Genesis Energy Limited (NZSE:GNE) reached an agreement to acquire National Petroleum Ltd, Nephrite Enterprises Ltd, Petroleum Equities Ltd and Kupe Royalties Ltd from New Zealand Oil & Gas Limited (NZSE:NZO) for approximately NZD 170 million on November 16, 2016. National Petroleum Ltd, Nephrite Enterprises Ltd, Petroleum Equities Ltd hold 12.75%, 1% and 1.25% stakes respectively in Kupe Joint Venture. Origin Energy will remain the operator of Kupe Joint Venture. The acquisition will be funded by existing debt facilities and the consideration is subject to relevant adjustments.

The transaction is subject to approval by shareholders of New Zealand Oil's shareholders and Minister of Energy and Resources. As on December 16, 2016 New Zealand Oil & Gas Limited's shareholders approved the deal. The shareholders' meeting is scheduled to be held on December 16, 2016. The Board of Directors of New Zealand Oil recommends shareholders approve the transaction and Directors intend to vote shares they control in favour of the transaction. The deal is expected to close by January 1, 2017. New Zealand Oil & Gas Limited plans to return NZD 100 million to shareholders and review new investment opportunities. If New Zealand Oil & Gas Limited is unable to find investment opportunity then will pay additional amount to the shareholders. The transaction is expected to increase annualized EBITDA by approximately NZD 39 million for Genesis Energy. The transaction is immediately earnings accretive for Genesis Energy. RBC Capital Markets acted as financial advisor to Genesis Energy Limited. New Zealand Oil and Gas was self-advised. Northington Partners acted as an independent appraiser to New Zealand Oil & Gas Limited (NZSE:NZO). Ernst & Young acted as accountant for Genesis Energy.

Genesis Energy Limited (NZSE:GNE) completed the acquisition of National Petroleum Ltd, Nephrite Enterprises Ltd, Petroleum Equities Ltd and Kupe Royalties Ltd from New Zealand Oil & Gas Limited (NZSE:NZO) on January 1, 2017.