Mine blast puts NZOG shares into trading halt

File photo / Paul Estcourt

New Zealand Oil and Gas shares have this morning been suspended from trading on the New Zealand stock exchange.

The company owns 29 per cent of Pike River Coal.

In an announcement to the NZX this morning, NZOG said:

"The Board and staff of NZOG extend their thoughts and sympathies to the men trapped at the Pike River Coal mine, their families, friends and colleagues."

"NZOG has had a long and close association with the Pike River coal mine. The project was developed by NZOG over two decades before Pike River Coal Ltd was publicly floated in 2007, and NZOG retains a significant stake in the company.

Like all New Zealanders, we are hoping for the best possible outcome from the rescue and recovery mission."

Trading in NZOG and Pike River shares on the Australian stock exchange was suspended on Friday, once the seriousness of the West Coast explosion became known.

Pike River's share price fell 4c, or 4.35 per cent, to 88c on Friday but brokers said news of the explosion at about 4.30pm had not spread and the volume of trading was not large.

New Zealand Oil & Gas has invested about $85 million for a 29 per cent stake in Pike River which it spun off to develop the coal mine northeast of Greymouth where work began in 2006.

Last month NZOG agreed to provide Pike with a working capital facility of up to $25 million, which has an interest rate of 13 per cent and is to be repaid by December 15.

- HERALD ONLINE