View Full Version : NZ Oil & Gas (NZO)
Certainly could not have had a more tragic and disappointing year
Hitting rock bottom is a time to reflect and learn from what should have been done better .
At current oil prices nzo should be getting around US $100 a barrel so likely there are more commercial accumulations of oil around the Tui area However AWE needs also to get its act together with the other joint venture partners .
There are lots for nzo management to sort out so I hope they dont have too long a break .
I certainly cant and will be working tomorrow and reducing my planned break in February as my margin loan is somewhat stretched and uncomfortable .
Best wishes Digger ,all noggers and NZO for a better year in 2011.
Not moral responsibility, nut legal duty. Companies Act s131 Duty of directors to act in good faith and in best interests of company, and s137 Director's duty of care.
http://www.stuff.co.nz/business/industries/4490666/Payouts-for-Pike-River-contractors
I know I sound heartless, but personally im really dissapointed with this. Contractors always know there is a risk they won't get paid, that is why they charge a premium compared to their cost of labour.
NZO has lost enough money on this one as it ist I really feel they should screw every last cent they can out of PRC. Stuff anyone else, they have a moral responsibility to their shareholders.
Sorry a typo that should read "Not moral responsibility, but legal duty." No offense intended.
Corporate
27-12-2010, 08:13 AM
Same to you Geezy. With oil prices continuing to rise things must get better. We have heard a lot about TUI declining in production but not that the oil is rising,Over the next 10 years it is entirely possible that NZO could get the same income from TUI as it gets now.Throw in that the NZ dollar will faLL as well into the cals and it looks even more likely.
2011 has got to be a better year for nzo than 2009 and 2010.
Even though NZO has been a great disapointment. 2011 has to be a better year.
Full year of Kupe production
High oil prices
Potential to recover something (already priced to nil) from PRC
Yes, what a hell of a year, eh?
The annual brokers' picks are out in the herald.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10696689
Macquarie think NZOG could be a comeback stock
winner69
27-12-2010, 09:47 AM
Yes, what a hell of a year, eh?
The annual brokers' picks are out in the herald.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10696689
Macquarie think NZOG could be a comeback stock
.... but long time champion McDouall Stuart leave it out .... very interesting
Beagle
27-12-2010, 11:12 AM
.... but long time champion McDouall Stuart leave it out .... very interesting
Interesting Indeed, McDouall Stuart as most on here will know have been a major backers of NZO and PRC and have had a closer association with and know them better than any other broking house.
I noted the other day that the forecast P.E. for BHP is only 12 for 2011, a far better alternative with a proven track record in my opinion.
Speaking of interesting....see that yet again Forsyth Barr are right near the bottom of the pack for their 2010 picks and absolute worst over the last five years, -7% for goodness sake !! Credit Sails, Feltex, SCF e.t.c. Based on past history of being with them, (thankfully saw the light some time ago), I'm very pleased to note that I hold none of the stocks they're recommending for 2011. As soon as they recommend something I do the opposite and I note they currently have an accumulate recommendation on N.Z.O.
digger
27-12-2010, 11:21 AM
Interesting Indeed, McDouall Stuart as most on here will know have been a major backers of NZO and PRC and have had a closer association with and know them better than any other broking house.
I noted the other day that the forecast P.E. for BHP is only 12 for 2011, a far better alternative with a proven track record in my opinion.
Speaking of interesting....see that yet again Forsyth Barr are right near the bottom of the pack for their 2010 picks and absolute worst over the last five years, -7% for goodness sake !! Credit Sails, Feltex, SCF e.t.c. Based on past history of being with them, (thankfully saw the light some time ago), I'm very pleased to note that I hold none of the stocks they're recommending for 2011. As soon as they recommend something I do the opposite and I note they currently have an accumulate recommendation on N.Z.O.
Just a smart technical point Roger. You can not now do the opposite of Forsyth Barr as you have already sold out of NZO.Could it be that FB has read your comments and all the collective negative one and decided that that spells the bottom so have an accumulate recomendation on NZO.
Balance
27-12-2010, 11:42 AM
Interesting Indeed, McDouall Stuart as most on here will know have been a major backers of NZO and PRC and have had a closer association with and know them better than any other broking house.
I noted the other day that the forecast P.E. for BHP is only 12 for 2011, a far better alternative with a proven track record in my opinion.
Speaking of interesting....see that yet again Forsyth Barr are right near the bottom of the pack for their 2010 picks and absolute worst over the last five years, -7% for goodness sake !! Credit Sails, Feltex, SCF e.t.c. Based on past history of being with them, (thankfully saw the light some time ago), I'm very pleased to note that I hold none of the stocks they're recommending for 2011. As soon as they recommend something I do the opposite and I note they currently have an accumulate recommendation on N.Z.O.
Agree totally with you. What Forbar recommends - you avoid.
Forbar = lousy research so they structure issues to inhouse and long term captive clients which are total duds and complete disasters like Credit Sails ("we are just brokers to the issue" "yeah right"), Feltex and SCF preference shares as you mentioned.
Forbar = a lame horse which keeps coming last.
A diehard Nogger Like McDouall Stuart calling it quits - very telling. One thinks they finally woke up to the fact that this is a stock in terminal decline.
Beagle
27-12-2010, 11:44 AM
Just a smart technical point Roger. You can not now do the opposite of Forsyth Barr as you have already sold out of NZO.Could it be that FB has read your comments and all the collective negative one and decided that that spells the bottom so have an accumulate recomendation on NZO.
Digger, I reckon Forsyth Barr putting the accumulate recommendation on NZO and me selling out happenned about the same time, I certainly didn't wait for them in their "infinite wisdom" to make their minds up. Who on here wouldn't back themselves to earn a better than -7% return over five years LOL, their track record speaks for itself and that return is only on their stock picking "ability". Then factor in their bond and CDO recommendations, including Feltex bonds that converted to equity and of course the mighty performance of SCF and how Paviour-Smith handled that and he's supposed to be their top guy....need I say more !!
Beagle
27-12-2010, 11:54 AM
Agree totally with you. What Forbar recommends - you avoid.
Forbar = lousy research so they structure issues to inhouse and long term captive clients which are total duds and complete disasters like Credit Sails ("we are just brokers to the issue" "yeah right"), Feltex and SCF preference shares as you mentioned.
Forbar = a lame horse which keeps coming last.
A diehard Nogger Like McDouall Stuart calling it quits - very telling. One thinks they finally woke up to the fact that this is a stock in terminal decline.
Cheers Pal, Here's a little bit of light hearted Christmas season fiction for your amusement..extract from the Forsyth Barr Investment Update October 2010 newsletter sent to clients, (and former clients ?), anyway here's how this goes...
Next year Forsyth Barr celebrates its 75th year of operation. Throughout our history, our Board has always been comprised of people committed to the highest ethical standards and best practices in governance to ensure the firm has been well placed to respond to market conditions and opportunities. This continues to the current day where we are fortunate to have some of New Zealand's most talented business people providing sound governance and strategic direction for the firm
How did that Tui beer add go again, oh yes...YEAH RIGHT
To be fair to them Roger,
every broker of F/B have over the years greeted interest in T. Radfords Cos. with derision.
I, by the way am very pleased with having, despite some ups and downs done extremely well out Tony s co,s.
As always,matter of vigilance and timing, yes and good luck i guess.
Beagle
28-12-2010, 10:32 AM
To be fair to them Roger,
every broker of F/B have over the years greeted interest in T. Radfords Cos. with derision.
I, by the way am very pleased with having, despite some ups and downs done extremely well out Tony s co,s.
As always,matter of vigilance and timing, yes and good luck i guess.
I have to conceed its possible to trade almost any share and with enough skill, luck and timing you can make money but NZO were $1.75 this time last year, they had a huge influx of capital in 2009 with option excercise at $1.50 and Noggers with short memories might be interested to know NZO were $1.40 in 1982. (That last figure should make for a grim reality check for any recently converted NOG enthusiast).
DoctorG
29-12-2010, 02:10 PM
Noggers with short memories might be interested to know NZO were $1.40 in 1982.
I am not a Nogger yet, but I think I could be soon.
NZO will bounce back up to there 1982 prices in no time.
Or will they just keep going down now.
Noggers with short memories might be interested to know NZO were $1.40 in 1982.
I am not a Nogger yet, but I think I could be soon.
NZO will bounce back up to there 1982 prices in no time.
Or will they just keep going down now.
I wouldnt take too long making up your mind
SP is rising and twice as many buyers as sellers
Balance
29-12-2010, 03:46 PM
I wouldnt take too long making up your mind
SP is rising and twice as many buyers as sellers
With a few big sellers just waiting in the wings.
With a few big sellers just waiting in the wings.
Dont forget we have big buyers eg acc-not waiting but actually buying . Also the buy-back has started again and the price of oil is going up . More upside than downside I would say .
Balance
29-12-2010, 04:33 PM
Dangerous for short -term traders but good buying at present for those prepared to invest for 1 year plus horizons .
. Tapis is creeping up - now $86 us .
Posted by Fish on 10 August 2010 - just so that the newbies know.
Guess what the Sp was then?
Posted by Fish on 10 August 2010 - just so that the newbies know.
Guess what the Sp was then?
An honest and true statement at the time .
Tapis has continued to creep up-now nudging $100 us
I just lack the perfect hindsight to predict the prc tragedy -no doubt you knew it was going to happen
tim23
29-12-2010, 07:43 PM
Good point Fish - could have sold my NZO & PRC shares and bought back!!
tim23
29-12-2010, 07:46 PM
Gee Doctor G - whats your call you can't sit on the fence, up or down?
Noggers with short memories might be interested to know NZO were $1.40 in 1982.
I am not a Nogger yet, but I think I could be soon.
NZO will bounce back up to there 1982 prices in no time.
Or will they just keep going down now. Reply Reply With Quote .
winner69
30-12-2010, 01:40 PM
I wouldnt take too long making up your mind
SP is rising and twice as many buyers as sellers
NZO is on fire ... up 3 cents since Xmas and a really good gain from 81 cents a week or so again
Fish seems to be a market mover ..... heed his advice and don't take too long making up your mind
Watch the excitment on CNBC about rising price oil and commodities and you will see why you must get into NZO now
DoctorG
30-12-2010, 02:08 PM
Gee Doctor G - whats your call you can't sit on the fence, up or down?
Noggers with short memories might be interested to know NZO were $1.40 in 1982.
I am not a Nogger yet, but I think I could be soon.
NZO will bounce back up to there 1982 prices in no time.
Or will they just keep going down now. Reply Reply With Quote .
I decided to become a NOGGER, what the hell.
Seriously, I think they have been heavily discounted, and their libility with regard to the PRC tragedy is limited, and oil prices are on the up.
(Its easy to ignore the negative and only see the positive now I have bought, come on let me know more reasons why I am wrong, depress me please)
Beagle
30-12-2010, 02:13 PM
I decided to become a NOGGER, what the hell.
Seriously, I think they have been heavily discounted, and their libility with regard to the PRC tragedy is limited, and oil prices are on the up.
(Its easy to ignore the negative and only see the positive now I have bought, come on let me know more reasons why I am wrong, depress me please)
Just read any of my previous posts dude, I simply can't be bothered saying it again. Don't say you wern't warned. Happy now ?
Rabbi
30-12-2010, 03:04 PM
I 'm pretty sure they need farm in partners for most or all of their drilling prospects. The Taranaki Basin is considered high risk, ie. only a 1:10 chance of finding hydrocarbons. A drilling campaign always creates some excitement and a short term lift in the SP.
I would much prefer it if they had to relinquish some of their permits and just bought out some cash strapped Aussie junior with more prospective acreage. They haven't got Pike to throw more money at, so maybe they will consolidate next year and build up their war chest. Out in the Taranaki basin it's not so much drill and thrill but drill and burn money, such is the expense, and relative lack of success.
They missed their chance during the Global Credit Crunch, when they were cash rich when other companies were in trouble.
Whether NZO is good buying at the moment depends not just how much the SP has been discounted to assets, but what the market thinks of NZO going into the future. The SP. more often than not, is dictated by market sentiment.
manxman
30-12-2010, 04:06 PM
They haven't got Pike to throw more money at...
Oh that that were true. There is still the nightmare possibility that NZO will aquire the assets of Pike from the receiver and carry on digging.
J R Ewing
30-12-2010, 04:35 PM
Oh that that were true. There is still the nightmare possibility that NZO will aquire the assets of Pike from the receiver and carry on digging.
Thanks a whole bunch for that Manxman, I had just started to sleep soundly again till you raised that prospect!
J R Ewing
30-12-2010, 04:36 PM
They missed their chance during the Global Credit Crunch, when they were cash rich when other companies were in trouble.
When they write the history of NZO, that is going to be one of the more perplexing chapters.
Toulouse - Luzern
30-12-2010, 04:57 PM
If this works a 5 year chart of NZO.
http://au.finance.yahoo.com/q/bc?s=NZO.NZ&t=5y&l=on&z=m&q=l&c=
Beagle
30-12-2010, 05:01 PM
When they write the history of NZO, that is going to be one of the more perplexing chapters. Nothing perplexing about it, they simply don't know what they're doing and are hopelessly outgunned in terms of talent and resources by companies on the other side of the Tasman.
