NZ Oil & Gas gets all approvals for producing assets in Australia

NZ Oil & Gas gets all approvals for producing assets in Australia

AUCKLAND, NEW ZEALAND: New Zealand Oil & Gas Group has agreed to purchase interests in three producing assets in Australia from Central Petroleum and today the remaining third party approvals have been received.

All conditions precedent to the transaction have now been satisfied and the parties will move to complete the transaction on 1 October 2021 in accordance with the terms of the sale and purchase agreement, a bourse filing noted.

The transaction was announced on 25 May 2021 and has an effective economic date of 1 July 2020.

New Zealand Oil & Gas had proposed to acquire participating interests in
three producing assets in the Amadeus basin of Australia’s Northern Territory: Mereenie, Palm Valley and Dingo.

The transaction includes payment for a share of production and payment to carry the operator through development up to a capped amount.

Cue Energy Resources, the ASX-listed subsidiary of New Zealand Oil & Gas, proposed to acquire the assets alongside New Zealand Oil & Gas, taking 30% of the interests on offer. New Zealand Oil & Gas would take the other 70%. New Zealand Oil & Gas has a 50.04% interest in Cue.

New Zealand Oil & Gas CEO Andrew Jefferies says “It’s beaut to see these final conditions fall away so we can seal this deal. A deal that delivers on the strategy our board announced last year, gas into an excellent market, with development upside, in a place we understand, with partners of quality, and appropriately sized.”

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