Wellington, Dec 23 NZPA - New Zealand Oil & Gas says it stopped buying shares in Australia's Pan Pacific Petroleum at the close of trading on Friday.

NZOG was building what it called a strategic stake in Pan Pacific and needs Australian Foreign Investment Review Board (FIRB) approval to take its holding above 15 percent.

"While FIRB approval is being sought NZOG has no current intention to purchase PPP (Pan Pacific) shares beyond the present level," NZOG said today.

Its relevant interest in Pan Pacific was now recorded as 15.436 percent, with the additional shares allocated under the terms of the company's employment share ownership plan, and not owned beneficially by NZOG.

A substantial security holder notice filed today included 3.36m shares in Pan Pacific -- out of a total of 588.6m shares -- held by an associate company of NZOG which administers the employment plan, NZOG said.

The filing of the notice followed further legal advice dealing with consistency between New Zealand and Australian obligations.

NZOG also said that, having addressed a potential conflict of interest, its board now considered it appropriate its non-executive chairman Tony Radford, who is also a director of Pan Pacific, take part in any further board consideration of Pan Pacific.

Previously NZOG said Mr Radford had no involvement with the decision or implementation of the Pan Pacific shareholding acquired by NZOG.

Last Wednesday NZOG said it was building the Pan Pacific stake to increase its exposure to the attractive producing Tui area oilfields in offshore Taranaki.

NZOG has a 12.5 percent stake in Tui and Pan Pacific has 10 percent.

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