Explorer New Zealand Oil & Gas wants to hasten its year-old share buy-back programme and a tender offer to purchase $22million of its shares opens on September 16.
NZOG acting chief executive Andrew Jefferies said the programme to buy back up to 64million shares was taking too long.
"The company has been buying back its shares this year but, because the shares trade in small volumes, it would take years to complete the buy-back at current rates of progress," he said in a statement yesterday.
The offer, at 55c per share, has a premium of 13.5% to the 30-day weighted average market price and more than 14% above the average price paid by the company for shares purchased this year, he said.
At a special meeting on August 28 last year, 73% of NZOG’s shareholders approved the buy-back of up to 64million shares.
Last week, asset writedowns contributed to annual losses more than tripling for NZOG, up from a $15.5million loss a year ago to $51.8million, but its cash in hand increased from $83.7million a year ago to $96.8million.
Mr Jefferies said as NZOG was reviewing acquisitions of assets coming to market, the best understood was its own shares, and "it makes sense to buy our shares when we see value".
NZOG would continue its on-market buy-back programme after the tender process, he said.