Think about it, if you really were a world class miner, mine manager or oil and gas analyst, why would you choose N.Z. as your operational base....
Toulouse - Luzern
30-12-2010, 05:15 PM
Personal opinions only follow as comments to previous post chart link to Yahoo:
I was in NZO from Apr 2008 to Oct 2008.
Intended to be long term holder in NZO and NZ Inc (patriotic duty as Liz says)
Not since.
Have look at what followed from Oct 2008 ...
Was in NZOOD in June 2008.
Prefer ASX to NZX ever since.
Felt there may have been big players at work on the NZO NZOOD market price not to my advantage.
Lots of volatility then - eg, oil price, exchange rates, options, drill prospects, PRC investment, management, information flows...
If your keen on energy then personally I feel there there other options eg in OZ and the bigger and liquid OZ market felt safer and lower risk to me... eg AOE, AWE, OSH, VPE, BOW
I also found that stop losses were not necesarily an advantage in volatile NZO.
Was in PRC from May to July 2008.
Not since.
However I acknowledge that the price of NZO is historically low ...
PS: While I was composing this after posting the chart Roger has posted similar views that I agree with...
Thanks a whole bunch for that Manxman, I had just started to sleep soundly again till you raised that prospect!
acquiring the assets of prc from the receiver is a possibility.
I am sure nobody would be able to carry on digging for a long time and only after safety plans of a world standard are in place.
Selling the mine or a majority shareholding in the mine to an Aussie miner with expertise in methane extraction could be an option-they are rich companies and the aussie dollar is strong .
Beagle
30-12-2010, 05:33 PM
acquiring the assets of prc from the receiver is a possibility.
I am sure nobody would be able to carry on digging for a long time and only after safety plans of a world standard are in place.
Selling the mine or a majority shareholding in the mine to an Aussie miner with expertise in methane extraction could be an option-they are rich companies and the aussie dollar is strong .
So that would make it yet another prospect where NZO are looking for a farm-in partner who actually knows what they're doing LOL.
Technology is advancing around the world . Australia is the worlds biggest coking coal exporter and prices are going up. Bigger companies than nzo are using Australian expertise-
eg
urray & Roberts Cementation has secured a turnkey contract to raise-drill and support two ventilation shafts at Debswana's Morupule Colliery in Botswana. Both shafts, each with a 6.1m diameter, will have a final depth of 100m.
The scope of work includes the project management of the manufacture, supply, installation and commissioning of two 1MW fans in the up-cast shaft. Allan Widlake, business development executive at Murray & Roberts Cementation, states that the company brings its extensive project management expertise to the table and has a solid track record equipping major vertical shafts.
"What is most significant about this contract is that support of the shafts will be done using a remote controlled shotcrete machine which will spray a concrete lining into the inside of the shafts," he said. This new technology has been brought in from Australia and represents a significant investment from Murray & Roberts Cementation.
Morupule Colliery supplies coal to Morupule power station and this contract forms part of the current expansion programme whereby the mine's capacity will be increased from 1Mt/y to 3Mt/y. The contract will begin in November 2010 and is scheduled for completion in June 2011.
digger
04-01-2011, 09:13 AM
Tapis now at 101$ US so my guess of 100 last year at this time was near enough to spot on. Will not do it again this year as i clearly would have been better off thinking about what could go wrong with NZO,s investments.
Cheers all for the new year.
Tapis now at 101$ US so my guess of 100 last year at this time was near enough to spot on. Will not do it again this year as i clearly would have been better off thinking about what could go wrong with NZO,s investments.
Cheers all for the new year.
congratulations for being spot on digger.
Rig Hire is priced in us dollars so drilling is more affordable and hopefully we are advanced in planning for our next prospects.
Sideshow Bob
06-01-2011, 10:31 PM
FY2011 Production (NZOG's share):
December 2010:
240 TJ of gas
22,600 barrels of light oil
950 tonnes of LPG
Can anyway tell me roughly what a TJ of gas is worth and a ton of LPG?? Thanks.
ll that unexplored potential oil sitting out there in the southern ocean-Looks like some of the big companys are on to it-Surely theres an opportunity there for a co. right on the doorstep.
Wouldnt that be a game changer for NZO and New Zealand
the machine
08-01-2011, 02:32 PM
ll that unexplored potential oil sitting out there in the southern ocean-Looks like some of the big companys are on to it-Surely theres an opportunity there for a co. right on the doorstep.
Wouldnt that be a game changer for NZO and New Zealand
the cost to drill in the southern ocean is beyond nzo's capability. some world players may have an interest now, but when it comes to drilling and the weather risk, then that remains to be tested. then through in the iceberg risk.
am so glad nzo did not pursue these permits
M
I have no doubt that good potential for oil and gas exists around NZ.
But sadly in the obvious absence of competence of this board and in view of the recent likely possible write down of millions and dilly dallying there has to be some real solsearching.
Will probably take 12 -18 months to see whether the co. has the wherewithal to stop the steady decline, or to match there inflated remunerations and return it to anywhere near the brilliant future of 3-4 years ago.
Something that is difficult to envisage with the present mix and approach of an overrated management.
The saying; A fool and his money is easy parted, may hopefully not come true, although they are on track to make it so.
I wonder why nzo hasnt got Shell todd oil services interested in joint prospecting using the noble discoverer whilst in taranaki waters .
Shell Todd Oil Services will next month start drilling its first exploration well in 10 years near the giant Maui gas field.
Between $50 million and $100 million could be spent on an exploration well called Ruru, south of the Maui field which has supplied much of New Zealand's gas for the past 30 years.
Drilling will take two months in the permit area, about 40km off the south Taranaki coast.
The Noble Discoverer, a drill ship coming from Singapore, will be used.
While offshore Taranaki fields Tui, Maari and Kupe are producing oil, drilling in the region by a number of consortia during the last four years has produced close to 20 dry wells.
Shell Todd general manager Rob Jager said the company had been looking at the area for several years.
"The signs are good enough there to bring in a drill ship for a single well. But as always the proof is in the pudding at the end of the day," he said.
"We've got to drill the hole to see whether the structures we're seeing are bearing hydrocarbons and indeed whether they're in the volumes that would make it worth developing."
The structure was similar to Maui but deeper. The water depth was about 100m and drilling would go to 4000m, Jager said.
It was not possible to tell from a seismic survey whether structures could contain primarily gas or oil.
"We would be happy with either."
Jager said the well was not a wildcat - where there typically is a 10 per cent success rate - and given its proximity to Shell-operated Maui gas field was in very good real estate.
The field, discovered in 1969, led to the building of gas-fired power stations throughout the North Island and Think Big projects in the early 1980s.
It is still in production after more than 30 years.
While production has been dwindling since early last decade, drilling around the two platforms has extended its life.
Since it started producing it has accounted for an estimated 80 per cent of natural gas used in New Zealand.
the machine
09-01-2011, 01:48 AM
yes fish, would be very nice to use this drill ship for a couple of holes, provided the daily hire is ok
M
The NZO board are required to buyback 8500000 shares. So far they have bought 280000 on market for prices ranging from 82c to (most recently) 88c. Surely that puts a floor under the price medium-term?
notie
09-01-2011, 11:21 AM
I wonder why nzo hasnt got Shell todd oil services interested in joint prospecting using the noble discoverer whilst in taranaki waters .
Shell Todd Oil Services will next month start drilling its first exploration well in 10 years near the giant Maui gas field.
Main reason is they have no holes to drill. nzo talk a big story but they really aren't anywhere near drilling any wells. Expect them to relinquish both Barque and Kaupokonui in the near future without a well being drilled. Tui production dropping like a stone, although Kupe is a good income stream.
Still an over valued stock and a top heavy bloated company that moves far too slowly to secure any good prospects.
winner69
09-01-2011, 12:23 PM
The NZO board are required to buyback 8500000 shares. So far they have bought 280000 on market for prices ranging from 82c to (most recently) 88c. Surely that puts a floor under the price medium-term?
Not required to ..... but that is what they intend to do
Spose as long as they believe their own story they will continue to buy and cancel shares
Must be hard for 'this top heavy bloated company that moves far too slowly to secure any good prospect' and which is 'still an over valued' (Notie's description) to do this sort of thing .... don't they prefer spending money on drilling holes in hope of zillions
Not required to ..... but that is what they intend to do
Spose as long as they believe their own story they will continue to buy and cancel shares
Must be hard for 'this top heavy bloated company that moves far too slowly to secure any good prospect' and which is 'still an over valued' (Notie's description) to do this sort of thing .... don't they prefer spending money on drilling holes in hope of zillions
Must still be very negative sentiment such as above to keep the sp so low despite the returns on kupe and tui increasing .NZO had a tragic and unlucky year in 2010 and the sp has been severely punished . Tapis is now us 101.49 and at .76 cents to nz ddollar= $133.54 .
Analysts reports indicated in December that nzo was a good buy so with an increase in tapis must be an even better buy- so nzo please keep buying back shares at these prices
Coverage Summary
Company Report Date Valuation Target Price Recommendation
Credit Suisse Dec 2010 NZ$1.06 NZ$.96 Outperform
Forsyth Barr Dec 2010 NZ$1.20 - Accumulate
McDouall Stuart Dec 2010 NZ$1.11 - Hold
Morgan Stanley Dec 2010 A$.67 A$.67 Equal-weight
Macquarie Nov 2010 NZ$1.51 NZ$1.20 Neutral
UBS Nov 2010 not disclosed Buy
Aspect Huntley Nov 2010 A$1.08 - Hold
Looks like shell is bringing exciting new technology that help identify/confirm new reservoirs in nz . Hope NZO gets onto this as they need to improve their strike rate in the good permits they hold
Deep electromagnetic imaging
EMGS | www.emgs.no
No Comments
When can a new exploration technology be considered to have resulted in a fully fledged industry? Is the answer a measure of turnover? Is it when explorationists have to justify not using the technology? Perhaps it is when the ‘big-three’ seismic companies are compelled to add the technology to their portfolios?
Whatever your criterion, deep electromagnetic (EM) imaging, which uses EM energy to find hydrocarbons without drilling wells, has clearly become a major industry in its own right. Its much older sister industry, seismic surveying, has been the cornerstone for exploration decisions since modern-day oil exploration began. However, seismic techniques have limited ability to successfully predict the location of hydrocarbons when used in isolation, which is one reason why offshore exploration drilling hit rates are less than one in four.
The traditional exploration workflow relies on indirect evidence to locate hydrocarbons, and seismic methods are mainly sensitive to rock structures and not to the fluids within them. In contrast, EM methods are very sensitive to reservoir fluids and can indicate hydrocarbons directly. Naturally, the first popular use of EM imaging in the oil industry was to test, before drilling, whether the potential reservoir structures (prospects) identified from seismic data actually contained oil. This significantly reduced exploration drilling risks and avoided many costly dry wells.
More recently, new applications of EM imaging have extended its use to act like a divining rod to search for direct evidence of hydrocarbons before performing extensive seismic surveys or bidding for new acreage in licensing rounds. This is particularly valuable in frontier regions because it enables costly exploration resources to be targeted on the most promising areas, and it accelerates the delivery of higher-grade prospects and, ultimately, more discoveries. Applications beyond exploration are also being pursued. Scientists and engineers are developing methods and technology to use EM imaging for field appraisal, advancing field development plans and even reservoir monitoring on mature assets to help optimise production and recovery.
Fewer than 10 years have passed since the idea behind the technology was conceived, and it is only five years since the first commercial survey was performed, and yet the usually conservative exploration community has embraced EM imaging. During the latter half of 2007, interest in EM technology has intensified and has culminated in a frenzy of merger and acquisition activities, as smaller EM companies and the big-three seismic players have scrambled to catch up with the market leader and pioneer of the technique, Electromagnetic Geoservices (EMGS).
Invention and commercialisation
Offshore EM imaging, also known as seabed logging, is an unusual technology because the people who invented the technology continue to work at the forefront of its development and commercialisation. Terje Eidesmo and Svein Ellingsrud, who went on to found EMGS, first had the idea of using a powerful EM source to find offshore hydrocarbons in 1997 while working for Statoil. They performed modelling work and scaled experiments, and then, in 2000, ran the first full-scale field trial, work for which they were recently awarded the Society of Exploration Geophysicists’ prestigious Virgil Kauffman Gold Medal.
In November 2002, EMGS conducted the world’s first commercial offshore EM survey over Ormen Lange field in the North Sea. Since then, the company has performed over 300 surveys, logged more than 40,000 km of the ocean floor (greater than the Earth’s circumference) and deployed over 11,000 seabed EM receivers (Figure 1).
Unparalleled success
The reason for such rapid growth is simple: the technology works. Offshore exploration drilling success rates have historically been around one in four. By contrast, EMGS’ surveys have correctly predicted the reservoir fluids in more than 90 percent of the cases where the company has drilling results.
Another reason for the technology’s success is that EM data is independent of, but fits well with, seismic data. The first commercial depth migration of EM data, performed by EMGS in 2005, was a real milestone. It meant that EM data could be independently correlated with seismic and other geological information (Figure 2).
