NZ Oil & Gas (NZO)

[arjay]

Hi Arjay,
We must meet up again sometime. Interesting is I a made a very similiar comments about Mr Tommy's post but when looking up the list of wells we drilled that were also had heaps of predrill hype my post disappeared into hyperspace and i had other things to do so did not retype it. But still as Mr Tommy says it is good to dream on while we wait for the hard facts----and then return to our old jobs with heads down a little . This time we will not have long to wait until the next big thing. No doubt that the near TUI wells are the next south Mexico---pre the collapse that is.

Hi Digger,
Yes, we should catch up soon. The dark cloud of redundancy looms overhead at the moment, or worse - relocation to Palmerston North. I may soon have time on my hands for catching up with old friends.

[Mr Tommy]

I'd like to hear your facts on that one. lol

Bit off topic.
Have you heard of a guy called Bill Gates. He owns an operating system that makes sure every time the hardware gets faster, the operating system will gobble it all up.

[Macleod]

Bit off topic.
Have you heard of a guy called Bill Gates.

Have you heard of Linux? :p

[blockhead]

Thought we would have had the ann by now, "the drill bit has come up covered in a black gooey substance, we have our laboratory checking it""

Maybe later in the day

[the machine]

delayed by a week for repairs a/c rig operater

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01047158

m

[swissboy]

Funny though, in both announcements 11th and 16th they have drilled to the same depth

[gambier33]

The Kan Tan IV seems to have continuing serious problems. It had issues in the West Indies when drilling there in 2008:

Speaking today, Mike Coolen, Canadian Superior's President & CEO, said, "This mechanical failure of the rig's drilling equipment is untimely and regrettable; particularly, as drilling had progressed to within a few days of reaching the expected final total depth (final "TD") for the well. We expect the rig owner, Sinopec Corp., and their managing contractor, A. P. Moller - Maersk A/S, to safely and efficiently complete this repair with essentially $0 daily rig rate and for the rig to get back to drilling promptly towards the end of this week, so that the drilling and evaluation of the "Endeavour" well can be properly completed."

By the time it arrived in Australia from the West Indies (June 2009) it needed 6 weeks in Geelong of repair and meaintenance. Once on ORG's/AWE's Rockhopper 1 site in Bass Strait, it had significant down time (ca. 2 weeks at $0 daily rate) while repairs were carried out to it cranes prior to drilling the Rockhopper sidetrack. Now Hoki 1. I reckon KK4 gets hired at a cheap rate and a guaranteed $0 daily rate during breakdowns.

[boysy]

iteresting snipits from awe presentation

http://research.iress.com.au/ids/current/20100317/01047701.pdf?uid=119508B08A441E2C8DB1F453024566D3C 04F0000D074C4FED2A7E340F1AB0000F4120000&ppv=

page 10 shows some more plays round tui which i havent sen before

[geezy]

sold off some nzo :( after many years

[blockhead]

What was your rationale there Geezy, half way through a drill with a few more to come soon ??

[blockhead]

Heck I must have missed an election somewhere, thought John KEY was running the ship ??

Title: Latest News


Prime Minister John Kidd is this morning officially opening the Kupe gas and oil field.

Regards


Chris Roberts

Public Affairs Manager

[peterfindlay]

I see that the latest Macquarie valuation comes out at $2.09. A value of 39cps is placed on the exploration portfolio, using the same valuation method that Macquarie uses for all the Australian oil stocks. The other analysts covering NZOG have zero or close to zero in their valuation for exploration, and instead mention it as a potential ‘upside’. The Macquarie approach is rather more comprehensive and scientific.

[macduffy]

Comprehensive, yes.

Scientific? Maybe.

[Oiler]

Heck I must have missed an election somewhere, thought John KEY was running the ship ??

Title: Latest News


Prime Minister John Kidd is this morning officially opening the Kupe gas and oil field.

Regards


Chris Roberts

Public Affairs Manager

BB

If you watch CH3 news tonight you might see "John Kidd" in his cold water suit as he gets off the helicopter onto the Kupe platform and later at the official opening. A big day for NZO and all the other partners.

ORG making big noises about the potential of the upcoming drill off Canterbury especially now that Anadarko have taken a position in this drill. Talk of up 3 times the size of Maui. Lets hope

[Lion]

ORG making big noises about the potential of the upcoming drill off Canterbury especially now that Anadarko have taken a position in this drill. Talk of up 3 times the size of Maui. Lets hope

But NZOG aren't involved with that one, are they?

AWE and NZOG (40%) may drill Barque in Canterbury basin in August.

[Casa del Energia]

I'd like to hear your facts on that one. lol

Um - at the risk of being lambasted for being way off topic - here's the facts. (as brief as I can be):

MS-DOS, NT or whatever pile of horse doo-dahs Billy created is still 'years behind' the MVS operating system. IBM produced OS2 which was BASED on the MVS kernal back in in 1992, 1995 Microbrain brought out windblows95 which still wasn't a 'real' operating system. NT was but it is bloat-ware compared to Unix or Linux …
… which is even still not actually and industrial strength operating system - Unix is actually a training os especially created for computer nerds to learn their trade on. It-was-not-intended-for-the-real-world. It is an undying pity that unix became the langua franca of the computer geek world - the dumbest part of it is tying the file access method in with the os…and there are plenty of other dumb things about it to boot.
And also! IBM brought out the PC. Not to go into song and dance about the 'oddities'- please take it as read that it has the silliest hardware architecture since the three handled coffee cup was invented. What moron thought interrupt driven processing was a good idea definitely needed to be removed from the gene pool.
…And then just to create more unreliability and mayhem they invented object oriented programming languages - for heaven's sake - if they got to the moon and back without them what maniac ever thought adding and extra few hundred points of complexity would ever be beneficial. OO languages are ok if never used in the real world - but they create so much mayhem in the real world that nobody is willing to use a certain very poopular oo language for nuclear power station controllers. what does that tell you?

Harumph.

[Oiler]

But NZOG aren't involved with that one, are they?

AWE and NZOG (40%) may drill Barque in Canterbury basin in August. Correct !

Origin and Anadarko are proposing to drill sometime next year in PEP 38262 subject to securing a deepwater rig. Anadarko are very experinced in deepwater drilling.

[Mr Tommy]

Kupe on Tv3

http://www.3news.co.nz/Kupe-oil-platform-in-full-production/tabid/369/articleID/147012/Default.aspx

[Mr Tommy]

And Kupe on TV1

http://tvnz.co.nz/business-news/kupe-gas-project-fires-up-in-taranaki-3421210/video

[geezy]

What was your rationale there Geezy, half way through a drill with a few more to come soon ??

i have not the heart to see it hit a potential duster :S

still hold substantial NZO tho

[arjay]

They were saying on the radio this morning that the Kan Tan repairs are going to take a further two weeks.

[swissboy]

Information released on their webpage 3 days ago by nzo

[Mr Tommy]

Yawn, its going to be a long 3 weeks.

And Origin is going to be waiting for the Kan Tan IV as well ...

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10634954

[fish]

Could be a short 3 weeks -the announcement was approx 10 days ago-and a considerable allowance had been made for weather downtime-the weather has been good and the swell has dropped today-and will stay good all week

[digger]

Yawn, its going to be a long 3 weeks.

And Origin is going to be waiting for the Kan Tan IV as well ...

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10634954


What is this 3 weeks stuff Mr Tommy. We have been waiting about 3 months now another 3 weeks. Who would have believed way back at the last AGM that by now we have only 1.25 wells drilled when we should have them all completed and well on the way to analysis of results.

[Lion]

The 3 weeks for the maintenance work on the Kan Tan 4 is up this Friday, 9th.
Don't know about anyone else, but I'm starting to get a bit, er, drill hard about this.
You never know when you might get lucky.

[fish]

The 3 weeks for the maintenance work on the Kan Tan 4 is up this Friday, 9th.
Don't know about anyone else, but I'm starting to get a bit, er, drill hard about this.
You never know when you might get lucky.

I believe with nzo as long as you have patience luck will come your way .
The market hasnt taken account of what is happening in the world in valuing nzo .
Oil prices are at their highest for 18months-and the trend is up .
The last analyst rating of nzo was over $2 a share .
Its only a matter of time-and if luck strikes soon we might be looking at big increases in sp .

[boysy]

hoki drilling resumes 2am april 5th

http://www.asx.com.au/asxpdf/20100406/pdf/31pmkjfzktx30f.pdf

[Mr Tommy]

The 3 weeks for the maintenance work on the Kan Tan 4 is up this Friday, 9th.
Don't know about anyone else, but I'm starting to get a bit, er, drill hard about this.
You never know when you might get lucky.

Hey Lion, your drill hard-on has given the shareprice a rise.

[MPC]

I alway see these days and think the share price might actually finally be on the way to where it should be. The real test is to have a few days of moderate gains which are held.
Here's hoping though. I am one of the long suffering holders though have done very well with options and trades.

Cheers,
MPC

[notie]

chances are it will be a duster. 1/10 odds that it will be a find.

[fish]

chances are it will be a duster. 1/10 odds that it will be a find.

Agree . NZO has only a small amount invested in this .

What we are waiting for is the near Tui development drills that immediately follow. Chances are they will hit the sweet oil

[biker]

Agree . NZO has only a small amount invested in this .

What we are waiting for is the near Tui development drills that immediately follow. Chances are they will hit the sweet oil

Maybe it's time for some interest in PPP again. If Hoki comes in then PPP should rise with the tide. If Hoki is dry, then PPP still has upside, with Tui drills imminent.

Disc. hold and buying more.

[Mr Tommy]

Agree . NZO has only a small amount invested in this .

What we are waiting for is the near Tui development drills that immediately follow. Chances are they will hit the sweet oil

Not exactly Fish, NZO has quite a large amount invested ....

NZOG bought a 10 per cent stake in Hoki this month from oil company OMV. Hoki is about 150km off New Plymouth.
NZOG is spending about $10m for its stake in Hoki and share of exploration well costs.


http://www.stuff.co.nz/business/industries/2702101/Hoki-oil-prospect-could-equal-Tui

[Mr Tommy]

chances are it will be a duster. 1/10 odds that it will be a find.

I cant understand the point of your comment. You complain when NZO arent doing anything, now that they are drilling you want to put a downer on it ?

[fish]

Not exactly Fish, NZO has quite a large amount invested ....

NZOG bought a 10 per cent stake in Hoki this month from oil company OMV. Hoki is about 150km off New Plymouth.
NZOG is spending about $10m for its stake in Hoki and share of exploration well costs.


http://www.stuff.co.nz/business/industries/2702101/Hoki-oil-prospect-could-equal-Tui

Small though relative to other investments they have and small relative to the sp-about 2.5 cents a share-so if it turns out to be a duster expect about a 2.5 cent drop in sp

[foolme]

I cant understand the point of your comment. You complain when NZO arent doing anything, now that they are drilling you want to put a downer on it ?
You have to ask yourself what is their interest in NZO.????

[Mr Tommy]

NZO
12/04/2010
MINE

REL: 1209 HRS New Zealand Oil and Gas Limited

MINE: NZO: Hoki Exploration Well Disclosure Notice

NZOG (New Zealand Oil & Gas Ltd) advises of a progress report on drilling of
the Hoki-1 exploration well.

The Kan Tan IV drilling rig resumed operations last week, having previously
drilled to 1,505 metres and set casing. At 0600 hours (NZ Time) today, the
well was at a measured depth of 2,132 metres and was drilling ahead.

[swissboy]

That equates to 104.5 Meters per day which would seem by comparing previous reports a little slow.
Hard rock??? Wishful !!!

[neopoleII]

exactly my thoughts too,
a slow drill could be hard material to get though, which could mean a solid roof to trap the oil.

[Billy Boy]

exactly my thoughts too,
a slow drill could be hard material to get though, which could mean a solid roof to trap the oil.
Nah..... Probably a Garben !!! :D

[Mr Tommy]

exactly my thoughts too,
a slow drill could be hard material to get though, which could mean a solid roof to trap the oil.

Or after doing 3 weeks repair on the rig, they could be taking it easy, hoping the band aid doesnt fall off.

[the machine]

Or after doing 3 weeks repair on the rig, they could be taking it easy, hoping the band aid doesnt fall off.

that may be true for first couple of days to make sure repairs are ok, but since then its slow [but not as slow as opito at say 2m per hour]
anyway slow drilling is better than quick drilling through slush [kiwi-1]

M

[Casa del Energia]

Or after doing 3 weeks repair on the rig, they could be taking it easy, hoping the band aid doesnt fall off.

Well, I for one would like to know what is coming back up in the mud, diatom fragments (sedimentary), schist - good capping stuff. For all we know they are drilling through Christmas cake.

[arjay]

they're hundreds of metres from the cap that matters so does what they're going through now matter?

