NZOG hit by Pukeko well result

By CHRIS DANIELS

Shares in New Zealand Oil and Gas have plunged after the company said its latest well was not commercially viable.

But NZOG is putting a positive shine on the news, saying that despite not being commercial, traces of oil and gas found down its Pukeko-1 hole show there are good prospects nearby.

Regular drilling reports made to the NZX last week confirmed the presence of "good oil shows" down the well, indicating there was oil present in the area to the west of the huge Maui oil and natural gas field.

Shares in NZOG finished yesterday at 64c, down 8c, or more than 11 per cent, from their opening price of 73c.

NZOG said the find supported the existence of an "oil play fairway" which had been a key focus of the company's explorations over the past few years.


This month, the Government is expected to announce measures designed to encourage more oil and gas exploration.