Unsurprisingly, given that EM surveying can directly test for the presence of commercial-scale offshore hydrocarbons and can help to avoid the drilling of dry wells, the technology has been rapidly adopted. Indeed, the big-three seismic companies have all climbed on board by acquiring or joining up with smaller EM-surveying companies. This scramble to catch up with market leader EMGS is a sure sign that the offshore EM-surveying industry has come of age.
Exploring with surgical precision
Scanning is a growing application for EM surveying that can rapidly identify leads in large areas, regardless of their seismic expressions (Figure 3). Scanning surveys enable costly exploration resources to be targeted on the most promising areas, and they accelerate the delivery of higher-grade prospects and, ultimately, more discoveries where there is oil to be found.
Scanning is particularly well suited to exploration in environmentally sensitive frontier regions. EM imaging has an inherently small environmental footprint; the source is harmless to sea mammals and the sensor anchors are made using a proprietary material that degrades to environmentally benign products (Figure 4). Similar to the way that medical scans enable surgeons to pinpoint problem areas before operating, EM scanning enables subsequent exploration investments and activities to be conducted with almost surgical precision to minimise pointless bidding, drilling or geophysical surveys in non-prospective areas.
The scale and effectiveness of scanning surveys are driving new multi-client business models and the development of new enabling modelling technologies. Scanning has been predicted to become the first-look method of choice for finding hydrocarbons in frontier areas; so, it is little wonder that the big-three seismic companies want a piece of the action.
A solid foundation
All the super-major and many of the independent and national oil companies have commissioned offshore EM surveys. This widespread adoption has been described as “…a remarkable achievement for a young technology, given the oil industry’s notorious reluctance to embrace innovation” (Offshore Engineer, August 2007, p 22).
EMGS continues to work with government agencies, major resource holders and all the leading energy companies. It has offices across the world and operates the industry’s largest survey fleet, with five vessels and two more purpose-built vessels planned for 2008. These vessels and EMGS’ on- and offshore teams are helping operators to enhance their exploration performance by reducing the number of dry wells, enabling new discoveries and, ultimately, giving them a competitive edge. EM surveys can now be acquired in 3D, and the active research and development department at EMGS is constantly developing the survey equipment and the modelling and integration techniques.
In its Virgil Kaufmann Gold Medal award citation for the original inventors of the technique, the Society of Exploration Geophysicists stated: “This pioneering work spawned a new service industry,” and that would certainly seem to be the case, judging by the evidence presented here.
It is an exciting time to be in the fast-moving EM industry. Who knows what the next decade will bring?
For more information, please visit www.emgs.com or email findinghydrocarbons@emgs.com.
a few months. Receivers are arranged in a grid or linear pattern at distances ranging from 1 to 5 km, depending on the survey’s objective.
Electromagnetic survey of Maui an NZ first - Shell
Maui field operator Shell Todd Oil Services (STOS) is carrying out an electromagnetic survey of the Maui production mining licence off Taranaki to detect hydrocarbon reservoirs beneath the seabed.
The survey was believed to be the first of its type in this country for oil and gas commercial purposes, STOS general manager Rob Jager said.
The technology involved leading-edge remote sensing equipment and was an emerging exploration method.
The ship BOA Galatea, which was purpose-built for such work and operated around the world, would spend about a month on the Maui project, STOS said today.
The 80-metre vessel with a crew of nearly 50 operated around the clock.
The survey is separate to the drilling of the Ruru exploration well next to the Maui field, which STOS announced last week.
Drilling ship Noble Discoverer is expected to start drilling the well in February, about 40km off the south Taranaki coast.
STOS is not commenting on the cost of the well, but the industry standard for an exploration well is between about $30 million and $70m.
The Maui gas-condensate field has been the mainstay of New Zealand's petroleum production since the late 1970s but is in decline.
notie
13-01-2011, 09:59 AM
Looks like shell is bringing exciting new technology that help identify/confirm new reservoirs in nz . Hope NZO gets onto this as they need to improve their strike rate in the good permits they hold
Deep electromagnetic imaging
EMGS | www.emgs.no
No Comments
nzo aren't going to use this as they would have had to book it ages ago. In fact they have to tell the govt whether they are going to drill a well in their Gamma permit 51311 by the 26 Jan. they had not got any farm ins on this, so in all likelihood they will hand back this permit.
nzo is going nowhere very slowly
Balance
13-01-2011, 10:12 AM
New year so let's take a different tack on NZO.
Where is the greatest upside for NZO this year?
It surely is to recover value from PRCC?
So let's see what management is planning to do.
Beagle
13-01-2011, 11:03 AM
New year so let's take a different tack on NZO.
Where is the greatest upside for NZO this year?
It surely is to recover value from PRCC?
So let's see what management is planning to do.
Happy new Year to you Balance and all other bloggers.
Why bother taking a different view ? It may be a new year but we have the same management and directors with their "wonderful" track record that we've discussed many times before. The only way I can see value being recovered from PRC is if the mine is open cast and John Key doesn't have the courage to do this before the election. I predict this stock will go nowhere this year with little chance for a dividend due to the massive forthcoming write-offs I can't think of a single reason to bother with it, can you ?
Balance
13-01-2011, 11:15 AM
Agree with you, Roger but keeping an ongoing watch on developments with PRC.
This dog could have some bite this year if there is life left in PRC.
As one of the top fund managers last year was quoted as saying - he avoids stocks which have 'buy' recommendations from all the brokers. Recipe for disappointment and that is what NZO has been.
BigBob
13-01-2011, 11:22 AM
....we have the same management and directors....
What's this "we" business, Roger...? I thought you'd sold out and moved on to Ryman...
Maybe you could start posting on the Ryman thread instead of here...? Your posts are becoming a bit repetitive...
Balance
13-01-2011, 11:26 AM
What's this "we" business, Roger...? I thought you'd sold out and moved on to Ryman...
Maybe you could start posting on the Ryman thread instead of here...? Your posts are becoming a bit repetitive...
If you listened to Roger, you would have saved yourself a lot of grief. Don't ever fall in love with a stock and then, want to only read or hear good things about it. Recipe for disaster.
Beagle
13-01-2011, 11:29 AM
nzo is going nowhere very slowly
+1... that says it nicely. "We" opps sorry, quite right Bigbob, no doubt you will be happy with this then...Nothing more to add at this stage.
BigBob
13-01-2011, 01:28 PM
If you listened to Roger, you would have saved yourself a lot of grief. Don't ever fall in love with a stock and then, want to only read or hear good things about it. Recipe for disaster.
Really, and how so...? Roger started repeatedly slating the stock, management and board when the share price was in the low 80's....
I am not in love with any stock and I have no problem with everybody having their say - the problems I have here is that a) Roger is no longer in NZO so I don't know why he keeps going on about it, and b) he hasn't added anything new to the conversation for some time...
In fact, Balance, the same could be said about you, but lo and behold it appears that you actually tried to start a constructive conversation with your earlier post...
Anyway, Happy New Year to everyone - and that includes Roger and yourself... !!
BigBob
13-01-2011, 01:30 PM
+1... that says it nicely. "We" opps sorry, quite right Bigbob, no doubt you will be happy with this then...Nothing more to add at this stage.
We'll see, we'll see....!! All the best for the new year anyway, mate...!
Notie/Roger
They have actually been in discussions with shell for the past 6 months on whether they can use the noble discoverer or emg .
It is very presumptive of you to say nzo is going nowhere slowly .
I do believe the management is good and carefully considers prospects .
NZO has great cashflow(you dont seem to notice that tapis has been increasing-now us $104.50) and it is premature to discount the possibility of a dividend this year or drilling announcemounts soon
notie
13-01-2011, 04:19 PM
Notie/Roger
They have actually been in discussions with shell for the past 6 months on whether they can use the noble discoverer or emg .
It is very presumptive of you to say nzo is going nowhere slowly .
I do believe the management is good and carefully considers prospects .
NZO has great cashflow(you dont seem to notice that tapis has been increasing-now us $104.50) and it is premature to discount the possibility of a dividend this year or drilling announcemounts soon
really? have they been in discussions?
permit 51311 will be handed back by 26 jan or they will seek an extension. nzo would never go into a well holding 100% equity, that is unless radford feels desperate and wants to gamble.
it is going to be one long year for nzo and its remaining entrenched investors
As I said they have been in discussions with shell for the past 6m.
An announcement is expected soon .
EMGS is the kind of technology that has the potential to vastly improve the success rate .
They have no intentions that I am aware of of holding 100% equity in any well-nor would I want them to take that risk
when replying to noties posts,keep in mind that out of 100 posts since he joined,99 have been slagging NZO.
OutToLunch
14-01-2011, 10:40 AM
when replying to noties posts,keep in mind that out of 100 posts since he joined,99 have been slagging NZO.
Who did he slag in the other one?
Who did he slag in the other one?
Well said. I needed a laugh.
digger
14-01-2011, 01:46 PM
Who did he slag in the other one?
Excellent a good laugh.
Penfold
14-01-2011, 09:52 PM
Who did he slag in the other one?
It was Pan Pacific Petroleum. Seriously, it is exactly 1. And the other 99 really are NZO. If I was only going to follow one share, I would go for one I liked.
tim23
14-01-2011, 09:57 PM
Notie = Duncan?
It really makes you appreciate those excellent posters that generously share their research and expertiese
Balance
15-01-2011, 10:00 AM
It really makes you appreciate those excellent posters that generously share their research and expertiese
And Notie has been so right about NZO.
duncan macgregor
15-01-2011, 03:17 PM
Notie = Duncan? Sorry to dissapoint you Tim but NOTIE is not duncan. I am one of the few who post under my own name. I agree however that NZO management are a hopeless bunch and bailed out a few years ago after listening to the waffle at the AGM in Auckland. I also warned you lot about PRC from start to finish with that bunch of incompetants. Macdunk
Not required to ..... but that is what they intend to do
Spose as long as they believe their own story they will continue to buy and cancel shares
Must be hard for 'this top heavy bloated company that moves far too slowly to secure any good prospect' and which is 'still an over valued' (Notie's description) to do this sort of thing .... don't they prefer spending money on drilling holes in hope of zillions
Sorry, that was a bit loose, I agree that the buyback is not legally required, it is legally approved. But if you think that NZO's board will either want to raise cash any time soon, or believes its shares to be so undervalued as present a takeover target, then an ongoing buyback campaign is highly likely.
The Dominion today reported that the receivers of Pike River Coal are funding six to eight weeks of efforts to stabilise the atmosphere within of their mine. Those receivers are well aware that, given current levels of capitalisation, their only duty is to recover value for secured creditors NZO & BNZ. Therefore they must see some value (to NZO) in their mine once its atmosphere is stabilised.
BigBob
19-01-2011, 01:29 PM
There has been no buy-back announcements for almost a week... Is that maybe because there is material information related to something happening behind the scenes?
Or is it just the brew of Earl Grey about to be wheeled round by Mcdunk's tea-lady, assuming she hasn't left...?
blockhead
19-01-2011, 05:00 PM
Dunno but you can be sure they are not all down the corporate box watching the cricket, 2 runs in the last 4 overs.
Be more exciting listening to Michael Laws talking about himself !
BigBob
19-01-2011, 05:10 PM
Yes, I have come to the conclusion that watching the Blackcaps and following stocks on the NZX is basically the same..: mostly tedious and disappointing, but mostly just plain boring.....
Casa del Energia
20-01-2011, 10:55 AM
lots of trades this morning - Anyone got a good rumour?
Or is it just the buyback going into hyperdrive.
winner69
20-01-2011, 11:05 AM
There has been no buy-back announcements for almost a week... Is that maybe because there is material information related to something happening behind the scenes?
Or is it just the brew of Earl Grey about to be wheeled round by Mcdunk's tea-lady, assuming she hasn't left...?
Back on track ... obviously no secrets ... though Casa thinks otherwise as huge activity today
BigBob
20-01-2011, 11:56 AM
Back on track ... obviously no secrets ... though Casa thinks otherwise as huge activity today
They must have finished brewing the tea... :o)
Balance
20-01-2011, 12:03 PM
They must have finished brewing the tea... :o)
Not a good sign.
Resumption of buyback met by wall to wall selling - instos obviously taking the opportunity to get out. Switch over to real oil and gas stocks in Australia or US.
Management better get on to some value creation initiatives.
BigBob
20-01-2011, 12:17 PM
Switch over to real oil and gas stocks in Australia or US.
I think you'll find most of the oilers on here are already in those markets too and that NZO is "not the only true love" as you continue to imply...
Balance
20-01-2011, 12:19 PM
I think you'll find most of the oilers on here are already in those markets too and that NZO is "not the only true love" as you continue to imply...
You could have fooled the rest of us ...
mikew
20-01-2011, 12:40 PM
Market is waitting for NZO to give a clearly writeoff number from PRC disaster, at least I am waitting.
Casa del Energia
20-01-2011, 01:08 PM
Well, I just find it 'odd' that the number of trades jumps in 'batches' and it is by far the most heavily traded share today. The market isn't governed by quantum menchanical rules - so I'd love to know the reason.
Or an I just staring too hard at my crystal ball?
winner69
20-01-2011, 01:20 PM
Well, I just find it 'odd' that the number of trades jumps in 'batches' and it is by far the most heavily traded share today. The market isn't governed by quantum menchanical rules - so I'd love to know the reason.