[neopoleII]

considering that the rig is sitting on the edge of the continental shelf, having a hard substrait would be helpful.
i would love to see the siesmecs ......... not that i know how to read them..... but if it came with an explaination as to what is there,
and why their drilling, it would put a picture to the project.

[blockhead]

Somebody likes the look of NOG, buyers @ 160 and 161 for 109,000 odd each, maybe disillusioned TEL shareholders changing camp

[Mr Tommy]

Somebody likes the look of NOG, buyers @ 160 and 161 for 109,000 odd each, maybe disillusioned TEL shareholders changing camp

I like the optomists with Sells in at 199 and 209. Go Hoki !!!

[Mr Tommy]

NZOG (New Zealand Oil & Gas Ltd) advises that at 0600 hours (NZ Time) today, the Hoki-1 well was at a measured depth of 3,428 metres and was drilling ahead.

The Hoki-1 well is located in exploration permit PEP 38401 in the offshore Taranaki Basin and is being drilled by the Kan Tan IV semi-submersible drilling rig.

The Hoki-1 well intersected the target North Cape Formation sands overnight, but these were not associated with any indications of hydrocarbons.

It is expected that over the next 24 hours the upper part of the Wainui Formation will be intersected. The well is planned to be drilled to a total depth of approximately 3,570 metres.

[Dworsf01]

NZOG (New Zealand Oil & Gas Ltd) advises that at 0600 hours (NZ Time) today, the Hoki-1 well was at a measured depth of 3,428 metres and was drilling ahead.

The Hoki-1 well is located in exploration permit PEP 38401 in the offshore Taranaki Basin and is being drilled by the Kan Tan IV semi-submersible drilling rig.

The Hoki-1 well intersected the target North Cape Formation sands overnight, but these were not associated with any indications of hydrocarbons.

It is expected that over the next 24 hours the upper part of the Wainui Formation will be intersected. The well is planned to be drilled to a total depth of approximately 3,570 metres.

Given the NZO and AWE SP reaction, it seems that the market's written off Hoki-1. Presumably on the basis of the "not associated with any indications of hydrocarbons" line in the announcement above. Is that a fair assessment?

[Lion]

Given the NZO and AWE SP reaction, it seems that the market's written off Hoki-1. Presumably on the basis of the "not associated with any indications of hydrocarbons" line in the announcement above. Is that a fair assessment?

I'm no geologist, but I would have thought that with more zones of interest below, then at least no hydrocarbons have escaped from them up to the just-intersected North Cape sands. The ann talks of the upper Wainui formation - is there more than one Wainui formation to be drilled - anyone know?

I'm still hopeful for Hoki, then Tui has a much higher chance of success.

[notie]

I'm no geologist, but I would have thought that with more zones of interest below, then at least no hydrocarbons have escaped from them up to the just-intersected North Cape sands. The ann talks of the upper Wainui formation - is there more than one Wainui formation to be drilled - anyone know?

I'm still hopeful for Hoki, then Tui has a much higher chance of success.

If the first zone has no oil then the chances are much reduced that the zone below will have oil.
Hence the market interpreting this well as a dry one.

The two tui wells planned are only going to add some incremental reserves (10-15million) and nothing like the amount that could have been in Hoki (250 million barrels)

[digger]

If the first zone has no oil then the chances are much reduced that the zone below will have oil.
Hence the market interpreting this well as a dry one.

The two tui wells planned are only going to add some incremental reserves (10-15million) and nothing like the amount that could have been in Hoki (250 million barrels)

1000 to one you are probably correct Notie in saying that it is likely a duster. TUI was the exception in that when it was drilled it had 4 zones of interest with all the top three being dry.Then bang along came the f sands at the very bottom and that is how TUI came to life. So it is just not completely true that HOKI will be dry. It is still a long shot but you never know. True oilers keep hope alive even with the odds against them.

[Mr Tommy]

If the first zone has no oil then the chances are much reduced that the zone below will have oil.
Hence the market interpreting this well as a dry one.

The two tui wells planned are only going to add some incremental reserves (10-15million) and nothing like the amount that could have been in Hoki (250 million barrels)

Any idea if North Cape was the main target and Wainui secondary? How was the 250m barrels estimate split over these 2 zones? Doesnt seem to be any info available.

With Tui the main targets were dry but the final lowest zone had the oil, so still some chance with Hoki I guess.

[Paint it Black]

If the first zone has no oil then the chances are much reduced that the zone below will have oil.
Hence the market interpreting this well as a dry one.

The two tui wells planned are only going to add some incremental reserves (10-15million) and nothing like the amount that could have been in Hoki (250 million barrels)

I also think there are a lot of stop orders being triggered and an overreaction based on NZO's fundamentals.

Can you advise where the potential 10-15 million reserves at Tui number comes from? The exploration fields they are soon to drill seem to be the same size as the existing production fields looking at PPP's reports.

[fish]

Like you I think the market has misinterpreted what is happening-the drill isnt yet in the primary target
I would still give 10 to 1 odds that its dry
Anyway i have been buying nzo today on its cheap fundamentals

.
Once that work is completed, the Kan Tan IV will
be transported to New Zealand. The first well to
be drilled in New Zealand is Hoki-1, in which
NZOG has a 10% stake. Hoki is currently
expected to spud in January 2010.
Hoki is a large potentially oil-bearing prospect on
the western margin of the Taranaki basin. The
Hoki-1 well will test both the primary Island
Sandstone reservoir and a secondary target in
the North Cape formation.

[Lion]

. . . . will test both the primary Island
Sandstone reservoir and a secondary target in
the North Cape formation.

Island wasn't mentioned in today's announcement. Then there's Wainui too? Where's some decent info on these targets?
It will be fun if they find oil during the weekend (well fun at any time, but with market closed would be interesting)

[neopoleII]

this page dated 9 july 2009 says the primary is below the secondary target.
so nothing has at yet changed.
http://www.nzog.net/n153.html

[Lion]

I've read a dozen articles on the subject. They all mention North Cape as the upper, secondary target and either Island or Wainui as the primary target, lower down. Island and Wainui must be the same thing.
Hoki was billed as a possible "Saudi of the South" last year.
The 250m barrel target is still possible, my friends.

[fish]

AWE Limited reports that at 0600 hours (NZ Time) today, the Hoki-1 well, located in exploration permit PEP 38401 in the offshore Taranaki Basin, was at a measured depth of 3,428 metres and was drilling ahead. The well intersected the target North Cape Formation sands overnight, but these were not associated with any indications of hydrocarbons.
It is expected that over the next 24 hours the upper part of the Wainui Formation will be intersected.

So when I wake up around 6am tomorrow the primary target will be intersected . Preliminary results of the drill will be known sometime tomorrow .
Is it likely-or possible- that a market announcement will be made over the week-end ?

[notie]

AWE Limited reports that at 0600 hours (NZ Time) today, the Hoki-1 well, located in exploration permit PEP 38401 in the offshore Taranaki Basin, was at a measured depth of 3,428 metres and was drilling ahead. The well intersected the target North Cape Formation sands overnight, but these were not associated with any indications of hydrocarbons.
It is expected that over the next 24 hours the upper part of the Wainui Formation will be intersected.

So when I wake up around 6am tomorrow the primary target will be intersected . Preliminary results of the drill will be known sometime tomorrow .
Is it likely-or possible- that a market announcement will be made over the week-end ?

Fish, sorry to burst your bubble but the primary target has been drlled. here was the news today

Primary target dry in Hoki-1

Neil Ritchie, New Zealand
Friday, 16 April 2010

NEW Zealand’s most isolated well – Hoki-1, on the edge of the continental shelf off Taranaki – has failed to find any hydrocarbons in the main target zone, the Cretaceous-aged North Cape reservoir sequence.


Minority partner New Zealand Oil & Gas today said that Hoki-1 had intersected the North Cape Formation sands overnight but there were no indications of hydrocarbons.

NZOG said it was expected that over the next 24 hours the upper part of the secondary target, the deeper Wainui Formation, would be intersected on the way down to an anticipated total depth of about 3570m.

Hoki-1, which is being drilled about 135 kilometres west of New Plymouth, was at a measured depth of 3428m at 6am with the Kan Tan IV semi-submersible rig drilling ahead.

Operator AWE believed the Hoki prospect, in licence PEP 38401, had the potential to contain up to 250 million barrels of oil.

As for Tui, AWE have decided to drill the 5 million barrel Tui SW and the risky 30 million barrel Kahu channel. Have a look at some of the awe presentations are they are very detailed and have much more information than the pretty average nzog ones

[fish]

Glad I went to bed early lastnight beofre reading your post notie.
Still on the upside oil is creeping up-I reckon nzo should be getting close to $130nz for their tui and kupe

[Lion]

Looks like they have changed their minds on what the primary and secondary targets are!

Here's a link to NZOG's release July last year.

http://www.nzog.net/n153.html

and the vital sentence from it

The Hoki-1 well will test both the primary Island Sandstone reservoir and a secondary target in the North Cape formation.

[COLIN]

Glad I went to bed early lastnight beofre reading your post notie.
Still on the upside oil is creeping up-I reckon nzo should be getting close to $130nz for their tui and kupe

Oil actually dropped quite a bit, overnight. The Dow down significantly, with markets quite rattled by this Goldman Sachs thing and the fear of similar action elsewhere. However my own personal opinion is that, on more sober reflection, markets will soon put this behind them and instead take in the larger picture of a steadily recovering global economy.

[Mr Tommy]

http://www.stuff.co.nz/business/3590566/Hoki-well-finds-no-hydrocarbons


By lunchtime Saturday it was expected the Wainui Formation would be intersected.

NZOG spokesman Chris Roberts said it remained possible something of interest could be found in the Wainui Formation, with the company able to report on that stage of the well on Monday.

"Inevitably we are disappointed when a well isn't a raging success, but we do have to temper that by the fact this always was something of a long shot," Mr Roberts said.


So what was the result of Wainui??? market is about to open

[Chippie]

Someone must think they have some inside information? 200K shares selling down 5 cents or 3%.

[digger]

http://www.stuff.co.nz/business/3590566/Hoki-well-finds-no-hydrocarbons


By lunchtime Saturday it was expected the Wainui Formation would be intersected.

NZOG spokesman Chris Roberts said it remained possible something of interest could be found in the Wainui Formation, with the company able to report on that stage of the well on Monday.

"Inevitably we are disappointed when a well isn't a raging success, but we do have to temper that by the fact this always was something of a long shot," Mr Roberts said.


So what was the result of Wainui??? market is about to open

1000 to 1 it will be negative,as it would have to be very large now at 350 klms out and the North Cape Formation already saying it has nothing. Guess we will have to move on the Tui SE. It may be a lot smaller but it is close to existing inforstructure so any small find will be a bonus.

[Mr Tommy]

1000 to 1 it will be negative,as it would have to be very large now at 350 klms out and the North Cape Formation already saying it has nothing. Guess we will have to move on the Tui SE. It may be a lot smaller but it is close to existing inforstructure so any small find will be a bonus.

If the final target was due to be reached midday saturday, its now almost 48 hours later, is it possible they have found something? Surely if Wainui was dry they would have made the annoucenment first thing this morning.
How long does it take to interpret the results?
Clutching at straws here !

[the machine]

its a dead duck - move onto tui

M

[Nevl]

apparently there is supposed to be heaps of oil around NZ. So why can't anyone find it?? Personally I cannot see it. The geology and history of the formation of NZ suggest that there will not be much to find and at the rate we are going oil will be obsolete by the time they do find a decent amount. Time for NZO to stop wasting money on this and move into renewable energy. Cheaper and more reliable by far.

This is another failed well like the one a few months ago where they were sold a lemon about 3 months before they announced another dry well.

[blockhead]

Whats the stuff they have been putting in barrels for the last 12 months ???? golden syrup ???

Don't ne a loser Nevl, drillin dry holes is part of the oil game, if you don't like it go and buy TEL or CEN, where the sp only goes up !!

[J R Ewing]

apparently there is supposed to be heaps of oil around NZ. So why can't anyone find it?? Personally I cannot see it. The geology and history of the formation of NZ suggest that there will not be much to find and at the rate we are going oil will be obsolete by the time they do find a decent amount. Time for NZO to stop wasting money on this and move into renewable energy. Cheaper and more reliable by far.

This is another failed well like the one a few months ago where they were sold a lemon about 3 months before they announced another dry well.

That may be the nature of oil exploration worldwide, not just in NZ. All the big fields have probably been discovered and so we have to drill more and more dry wells for each new economic discovery.

[Nevl]

That may be the nature of oil exploration worldwide, not just in NZ. All the big fields have probably been discovered and so we have to drill more and more dry wells for each new economic discovery.

exactly. So let the big boys do it and waste their cash. They would be better off spending 30mil with Neptune energy and building tidal turbines in the cook strait. Todd Energy have already invested in the Kaipara tidal scheme. NZO are throwing good money after bad and their choices of drilling prospects are not exactly brilliant. Greymouth Resources got a good hit in Chile. NZO don't seem to be smart enough. Still its good to have a oil stock but there are better 1 in 100 stocks out there.

