The Canadian company Tag Oil has made a US$ 534 million bid for New Zealand’s Greymouth Petroleum. According to a statement on Greymouth’s website: “Greymouth holds a significant suite of oil and gas development and exploration properties in New Zealand (the Taranaki Basin and Great South basins). In New Zealand, Greymough engages in the production of, and exploration for, oil and gas reserves.”
Greymouth Petroleum is currently 86% owned by the company’s chairman and CEO Mark Dunphy, millionaire Peter Masfen and other associated interests. The remaining 14% is owned by Greymouth’s former COO, John Sturgess. Dunphy and Masfen are currently in the process of seeking legal action that would force Sturgess to sell his stake in the company. Sturgess, however is seeking a legally-enforced 100% sale of Greymouth.
Dunphy and Masfen have announced that they intend to remain in control of Greymouth.
Garth Johnson, chief executive of Tag Oil was quoted as saying that, “It’s part of our ongoing process to look at strategic acquisitions and opportunities in areas of interest … We’re interested in the Taranaki Basin and believe Greymouth’s assets will be complementary to ours.” Johnson also noted that Tag would prefer to acquire 100% of Greymouth and was confident of being able to raise the necessary funding.
Edited from various sources by David Bizley