New Zealand Energy closes $63.4 mln bought deal financing

New Zealand Energy Corp. (CVE:NZ) closed its previously announced bought deal financing and over-allotment option which raised $63.4 million, the company said Wednesday.

The oil and gas company said it will use the funds to explore and develop its properties, for additional geologic and technical
studies and for general corporate purposes.

New Zealand Energy, through a syndicate led by Canaccord Genuity and Macquarie Capital Markets, issued 21.16 million shares priced at $3 each.

Additionally, the underwriters opted to exercise their over-allotment option in full, the company said Wednesday.

The oil and natural gas explorer controls two permits that cover 169,949 acres in the Taranaki Basin off New Zealand's North Island. It attained production from the Copper Moki-1 well in December. 

Last month, it announced the start of an extended production test from its Copper Moki-2 well and the start of drilling at
its Copper Moki-3 well.

The company also said in February that based on its early operational success in the Taranaki Basin of New Zealand's North Island, it has forecast an exit production rate of 3,000 barrels of oil equivalent a day for 2012.

New Zealand Energy said the guidance was prepared on the back of production results disclosed that week, as well as the planned drilling of eight net additional wells this year.

The forecast also took into account the completion of a natural gas pipeline, and the "continued performance in line with existing
oil and natural gas production" from its Copper Moki-1 and Copper Moki-2 wells.

At the Copper Moki-2 well, it is producing 42.0 degrees of API oil, and is currently flowing at a rate of 1,000 barrels of oil per
day, and 820 thousand cubic feet of natural gas per day.