[digger]

exactly. So let the big boys do it and waste their cash. They would be better off spending 30mil with Neptune energy and building tidal turbines in the cook strait. Todd Energy have already invested in the Kaipara tidal scheme. NZO are throwing good money after bad and their choices of drilling prospects are not exactly brilliant. Greymouth Resources got a good hit in Chile. NZO don't seem to be smart enough. Still its good to have a oil stock but there are better 1 in 100 stocks out there.

HI , Nevl i think you are onto it. We have since TUI drilled a whole lot of nothing so i would imagin that the directors will be doing some head scratching about what to do from here.Especially if the near TUI wells are also dry,then the sh-t will hit the fan about where it is all going sooooo wrong.
From my part i think we should start looking at minerials,especially now that the govt is opening up the country. A NZ company could end up being well placed sharing with overseas big pockets that also have skills in the particular mining sector.So i to am wondering about the wisdom of drilling ahead,given our non success. The question has to be looked at.
Cheers.

[Balance]

Just hang in there, folks.

The big gusher is on its way.

Just don't know when.

[geezy]

nzo need pike to deliver more than ever now

[notie]

nzo need pike to deliver more than ever now

If they are relaying just on pike then god help them. nzo have soon some real promise at throwing money into dry holes over the years and history seems to be repeating for them.

The last time they drilled themselves something good as an operator was probably Kupe back in the mid-80's.

Next thing that is likely to happen is nzo will throw their money at Deep water canterbury or northland. Unfortunately a bit of infill drilling at tui ain't going to cut it for them especially when they are in for their small shareholding in tui.

Minerals-if nzo can't find oil what hope do they have of finding gold?

[the machine]

HI , Nevl i think you are onto it. We have since TUI drilled a whole lot of nothing so i would imagin that the directors will be doing some head scratching about what to do from here.Especially if the near TUI wells are also dry,then the sh-t will hit the fan about where it is all going sooooo wrong.
From my part i think we should start looking at minerials,especially now that the govt is opening up the country. A NZ company could end up being well placed sharing with overseas big pockets that also have skills in the particular mining sector.So i to am wondering about the wisdom of drilling ahead,given our non success. The question has to be looked at.
Cheers.

now what would be a good mineral nzo could invest in - it would have to be black though and able to burn

any ideas

m

[KentBrockman]

Next thing that is likely to happen is nzo will throw their money at Deep water canterbury or northland. Unfortunately a bit of infill drilling at tui ain't going to cut it for them especially when they are in for their small shareholding in tui.

Minerals-if nzo can't find oil what hope do they have of finding gold?

It's funny, isn't it. Tui was supposed to be the big company maker, some years ago. All looked rosy, with the huge oil price spike coming exactly at the best possible moment - right after production start with huge volumes per day. Yet, here we are, almost 3 years later, with Tui outputs down to a trickle, much of the profits thrown down a hole and the three companies involved not looking like they just made a huge fortune (not sure about the Japanese, perhaps they made better use of their share). NZO, AWE and PPP do look no better (SP wise) than they looked 3 years ago. So what happened?

At least PPP looked for a brief moment like they were pulling something off, but most of that enthusiasm has evaporated after the disaster in Vietnam.

As for NZO, it seems obvious that there is a management competency problem. Sniper pointed this out right here several years ago (what name does he post under these days?; I don't follow sharetrader much anymore...) and was vilified. But how right he was, Pike was a problem back then and still seems to be.

Anyway, maybe some additional find at Tui will provide relief. I wouldn't necessarily count on it though, remember, Taranui and Tieke were also considered to have a high strike likelhood and were dry.

The thing is though that even if the upcoming drills are successful, that is no guarantee that NZO will be better off a few years down the track than it is now. Just look what happened since Tui started production.

[Corporate]

It's funny, isn't it. Tui was supposed to be the big company maker, some years ago. All looked rosy, with the huge oil price spike coming exactly at the best possible moment - right after production start with huge volumes per day. Yet, here we are, almost 3 years later, with Tui outputs down to a trickle, much of the profits thrown down a hole and the three companies involved not looking like they just made a huge fortune (not sure about the Japanese, perhaps they made better use of their share). NZO, AWE and PPP do look no better (SP wise) than they looked 3 years ago. So what happened?

At least PPP looked for a brief moment like they were pulling something off, but most of that enthusiasm has evaporated after the disaster in Vietnam.

As for NZO, it seems obvious that there is a management competency problem. Sniper pointed this out right here several years ago (what name does he post under these days?; I don't follow sharetrader much anymore...) and was vilified. But how right he was, Pike was a problem back then and still seems to be.

Anyway, maybe some additional find at Tui will provide relief. I wouldn't necessarily count on it though, remember, Taranui and Tieke were also considered to have a high strike likelhood and were dry.

The thing is though that even if the upcoming drills are successful, that is no guarantee that NZO will be better off a few years down the track than it is now. Just look what happened since Tui started production.


Good post Kent. In my opinion NZO needs success in the Tui drilling campaign to maintain there current share price.

NZO is more risky than some investors think.

[digger]

Good post Kent. In my opinion NZO needs success in the Tui drilling campaign to maintain there current share price.

NZO is more risky than some investors think.

In the last 5 years NZO has taken on some top expensive experts that have so far delivered nothing.All the wells are dry and as a reward each AGM we give the directors and in particular DS more free shares for a great job done.If the next near TUI wells are also dry we will have run all the directors throw a compentcy delivery test to see if the direction they are taken us,and would continue taken us is worthwhile.To have so many dry wells shows either the directors are overpaid to hell and the results given is only equal to quesswork.The sharemarket reaction shows that AWE with 5 times the market exposure to HOKI has been marked down no more that NZO. The hard truth is that the market is saying that NZO needs a new directional cleanup.In fact NZO only has going for it what was discovered some years ago and is finally the last developments completed these last few months.
If NZO lays out another drilling program for next year along the same drill and hope without facing the hard facts of its nil results its SP will take a knock,even with the three projects finally all supporting it.So i think you all get my feelings,it is no longer just bad luck,the direction and decision making needs looking at.Either their is no oil to find or else we do not have the compency or the equipment to find it.Time for some head knocking.

[Balance]

In the last 5 years NZO has taken on some top expensive experts that have so far delivered nothing.All the wells are dry and as a reward each AGM we give the directors and in particular DS more free shares for a great job done.If the next near TUI wells are also dry we will have run all the directors throw a compentcy delivery test to see if the direction they are taken us,and would continue taken us is worthwhile.To have so many dry wells shows either the directors are overpaid to hell and the results given is only equal to quesswork.The sharemarket reaction shows that AWE with 5 times the market exposure to HOKI has been marked down no more that NZO. The hard truth is that the market is saying that NZO needs a new directional cleanup.In fact NZO only has going for it what was discovered some years ago and is finally the last developments completed these last few months.
If NZO lays out another drilling program for next year along the same drill and hope without facing the hard facts of its nil results its SP will take a knock,even with the three projects finally all supporting it.So i think you all get my feelings,it is no longer just bad luck,the direction and decision making needs looking at.Either their is no oil to find or else we do not have the compency or the equipment to find it.Time for some head knocking.

Too late, matey.

Horse has bolted.

Pike, PPP, wild cat drills etc.

Let's just wait for the 1 in 7 gusher. Maybe another 4 drills to go?

[Mr Tommy]

Hey wait a minute gloom and doomers.

Kupe has just started producing - LPG, Oil, Gas - NZOG spent $200m on their share, this is going to be producing for years to come.

Tui oil fields still pumping, the Umuroa is chartered until 2022, thats another 12 years.

Pike investment - one day !!!

So Albacore and Hoki were duds, but thats the game, theres plenty of money coming in and hopefully each year there will be several wells drilled. We have the 2 Tui wells over the next couple of months.
Dont start buying into the Noties and Balances just yet.

[dsurf]

Hey wait a minute gloom and doomers.

Kupe has just started producing - LPG, Oil, Gas - NZOG spent $200m on their share, this is going to be producing for years to come.

Tui oil fields still pumping, the Umuroa is chartered until 2022, thats another 12 years.

Pike investment - one day !!!

So Albacore and Hoki were duds, but thats the game, theres plenty of money coming in and hopefully each year there will be several wells drilled. We have the 2 Tui wells over the next couple of months.
Dont start buying into the Noties and Balances just yet.

Totally agree - It is natural to be disappointed with a dry well - I think the wells are over-hyped and the company should stick with a more balanced view instead of ramping the prospects for each drill - they need to realise they are now producers and get away from the fund raising mentality required for an explorer. A better approach would be:

We will not go broke because of Kupe.
In a year or two Pike will be cashflow positive and the money put into 3 or 4 drills per year.
In the next year Tui cashflow will be used for "X" number of drills.

Wildcat drilling is a numbers game. We have the cash to drill for the next twenty years etc etc

[Chippie]

I am also surprised by the "gloom and doomers"

On Tui and Kupe production alone NZO are forecasting > 1 million barrels of oil equivalent P/A until 2015. After that > .8 million barrels until 2021. And there is still plenty of potential upside in the current Kupe reserves.

Finding new oils fields is the risk for all oil exploration companies with an average success rate of 1 in 10. I guess NZO is still doing better than the 1 in 10 strike rate?

I wish NZO stuck oil every time but that is not going to happen.

[Nevl]

I am also surprised by the "gloom and doomers"

On Tui and Kupe production alone NZO are forecasting > 1 million barrels of oil equivalent P/A until 2015. After that > .8 million barrels until 2021. And there is still plenty of potential upside in the current Kupe reserves.

Finding new oils fields is the risk for all oil exploration companies with an average success rate of 1 in 10. I guess NZO is still doing better than the 1 in 10 strike rate?

I wish NZO stuck oil every time but that is not going to happen.

The problem is the compentcy of the management and directors. I think it was Albacore or something that they purchased an extra 40% of about 1 month before declaring that the well was dry!! They are just playing a lottery game at the moment of drill and hope. And burning up cash to do it.

[Chris Roberts]

[QUOTE=KentBrockman;301528] NZO, AWE and PPP look no better (SP wise) than they looked 3 years ago. So what happened?

1 April 2007 NZO share price 92c, market capitalisation $235m
1 April 2010 NZO share price $1.54, market capitalisation $600m. 5c dividends paid April 08, Oct 08, Oct 09.

[Mr Tommy]

[QUOTE=KentBrockman;301528] NZO, AWE and PPP look no better (SP wise) than they looked 3 years ago. So what happened?

1 April 2007 NZO share price 92c, market capitalisation $235m
1 April 2010 NZO share price $1.54, market capitalisation $600m. 5c dividends paid April 08, Oct 08, Oct 09.



And now in the NZX 15

[digger]

Hey for my part i do not consider myself a becoming member of the Notie or Balances,nor a doom and gloomer,but there does come a time in every successful business or successful person when you have to assess the direction you are taking.Watch out in particular for that mentality that says ''look i can drill this many wells per year and still not go broke'. That is very dangerous a bit like a teenager refusing to see the long term conquences of the overall cost of smoking just because his allowance today covers it. There has to be better ways of spending our money than just a teenager smoking or a company carrying on in the same grove drill more dry wells. To get back onto a succesful track we have to honestly face that we are not getting it right on the present coa-rse. We have now drilled about 7 or 8 unsucessful wells in a row,going way back to Pukeko.It is not just the last two. Something is badly wrong with our planning and decision making or else the oil does not exist.
And i am well aware of the assest side of NZO but it needs asking if the spending is going in the right places.Before we commit to any more drilling the company needs to go back to the drawing boards. This is the question i hoped other would have commented on,not just say "well we can afford it so what to hell" It is simple either the oil does not exist or our methodology for finding it is flawed.

[digger]

[QUOTE=Chris Roberts;301568]



And now in the NZX 15

Mr Tommy,it all comes down to what long term image you have where the company can go. It is a bit like a good athletic saying i won that race and sitting back and leaving it at that just because others have done worse.Would it not be better for the athletic to acknowledge and then move on to better achievements.I accept that NZO has got into the top 15 companies but we have stagnated since and it is time for you and many other to ask why.In fact the greatest damage Notie and the balances have done is occupy the position that we who care about the company should sometimes occupy.In fact it is the mark of a succesful company or person to examine itself.And just saying we have enought money to drill dry wells is not an option.

[Awamoa]

Digger.Are you going to stick with this stock or do I detect you are getting concerned?
I must confess that it is crossing my mind to move on.

[Chris Roberts]

We would all like every well to succeed. That's not going to happen. As we repeatedly state, exploration is a risky venture and each time we drill we are taking a carefully calculated risk, working with other companies and using the best information available.
NZOG has participated in the drilling of 12 exploration wells in offshore Taranaki in the past decade, at interest levels ranging from 10 to 40%. Two more wells will be drilled in the coming months. As stated since 2008, NZOG intends to spend an average of $20-25m per year on exploration, while also pursuing other investment opportunities.