Or an I just staring too hard at my crystal ball?
and almost (all but 5) have been at 86
Balance on to it .... NZO buy at 86 today (no more than that today sorry) and many selling into it. Then again it might be somebody like fish buying at 86 (no more) and finding plenty of punters to take that price
Is that 'odd' ... not the fish scenario of course
Casa del Energia
20-01-2011, 01:29 PM
and almost (all but 5) have been at 86
Balance on to it .... NZO buy at 86 today (no more than that today sorry) and many selling into it. Then again it might be somebody like fish buying at 86 (no more) and finding plenty of punters to take that price
Is that 'odd' ... not the fish scenario of course
Moderately good theory. Will have to plump for that at the mo. At least it's holding up the price - the rest of NZX & ASX is a sea of red.
winner69
20-01-2011, 01:39 PM
Moderately good theory. Will have to plump for that at the mo. At least it's holding up the price - the rest of NZX & ASX is a sea of red.
.... and it looks like they won't bw buying anymore today at 86 .... wonder what will happen for the rest of the day
.... and it looks like they won't bw buying anymore today at 86 .... wonder what will happen for the rest of the day
Its not surprising that nzo held its price today .Like it or not the price of oil is not going down with increasing demand-chinese oil imports up more than 10% last year and oil is finite so inevitable what will happen .
Energy demand is also increasing in nz so bought some more contact today as I really am overweight in nzo .
winner69
21-01-2011, 11:31 AM
so there was soembody else buying yesterday at 86 ... seeing the buyback was only 100k shares
notie
24-01-2011, 11:38 AM
what are NZOG doing to do?
PEP 51311 (Kaupokonui)
NZOG has signed a farm-out arrangement with Peak Oil & Gas Ltd, which is taking a 10% stake in the permit, and will pay 20% of the first well costs, capped at US$3m. NZOG is seeking at least one more joint venture partner ahead of the commitment required in January 2011, to drill a well within the following 12 months.
odds on they are going to drop the permit. they will not drill a well with 100% holding in it. Commitment is due today.....
the machine
24-01-2011, 11:56 AM
what are NZOG doing to do?
PEP 51311 (Kaupokonui)
NZOG has signed a farm-out arrangement with Peak Oil & Gas Ltd, which is taking a 10% stake in the permit, and will pay 20% of the first well costs, capped at US$3m. NZOG is seeking at least one more joint venture partner ahead of the commitment required in January 2011, to drill a well within the following 12 months.
odds on they are going to drop the permit. they will not drill a well with 100% holding in it. Commitment is due today.....
rather "they will not drill a well with 80% holding in it" might be the go.
M
J R Ewing
24-01-2011, 12:21 PM
Dropping permits is fairly common, not really a big deal. If they can't get enough farmin interest, then the market is simply saying that the risk/reward doesn't stack up for drilling this permit at the present time. You have to expect that permits will be picked up and subsequently dropped in the normal process of evaluating drillable prospects.
digger
24-01-2011, 12:52 PM
Dropping permits is fairly common, not really a big deal. If they can't get enough farmin interest, then the market is simply saying that the risk/reward doesn't stack up for drilling this permit at the present time. You have to expect that permits will be picked up and subsequently dropped in the normal process of evaluating drillable prospects.
What you say R Ewing is fact and well understood in the drilling world,but to Notie it is an opportunity to slang off at NZO using a bit of smoke and mirrows and with a bit of invester ignorance he might well fool some into thinking it is all NZO incompetence that has caused the permit being dropped,if in fact it does get dropped.
notie
24-01-2011, 01:42 PM
What you say R Ewing is fact and well understood in the drilling world,but to Notie it is an opportunity to slang off at NZO using a bit of smoke and mirrows and with a bit of invester ignorance he might well fool some into thinking it is all NZO incompetence that has caused the permit being dropped,if in fact it does get dropped.
it does mean a lot when it is one of their only 3 operated permits and one in which they were talking up last year saying there is 200 million barrels of oil in. If they can't manage to farm out of portion of this permit to another company then it says a lot about the competence and ability of nzog as well as how they are seen by other E&P companies.
nzog is not in control of their own destiny as most of their permits are non-operated and run by other companies. as we have seen in the case of pike that isn't a great thing as they are reliant on other companies making the right decisions.
nzog will continue to flounder around in 2011 and share price is below the 1980's listing price. wow
J R Ewing
24-01-2011, 02:59 PM
I think it is a bit of a stretch to infer that a decision by other operators not to take up a farmin interest implies that they lack faith in NZO management. The major factor must be the risk/reward ratio, and if it says anything much at all I suspect it is more an indictment on the general prospectivity of Taranaki. As for the operator status, that would likely change hands in the event someone took a major part of the risk. It is not at all essential for NZO to be the operator in order to have commercial success.
tim23
24-01-2011, 04:58 PM
Good point JR e.g Tui
BigBob
31-01-2011, 09:46 AM
Ho Hum...:
http://www.nzog.com/dec10QR
geezy
31-01-2011, 03:20 PM
its sad to see that NZO has nothin much to look forward too, thus the lagging SP. However, i do think we will see above $100 per barrel this year.
Arbitrage
01-02-2011, 09:31 PM
Yes they do seem a bit directionless. They did seem to put the Pike River tragedy behind them and spent time looking to the future. Brent crude hit $101.01 today so I suppose that gives them some direction.
Yes,
just sitting there on 1/2 Mill. per an. and looking into the future is something that has been going on for a long time.
Balance
05-02-2011, 10:42 AM
Yes they do seem a bit directionless. They did seem to put the Pike River tragedy behind them and spent time looking to the future. Brent crude hit $101.01 today so I suppose that gives them some direction.
Directionless?
No - NZO has been busy spending money.
Unfortunately, all in the wrong investments and with the wrong management.
I keep reading about the new,and much better technology for locating oil.
With the vast untapped Southern basin,you would think there would be some major opportunities out there to partner up with someone. Time will tell..
notie
07-02-2011, 10:13 AM
I keep reading about the new,and much better technology for locating oil.
With the vast untapped Southern basin,you would think there would be some major opportunities out there to partner up with someone. Time will tell..
well with their CEO pulling 500K/yr these are the guys to go and do that. If they could that is
dsurf
07-02-2011, 11:03 AM
Thought I would block all -ve posters as I have heard it for years - then I realised there would only be one page per month!
notie
08-02-2011, 10:06 PM
Thought I would block all -ve posters as I have heard it for years - then I realised there would only be one page per month!
Might not be all negative. Things could be worse and nzog could be operating permits in Africa. It's a very stable political environment I'm told
Beagle
10-02-2011, 03:19 PM
Might not be all negative. Things could be worse and nzog could be operating permits in Africa. It's a very stable political environment I'm told
Thought I'd pop back in and have a look at what's been "so called" happening LOL, what a huge surprise, nothing.
BigBob
10-02-2011, 03:44 PM
Thought I'd pop back in and have a look at what's been "so called" happening LOL, what a huge surprise, nothing.
I bit like RYM, eh...? Getting bored already... ? ;o)
Beagle
10-02-2011, 04:05 PM
Yeah I suppose up 4% in a couple of months, (annulised return 24%) probably is pretty boring but then again at least I can trust the management and know it will grow strongly over time, besides seeing I pounded twice as much into Cape Lambert CFE on the ASX and its up from 50 cents to 68 cents, (36%) in two months, that manages to avoid the boredom quite well :)...but hang in there I'm sure NZO will come right one day, maybe crude will go to $200 ?...I'd better leave this thread before I get flamed to death by the long sufferring NZO faithful...(dodges the flames and slinks away to make money in properly managed companies)
Mr Tommy
10-02-2011, 04:06 PM
Sounds like Peak-Oil has been deferred ...
A new drilling technique is opening up vast fields of previously out-of-reach oil in the western United States, helping reverse a two-decade decline in domestic production of crude.
Companies are investing billions of dollars to get at oil deposits scattered across North Dakota, Colorado, Texas and California. By 2015, oil executives and analysts say, the new fields could yield as much as 2 million barrels of oil a day -- more than the entire Gulf of Mexico produces now.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10705344
Xerof
10-02-2011, 04:14 PM
Interesting snippet out of that article....
The influx of mostly male workers to the region has left local men lamenting a lack of women
I see an opportunity here........:p:p
There is controversy over this technique - look for a DVD called Gasland
BigBob
10-02-2011, 04:32 PM
Sounds like Peak-Oil has been deferred ...
A new drilling technique is opening up vast fields of previously out-of-reach oil in the western United States, helping reverse a two-decade decline in domestic production of crude.
Companies are investing billions of dollars to get at oil deposits scattered across North Dakota, Colorado, Texas and California. By 2015, oil executives and analysts say, the new fields could yield as much as 2 million barrels of oil a day -- more than the entire Gulf of Mexico produces now.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10705344
It's a bit old hat, really... For potential blue sky stocks, check out some of the smaller companies such as Northern Oil & Gas, Samson and my own personal favourite Voyager... Note that for the sentimental among us Northern's ticker is NOG, so that in itself may be enough for some... :o)
Marilyn Munroe
10-02-2011, 06:16 PM
A new drilling technique is opening up vast fields of previously out-of-reach oil in the western United States, helping reverse a two-decade decline in domestic production of crude.
This refers to the practice of fracking. Given that this practice often causes ground water pollution, miners would have a hard time in NZ convincing authorities that this was a sustainable practice under the Resource Management Act.
http://en.wikipedia.org/wiki/Fracking
Boop boop de do
Marilyn
I don't object to notie et al being negative, after all we need to be open to all information, I just wish they'd say something substantive rather than just cheap value judgements.
tim23
11-02-2011, 10:01 PM
Does notie own any shares, I may have missed any posts to suggest that she does?
Price oil continues to rise-tapis $105 us and brent 101 and nz dollar down to 75 cents .
Maybe soon the market will take into account the increasing revenue at no extra production cost for nzo .
digger
15-02-2011, 08:58 AM
Price oil continues to rise-tapis $105 us and brent 101 and nz dollar down to 75 cents .
Maybe soon the market will take into account the increasing revenue at no extra production cost for nzo .
Strange though the weakness of WTI at now only 83 something. Biggest spread i can remember against Brent or Tapis. Still it is Tapis that we sell our oil,in fact at a small premium to Tapis,so yes the income must be coming in.
Good to see NZO is only buying a small proportion of each days trade that way they can never be accused of shutting out other buyers when later on it is all seen as too cheap now.
Balance
15-02-2011, 09:29 AM
Sobering.
All that revenue generated by Tui and all that cash raised from shareholders - squandered on PRC, dry holes and bad investments.
And the biggest opportunity in a lifetime - buying into cheap assets during the GFC - squandered too.
So where is the hope for a company like this?
mikew
15-02-2011, 09:51 AM
So where is the hope for a company like this?
No Hope. There is a long long way to go for a recovery. I reckon will be a sp dip after HY report come out.
Balance it must be horrible for you to go to bed at night knowing you have to wake up miserable every morning. It must be a s**t of a life.
To be fair to BALANCE,
probably not as bad a life as the countless S/H that bought mill. of shares at $1.50 plus.
notie
15-02-2011, 10:38 AM
To be fair to BALANCE,
probably not as bad a life as the countless S/H that bought mill. of shares at $1.50 plus.
Most of which was invested in pike and now that is gone for good they have decided the best use of shareholders money is to buy their own shares back.
Management of this company are devoid of any good ideas but seem happy to collect their large pay checks (500K+ for the CEO). Really these guys couldn't find oil in a petrol station.
Expect something desperate from nzo to get their share price up like an investment in a third world country. A very risky strategy that in the long term will result in the loss of a lot of money.
Balance
15-02-2011, 11:29 AM
Balance it must be horrible for you to go to bed at night knowing you have to wake up miserable every morning. It must be a s**t of a life.
777, thanks for your concern - you are a real mate.
You will be pleased to know I sleep well and wake up feeling great - knowing that those who took into consideration a balanced view of NZO, rather than the relentless NZO-is-god postings here, have avoided making serious losses.
Hope that makes you feel better.
the machine
15-02-2011, 12:08 PM
nzo may be dragged higher through their 15% of ppp - ppp appraisal drill in vietnam should have spudded by now and success could double ppp oil reserves, even though ppp only have 5% of the permit.
results in a month or so.
good time for nzo to increase their holding in ppp from 15% to just under 20% - they have approval to do so from au government
M
Balance
15-02-2011, 06:16 PM
Management of this company are devoid of any good ideas but seem happy to collect their large pay checks (500K+ for the CEO). Really these guys couldn't find oil in a petrol station.
That's rather unkind, notie. Let's give them some credit for trying to mix oil and coal to get a new combination. Bad combination unfortunately and it blew up in their faces.
