KEY POINTS:
New Zealand Oil and Gas will this morning disclose a capital-raising package and the prospects for the flotation of its Pike River Coal subsidiary.
The company yesterday placed the shares on a trading halt and declined to comment further.
However, market sources said the capital raising could be for as much as $45 million, partly through placement of shares and through a rights issue. They also believe the Pike River float will be delayed. If so, it will be the fourth delay this year.
Shares in the oil and gas explorer closed on Monday at $1.03, having traded between 80c and $1.12 in the past year.
Last month NZOG - with a 60 per cent stake in Pike - revealed that construction costs at the mine had ballooned from about $100 million to $144 million, partly because of rising steel costs.
It said it would have to raise new equity to fund the mine development costs.