Date Well
Feb 2000 Hochstetter
Feb 2003 Tui Commercial discovery
Apr 2004 Amokura Commercial discovery
May 2004 Pukeko
Aug 2004 Pateke Commercial discovery
Sep 2004 Kiwi
Dec 2006 Tieke
Aug 2007 Hector
Sep 2007 Taranui
Jul 2008 Momoho Sub-commercial discovery
Dec 2009 Albacore
April 2010 Hoki
May 2010 Tui SW ?
June 2010 Kahu ?

[Billy Boy]

I must confess that it is crossing my mind to move on.
Ditto to the above
BB

[notie]

Date Well
Feb 2000 Hochstetter
Feb 2003 Tui Commercial discovery
Apr 2004 Amokura Commercial discovery
May 2004 Pukeko
Aug 2004 Pateke Commercial discovery
Sep 2004 Kiwi
Dec 2006 Tieke
Aug 2007 Hector
Sep 2007 Taranui
Jul 2008 Momoho Sub-commercial discovery
Dec 2009 Albacore
April 2010 Hoki
May 2010 Tui SW ?
June 2010 Kahu ?

None of these wells were operated by NZOG and the Pateke and Amokura wells were more appraisal wells than exploration ones

Chris when was the last NZOG operated successful exploration well? Back in the Ngatoro days I would hazard a guess.

[KentBrockman]

None of these wells were operated by NZOG and the Pateke and Amokura wells were more appraisal wells than exploration ones

Chris when was the last NZOG operated successful exploration well? Back in the Ngatoro days I would hazard a guess.

Another thing worth wondering about in the context of NZO's dismal recent record is the significant amount of asx/nzse announcements that deal with instances of management helping themselves to more ('partly paid') shares.

[Chippie]

None of these wells were operated by NZOG and the Pateke and Amokura wells were more appraisal wells than exploration ones

Chris when was the last NZOG operated successful exploration well? Back in the Ngatoro days I would hazard a guess.

Notie, what benefit do you think is achieved by operating an exploration well? I can not see any reason why you do not let larger companies with specialist resources to do it.

NZO has only participated in 12 wells in a decade. That would be pretty expensive keeping the required resources on the NZO salary sheet.

I would also expect that the permit holder with the highest % of the permit would have the rights to be the operator. This would eliminate NZO from all the wells to date.

[Chris Roberts]

It's quite true that NZOG has not been the operator for any exploration drilling in the past decade - the company has been a minority partner in its joint ventures. You do not need to be the operator to be successful, as Tui shows.

[Chippie]

[QUOTE=Mr Tommy;301571]

Mr Tommy,it all comes down to what long term image you have where the company can go. It is a bit like a good athletic saying i won that race and sitting back and leaving it at that just because others have done worse.Would it not be better for the athletic to acknowledge and then move on to better achievements.I accept that NZO has got into the top 15 companies but we have stagnated since and it is time for you and many other to ask why.In fact the greatest damage Notie and the balances have done is occupy the position that we who care about the company should sometimes occupy.In fact it is the mark of a succesful company or person to examine itself.And just saying we have enought money to drill dry wells is not an option.

Digger this is an interesting comment especially coming from you. It was only 6-12 months ago that NZO was accused of sitting on its hands and not looking to grown the company. Exploration is absolutely a risk and reward game, the only way to grow the company is to drill wells. I think that NZO and David have proven that they are pretty balanced and do not take excessive risks but also are not risk adverse. The success rate of 3/13 is above the industry average.

The share price sucks but that is purely because NZO is on the NZ exchange. Remember Fletcher energy, Shell bought them out for approx a couple of dollars each. I have heard that the Pohikura permit alone is probably worth >$50 per share. I expect that NZO will probably be taken over in time.

[fish]

Thanks Chris for reminding us of the reality of nzo share price,dividends and exploration .

However I am now a little confused as to the success chances of the Tui sw and Kahu .
I thought Tui sw was more an appraisal well and Kahu a riskier operation -is that correct ?
Is it possible that momoho might be commercial one day ?

[J R Ewing]

None of these wells were operated by NZOG and the Pateke and Amokura wells were more appraisal wells than exploration ones

Chris when was the last NZOG operated successful exploration well? Back in the Ngatoro days I would hazard a guess.

If we accept Pateke and Amokura were appraisal wells, that implies we have drilled 10 wells with one success. That seems consistent with the often quoted odds. Perhaps we will get another discovery in the next 10 wells, but that is not certain. Of course we can hope it will be the first of the 10 not the last, and even better if we get 2 or 3 discoveries.

This is the business we choose to be in folks - plenty more dry wells to come!

[notie]

Notie, what benefit do you think is achieved by operating an exploration well? I can not see any reason why you do not let larger companies with specialist resources to do it.

the reason for being the operator is the company can work up new prospects them farm those out on a promote basis which means other companies pay for your wells if you farm out enough interest.

nzog likes to farm into other company's wells which means they pay a premium to become involves in these wells. Normally this premium is on a 2 for one basis. Pay 50% of a well cost for 25% interest, so paying double.

nzog now has several hundred years of technical experience in their staff. Time they got involved in some new permits and farmed it out......time will tell if that happens

[shasta]

the reason for being the operator is the company can work up new prospects them farm those out on a promote basis which means other companies pay for your wells if you farm out enough interest.

nzog likes to farm into other company's wells which means they pay a premium to become involves in these wells. Normally this premium is on a 2 for one basis. Pay 50% of a well cost for 25% interest, so paying double.

nzog now has several hundred years of technical experience in their staff. Time they got involved in some new permits and farmed it out......time will tell if that happens

Meanwhile NZO continues to throw away shareholders money into Pike River! (Dont get me started on the Forex losses again!)

http://www.stocknessmonster.com/news-item?S=PRC&E=ASX&N=335181

What Chris didnt mention earlier was the market capitalisation went up considerably after the option money came in, as opposed to actual growth in the share price (market cap more than doubled, whereas share price went up ~50-60%)

[Balance]

If they hit a gusher, NZO's management would be hailed as geniuses and top notch oil people.

What nonsense.

They are who they are - dry well or gusher.

[blockhead]

On tonights news, not sure if it was 1 or 3 "NZO rose 3c on news it is looking at an investment in Asia"

I don't know anything about this ??

[shasta]

On tonights news, not sure if it was 1 or 3 "NZO rose 3c on news it is looking at an investment in Asia"

I don't know anything about this ??

Blocky

Here's NZO's presentation at the excellence in oil & gas conference today in sydney

http://www.stocknessmonster.com/news-item?S=NZO&E=ASX&N=335157

Page 16 hints at Northern Hemsiphere options

[blockhead]

Thanks Shasta, yes I read that, but blimey its drawing a long bow to say they are looking at "investment in Asia"

Could be a coal mine in Russia !!

Time will tell

[Mr Tommy]

On tonights news, not sure if it was 1 or 3 "NZO rose 3c on news it is looking at an investment in Asia"

I don't know anything about this ??

No, instead of sausage rolls at the AGM this year, theyre looking at buying a few packets of won tons.

[Chris Roberts]

Thanks Chris for reminding us of the reality of nzo share price,dividends and exploration .

However I am now a little confused as to the success chances of the Tui sw and Kahu .
I thought Tui sw was more an appraisal well and Kahu a riskier operation -is that correct ?
Is it possible that momoho might be commercial one day ?

Yes, Tui South West-1 is more of an appraisal well - it is looking for an extension of the producing Tui reservoir. Kahu-1 is near field exploration, so riskier than Tui SW but with a higher chance of success than a wildcat well like Hoki.
As was stated at the time it was drilled, Momoho discovered a gas/condensate accumulation that appeared to be too small to support a stand alone commercial development. However, there remains a possibility it could be developed sometime in the future as part of a multi-reservoir development.

[digger]

Meanwhile NZO continues to throw away shareholders money into Pike River!

I would say you are completely wrong there Shasta. In fact it is the other way around . In march 2008 PIKE issued Liberty Harbor convertible bonds to the value of US 30 million for a term of 3 years with Liberty making some conditions. It was very unfortunate that at that stage NZO did not have todays cash or it would have been far better that the bonds were to NZO and not Liberty.NZO now has the cash earning peanuts while Liberty is creaming it.What has happened in the last few months and yesterday is what i have long hoped would occure.
Lets all face it yesterdays announcements makes it plane that things are looking up for production from pike. It is just around the corner and NZO can be congradulated on increasing its stake at just the right time and in the right areas. Clearly PIKE has shown that the resource is there,no garbons in the next 300 metres and no faults showing up.The management after some sloppy starts are slowly getting the upper hand of how to run this mine.The value of the product is going through the roof.Sure it has taken twice as long to develope it and cost heaps more but the product value is also far in advance of the 45 dollars it was quoted as being worth at the very beginning.
It will be no suprise to anyone following my recent comments that i would far rather NZO spend money in finishing off PIKE development than drilling more oil wells beyond what is already planned,at least until we can figure out why our drilling success is so non existant in the last few years.And after PIKE is cash flow positive what is wrong with investing in other minerals,or more precisely look at this investment along side the oil investment.

[fish]

Hi Digger,

Change in Goverment policy should be all it needs to get nzo looking into mining possibilities in nz.
NZO has the geologists, the money and the track record in getting government and DOC on its side -I hope no time is waisted in looking at potential here in nz .
We have discussed going offshore before-I am very much against this as nz companies in my investing experience have all lost heaps of shareholder value in doing this-eg airnz and telecom in Aussie and Brierley in uk .
NZOG is a nz company and needs to adequately explore all nz potential first .

[shasta]

I would say you are completely wrong there Shasta. In fact it is the other way around . In march 2008 PIKE issued Liberty Harbor convertible bonds to the value of US 30 million for a term of 3 years with Liberty making some conditions. It was very unfortunate that at that stage NZO did not have todays cash or it would have been far better that the bonds were to NZO and not Liberty.NZO now has the cash earning peanuts while Liberty is creaming it.What has happened in the last few months and yesterday is what i have long hoped would occure.
Lets all face it yesterdays announcements makes it plane that things are looking up for production from pike. It is just around the corner and NZO can be congradulated on increasing its stake at just the right time and in the right areas. Clearly PIKE has shown that the resource is there,no garbons in the next 300 metres and no faults showing up.The management after some sloppy starts are slowly getting the upper hand of how to run this mine.The value of the product is going through the roof.Sure it has taken twice as long to develope it and cost heaps more but the product value is also far in advance of the 45 dollars it was quoted as being worth at the very beginning.
It will be no suprise to anyone following my recent comments that i would far rather NZO spend money in finishing off PIKE development than drilling more oil wells beyond what is already planned,at least until we can figure out why our drilling success is so non existant in the last few years.And after PIKE is cash flow positive what is wrong with investing in other minerals,or more precisely look at this investment along side the oil investment.

Fair enough Digger

Did the NZO shareholders who raised all that money from the options ever envisage they would be constantly bailing out Pike River? (How many cash raisings have there been now, not too mention Pike missing out on the $US300/t prices)

Aside from paying down the Kupe costs, exactly what value has the option money created for NZO shareholders?

They lost a fair chunk of it to FX losses, paid out some as dividends, & farmed into some low cost permits which won't be drilled anytime soon.

Pike River shareholders with a long term view will be happy, but NZO spun out Pike River to concentrate on Tui, & Kupe, with the intention Pike River would be cash flow self sufficient (hence the NZO move to initially buy convertible notes in support).

The NZO share price now is only just ahead of the option strike price of $1.50, even with Tapis prices > $US80/bbl

If anything Pike River has dragged down NZO's share price & cash pile, & Pike's production has been around the corner for a couple of years now.

Remember NZO arent buying more of Pike River, they are paying up to keep there holding from dilluting, again not a smart use of NZO shareholder funds!

[geezy]

if everyone knew or predicted that PIKE wouldnt deliver, i m sure no one would have invested , let alone float in the first place. Sure, they could have done better with the hundreds of years of expertise that they all accumulate. but whatever is down there; be it oil, gold, or coal. no one actually knows for sure. tests and data only reduces the risk but does not eliminate them

I support NZO for sticking with Pike.PIKE is facing from what i see as an engineering problem, i m sure with time(and money of course) they will be able to see the black stuff out from the ground.

For ppl who cant wait, it is understandable if they move their money elsewhere. No point hammering the business decisions.

disc: Used to hold a fair chunk NZO & PRC but has reduced in qty

thanks

[stanace]

So what is the likliehood of NZO announcing another dividend before October?

[digger]

So what is the likliehood of NZO announcing another dividend before October?

I would say dividends are here to stay with NZO.KUPE is starting to kick in and TUI still making money.NZO also has a stated dividend policy of paying out a reasonable proportion of its yearly profit.My quess is that it will be somewhere near the 5 cents of last year. The div for 2011 and 2012 will gradually get better.Then we will have 3 income streams and only the exploration costs and maybe develpoments we invent from here on in.

