NZ Oil & Gas (NZO)

[trader_jackson]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

[BlackPeter]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

Certainly looks good at face value. $120m revenue this year (analyst consensus was just $100m) and $84m in cash. And you can buy this beauty for a market cap of only $169m ...

However - not quite clear what impact the "sort of" CUE takeover had on the numbers. If they added the CUE sales to their numbers, than the financials would not look that flash (but I suppose they didn't - does anybody know?)

[BlackPeter]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

Ah yes - if you are referring to the cash paid for equity investments ($34.9m) -

this is what the footnote says:

2(a) (b) & 2(e). New Zealand Oil & Gas obtained control of Cue Energy Resources Limited (Cue) with an effective date of 31 March 2015.
In previous cash flow reports the acquisition was treated as an equity investment under 2(a)(b) with an outflow of $34.9 million. Cue is
being consolidated into the Group from 1 April 2015, the equity investment under 2(a)(b) being reversed and the net impact of the Cue
cash added on acquisition ($30.7 million inflow) and the cost of the acquisition ($34.9 million outflow) shown under 2(e).

I guess this answers probably as well the question in my previous post (CUE consolidated into the books). Still a respectable result, given that this was just for one quarter.

[trader_jackson]

Thoughts on Clipper? If it was a winner surely this could be worth many millions to NZO... activities report seems to imply there has been some 'major' new development/news... how material is this?

[dodgy]

Certainly looks good at face value. $120m revenue this year (analyst consensus was just $100m) and $84m in cash. And you can buy this beauty for a market cap of only $169m ...

However - not quite clear what impact the "sort of" CUE takeover had on the numbers. If they added the CUE sales to their numbers, than the financials would not look that flash (but I suppose they didn't - does anybody know?)

Hi BlackPeter and all
I think this result and spurious reference to Clipper (they have been on and off in this permit over the years if I remember correctly) but I guess a possible drill 2017 will get a bit of excitment. The conservative application of funds doesn't wash when you look at administration expenses year to date. Pretty expensive lunches in my opinion. Comments.
Regards
-dodgy (owner/shareholder - somewhat disenchanted).

[digger]

Did anyone else go to the Investor meeting at Napier on Wednesday .?
The meeting was a very [toooo relaxed] affair. Firstly about two months ago I had to ring John Pagani to point out that the meeting was on 29th july and not the 29th April as was on the nZO websight for some weeks. This got corrected smartly.
My wife and I were the first to arrive and by 12 oo noon start time there were about 25 others but no NZO personal. By 12-05 JohnPagani our External Affairs Manager turned up. Another 5 mins and the Chief Finanical Officer Andre Gaylard made an appearance . The tables were situated such that the two NZO staff would be talking to us so that the sun was behing them and in our eyes. I asked that the curtains be pulled so that we could all see who was speaking. This got an acceptance from the room and from the two at the head table. Later on I had the same acceptance from other shareholders when the chairman of the meeting charged into the company details with out introducing himself and Jonh Pagani.
So it was off to a poor start. There were no directors present. Note that AK was at the CUE meeting in AUS at the same time.

Finally we got started. The chairman then did a good job of outlining what the company was up to in the last quarter and plans for the future.An excellent map was presented of all the basins around NZ that I have not seen before. There was talk about a drill in about 2017 CLIPPER from memory. Also talk about the drills in the 80ies in the great South Basin that all showed hydrocarbons. We then went over the CUE acquistion. Andre replied to a comment from the floor that it was unlikely that NZO would move further with a takover of CUE for two reasons. The first being that the CUE tax losses would then vanish and that it is very hard to get the last 16 % of shareholders to sell.[I agree with that]
What I did not like the sound of and now want others to comment on is that at the end of August we are to have another special meeting to bring up again the buy back of NZO shares. This time special permission will be sought from holders to allow Zeta to not take part and thereby allow there holding in NZO to rise above the 20% limit. I do not like this one bit as I feel the money would be far better spent on acquistions. I did suggest Horizon Oil[HZN] as they have debt and could be talked into a placement on very favourable terms to NZO. HZN also has on the negative side debt but on the positive side a good lot of reserves that NZO should and needs to take a stake in. At the lunch afterwards both speakers agreed with me that they to liked acquistions. In fact I went away from the meeting feeling that maybe the directors just do not have the proper handle on the unique time we are now in in History. Maybe never again in our life time will the OIL market be so up side down as it is now. To Hell with drilling and buybacks get on with studying the acquistion market.
Comments

