in New Zealand, we are confident it is the right place to invest. Our affiliate Omni Offshore Terminals, a global leader in the provision of FSO and FPSO units, owned and operated the FPSO Raroa for a four-year period at the Maari Field. Omni invested more than US$300,000,000 in the engineering, design, construction, installation and operation of the Maari FPSO project.

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