[Mr Tommy]

So what is the likliehood of NZO announcing another dividend before October?

Last years full year results, plus dividend, were announced on 26 August. The dividend was paid out on 2 October. So you should know by August if there will be a dividend this year.


There should be a quarterly report out before the end of this week. Tui SW cant be far away either.

[neopoleII]

if the govt introduces its 4% no risk return policy on investments tax....... or what ever they call it,
wouldnt the sp or the divi have to be higher so as not to attract the tax?
or was this for property only.
either way...... 5cps on a 150c sp is pretty slack.
my bank offers a better rate.

[Lion]

So what is the likliehood of NZO announcing another dividend before October?
Are you wondering about an extra dividend paid before October?
Slim chance of that. NZOG managed to report a loss recently.
But I'd agree with others here - I would think another 5c paid in October, annually for some time ahead.
(Barring the unforeseen, as ever)

[blockhead]

Can anyone recall if NOG said when the Kan Tan IV is going to start the Tui wells ??

[rainey]

According to shipping reports, the Kan Tan is still at Hoki

[notie]

either way...... 5cps on a 150c sp is pretty slack.
my bank offers a better rate.

lol. too true. I think even the old post office bank account would beat nzog's divi. the reason most investors get into oil explorers is big discoveries......some thing you aren't going to get with nzog.

look out for them not being able to farm out out their drilling commitments in their Canterbury and Taranaki permits and pulling out of them-it would fit with their past preformance.

[Mr Tommy]

Tui SW-1 has started.
The announcement is out from PPP

[zorba]

Tapis Oil Price breaks US$90 / barrel !!

http://www.upstreamonline.com/marketdata/markets_crude.htm

At these prices and current production rates NZOG revenues substatially exceed NZ$100 million per annum

Quarterly Report: Strong quarterly cash flow and cash in the bank = NZ$192 million ..... and thats with out any input from Pike or PPP !!!

Go the Tui drilling !!!!

[fish]

NZO is looking promising for a significant sp upgrade next week .
Having sold out of CUE recently at 27cents(needed money for tax and house building ) and watching them climb in subsequent days I will not repeat this mistake .
Tui sw has a high chance of success and publicity and high oil prices should propel the sp

[digger]

NZO is looking promising for a significant sp upgrade next week .
Having sold out of CUE recently at 27cents(needed money for tax and house building ) and watching them climb in subsequent days I will not repeat this mistake .
Tui sw has a high chance of success and publicity and high oil prices should propel the sp

What Fish you sold out of CUE. I bought quater million just under 14.5 just before cash issue on the simple arguement that CUE had the exact opposite luck with oil startup than the very good fortune that NZO had with TUI. As you know NZO got TUI startup and peak flow to 100% coinside with peak dollar value of oil in 2008. Well CUE got peak startup to match 100% with peak collaspe at 33dollars. It simple could not last so i got in.Today i still lament that i did not sell out of PPP and put it all into CUE.And that is not just hingsight as i was close to doing just that.
Yes i fully agree with you and ZOBRA as how things are slowly looking up for NZO.Even on the home front i stocked up 1500 liters of diesel knowing prices would rise back on 1st days of april. So far it has at the pump gone up 20% from what i paid.
Peak oil is getting more known now.Not mainstream but no longer tin pot theory. Will stick with my earlier an-lysis WTI will be 100 by year end.
We need TUI south west to come in and i would say there is about a 80% expectation that that will be the case.Interesting that the well is planned as a pressure input to get more oil recovered from tui.And that is before it is drilled.I take it from that that the JV expect the greater TUI field to now extend to TUI south west.

[notie]

Interesting that the well is planned as a pressure input to get more oil recovered from tui.And that is before it is drilled.I take it from that that the JV expect the greater TUI field to now extend to TUI south west.

The reason that the operator of Tui AWE is planning a gas injector for Tui-SW is the are under pressure to deal with the production gas which up until now they have flared. RE-injecting the gas will mean no more flaring and might slightly increase Tui oil production.

the sw will not be a producer and the release from awe suggests they will come back later to drill another horizontal, but not on this drilling campaign meaning that this well will not add production immediately to the Tui programme.

It is very interesting that on the day of announcement the status of the well was announced as previously it was described that they would be drilling 2 wells. This means kahu will potentially be the only well that will add production at Tui this season. If it comes in that is, as it has a large degree of risk

[mattyroo]

Interesting that the well is planned as a pressure input to get more oil recovered from tui.

The re-injection well is not for increasing oil flow rates, but to dispose of produced gas, as notie states. They already have gas lift systems, which utilise the produced gas to increase flow rates, these use only a vey small quantity of the produced gas. There is nothing more in that regard they can do to increase oil production. Gas lift and gas re-injection are two completely different things, (despite people often assuming they are the same, just different terminology) the only thing that is common are the compressors.

If an increase in production results from adding the extra gas injection well, it will be negligible, and in fact quite often causes problems with the oil production, causing reduced production - hence the reason why gas re-injection wells are normally drilled into a separate resevoir. This is high risk what they are doing here.....

[digger]

The re-injection well is not for increasing oil flow rates, but to dispose of produced gas, as notie states. They already have gas lift systems, which utilise the produced gas to increase flow rates, these use only a vey small quantity of the produced gas. There is nothing more in that regard they can do to increase oil production. Gas lift and gas re-injection are two completely different things, (despite people often assuming they are the same, just different terminology) the only thing that is common are the compressors.

If an increase in production results from adding the extra gas injection well, it will be negligible, and in fact quite often causes problems with the oil production, causing reduced production - hence the reason why gas re-injection wells are normally drilled into a separate resevoir. This is high risk what they are doing here.....

Interesting Mattyroo. So is it fair to wonder if TUI sw is being drilled for the sole purpose of injecting the excess gas from TUI. An oil find then would make TUI SW a failure. Notie would just love that-- NZO a failure when it does not find oil and a failure when it does.

[fish]

Interesting Mattyroo. So is it fair to wonder if TUI sw is being drilled for the sole purpose of injecting the excess gas from TUI. An oil find then would make TUI SW a failure. Notie would just love that-- NZO a failure when it does not find oil and a failure when it does.

It does seem that NZO could have told the market of this possibility-perhaps Chris Roberts could tell us more .

[notie]

It does seem that NZO could have told the market of this possibility-perhaps Chris Roberts could tell us more .

you might be better off asking awe as they are the operator and nzog's very minor holding at 12.5% means they really don't have much say on decisions at Tui. AWE and Mitsui hold 77.5% and only 50% is needed to make decisions. If nzog were running this field it would have been a shambles.

The Tui joint venture partners are:

Australian Worldwide Exploration (AWE) 42.5%
Mitsui E&P Australia Pty Limited 35%
New Zealand Oil & Gas Limited 12.5%
Pan Pacific Petroleum 10%

[Wilkins_Micawber]

It does seem that NZO could have told the market of this possibility-perhaps Chris Roberts could tell us more .

The quarterly report doesn't mention injecting gas for Tui SW-1 but does talk about Tui SW-1 opening possibility of increasing or extending production from the existing Tui facilites. This doesn't seem to imply that Tui SW-1 has a sole purpose of gas reinjection - where did this info come from, is it correct?

[arjay]

Some time ago, if my memory serves me, NZO said that the JV was going to build a gas line to link up with Maui to deal with the flaring problem. What happened to that idea I wonder?

[Lion]

Wilkins - the announcement on Friday says Tui SW 1 is a possible gas injection site . . .

"At the conclusion of drilling, Tui SW will be cased and suspended as a possible future gas injection well."

But the rest of the ann talks about possible oil at SW1, in the Kapuni F10 sand, which has oil at Tui, and also about future horizontal drilling and a tie back to the FPSO.

So, it's still not clear to me exactly what this well is for. Can the company clarify please?

The exciting hope is that these new wells will prove to be part of a much larger pool of connected Tui oil.

Arjay, I recall the possibility of a Maui connection too, but I don't think any more has been said.

[bermuda]

Some time ago, if my memory serves me, NZO said that the JV was going to build a gas line to link up with Maui to deal with the flaring problem. What happened to that idea I wonder?
I asked David Salisbury at the O&G conference question time as to whether they could tie in to the Maui facilities if they discovered too much gas. He answered that they didn't consider it a problem as the new drills were likely to be oil. Good luck NZO. They need some good news. I have a good feeling about these drills....but I have had these feelings before.

[mattyroo]

I asked David Salisbury at the O&G conference question time as to whether they could tie in to the Maui facilities if they discovered too much gas. He answered that they didn't consider it a problem as the new drills were likely to be oil. Good luck NZO. They need some good news. I have a good feeling about these drills....but I have had these feelings before.

What about the associated gas that they will get off these new drills, if they contain oil???? Associated gas is a given in these fields.

More oil = more gas, that they must utilise (gas lift - which as I stated earlier is a very minor quantity), dispose of, either by re-injection or flaring.

I would suspect that they are already at the maximum gas handling capability of the vessel, based on the amount they are flaring and other things I have heard around the traps..... So, their only option is to flare more. Building in facilities to export the gas to another installation is not as simple as it sounds, and would likely require the vessel to return to Singa's - although Prosafe have recently done this type of work at the wellhead on the Espoir.

[the machine]

basis oil is discovered in tui SW then why tie the production into Tui when it could be tolled through Maui, along with all the gas that is reinjected.

M

[bermuda]

What about the associated gas that they will get off these new drills, if they contain oil???? Associated gas is a given in these fields.

More oil = more gas, that they must utilise (gas lift - which as I stated earlier is a very minor quantity), dispose of, either by re-injection or flaring.

I would suspect that they are already at the maximum gas handling capability of the vessel, based on the amount they are flaring and other things I have heard around the traps..... So, their only option is to flare more. Building in facilities to export the gas to another installation is not as simple as it sounds, and would likely require the vessel to return to Singa's - although Prosafe have recently done this type of work at the wellhead on the Espoir.

Matty,
That is why I asked the question in open forum. David Salisbury seemed pretty relaxed with the overall position. I will be keeping a close eye on these drills. Good luck NZO.

[Chris Roberts]

Wilkins - the announcement on Friday says Tui SW 1 is a possible gas injection site . . .

"At the conclusion of drilling, Tui SW will be cased and suspended as a possible future gas injection well."

But the rest of the ann talks about possible oil at SW1, in the Kapuni F10 sand, which has oil at Tui, and also about future horizontal drilling and a tie back to the FPSO.

So, it's still not clear to me exactly what this well is for. Can the company clarify please?



The Tui SW-1 well and the Kahu-1 well which will follow are both vertical exploration wells. They have never been planned as producing wells, which would need to be horizontally drilled given the nature of the Tui area reservoirs. That is why the announcement says that a successful discovery would likely be developed by a horizontal well tied back to the existing Tui facilities.
The joint venture will consider using Tui SW-1 as a future gas injection well. It's a useful and prudent option to have. There is an existing consent for the Tui area fields which allows gas flaring, but depending on future production levels, particularly if a new discovery is tied-in, an alternative option for some gas may be needed if the consent limit is reached.

[bermuda]

The Tui SW-1 well and the Kahu-1 well which will follow are both vertical exploration wells. They have never been planned as producing wells, which would need to be horizontally drilled given the nature of the Tui area reservoirs. That is why the announcement says that a successful discovery would likely be developed by a horizontal well tied back to the existing Tui facilities.
The joint venture will consider using Tui SW-1 as a future gas injection well. It's a useful and prudent option to have. There is an existing consent for the Tui area fields which allows gas flaring, but depending on future production levels, particularly if a new discovery is tied-in, an alternative option for some gas may be needed if the consent limit is reached.

Thanks Chris,
That makes sense. Tui SW... an exploration well. Good luck with these two drills and thanks again for your clarification. Some people were getting confused.

[dsurf]

Does anyone have any ideas When will Tui SW drilling results be released?

[Sehnsucht888]

Does anyone have any ideas When will Tui SW drilling results be released?


News out today...
http://www.asx.com.au/asxpdf/20100506/pdf/31q66yxm9trcdc.pdf

So total depth should be hit this weekend or early next week

[evilroyrule]

if this is the well off the waitara coast word is they hit paydirt.

[blockhead]

What are you talking about evil ???

[dsurf]

careful evil you might be accused of ramping!

[evilroyrule]

truthfully i dont own any nzx shares. live locally, there has been one hell of a flare recently, and the talk is just that. apparently it was a bitch to control the flare and the locals arent happy. how do you pass on news without being accused of ramping. perhaps i will limit comment to criticising others. thats heaps more productive. kiss my ass.

[friedegg]

truthfully i dont own any nzx shares. live locally, there has been one hell of a flare recently, and the talk is just that. apparently it was a bitch to control the flare and the locals arent happy. how do you pass on news without being accused of ramping. perhaps i will limit comment to criticising others. thats heaps more productive. kiss my ass.
you are right but its todd energy not nzo

[evilroyrule]

yes and what i was trying to do was a give up a heads up about who was in with todds on the drill. likely sp action i guess. as my post started, if this off waitara coast. i dont even know who is drilling with todd. presumably they have a partner.

