New Zealand Oil & Gas' long-mooted return of $100 million to shareholders will be through a court-approved scheme of arrangement, following the $168 million sale of its share in the Kupe oil and gas field.
Despite NZOG selling several assets and arranging for the return to shareholders, it remained adamant earlier this month it still wanted to pursue two deepwater oil and gas prospects off the South Island, including the deepwater Barque prospect off Oamaru.
The scheme involves cancelling one out of every two ordinary shares for a payment of 62.72c per cancelled share. Part-paid shares issued as part of NZOG's employee share ownership plan would not get a return of capital.
In January, Genesis Energy paid $168million for NZOG's 15% stake in the Kupe field.
The scheme is conditional on gaining shareholder approval at a special meeting in April, an Inland Revenue ruling the capital return is not in lieu of a dividend, and final High Court court approval. The return could be available by late May.