Hi digger ,
Tapis is now $107.68 .Do you think the rising price will result in the reassessment of finds previously declared to be uneconomic-such as TUI sw?, Certainly the rise in income will help fund new drills and increase the likelyhood of a reasonable dividend .
blockhead
18-02-2011, 09:19 AM
Could it be that the great wall of shares for sale has finally evaporated ? It is starting to look promising I believe.
blockhead
18-02-2011, 01:11 PM
There has for the last few months always been 1,2 or 3 hundred thousand shares on the sell side available wiithin 2-3c of the previous close, now that seems to have gone with 700,000 odd buyers in the 85 - 88c range and less than 100,000 shares available up to 92c.
the machine
19-02-2011, 06:30 PM
incase not noticed, nzo 15% interest in ppp should now be a third of the way drilling towards the appraisal target in vietnam - success could add 450,000 barrels to nzo indirect reserves. new 3d was shot after the discovery in 2009.
M
Silverlight
21-02-2011, 09:39 AM
Does anyone know where NZO sells their oil, which market, which exchange?
impacman
21-02-2011, 10:08 AM
Does anyone know where NZO sells their oil, which market, which exchange?
Tapis market I believe.
Cheers,
I-man
BigBob
21-02-2011, 10:31 AM
Does anyone know where NZO sells their oil, which market, which exchange?
Singapore at a small premium to TAPIS.
notie
22-02-2011, 09:18 AM
With all this civil unrest in North Africa and the Middle East the oil price is going to sky rocket. :cool:
BigBob
23-02-2011, 10:30 AM
From the end of today's announcement...:
Dividend
NZOG's dividend policy since 2008 has been to pay a reasonable portion of profits as an annual dividend. Given the substantial loss resulting from the Pike River Coal situation, the Board does not intend to pay a dividend for the 2010/11 financial year.
The rest of it...:
NZOG (New Zealand Oil & Gas Ltd) has today released its financial results for a six month period which was dominated by the tragic events at the Pike River coal mine.
For the 6 months ended 31 December 2010, NZOG recorded total operating revenue of $40.5 million and a gross profit from operating activities of $3.1 million.
Pike River Coal Ltd (PRCL) related impairment provisions of $98.6 million and unrealised after tax foreign exchange losses of $5.2 million contributed to NZOG reporting a net loss after tax for the six month period of $99.0 million.
NZOG has taken impairment provisions against its PRCL shareholding and unsecured debt. No impairment has been taken against the secured PRCL debt as NZOG expects to recover this debt.
NZOG had a total cash balance at 31 December 2010 of $111.8 million and a net cash position of $48.8 million.
Pike River Coal Ltd
NZOG is a 29.4% shareholder in PRCL and a secured and unsecured debt holder.
At the time of the mine explosion on 19 November 2010, which led to the tragic loss of 29 lives and the cessation of all mining and trading activities, PRCL was in the process of implementing a $70 million capital raising. At PRCL's request, NZOG had provided a short-term working capital facility so that PRCL could meet its operating costs pending the completion of that capital raising. By 19 November 2010, PRCL had drawn $13 million under the facility.
On 26 November 2010, NZOG provided the balance of the short-term funding - $12 million. Without that cash injection PRCL would have been insolvent and unable to continue with the day-to-day activities of the business, including the rescue and recovery efforts at the mine.
As the situation at the mine deteriorated with further explosions and no immediate prospect of re-entering the mine, the PRCL Board concluded that even with the funding support provided by NZOG, it could not avoid insolvency. At their request, NZOG acting in its capacity as a secured creditor put PRCL into receivership on 13 December 2010.
The focus of the receivership to date has included:
• Supporting efforts to stabilise the mine's atmosphere
• Understanding PRCL's financial position
• Securing and protecting PRCL's assets. The primary assets are:
o The coal mine, including below ground assets and substantial above ground assets and infrastructure
o The license to mine as well as resource consents for access to and use of land relevant to the mine
o Plant and equipment, including stores of consumables, equipment spares and various items of mobile plant and equipment
o Insurance policies, in particular addressing Business Interruption and Material Damage
o Cash on hand of $10.9m as at 13 December, being the balance of the money advanced by NZOG
o Bonds lodged with the Department of Conservation and local authorities
o 5000 tonnes of stock-piled coal
• Restructuring operations, including the employment of staff and use of assets
• Paying preferential creditors
• Overseeing work on PRCL's various claims under its insurance policies
• Responding to and participating in the various enquiries
The receivers' from PricewaterhouseCoopers have stated that their intention is to stabilise the mine with a view to either restructuring PRCL or selling its assets.
NZOG is a secured creditor in respect of a US$28.9 million convertible bond and the $12 million funding advanced on 26 November. Under the terms of a Deed of Priority and a Pari Passu Deed, security interests granted in favour of BNZ and NZOG are equal first ranking (other than first ranking securities held by BNZ in respect of specific mining equipment) and any distribution of security proceeds must be on a pro rata basis.
NZOG is an unsecured creditor in respect of the $13 million short-term funding advanced prior to 19 November 2010. These monies rank equally with other unsecured creditors. An impairment provision has been taken against all of the unsecured debt.
Likewise, NZOG's 29.4% shareholding in PRCL and holding of 2011 options, with a combined book value of $77.1 million, ranks equally with other shareholders. An impairment provision has been taken against all of this equity value.
No impairment has been taken against the secured debt. While there is considerable uncertainty about the future for PRCL we expect to recover NZOG's secured debt and we are actively taking steps to maximise the value of our total PRCL investment.
Kupe
The Kupe gas and oil field off the south Taranaki coast is now firmly established as NZOG's largest revenue source.
Kupe provided NZOG with $27.4 million in revenue in the six month period.
In November 2010, a comprehensive inspection of the production station near Hawera, required within the first 12 months of operation, was successfully completed. The inspection required a three-week production shutdown.
NZOG's share of production for the six months to the end of December 2010 was 1.2 PJ of sales gas; 5,800 tonnes of LPG; and almost 143,000 barrels of light oil.
Tui
The Tui area oil fields in the offshore Taranaki Basin produced 1.36 million barrels in the six month period - NZOG's share 170,000 barrels.
For much of the period only three out of four wells were producing. In late June, it was identified that repairs were needed to the artificial lift system for the Pateke-3H well. These repairs were completed in October (at a net cost to NZOG of $8.5 million) and the well resumed production. In November, there was a one week shutdown of the floating production storage and offtake (FPSO) vessel, the Umuroa, to allow for maintenance and planned process modifications.
NZOG's revenue from Tui for the six month period was $13.1 million.
Exploration
NZOG remains committed to exploration as a key way of growing the company and replacing oil and gas reserves. We have been successful in adding to our New Zealand exploration acreage and in advancing prospect evaluation within existing holdings.
NZOG has built a dominant position in the relatively lightly explored northern offshore Taranaki Basin. We now have large holdings in three adjacent permits - Mangaa, Albacore and Parihaka - and are assessing the prospectivity of a number of undrilled structures.
In the southern offshore Taranaki basin, NZOG is looking to secure a rig for summer 2011/12 to drill the exciting Kaupokonui prospect, which has been assessed as having recoverable resources (un-risked) in excess of 200 million barrels of oil. Discussions with companies interested in joining the Kaupokonuui joint venture are continuing.
We are also working closely with our joint venture partners at Tui and Kupe to firm up exploration drilling targets within those permits. There are eight identified un-drilled prospects at Tui. At Kupe, there is the possibility of drilling one or two exploration wells in conjunction with scheduled Central Field Area development drilling in 2012/13.
In the Canterbury Basin, NZOG is seeking to expand its presence by securing, as Operator, the Clipper permit. This lies immediately north of the Barque permit. NZOG has a 40% stake in both permits. Barque is a large gas-condensate prospect and NZOG has also identified another large structure which lies across both permits.
Future Outlook
New Zealand remains an attractive investment destination, but the number of available opportunities will always be limited. As a result we cannot be confident of meeting our growth objectives from New Zealand alone and our business strategy includes the goal of establishing one or two new core areas.
Since 2008 we have been carefully evaluating opportunities around the world. NZOG is now in the process of establishing a northern hemisphere presence. More details about the location and nature of the initial investment will be announced as soon as the final regulatory approval is granted for the exploration acreage that will underpin this new area of business.
Dividend
NZOG's dividend policy since 2008 has been to pay a reasonable portion of profits as an annual dividend. Given the substantial loss resulting from the Pike River Coal situation, the Board does not intend to pay a dividend for the 2010/11 financial year.
Casa del Energia
23-02-2011, 11:41 AM
Is it not strange that desire should so many years outlive performance?
- William shakespere
digger
23-02-2011, 01:03 PM
Todays announced loss for half year ending 31 december 2010 is deep ,tradgic a blow to the chin and expected.The SP will reflect this all for some time and will continue to be oversold well after a turnaround is well under way.
The managment now have to do several things at once.Firstly watch unnecessary expenses.By this i mean have an honest look at the hidden costs of overseas ventures as outlined in the half year report.Go into one of these and soon all to soon you have to set up overseas offices to support this investment.In fact on this point i could not disagree with managment more.Right now we have more than enought on our plate in NZ for our declining resources.
We should save as much asset as possible in the event that PIKE two gets the chance to open cast---who knows ,still a lot of cash to be generated there.We should continue with the buyback at not more than 5% of traded shares. that way we buy cheap without giving money away to sellers leaving the company.The no dividend is also expected given events I also think our drilling should get more conserative.Wild cats are out.
I also would like now to see an expected breakdown of income and expences for the next year redone given recent events.Tui and Kupe should both do better in 2011 given rising value of oil and full production.And for now we certainly have no more sudden unexpected calls from Pike.Pike -2 if it happens is a seperate thing.
My thoughts to the earthquake stricken Christchurch.
neopoleII
23-02-2011, 04:03 PM
whats the point of buying back shares only to cancel them?..........
oh yeah ....... to make room for the millions of part paid 1cent shares that management and staff want to convert.
in the meantime, our shareholder cash is spent every day on salaries and share buy backs.
IMHO, stop the buyback and pay a divi.
reward the shareholders that prop up this co.............
rant over.
shasta
23-02-2011, 04:05 PM
If i were a shareholder i'd be emailing the company to see what there accountants & management actually do?
More FX losses, still?
They never learn do they... (To be fair i've been banging on this issue for over a year now!)
Whilst they continue to play ostrich & ignore the issue, it continues to impact negatively on them, & destroying value for there shareholders
BTW, its an employers market in Wellington at the mo, a reasonable treasury accountant, or someone with FX experience would probably cost around $90k (but would save shareholders $m's), all Govt depts MUST hedge 50% on FX contracts as part of there cash management policies, so there are plenty around who do this.
No, im not interested in doing it either, i wouldnt tarnish my reputation in the market with NZO on the CV!
Todays announced loss for half year ending 31 december 2010 is deep ,tradgic a blow to the chin and expected.The SP will reflect this all for some time and will continue to be oversold well after a turnaround is well under way.
The managment now have to do several things at once.Firstly watch unnecessary expenses.By this i mean have an honest look at the hidden costs of overseas ventures as outlined in the half year report.Go into one of these and soon all to soon you have to set up overseas offices to support this investment.In fact on this point i could not disagree with managment more.Right now we have more than enought on our plate in NZ for our declining resources.
We should save as much asset as possible in the event that PIKE two gets the chance to open cast---who knows ,still a lot of cash to be generated there.We should continue with the buyback at not more than 5% of traded shares. that way we buy cheap without giving money away to sellers leaving the company.The no dividend is also expected given events I also think our drilling should get more conserative.Wild cats are out.
I also would like now to see an expected breakdown of income and expences for the next year redone given recent events.Tui and Kupe should both do better in 2011 given rising value of oil and full production.And for now we certainly have no more sudden unexpected calls from Pike.Pike -2 if it happens is a seperate thing.
My thoughts to the earthquake stricken Christchurch.
Fully echo those sentiments digger . Events in Christchurch are horrendous
second kick to the guts is this announcement . After the loss in nz it certainly is not the right time to go exploring in Romania.
Why announce no dividend prematurely-the financial year is not over .An announcement now will depress the sp when it should be rising -Oil prices high,wells producing . nz dollar dropping .Dividend would not be paid until October so plenty time to find cash for it . To me this looks like an ill-timed foray into the Northern Hemisphere that will likely lose money we dont have .
notie
23-02-2011, 04:55 PM
Fully echo those sentiments digger . Events in Christchurch are horrendous
second kick to the guts is this announcement . After the loss in nz it certainly is not the right time to go exploring in Romania.
Why announce no dividend prematurely-the financial year is not over .An announcement now will depress the sp when it should be rising -Oil prices high,wells producing . nz dollar dropping .Dividend would not be paid until October so plenty time to find cash for it . To me this looks like an ill-timed foray into the Northern Hemisphere that will likely lose money we dont have .
If you want risk wait until they announce their new country entry especially with the current situation in the region:eek2:
Beagle
23-02-2011, 06:13 PM
If you want risk wait until they announce their new country entry especially with the current situation in the region:eek2:
LOL, complete idiots, the lot of them. What a time to announce no dividend, durr, like they don't have strong ongoing cash flow, but of course its far more important to keep paying all those staff on hundreds of thousand dollar salaries isn't it !!
You shareholders are being MILKED DRY by muppets on the gravy train, flying first class staying at six star hotels e.t.c. e.t.c.
Don't you like NZO Roger?
BigBob
23-02-2011, 07:04 PM
If you want risk wait until they announce their new country entry especially with the current situation in the region:eek2:
Well at least it's not Libya (according to DS on the conf call).... :o)
This co. is noting but a big JOKE, supposed to be in the top 50.