[Carpenterjoe]

Did anyone else go to the Investor meeting at Napier on Wednesday .?
The meeting was a very [toooo relaxed] affair. Firstly about two months ago I had to ring John Pagani to point out that the meeting was on 29th july and not the 29th April as was on the nZO websight for some weeks. This got corrected smartly.
My wife and I were the first to arrive and by 12 oo noon start time there were about 25 others but no NZO personal. By 12-05 JohnPagani our External Affairs Manager turned up. Another 5 mins and the Chief Finanical Officer Andre Gaylard made an appearance . The tables were situated such that the two NZO staff would be talking to us so that the sun was behing them and in our eyes. I asked that the curtains be pulled so that we could all see who was speaking. This got an acceptance from the room and from the two at the head table. Later on I had the same acceptance from other shareholders when the chairman of the meeting charged into the company details with out introducing himself and Jonh Pagani.
So it was off to a poor start. There were no directors present. Note that AK was at the CUE meeting in AUS at the same time.

Finally we got started. The chairman then did a good job of outlining what the company was up to in the last quarter and plans for the future.An excellent map was presented of all the basins around NZ that I have not seen before. There was talk about a drill in about 2017 CLIPPER from memory. Also talk about the drills in the 80ies in the great South Basin that all showed hydrocarbons. We then went over the CUE acquistion. Andre replied to a comment from the floor that it was unlikely that NZO would move further with a takover of CUE for two reasons. The first being that the CUE tax losses would then vanish and that it is very hard to get the last 16 % of shareholders to sell.[I agree with that]
What I did not like the sound of and now want others to comment on is that at the end of August we are to have another special meeting to bring up again the buy back of NZO shares. This time special permission will be sought from holders to allow Zeta to not take part and thereby allow there holding in NZO to rise above the 20% limit. I do not like this one bit as I feel the money would be far better spent on acquistions. I did suggest Horizon Oil[HZN] as they have debt and could be talked into a placement on very favourable terms to NZO. HZN also has on the negative side debt but on the positive side a good lot of reserves that NZO should and needs to take a stake in. At the lunch afterwards both speakers agreed with me that they to liked acquistions. In fact I went away from the meeting feeling that maybe the directors just do not have the proper handle on the unique time we are now in in History. Maybe never again in our life time will the OIL market be so up side down as it is now. To Hell with drilling and buybacks get on with studying the acquistion market.
Comments

Thanks mate, appreciate the post.


I've always been for buy backs instead of dividends, but you raise a great point. This is the time to improve oil assets.

The Cue investment seems to be paying off, tho I still need to crunch the digits from Cues last quarter.

I wouldn't mind further oil/gas asset investment, but id prefer assets that are already generating revenue.

[trader_jackson]

Interesting what you say... bit disappointed at managements conduct if this is accurate... and although they did mention share buy backs, they also did mention acquisitions... but yes I don't know why they are so focused on share buy backs... it should be solely focused on acquisitions, especially with the cash that is now mounting up...

(note how I saw acquisitions, not wildly drilling in any random place around nz or the rest of the globe)

[the machine]

Digger, thanks for the post - acquisitions at the right price seems like a good idea

I wonder how many Cue shares ZETA now own - if any

I was in Napier in 1974 - might get back there one day

M

[the machine]

Digger, thanks for the post - acquisitions at the right price seems like a good idea

I wonder how many Cue shares ZETA now own - if any

I was in Napier in 1974 - might get back there one day

M