WELLINGTON - Explorer New Zealand Oil and Gas' share price eased further yesterday, dropping 25 per cent in the past fortnight.
It finished down 1c at 49c, compared with February 8 when it equalled its recent high of 65c.
The options, which expire on October 31, 2001 and have an exercise price of 70c, ended at 14c from 24c on January 26.
NZOG's share price has spiked above a long-held level around the mid-40c mark since news it would drill for oil at its Hochstetter prospect near the massive Maui gas find offshore Taranaki.
There is no apparent catalyst for the fall, although data will be gathered within days which NZOG will release to the market. That information, as is normal with exploration drilling, may not be conclusive. The company has said a definitive announcement on the prospect will be made by the second week in March.
The head of research at brokerage Forsyth Barr, Neil Paviour-Smith, said trading volumes had not been unusually large lately and selling was confined to a reasonable range of retail investors.
"You'd put it in the context of the overall market being soft. You need to assume that there has been some profit-taking ahead of the announcement - people who might be taking an alternative view on the prospects."
But most people were taking a wait-and-see stance.
NZOG said it was inappropriate to comment on the share price while in active drilling. It was making drilling reports weekly.
A spokesman said the company's net tangible asset backing was 50c to 55c a share.
No new information has come to light, other than a release regarding the progress of drilling towards the first initial target, but that information would not be price-sensitive.
NZOG said the geology was in line with expectations. "The primary objectives of the Hochstetter well will be intersected over the next four-five days before reaching total depth of 3200m. Daily releases will be made as this section is drilled."
- NZPA
NZOG says share price drop a mystery
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