NZ Oil & Gas (NZO)

[greenglass]

Thanks guys.

[Rabbi]

3,911,000 partly-paid shares will now be eligible for release from escrow
even though two years has not elapsed. Of this total, 2,911,000 were issued
in September 2015 and September 2016 at a price lower than yesterday's
closing price.

Anyone got any thoughts on this as it seems to me the old boys network is feathering their nest at the expense of ordinary
shareholders.

[t.rexjr]

3,911,000 partly-paid shares will now be eligible for release from escrow
even though two years has not elapsed. Of this total, 2,911,000 were issued
in September 2015 and September 2016 at a price lower than yesterday's
closing price.

Anyone got any thoughts on this as it seems to me the old boys network is feathering their nest at the expense of ordinary
shareholders.

Have a partial capital return. Then halve the ordinary shares on issue but don't halve the partly paid shares. Then convert partly paid shares. Then return the remaining capital = lining your own pockets...

[JohnPagani]

Not correct at all.

The date when options can be exercised has changed.


This is because the particular wording of the plan, dating from 2013, makes certain rights available.


Options that were issued in September 2015 would have been exerciseable in September this year. They are currently in the money by about 3 cents per share.


Shares issued in September 16 were due to be exerciseable in 2018, and instead rights can be exercised now. They are in the money by about 1c a share today. You can make your own assessment whether a 1c premium would be realised if all those shares were sold at once.


A survey showed the holders of most shares do not intend to exercise just because they have the right today. So not much will change but we notified anyway because the right to exercise does now exist.


The capital return has not enhanced the value of these shares. The share price rose because of the Kupe transactions, which created shareholder value - exactly what options exist to incentivise. While most shareholders have had returned over 31cps this year, in effect, the partly paid holders did not partipate. Their partly paid shares have the same value.


These shares were issued at a 20% premium to market. They are only in the money because the price has risen by more than 20%, which all shareholders benefit from. Partly paid holders paid 1c a share for the option.


For what it's worth, the cost of running the plan considerably exceeds the value staff have received from it and I personally would rather see the costs used differently.


So it's easy to level an accusation that people are 'lining their pockets', but as the claim is completely unfounded, perhaps you will reconsider it.

[t.rexjr]

Not correct at all.

The date when options can be exercised has changed.


This is because the particular wording of the plan, dating from 2013, makes certain rights available.


Options that were issued in September 2015 would have been exerciseable in September this year. They are currently in the money by about 3 cents per share.


Shares issued in September 16 were due to be exerciseable in 2018, and instead rights can be exercised now. They are in the money by about 1c a share today. You can make your own assessment whether a 1c premium would be realised if all those shares were sold at once.


A survey showed the holders of most shares do not intend to exercise just because they have the right today. So not much will change but we notified anyway because the right to exercise does now exist.


The capital return has not enhanced the value of these shares. The share price rose because of the Kupe transactions, which created shareholder value - exactly what options exist to incentivise. While most shareholders have had returned over 31cps this year, in effect, the partly paid holders did not partipate. Their partly paid shares have the same value.


These shares were issued at a 20% premium to market. They are only in the money because the price has risen by more than 20%, which all shareholders benefit from. Partly paid holders paid 1c a share for the option.


For what it's worth, the cost of running the plan considerably exceeds the value staff have received from it and I personally would rather see the costs used differently.


So it's easy to level an accusation that people are 'lining their pockets', but as the claim is completely unfounded, perhaps you will reconsider it.

No better off at current share price. But if another capital return is announced the current sp is likely to take another leap given shareprice to NAV is considerably lower.

Is another capital return about to be announced?

[JohnPagani]

No better off at current share price. But if another capital return is announced the current sp is likely to take another leap given shareprice to NAV is considerably lower.

Is another capital return about to be announced?

No current plans for another capital return. Besides, even if there were, it would be impossible to do it before the relevant options would have been exerciseable in September anyway - your original smear was to suggest yesterday's notice was about feathering nests, and yet plainly your own scenario is not just implausible but impossible. So, as I suggested, perhaps you would like to retract.

As far as questions about capital go, the company has been transparent about its intentions. It is actively screening opportunities to acquire new assets at value, with a preference for gas in markets we understand, at a scale suitable for our size. Having captured upside from expanded Kupe reserves and then bought back in at a sensible price, we have shown that we can execute this strategy.

[t.rexjr]

No current plans for another capital return. Besides, even if there were, it would be impossible to do it before the relevant options would have been exerciseable in September anyway - your original smear was to suggest yesterday's notice was about feathering nests, and yet plainly your own scenario is not just implausible but impossible. So, as I suggested, perhaps you would like to retract.

As far as questions about capital go, the company has been transparent about its intentions. It is actively screening opportunities to acquire new assets at value, with a preference for gas in markets we understand, at a scale suitable for our size. Having captured upside from expanded Kupe reserves and then bought back in at a sensible price, we have shown that we can execute this strategy.

Dear John

I will apologise for my post resembling an accusation rather than an inquisition. I appreciate that you've taken the time to address concerns.

[JohnPagani]

Dear John

I will apologise for my post resembling an accusation rather than an inquisition. I appreciate that you've taken the time to address concerns.

Cheers. Always happy to answer fair questions.

[Tribal]

Hello John,

Thanks for clarifying the Employee Share Option scheme and for the update on where NZO is looking for value(Natural Gas rather than Oil).
May I ask when quarterly will be issued?

Regards

[JohnPagani]

Late this week.