But with a management of a bottom 10 co.
Welcome to a roller coaster without brakes.
Awamoa
23-02-2011, 08:15 PM
Another example of letting the shareholders wear the hard times.
Surely this is an opportunity for those on the big salaries to wear their share of the pain and take a cut too.
There was plenty of cash about when it came to propping up Pike in its days before receivership.
I have been with this company a long time and shelled out heaps at $1.50 to excercise the rights issue based on the future I believed NOG had.
My finger is currently hovering over the sell button.
geezy
23-02-2011, 09:10 PM
one word = sad. I want out but m currently down, do i cut massive losses?
Another example of letting the shareholders wear the hard times.
Surely this is an opportunity for those on the big salaries to wear their share of the pain and take a cut too.
There was plenty of cash about when it came to propping up Pike in its days before receivership.
I have been with this company a long time and shelled out heaps at $1.50 to excercise the rights issue based on the future I believed NOG had.
My finger is currently hovering over the sell button.
I am sure a lot of us share your sentiments-I read the announcement at 16.50 today-looked at the sp , looked at the price of oil and reason prevailed over emotion and i didnt place the sell order `.Dont know about tomorrow though .
Took a big loan to buy the options and paying a 6 figure sum p.a on my margin lending account . Having to slog my guts out and skimp on everything . My patience is wearing thin . The financial year has got over 4 months to go and 8 months before a dividend has to be paid out . A lot can happen between now and then so why announce no dividend prematurely unless you want to hit the long suffering shareholders ?
Expect a further announcement about buying into Romania soon . There are a lot of old abandoned fields where a bit more oil and gas might be extracted at great depths using modern technology . The country has little capital and lots of refineries so may be possible to get a bargain-or be sold a lemon .
Balance
23-02-2011, 09:35 PM
I am sure a lot of us share your sentiments-I read the announcement at 16.50 today-looked at the sp , looked at the price of oil and reason prevailed over emotion and i didnt place the sell order `.Dont know about tomorrow though .
Took a big loan to buy the options and paying a 6 figure sum p.a on my margin lending account . Having to slog my guts out and skimp on everything . My patience is wearing thin . The financial year has got over 4 months to go and 8 months before a dividend has to be paid out . A lot can happen between now and then so why announce no dividend prematurely unless you want to hit the long suffering shareholders ?
Expect a further announcement about buying into Romania soon . There are a lot of old abandoned fields where a bit more oil and gas might be extracted at great depths using modern technology . The country has little capital and lots of refineries so may be possible to get a bargain-or be sold a lemon .
Romania?
Allow me one question - what is NZO's competitive advantage in going to Romania?
Romania?
Allow me one question - what is NZO's competitive advantage in going to Romania?
For once I must agree with you which is why i said they might be sold a lemon-attractive on the outside but bitter on the inside .
Clearly their competitive advantage is in NZ but I guess they are having problems getting partners such as awe to drill near field TUI .
the machine
23-02-2011, 10:52 PM
one word = sad. I want out but m currently down, do i cut massive losses?
geezy, last year I sold 30,000 nzo to pick up the capital loss and then bought 40,000 for the ride.
M
shasta
24-02-2011, 12:04 AM
Romania?
Allow me one question - what is NZO's competitive advantage in going to Romania?
Good question!
The only project NZO had any control over, went um ... well we all know what happened
Oil prices might be good, but Tui is in decline & Kupe is all about the gas & non oil products, although the results of Kupe were actually quite good.
So NZO who acquired a substantial amount of cash (@ $1.50) can no longer can afford a 5c dividend?
Might be a tough stretch this year for the board, as the annual snouts at the trough might be harder to push thru the cheap/free options again, with all those disgruntled shareholders who rightly assumed NZO could afford a much higher divdend!
Here's a wee exercise, go back 12 - 18 months on the thread & calculate the FX losses - then work out how much the Board/Mgmt have received over that time.
I'm pretty sure that cost of the options now have to be "expensed" in the financials (i stand to be corrected though), so how many "extra" shares have been added to the number issued (which would add to the cost of the dividend)
All these "highly paid" exec's didn't have the foresight to employ a treasury accountant that would cost ($80 - 100k pa) that should get someone capable enough.
Corporate Governance isnt just a policy you put on your website cos its a listing requirement, its what they board & CEO get well paid to do!
If i were a shareholder i'd be putting these questions to Mgmt & voting the inept & incompetent board out & asking for there shares to be cancelled.
digger
24-02-2011, 04:56 AM
Romania?
Allow me one question - what is NZO's competitive advantage in going to Romania?
That is the right question. The answer please anyone.
gazprom1
24-02-2011, 08:44 AM
That is the right question. The answer please anyone.
No answers Digger just more questions. I used to be a big fan of NZO and held a large holding. Not sure what made me sell a couple of years back but maybe it was the opportunities presented by junior Australian oilers. IMHO they should stick to their knitting and focus on their NZ permits and maximise S/holder value by cutting costs and running and lean and mean company. Agree with Shasta about employing someone qualified to manage their fx.
We live on promises from NZO management and they have demonstrated a clear inability to add shareholder value. If I was still holding, I would cut my losses and re-invest in australian oilers/ miners. Do your research and find a company that fits your risk/ reward profile.
Wish holders all the best and hope that Romania somehow, through luck probably rather than good management, turns out to be a home run.
Gazprom
Balance
24-02-2011, 09:35 AM
That is the right question. The answer please anyone.
We are but mere mortals, Digger, compared to the highly paid ($500,000 plus a year) experts at NZO.
How are we mere mortals able to decipher Romania when we have watched in wonderment as the experts squandered nearly $100m in cash (raised from shareholders at $1.50 per share and from an ever declining Tui oil field) in failed ventures?
Maybe, just maybe, NZO's competitive advantage is the same as the advantage NZO brought to Pike & PPP - a lot of cash and no idea how to spend it?
The Romanians will be ever grateful for NZO's cash to head their way. After all, the Russians have already taken all the good stuff.
Chris Roberts
24-02-2011, 10:29 AM
In order to stop a rumour before it gets legs - NZOG is not contemplating an investment in Romania.
I would like to also address some other continued mis-conceptions.
Options: The "free" employee options are not free. The employee pays 1% up-front, and has to pay 20% more than the market price if they want to convert them to shares. They can't sell for 2 years and the options expire after 5 years.
Dividend: The Board policy since dividends were introduced in 2008 has been to pay a portion of annual profit as an annual dividend. There will be a substantial loss this financial year, so no dividend.
FX: The reported losses are "unrealised". Much of our income is in US dollars and much of our expenditure is in US dollars. It makes sense to keep US currency. It is only on accounting reporting dates when these holdings have to be considered in NZ dollar terms and an unrealised loss or gain is reported depending on the movement since the last reporting date.
NZ Focus: NZOG continues to have a NZ focus. With some of the other players pulling back, we arguably now have the most active exploration portfolio in offshore Taranaki. But there are not enough opportunities in Taranaki to ensure we can grow the company. It has long been our intention to establish a new area of interest overseas and we hope to announce more details in the next few months.
Individual shareholders may disagree with one or more of these policies, but they have all been clearly stated for some time.
For those who haven't done so, I suggest you listen to the interim results webcast at www.nzog.com/webcasts
Awamoa
24-02-2011, 02:50 PM
Why would anyone pay 20% more than market price to convert options into shares?
winner69
24-02-2011, 03:02 PM
Why would anyone pay 20% more than market price to convert options into shares?
Think it is 20% more than the price the share is on the day the options are issued .... So almost 100% of the gains from that point for the 1% up front ... the 'deposit' is at risk
J R Ewing
24-02-2011, 03:13 PM
Think it is 20% more than the price the share is on the day the options are issued .... So almost 100% of the gains from that point for the 1% up front ... the 'deposit' is at risk
And your in the money with 4% growth p.a.
Do they qualify for dividends, rights etc?
winner69
24-02-2011, 03:29 PM
If we talking about the Employee Share Plan stuff they not options .... they are partly paid shares and the last time some were issued the 'deposit' was 1 cent .. not 1%
JR ew query ... the last notice said The terms or details of the issue: the new shares are issued to and held by the trustee of the ESOP. The shares remain registered in the name of
the trustee until the balance of the issue price is paid in accordance with the ESOP rules. Full rights to the new shares attach when the balance of the issue price is paid. The shares are held in escrow for two years and cannot be dealt with during that period.
Whatever that means we better not speculate ... some seem rather touchy on the subject eh
shasta
24-02-2011, 03:46 PM
Why would anyone pay 20% more than market price to convert options into shares?
Thats only the employees, Chris dodged the question re the board getting shares!
Surely the Pike right down is "unrealised" as well then, add back all the Pike costs & NZO should be profitable (from Tui & Kupe), add back the FX losses & surely thats enough profit & cashflow to afford a 5c dividend.
I cant believe a listed company the size of NZO continues to ignore currency fluctuations!
Those pesky accounting reporting standards huh, every 3 months?
It aint a private company!
Tui and Kupe should be very profitable for the last 5 months of this financial year-nzo should be getting around $145 nz a barrel at the moment so profit per barrel is multiples of what it was in the 1st half of the financial year .
So why make the announcement of no dividend-dividend announcements are usually made at end August
Beagle
24-02-2011, 04:31 PM
Tui and Kupe should be very profitable for the last 5 months of this financial year-nzo should be getting around $145 nz a barrel at the moment so profit per barrel is multiples of what it was in the 1st half of the financial year .
So why make the announcement of no dividend-dividend announcements are usually made at end August
I doubt it would matter if Oil went to U.S.$200 per barrell which it could if the Middle East completly imploded, I reckon they'd still find an excuse to "feather bed" their positions. It appears to be "all about" milking the Tui / Kupe cow for all its worth, discoveries made how many decades ago ? and what has all their "so called" expertise found in recent years, we all know the answer to that.
Corporate
24-02-2011, 04:33 PM
Surely the Pike right down is "unrealised" as well then, add back all the Pike costs & NZO should be profitable (from Tui & Kupe), add back the FX losses & surely thats enough profit & cashflow to afford a 5c dividend.
It's also interesting to note that in the market release, NZOG disclose a "normalised profit after tax" of $4.8m, and net operating cashflow of $23.1m.
So on one hand shareholders are denied a dividend because a "loss", while on the other management portray a "normalised profit".
Best of both worlds anyone?
Balance
24-02-2011, 08:29 PM
Options: The "free" employee options are not free. The employee pays 1% up-front, and has to pay 20% more than the market price if they want to convert them to shares. They can't sell for 2 years and the options expire after 5 years.
Wow! 1% - that's really stinging the poor old employees, right?
So they pay, say 0.85c when the sp is 85c with a conversion price of $1.02.
Anyone care to work out what B&S model will price the options at? It sure ain't 0.85c!
digger
24-02-2011, 09:39 PM
Things are sure changing fast and for once in NZO's favor. Tapis struggled all of last year to get to my estimated price of 100 dollars by 31 December. Now less that two months later it is nearly up 20% at just shy of 120. As we sell at a small premium[at least we did ] to Tapis it today could be 120.That with our exchange rate means in NZ dollars we are getting $168.Also note comments that our offical interest rate is being currently talked of falling 50 basic points.That will further drop of dollar value.
This all amounts to a big change in a very short time and has more likehood of going nZO way than reversing.The middle east is on fire,our dollar will likely fall.
notie
24-02-2011, 10:19 PM
digger, why bother investing in this company. Ok, the oil price is going up but they aren't returning any of it to shareholders as divis nor are they investing it in new drills.
Are they planning on drilling any wells in their operated areas this year-no they aren't.
Are any of their partners-Kupe and Tui-no they aren't.
That means that avenue of growth is closed off to them.
If anything, oils sales from Tui are declining fast so the increase in the oil price is only going to offset the production decline. My guess is you are going to see the share price remain pretty static if not fall for the rest of this year.
Without the carrot of a dividend most investors apart from the most mis-guided and overtly loyal are going to bail from this stock. Most of the nzog posters on here seem to have realised that nzog took 200 million off them with some pipe dream and have then blown it on pike river and then their $1.50 investment is now worth 87c. nice work. at the same time the board and management of this company have done nicely with their 5-star oiler life styles.
Even their much talked about new investment in the near east isn't going to save them as they don't have to drill a well for 2-3 years. There also appear to be some sovereign risks associated with investing in the area they are looking at.
these guys have talked a big story over the last few years, but the inaction from them tells the true story.
geezy
25-02-2011, 03:47 AM
hello chris, thank you for posting here and clearing up some stuff, however, does your bosses read these forums too? If they dont they should, NZO has been pathethic
Disc: Holder since 2006
brucey09
25-02-2011, 05:05 AM
high paid new expansion exploring team? snr. Radford found all existing. great new explore team since? patetico
gazprom1
25-02-2011, 08:54 AM
Thanks for posting Chris and clearing up some matters. The problem I have is that we are all accountable in this world and the board/ executive are responsible for the performance of the company. NZO's performance has been very disappointing (to put it mildly) and shareholders have suffered directly (shareprice performance and no dividend) as a result of the performance of the board/ executive. The RIGHT thing for the board/ management to do is to review their poor performance and take actions accordingly. The first action should have been to review all personnel and their compensation and make changes and/ or cuts. Accounting/ Economics 101. NZO bulked up all its overheads when Tui revenues came on stream but no tangible results.