[Mr Tommy]

yes and what i was trying to do was a give up a heads up about who was in with todds on the drill. likely sp action i guess. as my post started, if this off waitara coast. i dont even know who is drilling with todd. presumably they have a partner.

It was in the DominionPost this morning about it. Todd Energy's Mangahewa-C wellsite.

http://www.stuff.co.nz/business/3662273/Todd-turns-off-giant-gas-flare

[notie]

there is no one in with Todd on that field except Todd and nzog has already told us all that there is nothing on land in Taranaki, so that is the deal. There is nothing there even though Todd are flaring like crazy at mangahewa.

[Bilo]

I found this - an article on Deep Gas - Shale gas Fletcher Energy from 1998 conference - so this flare was only a little over 10years in the making...
Interesting tho with recent international developments and NZ shales everywhere...
www.crownminerals.govt.nz/cms/pdf-library/.../mangahewa-691-kb-pdf

[Bilo]

Sorry the link might not work but Google "Mangahewa Gas"

[bung5]

30 million bonds to PRC got approved on friday

[Chippie]

I wonder if someone has some inside information on the current drilling?

NZO up 2% on 500K shares
AWE up 3.5% on 1m shares

Rather interesting!

[fish]

just what i have been thinking
Tuui sw is sometimes called an appraisal well and sometimes an exploration well . I feel it is highly likely to show commercial hydrocarbons and have been buying nzo-at $1.50 last week -was going to buy more today at 1.47 but then saw contact at 6.07 and bought some .Went back to nzo but price had risen -as had awe-still watching for announcements

[digger]

just what i have been thinking
Tuui sw is sometimes called an appraisal well and sometimes an exploration well . I feel it is highly likely to show commercial hydrocarbons and have been buying nzo-at $1.50 last week -was going to buy more today at 1.47 but then saw contact at 6.07 and bought some .Went back to nzo but price had risen -as had awe-still watching for announcements
Hi Fish,
I like the look of this but it is not certain yet.Note all three[PPP,AWE,NZO] have gone up but say CUE not in volved has not risen today.This is generally a good sign as the drilling crew certainly are in the position to be the first to know and a small ring back to broker is acted upon. This sort of thing is not suppost to happen but you notice every time that it fall preannouncement on duster and rises on the smell of hydrocarbons. Still we have to wait as it could be just hope or a correction from oversold.Nevertheless it looks good.

[Mr Tommy]

This is generally a good sign as the drilling crew certainly are in the position to be the first to know and a small ring back to broker is acted upon. This sort of thing is not suppost to happen but you notice every time that it fall preannouncement on duster and rises on the smell of hydrocarbons. .

I doubt theres anything to be read from this wee rise, the market was up overall.
I doubt there are many Kiwis on the rig, the foreign workers would unlikely have friends or a broker here. This well is only 5m barrels so only a tiddler compared to some they would be working on. Also the rigs 50km offshore, I dont think cellphones work out that far. So it would take a bit of effort and risk for the workers to act on anything if they did know.
Also well spudded 2 May, on 6 May was at 1500m, target is 3900 so will be days away yet.

[trackers]

Subject: New Zealand Oil & Gas Internet Update



A page on the New Zealand Oil & Gas website has been updated.

You have been notified of this change because you subscribed to this page of the website.

The updated content may be viewed at http://www.nzog.com/n49.html

Title: Latest News

The upper section of the Tui SW-1 exploration well has been abandoned due to problems encountered with unconsolidated formation and a new well, Tui SW-2, is to be drilled.

Regards

Chris Roberts

Public Affairs Manager

enquiries@nzog.com

[boysy]

11 May 2010
Tui SW-1 Exploration Well Disclosure Notice
NZOG (New Zealand Oil & Gas Ltd) advises that there has been a temporary setback to drilling of the Tui South West prospect.
The upper section of the Tui SW-1 well has been abandoned due to problems encountered with unconsolidated formation.
This morning the Kan Tan IV drilling rig has been moved approximately 35 metres and is preparing to drill a new well, Tui SW-2.
Tui SW-1 had reached a depth of 1505 metres, the intended casing point, but operations to run the 13 3/8” casing were hampered by deteriorating hole conditions and the decision was taken to move to a nearby location and start again.
The need to re-drill has delayed the programme by around 10 days.
The Tui South West prospect is located in mining licence PMP 38158 in the offshore Taranaki Basin and is adjacent to the producing Tui oilfield.
The Tui SW-2 well is planned to be drilled to a total depth of approximately 3,900 metres. At the conclusion of drilling, Tui SW-2 will be cased and suspended as a possible future gas injection well.
Kahu-1, to the east of the Tui oilfield, will be drilled immediately following Tui SW-2.
Participants in Tui SW-1 and PMP 38158 are:
New Zealand Oil & Gas Ltd (through its subsidiary Stewart Petroleum) 12.5%
AWE Limited (Operator) 42.5%
Mitsui E&P Australia Pty Limited 35.0%
Pan Pacific Petroleum NL (through its subsidiary WM Petroleum Ltd) 10.0%

[Casa del Energia]

I doubt theres anything to be read from this wee rise, the market was up overall.
I doubt there are many Kiwis on the rig, the foreign workers would unlikely have friends or a broker here. This well is only 5m barrels so only a tiddler compared to some they would be working on. Also the rigs 50km offshore, I dont think cellphones work out that far. So it would take a bit of effort and risk for the workers to act on anything if they did know.
Also well spudded 2 May, on 6 May was at 1500m, target is 3900 so will be days away yet.

(Further away then we expected. I wonder if they went through a fault shatter zone.)
But anyway - as for 'out of cell fone range' I still disagree with you Mr T - - - it would be a bizzare oil rig that had absolutely no comms with outside world -- all that is needed is and obsure email msg saying "the fox eats doggie biscuits by the moon light' - and the news is out.

[bermuda]

I could understand it if the rig was moved 350 metres but only 35? Geology was never a strong point for me. Good luck with SW-2.

[Bilo]

No mention of whose fault it was but it is not the first time that I have seen an interrupted well causing problems following re-entry. Continuing Rig Operators cost?

[digger]

I doubt theres anything to be read from this wee rise, the market was up overall.
I doubt there are many Kiwis on the rig, the foreign workers would unlikely have friends or a broker here. This well is only 5m barrels so only a tiddler compared to some they would be working on. Also the rigs 50km offshore, I dont think cellphones work out that far. So it would take a bit of effort and risk for the workers to act on anything if they did know.
Also well spudded 2 May, on 6 May was at 1500m, target is 3900 so will be days away yet.

Looks like a couple of weeks away now. We had this problem with one of the other TUI wells if i remember correctly but do not remember which one. Looks like the SP is just recovering from an oversold position.Must be the Greece bailout this time.

[Casa del Energia]

Looks like a couple of weeks away now. We had this problem with one of the other TUI wells if i remember correctly but do not remember which one. Looks like the SP is just recovering from an oversold position.Must be the Greece bailout this time.

Was it the well where they lost a section of drill pipe - and had to drill back in sideways? It always amazed me that they could steer so accurately - - same thing as BP wants to do in the Gulf of Mexico.

Oil is up. SP just picked up another cent. Life's good.

[friedegg]

whats all the small ol trades happening all day mean

[mr.needs]

whats all the small ol trades happening all day mean

Can't help but the same thing has been happening with IFT.

Does anyone know what the direct broking codes actually mean?

[troyvdh]

..same thing happened to CUE a while back...hours and hours of 10's I think...were going through...I rang direct...they said ...well not much really...probably automated....what it was ...held the price steady.....

yep same thing..lst time the timing was regular...now so many a second....weird eh...spooky even...

...Ive heard that a trader is probably utilising/playing a currency game.....gee me thnks the yanks have arrived...

[Bilo]

whats all the small ol trades happening all day mean

If the NZX has performed a sneak release of "bot" trading that afflits the ASX and contributed to the dual collapses of the DOW, they should be shot - should have given us all time to say Mum & Dads we want our money out before the brokers take it...

[Bilo]

whats all the small ol trades happening all day mean

It looks like bot manipulation to me - the OZ disease. The give away is the stacked sell side. Often happens to scare people to sell and allow the scarer o accumulate. Anyway my thoughts but a very unwelcome sight for small investors. The really sneaky bit is the change in minimum parcel and brokerage rates based on volume not trades. Publicly notifiable IMO. All investors are equal but some are much more equal than others - the end of capitalism may be coming to NZ as well.

[troyvdh]

..well that was fun...just got the phone to NZX....lovely woman.....she said it was 'logarythm trading" (or something like that)....never could spell...it happens to TEL apparently....its unavoidable....and coming....it is a "positive and allows a higher degree of fluid trading"....lovely woman...one learns something eevverrry day.

[Bilo]

..well that was fun...just got the phone to NZX....lovely woman.....she said it was 'logarythm trading" (or something like that)....never could spell...it happens to TEL apparently....its unavoidable....and coming....it is a "positive and allows a higher degree of fluid trading"....lovely woman...one learns something eevverrry day.

It is algorithm trading (read / google BOTS) I stand by my comments - the end of capitalism - we are now at the behest of computers no longer a willing buyer and seller - star wars and 1000 point index crashes - a tool designed to kill any margin trader that can be caught over committed and cause every Mum and Dad share investor to panic and withdraw from the sharemarket. index trading will be the final nail in NZX's coffin. NZO should not have agreed to it.

The ultimate in sneek releases!!!! And I am an NZX shareholder. Immoral.

[foodee]

..well that was fun...just got the phone to NZX....lovely woman.....she said it was 'logarythm trading" (or something like that)....never could spell...it happens to TEL apparently....its unavoidable....and coming....it is a "positive and allows a higher degree of fluid trading"....lovely woman...one learns something eevverrry day.

Sound similar to ''stop-loss raid'
Not good

[Bilo]

Sound similar to ''stop-loss raid'
Not good

Yes. The margnproviders talk all their clients into pting in stop losses and then take their money. ALA Goldman Sacks - "we are market makers" er destroyers becasue their puts and calls (external market) systems take over the real market.

[777]

Can't help but the same thing has been happening with IFT.

Does anyone know what the direct broking codes actually mean?

OL Market Trade (too small for price setting)

Just click on "Need some help" button above the "Go" button. Then select "glossary" and scroll down to "condition codes".

[Bilo]

..well that was fun...just got the phone to NZX....lovely woman.....she said it was 'logarythm trading" (or something like that)....never could spell...it happens to TEL apparently....its unavoidable....and coming....it is a "positive and allows a higher degree of fluid trading"....lovely woman...one learns something eevverrry day.

Fluid trading. See someone took out the buy side liquidity at the close. I might have myself if I didn't let fundamentals fuzzy my logic. Trend analysis rules over FA with computerised trading - facilitates CFDs and crashes. In my watching of these systems it is a complete fallacy that they provide liquidity.

[mr.needs]

OL Market Trade (too small for price setting)

Just click on "Need some help" button above the "Go" button. Then select "glossary" and scroll down to "condition codes".

Thanks! .

[blockhead]

OL Market Trade (too small for price setting)

Just click on "Need some help" button above the "Go" button. Then select "glossary" and scroll down to "condition codes".


What web site do you find this on 777 ??

Cheers,
Blocky

[777]

It's the Direct Broking website. I am sure other brokers have similar information.

[ananda77]

...In my watching of these systems it is a complete fallacy that they provide liquidity.

HFT trading itself can not provide liquidity since they are only trading back and forth between themselves collecting volume discounts and spread differences in different markets for example
However HFT pushes the price up or down and as a result liquidity flows in or out of the market; that's how I understand the system

Kind Regards

[Mr Tommy]

Some new players coming, I wonder if NZOG might have found someone to buy into Kaupokonui.



Nina Fowler | Tuesday May 11, 2010 - 03:49pm
Speaking at today’s international methane hydrate workshop, Energy and Resource Minister Gerry Brownlee found time to talk up New Zealand’s conventional resource endowment.

A joint GNS Science and government study has estimated exploitation of New Zealand’s untapped petroleum basins could generate $10 billion a year in Crown receipts over the next 40 years, and an additional $30 billion a year in export revenues by 2025

Mr Brownlee made it plain to his international audience that New Zealand was a “very prospective country” which welcomed conventional oil and gas exploration.

“Very soon we’ll announce new players in our waters,” he revealed.

When pressed by NBR, Mr Brownlee said that the announcement could be expected toward the end of the month.





Heres a story about Kaupokonui...

http://www.stuff.co.nz/taranaki-daily-news/business/3649520/Explorers-focus-on-Kaupokonui

[digger]

Some new players coming, I wonder if NZOG might have found someone to buy into Kaupokonui.



