NZ Oil & Gas raises $175m, to offer shares

Energy company New Zealand Oil and Gas Ltd has raised $175 million through a bank facility and share placement to fund future expansion.

It said today it had raised $135 million in bank finance for its share in the development of the Kupe oil and gas field, and placed 17.5 million new shares at $1 each with an additional 5.83 million options with New Zealand based institutional investors.

The company said it would also have a pro-rata rights issue of one new share, with an option attached, for every 10 held at $1 each.

It also confirmed that it would float its Pike River Coal operation with NZ Oil & Gas shareholders being offered shares.

Shares in NZ Oil and Gas were suspended from trading yesterday pending the announcements. Today the shares were down 2c early to $1.01.

- REUTERS