NZO had one of the best oil fields in the world in terms of pay back and yet have been unable to capitalise on such a great opportunity. There have only been two winners from the Tui fields performance - management of NZO and the NZ government.
I may come out my retirement if there is enough shareholder support...still 'only" 41=)=)=) Seriously, some hard questions need to put to the board/ management.
Gazprom
All this management is talking about is future potential and the action they intend to take in future, to be able to talk in due course of future potential.
That is how they can in there eyes justify there numbers and at the same time skim the cream of this co. for as long as pos.
Yes of course that will not be for ever.
Also unless they know something we are not aware of, about the unraveling of the the equally drawn out saga of Pike they clutching at straws, hoping for any sort of significant windfall.
Again part of that pie in the sky sometime in the future potential, in this case of retrieving MILLIONS.
S/P at 0.85 cents far to high at present, on future potential.
Very effective spin just the same, easy ride for the 22 staff on the payroll.
BigBob
25-02-2011, 12:32 PM
Also unless they know something we are not aware of, about the unraveling of the the equally drawn out saga of Pike they clutching at straws, hoping for any sort of significant windfall.
Maybe you should listen to the conference call if you haven't already.....
S/P at 0.85 cents far to high at present, on future potential.
I think it's pretty much justified on what is KNOWN about the company - i.e. future production from TUI and KUPE.
I also think that if there is anything coming from PRC, any exploration success, anything from the "Northern Hemisphere", anything from PPP or anything from a higher oil price, the upside could be significant.
But as they say, each to their own....
Awamoa
25-02-2011, 12:45 PM
Just for the record here is what we paid for the 12 months 30/06/10
Directors Remuneration
R A Radford $154500
Prof R F Meyer $87500
P G Foley $77083
P W Griffiths $36167
A T N Knight $62000
S J Rawson $62000
D J Salisbury $559000 (CEO Remuneration)
D R Scoffham $62000
On top of this there were 14 employees received between $120000 and $310000.
If the company cant afford dividends how cant it afford such salaries?
geezy
25-02-2011, 01:23 PM
What can we do to protect our interest from further declining? vote the board out?
Awamoa
25-02-2011, 01:40 PM
What can we do to protect our interest from further declining? vote the board out?
Thats what happened at GPG
shasta
25-02-2011, 05:42 PM
What can we do to protect our interest from further declining? vote the board out?
Thought i'd go back over the last 4 quarterlies & run some numbers, lets take opinion out of it & see what the numbers say.
Revenue (as per cashflow reports) Mar 10 $27.6m + Jun 10 $26.3m + Sept 10 $32.2m + Dec 10 $23.4m = $110m
Admin costs (as per cashflow reports) Mar 10 $2.6m + Jun 10 $3.9m + Sept 10 $3.0m + Dec 10 $4.7m = $14.2m (big increase this quarter, why?)
Opening Cash balance @ Mar 10 was $192.4m ($NZ79.3m + $US80.3m), there was also $63m debt in respect of Kupe, so net cash $129.4m
# Shares on issue @ Mar 10 = ~389m
Closing Cash balance @ Dec 10 was $111.8m ($NZ41.1m + $US54.4m), there is still the $63m debt, so net cash is $48.8m
# Shares on issue @ Dec10 = ~400m, so the buyback has kept things relatively stable, & a 5c dividend would cost around $20m
Chris responded to my earlier post that they "needed" the funds in $US (even though they generated $NZ110m in revenue, which would have been in USD)
Despite all the revenue generated, the net cash position is down $80.6m, now a big chunk of that is the Pike funding + exploration/development costs
But lets see how the NZD/USD amounts changed:
At Mar 10 NZO had $NZ79.3m, & as at Dec 10 had $NZ41.1m, net decrease of $NZ38.2m, has been reducing at a relatively even rate each qtr
At Mar 10 NZO had $US80.3m, & as at Dec 10 had $US54.4m, net decrease of $US25.9m, at no quarter did they drop below $US50m!
During the period Mar 10 - Dec 10, NZO paid a 5c dividend, whilst not reducing the Kupe debt at all.
Given that paying the Kupe debt isnt a priority (thats clear) they do not need $50m sitting in USD, they should of converted this along time ago & crystalised a large profit on realising the gains.
They generate revenue & most costs in $USD, so if they don't hedge, its no real difference, the net effect is basically zero.
Over the last 4 quarters the cash balance has reduced by around $20m per quarter, most of that was re Pike, so thats not an ongoing cost, there exploration is pretty much minimal, & there development costs now Tui is back up & running on all wells, should reduce as Tui & Kupe are in production.
Given there $US cash balance taking out $US15m out of the USD a/c would finance a $20m dividend (assuming NZD/USD ~0.75)
With revenue around $20m at least a quarter (& high tapis prices) you would think they could cover there costs, now the black hole of Pike has ceased.
NZO can afford a dividend, & if they say they cant, they should provide shareholders with an honest reason why not, & what the cash is to be used for.
geezy
25-02-2011, 08:18 PM
Time for some shareholder action IMHO
the machine
25-02-2011, 11:23 PM
Shasta, have you taken this up with the CEO direct?
M
shasta
25-02-2011, 11:30 PM
Shasta, have you taken this up with the CEO direct?
M
No, as im not a shareholder & haven't been for a long time*, but Chris's answers didnt stack up, both Corporate & myself (both accountants) picked up on NZO's "double standard", ie advertise a normalised profit & then due to unrealised losses say no dividend due to having a loss!
Cant have it both ways...
* Much better ASX listed O&G companies
Corporate
26-02-2011, 08:40 AM
Totally agree with what you are saying shasta. One small point, the kupe gas sales are probably in NZD. Condensate is mostly likely USD.
Balance
26-02-2011, 10:20 AM
NZO should really pay shareholders a big dividend from supporting the company unquestioningly over the last 5 years.
The company has NOT deserved such undying and unquestioning support.
Interesting to note that shareholders contribute $191m in new capital ($1.50 share) in June 2008 and for their efforts, have been paid 3 x 5 cents dividends in the last 3 years.
And around 33% opted for the DRP - so more cash for the directors and management to 'invest'. Last conversion price was $1.26.
Do the right thing, NZO - pay them a dividend. The cash is there and until you can prove that you are good guardians of the funds and cash generated, pay it to shareholders.
Shareholders deserve to get some funds back to reinvest elsewhere if they choose.
manxman
26-02-2011, 02:47 PM
Anybody else out there get the feeling that they are hoarding cash until the Pike River situation becomes clear.
Whoever is holding Pike when the decision is made to open cast the mine will reap a billion dollar windfall. It would be a shame to see this windfall accrue to a new overseas owner, but that's the way we do things in New Zealand.
No decision on opencasting will be made before the election. (Unless the decision is NO) There's a long game to being played here. Any of the many "interested parties" will have sounded out Gerry Brownlie about open casting, and doubtless the receiver is well aware also, and would like the feather in his cap. If the receiver is still in charge when the decision is made, then he will be able to trade the company through, with cash support from NZO and BNZ.
So NZO hoarding its cash at this stage may be a prudent thing to do. Their stated reasons are, as Shasta has pointed out, not entirely credible, so we can only speculate.
Anyone heard from Mouse?
shasta
26-02-2011, 03:20 PM
Anybody else out there get the feeling that they are hoarding cash until the Pike River situation becomes clear.
Whoever is holding Pike when the decision is made to open cast the mine will reap a billion dollar windfall. It would be a shame to see this windfall accrue to a new overseas owner, but that's the way we do things in New Zealand.
No decision on opencasting will be made before the election. (Unless the decision is NO) There's a long game to being played here. Any of the many "interested parties" will have sounded out Gerry Brownlie about open casting, and doubtless the receiver is well aware also, and would like the feather in his cap. If the receiver is still in charge when the decision is made, then he will be able to trade the company through, with cash support from NZO and BNZ.
So NZO hoarding its cash at this stage may be a prudent thing to do. Their stated reasons are, as Shasta has pointed out, not entirely credible, so we can only speculate.
Anyone heard from Mouse?
NZO is a secured creditor & will "likely" receive in excess of $20m from Pike, who have an insurance policy cover of $100m.
When this situation is resolved who knows, could take a while but any insurance recovery will add to NZO's cash, so i would have thought NZO could have come out & said "we will look at paying an interim 5c dividend on receipt of the Pike insurance/receivership monies".
I'm sure given the Pike tragedy & the financial effect on NZO, there shareholders would accept the situation, knowing the dividend is more likely deferred rather than suspended.
I really think this is another PR nightmare for NZO, institutional investors would invest on the basis that the Tui & Kupe projects cashflows would easily support a 5c dividend (approx $20m) on a sustainable basis going forward.
NZO is alienating not only its long term investors (from ST) but risks losing institutional support, who are largely only buying due to NZO inclusion in the NZX indexes
Rabbi
26-02-2011, 03:27 PM
Realistically, it is more likely receiver's fees will bleed PRC dry before the mine and assets are sold off. Even if NZO was interested they couldn't out bid a cashed up overseas miner if the mine was put up for sale.
At best they might recover their secured debt, while PRC shareholders won't get back a red cent.
A right royal gravy train for the receivers and probably a cheap coal mine for an overseas investor.
The strongman mine reopened 1 month after that disaster but this ones covered in so much 21st century regulatory red tape it's not funny. Why the hell should they wait until the Royal Commission is over to approve Pike for open open cast mining. What possible difference would it make but then it can't be sold until it can reopen and it can't reopen until after the Royal Commission of Inquiry.
Meanwhile the receivers will be charging $500+ an hour for services rendered and the $500 is a low ball park figure.:mad ;:
shasta
26-02-2011, 04:15 PM
Realistically, it is more likely receiver's fees will bleed PRC dry before the mine and assets are sold off. Even if NZO was interested they couldn't out bid a cashed up overseas miner if the mine was put up for sale.
At best they might recover their secured debt, while PRC shareholders won't get back a red cent.
A right royal gravy train for the receivers and probably a cheap coal mine for an overseas investor.
The strongman mine reopened 1 month after that disaster but this ones covered in so much 21st century regulatory red tape it's not funny. Why the hell should they wait until the Royal Commission is over to approve Pike for open open cast mining. What possible difference would it make but then it can't be sold until it can reopen and it can't reopen until after the Royal Commission of Inquiry.
Meanwhile the receivers will be charging $500+ an hour for services rendered and the $500 is a low ball park figure.:mad ;:
The Pike Receivers only have access to the $10.9m - not too bill away the insurance money!
NZO also have some "coal rights" which will be worth something to them, should someone buy Pike River as a going concern.
Yes, NZO will get the secured debt & if theres anything left they will receive a propotion of "x" cents in the dollar, same as the bank, ird & other secured creditors.
I doubt any unsecured creditors will see anything
Balance
26-02-2011, 04:45 PM
If the government allows open-cast, watch for a bidding war on access to potentially US$10 billion worth of coal.
If the government allows open-cast, watch for a bidding war on access to potentially US$10 billion worth of coal.
I doubt if nzo will be part of that war-although they might put in a low offer.
They have stated they only want to be in oil .
personally if it became open cast I would like them to bid.
With Tapis at $114 this equates to $152 nz a barrel .With over 4months to go to the end of the financial year their why would they announce at this stage no dividend ?
?as suggested maybe to have a treasure chest in case of a bidding war for pike .
But possible because its good pr to show that nzo is suffering because of pike and has no more funds to make available to assist in the retrieval .
I dont know but I suspect games are being played at the expense of the nzo shareholder to make such a premature announcement.
Maybe they might announce a special dividend at the end of the year if the poo stays up !
digger
26-02-2011, 10:18 PM
I doubt if nzo will be part of that war-although they might put in a low offer.
They have stated they only want to be in oil .
personally if it became open cast I would like them to bid.
With Tapis at $114 this equates to $152 nz a barrel .With over 4months to go to the end of the financial year their why would they announce at this stage no dividend ?
?as suggested maybe to have a treasure chest in case of a bidding war for pike .
But possible because its good pr to show that nzo is suffering because of pike and has no more funds to make available to assist in the retrieval .
I dont know but I suspect games are being played at the expense of the nzo shareholder to make such a premature announcement.
Maybe they might announce a special dividend at the end of the year if the poo stays up !
Fish you and i read the end of year report slightly differently. Perhaps it where we are coming from. About 15 years ago when i was still an active dairy farmer we farmers had become conditioned to getting extra money every October.This particular year things were not looking to good coming up to October and the dairy managment knew they could not meet expectations so played the farmers along a bit.It was announced that we had already been overpayed on realisations and would have money deducted from our Payout come Octomber.There was an uproar and when Octomber did come around and the Dairy industry left our monthly income with nil deductions and nil increase they went from zero to hero.And just imagine how it would have been if nothing was ever for said and we just got a nil increase.Then they would have gone from hero to zero.It all comes down to expectations. And by the way i did say to others dairy farmers at the first mention of monies coming out of our accounts that i thought it was just a play to cover a nil increase,but at the time to not much effect.