Nina Fowler | Tuesday May 11, 2010 - 03:49pm
Speaking at today’s international methane hydrate workshop, Energy and Resource Minister Gerry Brownlee found time to talk up New Zealand’s conventional resource endowment.

A joint GNS Science and government study has estimated exploitation of New Zealand’s untapped petroleum basins could generate $10 billion a year in Crown receipts over the next 40 years, and an additional $30 billion a year in export revenues by 2025

Mr Brownlee made it plain to his international audience that New Zealand was a “very prospective country” which welcomed conventional oil and gas exploration.

“Very soon we’ll announce new players in our waters,” he revealed.

When pressed by NBR, Mr Brownlee said that the announcement could be expected toward the end of the month.





Heres a story about Kaupokonui...

http://www.stuff.co.nz/taranaki-daily-news/business/3649520/Explorers-focus-on-Kaupokonui


Thanks Mr Tommy for that bit.Good thoughts and a good read.

[Lion]

Some new players coming, I wonder if NZOG might have found someone to buy into Kaupokonui.



What does it cost to drill an offshore well in Taranaki? Around $30m for Tui SW1, someone said.
NZOG has $192m in the bank (or did at end March).
Steady income, probably no more to pay to support PRC which should become another strong steady income stream soon.

Where's this leading? I reckon NZOG should retain a big slice of Kaupokonui.

I know the usual reasons for farming out, but I don't think these apply nearly as much in this situation.
If we kept 50% or more, it could be an absolute company maker if it came in. Couldn't NZOG be an operator too? That would be fun.

I suppose management know more about assessing risk than I do, but I can see a danger in giving too much potential reward away here. Can't we at least wait till some 3D seismic is done to get a better idea of what's there before selling down?

Just my thoughts. What do you think, digger? 50% of maybe 200mm barrels is an exciting thought, eh?

[notie]

What happened to these prospects? NZOG said there could be 3 tcf of gas in them and then handed it back to the government because they wouldn't drill. Same thing will happen again and history will surly repeat

Mangatoa could bring in billions
www.thepress.co.nz WEDNESDAY, 02 FEBRUARY 2005
Explorer New Zealand Oil and Gas and Origin Energy, Contact Energy's parent, may be sitting on a gas prospect three-quarters the size of Maui, potentially worth billions of dollars. The offshore Mangatoa prospect in north Taranaki could be bigger than first thought and might hold as much as three trillion cubic feet of gas, NZOG said yesterday in a quarterly activities report.

That is about 3000 petajoules of gas, three-quarters the size of Maui and more than three times the Pohokura gasfield, still to be developed. NZOG owns 50 per cent of the prospect and is the operator, and Origin owns the other 50 per cent. Previously, NZOG had been talking about Mangatoa possibly holding two trillion cubic feet of gas. If a big gasfield was discovered, it could kill proposals to import liquefied natural gas by two big electricity producers, Contact Energy and state power company Genesis Power. It might also help cure the woes of methanol-maker Methanex, operating at about a sixth of its capacity because of the rundown of Maui and insufficient supplies of local gas.

NZOG and Origin are looking in New Zealand and internationally for a partner to buy into the Mangatoa prospect. The partner would pay for the drilling of an exploration well - estimated to cost $20 million - to establish the size of potential reserves... Mangatoa was high risk. The greatest uncertainty was whether gas flow rates would be good enough for commercial production.

NZOG and Origin put out an information memorandum on Mangatoa late last year to attract a partner. It said most likely gas reserves at Mangatoa were two trillion cubic feet and the prospect could generate gross revenue of US$12.5 billion (NZ$17.6 billion). Mr Ward said some overseas and New Zealand-based parties had shown "preliminary interest" in Mangatoa. "We think that there will be interest from New Zealand companies, particularly from gas users," Mr Ward said. NZOG would complete its re-evaluation of the prospect, update the information memorandum and talk to the parties again that had shown interest.

Mangatoa is offshore in north Taranaki. The Te Ranga well was drilled in the prospect in 1986 and intersected a 140-metre gas column. NZOG wants to drill an exploration well 8km from the Te Ranga well.

[J R Ewing]

I recall being very disappointed with the decision not to proceed with Mangatoa at the time. NZO just couldn't get the interest from farm in partners and decided the drill was too risky to fund by themselves. That's how these permits work, the permit holders do some analysis and maybe seismic and try to sell down their interest to fund the drill - if they can't the market is telling them the risk/reward doesn't stack up. The two problems with Mangatoa are that it is deep gas (like Austral's Cardiff well) and it is a long way offshore which adds to the cost and difficulty.

If your point is that there is a lot that needs to happen to get a prospect drilled - fair enough.

[digger]

I recall being very disappointed with the decision not to proceed with Mangatoa at the time. NZO just couldn't get the interest from farm in partners and decided the drill was too risky to fund by themselves. That's how these permits work, the permit holders do some analysis and maybe seismic and try to sell down their interest to fund the drill - if they can't the market is telling them the risk/reward doesn't stack up. The two problems with Mangatoa are that it is deep gas (like Austral's Cardiff well) and it is a long way offshore which adds to the cost and difficulty.

If your point is that there is a lot that needs to happen to get a prospect drilled - fair enough.
Correct Ewing as i remember it.Also there was some concern that the rock could be too tight,not releasing the gas without expensive shattering work being required.It was a big hope at the time and Sniper never stopped laughting at NZO supporters when the plug got pulled.

[777]

Sniper! Now there's a blast from the past.

And on the day that "balance" departs the scene.

[fish]

http://www.crownminerals.govt.nz/cms/pdf-library/petroleum-conferences-1/2004/papers/Petroleum-23-04NZPC-Paper-Mangatoa-GiantGasPros.pdf

Looks as if some further preliminary drilling could be done from onshore .
It is described as a potential giant field and the cost of drilling it doesnt seem too high shared between origin and nzog-
Rewards could be very high and I wonder if hydrocarbons could be piped ashore easily-looks to be far north from kupe processing though .

[bermuda]

Fish,
The next big thing for NZO is the current drill. Tui SW-2. I am thinking they are going to hit sweet light oil.

[fish]

Fish,
The next big thing for NZO is the current drill. Tui SW-2. I am thinking they are going to hit sweet light oil.

True bermuda.
Tui oil attracts a premium to Tapis price .
I suspect increasing Asian demand is why the Tapis price is holding so well against the volatility of USA oil prices .

However isnt there so much potential-both around Tui and also wider afield ?

[Casa del Energia]

So it seems that NZO has slumped to the mid 140s even though it is only days away from a very likely oil find just because some naked Germans have been banned from selling thier shorts. It all seems very odd to me. Lederhosen?

[blockhead]

Lederhosen ????......shizenhousen at the moment Casa !

[Logen Ninefingers]

The markets went into a panic today at news that Paraguay has banned the public wearing of hats during the month of July. Also news that the crops have failed again in Honduras caused a wave of panic selling throughout Europe and on Wall Street.
......What further dire news lies ahead in the coming days????

[Casa del Energia]

Lederhosen ????......shizenhousen at the moment Casa !

Well put. And (to keep the frivolous theme going (as that is all you can really do in this sort of market)) the way market sentiment is going, once they've drilled through all the schist to depth and found fifty trillion barrels down there - the price will still drop!

Just like nukes vaporise chaff and vanadium steel with equal aplomb.

[fish]

Well put. And (to keep the frivolous theme going (as that is all you can really do in this sort of market)) the way market sentiment is going, once they've drilled through all the schist to depth and found fifty trillion barrels down there - the price will still drop!

Just like nukes vaporise chaff and vanadium steel with equal aplomb.

The best emotional response to current markets is certainly to laugh-which is appropriate as long as you are buying quality assets at well below their net asset value such as nzo at $1.45
With around $200million in cash plus lots more in ppp and prc shares and 2 million dollars a week income nzo is looking so cheap .
Current income is barely affected at current prices-eg tapis is $77 us at 67.9 cents/nz dollar .Demand from Australia and Asia is keeping Tapis at good prices.
Couldnt resist buying another 15000 at close today so expect they will drop more as I never seem to get the timing right

[notie]

Couldnt resist buying another 15000 at close today so expect they will drop more as I never seem to get the timing right

15K of shares! man, you would be better off investing in some finance companies. There are plenty of other aussie oilers that are worth way more of a look than nzog. OK they pay a divi, but it is a small one and a company like nzog is going nowhere fast.

While they have very minor holdings of tui and kupe these were found a long time ago. Where are NZOG's tuis of tomorrow? Nothing in their current portfolio is lining up to be that.

Tui isn't going to last for ever and they will need to replace this soon. Current drills are going to cut it, especially when the operator blew money with rig repairs at Hoki then messed up TuiSW-1 resulting in an expensive redrill

[Lion]

Operator didn't pay any of rig repair costs at Hoki, notie

[Lion]

"Where are NZOG's tuis of tomorrow?" you ask notie??

They are drilling them right now.

[Lion]

Kupe is providing a steady income for twenty years, notie.

It is notie, isn't it?

[Lion]

They messed up at Tui SW-1 did they, notie?

So they knew in advance it was going to have a problem and went ahead anyway??

Really, notie, I think you might need a holiday too!

It is notie, isn't it?

[Lion]

We do love you really notie, your balanced opinions are much appreciated. Please don't go on holiday.

[Lion]

Current drills are going to cut it

I think so too

[notie]

Operator didn't pay any of rig repair costs at Hoki, notie

quite right, but there are a whole lot of other services they did have to pay for. Contractors, helicopter, support boats, etc.

They messed up at Tui SW-1 did they, notie?

So they knew in advance it was going to have a problem and went ahead anyway?

yer word is they messed it up big time on the top section of the hole and did something they shouldn't have and then still went ahead.

My opinion might not seem balanced compared with the very coloured view of some of the nzog investors, but just telling it how it is.

keep throwing your money at this dog and believe their PR hype...:)

[Lion]

yer word is they messed it up big time on the top section of the hole and did something they shouldn't have and then still went ahead.

:)

Your source is . . . . ?

[Mr Tommy]

20 May 2010
Tui SW-2 Exploration Well Disclosure Notice
NZOG (New Zealand Oil & Gas Ltd) advises that during the last week, Tui SW-2
was drilled to a depth of 1507 metres. The 13 3/8" casing has been run and
cemented to a depth of 600 metres. This is shallower than was planned, and
was necessitated by continuing difficulty with unstable shallow sediments at
the Tui SW location. The contingency 9 5/8" casing will now be run to 1500
metres, before drilling ahead to target depth in 8 ?" hole.



Wonder if they should have moved a bit further away than just 35m for this new hole.

[Logen Ninefingers]

FFS....whats the go here? Sounds like unstable shallow sediments are like some sort of undersea graben.

[Casa del Energia]

20 May 2010
Tui SW-2 Exploration Well Disclosure Notice
NZOG (New Zealand Oil & Gas Ltd) advises that during the last week, Tui SW-2
was drilled to a depth of 1507 metres. The 13 3/8" casing has been run and
cemented to a depth of 600 metres. This is shallower than was planned, and
was necessitated by continuing difficulty with unstable shallow sediments at
the Tui SW location. The contingency 9 5/8" casing will now be run to 1500
metres, before drilling ahead to target depth in 8 ?" hole.



Wonder if they should have moved a bit further away than just 35m for this new hole.

Probably not. And that puts the kaibosh on the shatter zone theory - 35m should have been enough for that - it's a stratum problem. Of course - would be nice if there was some statement about what the in situ rock is - we are all guessing - - conglomerate? Talcum? Fairy dust?

[digger]

Probably not. And that puts the kaibosh on the shatter zone theory - 35m should have been enough for that - it's a stratum problem. Of course - would be nice if there was some statement about what the in situ rock is - we are all guessing - - conglomerate? Talcum? Fairy dust?

Quite right we do need some explanation as to what this means.Without it the market will put the worst possible spin on things.True we can not expect to have our hand held all the time but this is special and what does it all add up to???
.It is beginning to look very negative for drilling this year.We are not only months behind schedual and now seemly can not do anything right and that is what the market is saying.Enought problems with world finanances and some German being banned from trying to sell his shorts without our now inability to drill a well where in the past we had no problems.
So Chris Roberts if you are there can you explain what this means.Will this well get drilled?Is it just a hold up or is it likely that TUI-2 will have to be abandoned as not drillable?

[Chris Roberts]

Quite right we do need some explanation as to what this means.Without it the market will put the worst possible spin on things.True we can not expect to have our hand held all the time but this is special and what does it all add up to???
.It is beginning to look very negative for drilling this year.We are not only months behind schedual and now seemly can not do anything right and that is what the market is saying.Enought problems with world finanances and some German being banned from trying to sell his shorts without our now inability to drill a well where in the past we had no problems.
So Chris Roberts if you are there can you explain what this means.Will this well get drilled?Is it just a hold up or is it likely that TUI-2 will have to be abandoned as not drillable?

Digger, as the statements yesterday by AWE, NZOG and PPP stated, there are unstable shallow sediments, which have made the running of casing in the upper section of the well difficult. This has caused some delays and a change to the drilling plan. Not ideal certainly, but such things happen. 9 5/8" casing will be run to 1500m before drilling ahead to the target in an 8 1/2" hole. The target Kapuni F10 sand is at approximately 3,600m. There will be another drilling report next week which will give progress.

[dsurf]

Digger, as the statements yesterday by AWE, NZOG and PPP stated, there are unstable shallow sediments, which have made the running of casing in the upper section of the well difficult. This has caused some delays and a change to the drilling plan. Not ideal certainly, but such things happen. 9 5/8" casing will be run to 1500m before drilling ahead to the target in an 8 1/2" hole. The target Kapuni F10 sand is at approximately 3,600m. There will be another drilling report next week which will give progress.

thanks Chris for reiterating that there is a delay.

[blockhead]

Bloody hell, I was looking to NZO to save Pike, now I'm starting to think, maybe Pike can save NZO

[Ayrton]

Pike not doing so well today either! Down 4.9% atm. Buy side looks very low, only 13,582 shares at average bid of jus under 94c.

[arjay]

Bloody hell, I was looking to NZO to save Pike, now I'm starting to think, maybe Pike can save NZO

Yep - I suspect the market has written off Tui-SW as well. Crunchy rocks after a string of dusters can't be helping sentiments much.

[J R Ewing]

Yep - I suspect the market has written off Tui-SW as well. Crunchy rocks after a string of dusters can't be helping sentiments much.

You might be right, but that seems a bit irrational. A bit more drilling cost and a small delay won't seem so bad if we hit the black stuff!

[Sehnsucht888]

Markets have tanked - that is probably the main cause - volumes behind the drops are tiny compared to normal..

[geezy]

Bloody hell, I was looking to NZO to save Pike, now I'm starting to think, maybe Pike can save NZO

its the only way for NZO sp to see some appreciation blockhead, u better believe!

[Lion]

NZO finished up 1 in Aus, after being deep in the red here and there most of the day. Finished at 113, with gap up to first sell of 118.

Does it mean anything?

Ever-(over?)-hopeful Lion

[bermuda]

NZO finished up 1 in Aus, after being deep in the red here and there most of the day. Finished at 113, with gap up to first sell of 118.

Does it mean anything?

Ever-(over?)-hopeful Lion

Lion,
Good call. Probably nothing in it but it is cause for optimism and on days like today we need something to cheer us.

AWE also a solid rise during the day. I have only got a few but I am praying for all holders that NZO hits that beautiful fluid. They need a bit of luck but in this game nothing is easy.

[Logen Ninefingers]

Meanwhile the non-producing coalmine that NZO owns (30% of) finishes 2 cents up for the day.
NZO has $200 million cash in the bank and a stake in 2 producing oil fields.
Go figure.

[Corporate]

Totally agree with your points notie. For all the talk of being such a great company NZO has not taken advantage of the GFC when they were in a position to do so. Their inability to put deals together has cost them...look at the FX debacle!!!

The PRC situation has forced them into a corner.

what happens if:

their a no new commercial tui wells
prc never actually gets to its IPO projections and requires more capital (again)
hoki is dry

There is probably an even change of the first two and a 90% chance of the third.

A $600m company becomes a $300m company.

Not looking good so far:

Hoki is dry
Problems on first tui well (and it's not even a planned producer)
More cash out the door to pike

[Corporate]

Meanwhile the non-producing coalmine that NZO owns (30% of) finishes 2 cents up for the day.
NZO has $200 million cash in the bank and a stake in 2 producing oil fields.
Go figure.

Net cash is under $100m now. Probably closer to $80m

[fish]

Net cash is under $100m now. Probably closer to $80m

Corporate could you show how you have arrived at this figure-just to let us see precisely where our money has gone .Do you have a value of cash plus investments in equities and bonds ?

At 31 march 2010 the cash balance was the equivalent of $192.5m
They have earned more us dollars in the 8 weeks since-from Tui and Kupe plus some interest .
Nz dollar has recently fallen increasing the worth of this cash flow plus us dollar saving

They have converted prc rights and issued bonds and paid for a bit of drilling.

[Corporate]

Corporate could you show how you have arrived at this figure-just to let us see precisely where our money has gone .Do you have a value of cash plus investments in equities and bonds ?

At 31 march 2010 the cash balance was the equivalent of $192.5m
They have earned more us dollars in the 8 weeks since-from Tui and Kupe plus some interest .
Nz dollar has recently fallen increasing the worth of this cash flow plus us dollar saving

They have converted prc rights and issued bonds and paid for a bit of drilling.

Fish it's just a ruff calculation

As 31 March they had

Cash $192m
Debt ($63m)
less:
Pike ($50m) I don't know the exact figures as I've stopped following NZO in any detail.
Total $79m

Assume that operating cash flow is offset by exploration spend of $7.5m.

[Lion]

Fish it's just a ruff calculation



Yes, well if you can't spell rough you probably can't calculate a cash balance.

I just don't get it - you negative guys, just what do hope to achieve by running the company down?? Mere down-ramping so you can scoop up the shares cheaply? Oh, just run away and leave us honest posters to it please. Real comment is welcome, yes, but don't turn this forum into a ramping place like Hot Copper - it just de-values it so no-one will take any notice.

What about the cash income? That's a constant plus on the balance sheet.

The PRC money is an investment, it should count as a plus on the balance sheet.

This is a great company with major potential - OK, it may not achieve greatness, depending on world market fluctuations beyond our control, but please don't pluck figures out of the air saying it's going down the tubes - it just ain't necessarily so.

[Corporate]

Yes, well if you can't spell rough you probably can't calculate a cash balance.


Let me get this right. Down-ramping (so called) is frowned upon, but personal attacks are OK?

The NZO's thread needs some balance. I only pointed out misleading information regarding the cash balance. And earlier on potential valuation risks.



....but please don't pluck figures out of the air saying it's going down the tubes - it just ain't necessarily so.

This is absurd. My "plucking figures out of the air" is a far more realistic view of NZO's cash position than $198m.

I certainly didn't say anything about NZO going down the tubes. That was you not me.

[Lion]

I certainly didn't say anything about NZO going down the tubes. That was you not me.

You said "Not looking good so far:"

Near enough

[Lion]

Let's wait and see what NZO's cash position actually is, before attacking each other, eh>

[notie]

What about the cash income? That's a constant plus on the balance sheet.

The PRC money is an investment, it should count as a plus on the balance sheet.



LOL:eek2: more like a big pile of "your" money into a dark black pit called Pike.

nzog has done a great job of brain washing its investors into thinking they are onto a winner. Oh it is a winner of holding in there, but that is about it.

Is this company going to get involved in any new projects? I see ROC has entered NZ in two permits in Taranaki and why aren't nzog in a joint partnership with them?

Time nzog walked the walk instead of the lame stories about doing stuff when all they have managed is to blow a lot of shareholders investment.

[Corporate]

You said "Not looking good so far:"

Near enough



Not looking good so far:

Hoki is dry
Problems on first tui well (and it's not even a planned producer)
More cash out the door to pike

Please don't misquote me out of context. Everything posted above is FACT. I compared what I initially pointed out (as risks), to what actually eventuate.




Let's wait and see what NZO's cash position actually is, before attacking each other, eh>

Who attached who? Why wait for the next quarterly. Make an educated guess on the cash position - all the information is available.

[dsurf]

My "sharetrader tone indicator" is firing full on buy signals. Whenever this thread becomes negative seeing the glass as 1/3 full of water (in the middle of a drill too) it is a contrarian signal that tells me without a doubt that now is good time to buy!!

discl hold nzo

[dsurf]

The opposite of course also applies - I was worried when Hoki was potentially containing billions of barrels ( the glass was definately 2/3 full of oil)

[blockhead]

dsurf, you are showing signs of "very wet day syndrome"...far too much time in front of the computer.

This can lead to rash buying and/or selling decisions, good side of things is, your duckpond will be full and drilling is (hopefully) continuing towards the elixir of Mexican Gulf !

[winner69]

Corporate .... you have started on a run on the NZO shares as they fall to 52 week lows

Being (badly) outperformed by the NZX over 1 year and 6 months is not a good look either

All your fault mate .... don't do it again

[Logen Ninefingers]

Damn you Corporate!!!!
I wouldn't be surprised if he's behind the european debt crisis as well.....

[geezy]

nzo shud go pick up those oil thats gushing from BP's well from the US :D , theres oil there for sure

[Logen Ninefingers]

Nothing surer: if oil's gushing from a well, you can bet there's oil there.

[digger]

Nothing surer: if oil's gushing from a well, you can bet there's oil there.

Hoki was fairly deep but certainly not the depth of Deepoil Horizon,so the only thing worse than a dry well is one stuffing up the next 200 miles of ocean.
Mean while back at the well site,where is this weeks drill report?

[Paint it Black]

Hoki was fairly deep but certainly not the depth of Deepoil Horizon,so the only thing worse than a dry well is one stuffing up the next 200 miles of ocean.
Mean while back at the well site,where is this weeks drill report?

Probably tomorrow as the last one was on a Thursday. AWE has taken a long dive today so hopefully that is not a bad omen. Maybe other factors - who knows these days?

[Logen Ninefingers]

There's always Kahu!!

[BigBob]

Total depth now at 1573m... only 2152m to go....

[Logen Ninefingers]

Wow, 66 metres in a week!!! That's excellent progress when you're drilling with a toothpick!!! By Xmas it'll be almost at the target depth!!!

[Logen Ninefingers]

What's the bet shifty sediments or a graben will scupper this drill.....

[dsurf]

I heard the real reason that TEL has network problems is due to grabens

[Logen Ninefingers]

Grabens (also known as 'Garbons' by some) are also a suspected cause of the european debt crisis, as are shifty sediments.

[Casa del Energia]

Total depth now at 1573m... only 2152m to go....

Hang on a mo - be fair. Casing and cementing means that you can't drill while doing that.

And grabens (or horsts for that matter) have nothing to do with the price of fish here.

[Logen Ninefingers]

Shouldn't that be the price of oil?
Fish have nothing to do with this, although they do swim in the area where the drilling rig is located.

They did manage to drill 66 additional metres while casing and cementing - a stunning feat in itself.

[Lion]

And grabens (or horsts for that matter) have nothing to do with the price of fish here.

Is this correct?
I don't know much geology but the "unconsolidated formation" that stopped SW-1 sounds quite similar to a graben to me.

You'd think they would stop the drill now if they thought the difficult rock formation was going to stop them later. And they know a lot about what's down there now, (at least 35m away).

[Logen Ninefingers]

As a pre-eminent geologist, I'd say 35 miles is probably enough distance to avoid this unconsolidated formation. Any less than that and I'd be worried. If they'd only moved a km or so, there might be serious problems, but 35 miles is fine.

[Lion]

Oh 9 fingered one, you are in good form today!

Sometimes I can't tell if you are being serious, sarcastic or just joking.

So, joking aside, did you know they only moved 35 metres between Tui SW1 and SW2?

But yes, I'm sure you are correct that a graben caused the European debt crisis, and swine flu too, did you know that?

[Logen Ninefingers]

35 metres???? Oh my god!!!!! Oh god, no....noooooooooo, oh say it isn't true.....35 metres???? Awwww geeez, awwww fudge......in the name of all that's sacred and holy......35 metres??????

[temuk]

35 metres???? Oh my god!!!!! Oh god, no....noooooooooo, oh say it isn't true.....35 metres???? Awwww geeez, awwww fudge......in the name of all that's sacred and holy......35 metres??????

I was talking to a guy in the know about this and they were "trying something out" on the 1st hole.
they were trying to water blast the casing in through the sediment until it got to the rock, it didn't work
so had to shift it a little.

This is an old mate of mine. I just hope i've transfered the info correctly!

[fish]

I was talking to a guy in the know about this and they were "trying something out" on the 1st hole.
they were trying to water blast the casing in through the sediment until it got to the rock, it didn't work
so had to shift it a little.

This is an old mate of mine. I just hope i've transfered the info correctly!

Certainly sounds possible.
Anyway now the casing is completed past the unstable sedimentary rock the drill should progress rapidly-hopefully just a few days .
We are building a new house and I have been coerced into promising not too buy anymore after my last recent foray at 145 .A friend of mine has been buying at bargain prices in the last few days -IMHO he should do well

[arjay]

Oh 9 fingered one, you are in good form today!

Sometimes I can't tell if you are being serious, sarcastic or just joking.

So, joking aside, did you know they only moved 35 metres between Tui SW1 and SW2?

But yes, I'm sure you are correct that a graben caused the European debt crisis, and swine flu too, did you know that?


What's all this shortwave 1 and 2 nonsense. Everyone knows Tui was MW until it sunk off Gt Barrier Island. Next you'll be telling me Radio Hauraki went FM!