Now to NZO.The end Dec report shows 99 million loss most being unrealised but a particulary bad one by any account.The directors have merely stated that they do not intend to pay a dividend which is not the same as there will be no dividend.To me it reads that for sure under the track of the last 6 months the intension will be clearly no dividend,but the door is still open if things do change radically the intension could also change.The pike affair is still wide open and could change as could extra income from oil sales neither of which is under the control of the board.
So what i read out of the report is let go of any automatic right you might have that a divident will take place.
winner69
27-02-2011, 07:35 AM
Shasta and Corporate are touted as accounting gurus and might be able to elaborate on this
Because of the writedowns NZO now has negative retained earnings ... several companies (large ones at that) over the years have ceased dividends while in this state. In theory there are no retained earnings left at the moment to pay a dividend
Is this an accounting requirement or just a prudent practice?
Accountant (Shasta? / finance directors (Corporate?) view to clarify the situation could help the discussion
Fish you and i read the end of year report slightly differently. Perhaps it where we are coming from. About 15 years ago when i was still an active dairy farmer we farmers had become conditioned to getting extra money every October.This particular year things were not looking to good coming up to October and the dairy managment knew they could not meet expectations so played the farmers along a bit.It was announced that we had already been overpayed on realisations and would have money deducted from our Payout come Octomber.There was an uproar and when Octomber did come around and the Dairy industry left our monthly income with nil deductions and nil increase they went from zero to hero.And just imagine how it would have been if nothing was ever for said and we just got a nil increase.Then they would have gone from hero to zero.It all comes down to expectations. And by the way i did say to others dairy farmers at the first mention of monies coming out of our accounts that i thought it was just a play to cover a nil increase,but at the time to not much effect.
Now to NZO.The end Dec report shows 99 million loss most being unrealised but a particulary bad one by any account.The directors have merely stated that they do not intend to pay a dividend which is not the same as there will be no dividend.To me it reads that for sure under the track of the last 6 months the intension will be clearly no dividend,but the door is still open if things do change radically the intension could also change.The pike affair is still wide open and could change as could extra income from oil sales neither of which is under the control of the board.
So what i read out of the report is let go of any automatic right you might have that a divident will take place.
Thanks for that assesment digger . It certainly makes the premature announcement explicable and leaves a bit of hope for a dividend-particularly if oil prices stay high .
winner69
27-02-2011, 11:28 AM
Been fascinated with this thread for the last 10 years and really amazed at the passion and loyalty you guys display .... but to me NZO has just been a line on a chart and at times a lucrative line on a chart
However your (collective) disgust at missing out on a dividend this year and then finding out that NZO retained earnings have gone into negative made me have a look at their cash flows over the years
I don't really need to say much because the chart below says it all. Useing a variant of a methodology used by accounting guru Alan Robb the red line represents the cumulative free cash flow plus dividends paid since 2002.
3227
Since 2002 a net $300m has flowed out of the company (including $60m to you guys in dividends and somewhere along the line i think I got one as well) - in spite of selling heaps of oil since 2008 (I do note that cash flows from these seem to be steadily diminishing). Over this period (since 2002) shareholders have pumped in an additional $400m.
I can see where you guys are coming from now with your sentiments many of you are going on about this being a plaything for a few highly paid execs (at the expense of shareholders).
Whatever an interesting exercise but now the lawns do beckon but maybe there is more than meets the eye as to why they are reluctant to pay divies this year ... and would still like to hear from Shasta and Corporate as to whether they can or if it is prudent to pay divies when retained earnings are negative
shasta
27-02-2011, 01:44 PM
Shasta and Corporate are touted as accounting gurus and might be able to elaborate on this
Because of the writedowns NZO now has negative retained earnings ... several companies (large ones at that) over the years have ceased dividends while in this state. In theory there are no retained earnings left at the moment to pay a dividend
Is this an accounting requirement or just a prudent practice?
Accountant (Shasta? / finance directors (Corporate?) view to clarify the situation could help the discussion
Well technically if they have negative retained earnings they may not pass the "solvency test" for paying out a dividend, even if they have the cash to do so.
As they also have debt ($63.0m re Kupe), there may be some banking convenants imposed on them as well, i'm not sure about this issue.
Am looking at a possible return to the CA environment, so i should brush up on these matters!
BigBob
27-02-2011, 01:56 PM
Shasta and Corporate are touted as accounting gurus and might be able to elaborate on this
Because of the writedowns NZO now has negative retained earnings ... several companies (large ones at that) over the years have ceased dividends while in this state. In theory there are no retained earnings left at the moment to pay a dividend
Is this an accounting requirement or just a prudent practice?
Accountant (Shasta? / finance directors (Corporate?) view to clarify the situation could help the discussion
Wouldn't a dividend also come without imputation credits if the company has not had any taxable profit...?
shasta
27-02-2011, 01:58 PM
Wouldn't a dividend also come without imputation credits if the company has not had any taxable profit...?
Depends what tax they paid during the year & what imputation credits were available, if there were any it would have to be partly imputed.
Balance
27-02-2011, 02:02 PM
There is no statutory requirement any more in NZ (and Canada) for dividends to be paid out of retained earnings. Solvency test and capital requirement are the pertinent factors to consider.
NZO should have no problem paying out dividends.
WINNERS LINE
=========
$400.mil. PUMPED IN SINCE 2002 FOR $ 60mIL. RETURN SAYS IT ALL.
AND THEY ARE STILL WILLING TO PUMP IN MORE, CAN YOU BLAME THE MANAGEMENT FOR MAKING A MEAL OF IT?
Mr Tommy
28-02-2011, 04:25 PM
If the government allows open-cast, watch for a bidding war on access to potentially US$10 billion worth of coal.
Hey wouldnt $10 billion USD just about pay for the ChCh rebuild, without having to sell the family silver.
The subject of state asset sales is going to be a big election year issue. If the Govt could somehow get a windfall from allowing Pike to be open cast it would solve a few problems.
boysy
28-02-2011, 05:29 PM
The government would only get a fraction of 10 billion worth of coal in the ground thinking otherwise is naive. Seems that pike holders really are clutching at straws with the entire open-cast mining issue the government isnt going to force the issue in an election year it would be political suicide
Paint it Black
28-02-2011, 06:00 PM
The government would only get a fraction of 10 billion worth of coal in the ground thinking otherwise is naive. Seems that pike holders really are clutching at straws with the entire open-cast mining issue the government isnt going to force the issue in an election year it would be political suicide
Would it really be political suicide and what if the govt owns a good percentage of the the mine? Why let some foreign company gain all the profits. The country is now very fragile financially - the EQC is depleted and the country needs to export quickly not wait for the insurers to pay up.
boysy
01-03-2011, 07:52 AM
This government is selling off the silverware they have expressed they would rather pay off debt than hold stakes in soes I don't see this as being any different now. The government doesn't have spare cash lying idle to throw at a open cast coal mine simple as that
Mr Tommy
01-03-2011, 08:54 AM
This government is selling off the silverware they have expressed they would rather pay off debt than hold stakes in soes I don't see this as being any different now. The government doesn't have spare cash lying idle to throw at a open cast coal mine simple as that
The Govt doesnt need to be directly involved. They could just put on a 'ChCh earthquake levy' per tonne of coal extracted in return for letting it be open cast.
dsurf
02-03-2011, 09:21 AM
Bit confused as to why NZO would have to join a bidding war for something it already owns 30% of? NZO appointed the receiver & surely they will want the current ownership retained until the enquiries are complete in about a years time.
kiwitrev
02-03-2011, 12:09 PM
The Receiver of Pike has a primary duty to NZO but must have regard to other creditors in statutory pecking order. So the Receiver will consider any deal that provides the best possible outcome firstly for NZO, any other considerations line up behind. Insovency law101.
dsurf
03-03-2011, 09:22 AM
The Receiver of Pike has a primary duty to NZO but must have regard to other creditors in statutory pecking order. So the Receiver will consider any deal that provides the best possible outcome firstly for NZO, any other considerations line up behind. Insovency law101.
Yes but surely the receiver will know that until the enquiry is over that the mines worth is negligible if it cannot operate. IF & not sure what chance there is that the mine is recommended to be open cast then it becomes a saleable asset, In that case the bidders would have to buy off the reciever with proceeds returned to the creditors then shareholders. The point is that if a bidding war takes place then the current shareholders would recieve something. Not holding a lot of faith in that happening but with National in power the chance exists
Bixbite
03-03-2011, 08:56 PM
Yes but surely the receiver will know that until the enquiry is over that the mines worth is negligible if it cannot operate. IF & not sure what chance there is that the mine is recommended to be open cast then it becomes a saleable asset, In that case the bidders would have to buy off the reciever with proceeds returned to the creditors then shareholders. The point is that if a bidding war takes place then the current shareholders would recieve something. Not holding a lot of faith in that happening but with National in power the chance exists
Totally agree with you.
If I were the helm of the company NZO, I would use the insurance money to repay the bank and those contractors, and keep the rest of the money for those remaining staffs to maintain Pike until the result for open-cast mining.
If the answer is positive, the company NZO or Pike can continue to have those or other banks and contractors support.
If unfortunately the answer finally is negative, NZO is still fine, let the New Zealand Inland Revenue to buy its bills.
Rabbi
03-03-2011, 09:32 PM
Buying back shares seems pathetic compared to what NZO could have done with the cash retrospectively.
Back in 2007-008 they could have taken over any of the minnows with good permits in the Cooper basin Australia.
Impress Energy and Stuart petroleum have been taken over by Beach Energy and Victoria petroleum(Senex Energy). Both companies are considered to have astute management.
Cooper Energy looks a good target at this time as does Adelaide Energy.
Meanwhile back in Romania. :ohmy:
geezy
04-03-2011, 12:59 PM
we all complain bout the management,but have we done anything about it?
Yup , we backed them with our money to perform
neopoleII
04-03-2011, 06:51 PM
""but have we done anything about it?""
besides moaning, expressing thoughts, or walking out, most of us havent the shareholding volume to make change.
even the 1 or 2 on this forum that hold a percentage dont have much power to create change.
but as a collective on this forum we at least have our concerns heard........ some valid some not.
having said that..... the company knows it has problems and admits it in company releases, their real problem is they ( the management) havent found a solution to fix the depressed sp.
i speculate to guess that if TR resigned/retired the sp would go up.
if digger were to secure a seat on the board the sp would rise.
buying shares in CUE instead of share buybacks..... the sp would rise.
buying share in NZR and the sp would rise.
giving the bought back shares to shareholders as a gift and the sp would rise.
so many options..........
but instead, we get share cancellations, no divi announcements, and 1cent staff share placements.
in the meantime, the poo goes up, dollar goes down, and nzo is propping up its sp with our money...............
brucey09
04-03-2011, 09:40 PM
snr neo
TR found all todays assets , this new rooster hasnt crowed once
Totally agree BRUCEY09,
all credit due to the work done by a fraction of the present team and long ago.
Like NEO, rightly points out they seem to be totally bereft of what to do next, except trotting out the same old la-di-da.
Cashing in on there true or illusory past achievements. nothing to crow about since joining the board now quite a number of years ago.
shasta
05-03-2011, 02:45 PM
""but have we done anything about it?""
besides moaning, expressing thoughts, or walking out, most of us havent the shareholding volume to make change.
even the 1 or 2 on this forum that hold a percentage dont have much power to create change.
but as a collective on this forum we at least have our concerns heard........ some valid some not.
having said that..... the company knows it has problems and admits it in company releases, their real problem is they ( the management) havent found a solution to fix the depressed sp.
i speculate to guess that if TR resigned/retired the sp would go up.
if digger were to secure a seat on the board the sp would rise.
buying shares in CUE instead of share buybacks..... the sp would rise.
buying share in NZR and the sp would rise.
giving the bought back shares to shareholders as a gift and the sp would rise.
so many options..........
but instead, we get share cancellations, no divi announcements, and 1cent staff share placements.
in the meantime, the poo goes up, dollar goes down, and nzo is propping up its sp with our money...............
In lieu of a dividend, a smart & pro active board/management team could look at giving NZO shareholders the PPP shares as an in specie distribution
It a non core asset anyway, & should be sold if they dont want to take it over, as they have NO control over there cashflows.
Might even generated some buying interest?
brucey09
05-03-2011, 03:13 PM
Snr Shasta
this would be strange as nzog owned ppp the first time and sold it?
tim23
05-03-2011, 03:21 PM
No they owned about 50% and then NZO shareholders got a 1:1 distribution of PPP shares.
Corporate
05-03-2011, 03:23 PM
Can someone remind me how much NZOG paid on average for each PPP share?
tim23
05-03-2011, 04:25 PM
About 30c is my recollection
""but have we done anything about it?""
besides moaning, expressing thoughts, or walking out, most of us havent the shareholding volume to make change.
even the 1 or 2 on this forum that hold a percentage dont have much power to create change.
but as a collective on this forum we at least have our concerns heard........ some valid some not.
having said that..... the company knows it has problems and admits it in company releases, their real problem is they ( the management) havent found a solution to fix the depressed sp.
i speculate to guess that if TR resigned/retired the sp would go up.
if digger were to secure a seat on the board the sp would rise.
buying shares in CUE instead of share buybacks..... the sp would rise.
buying share in NZR and the sp would rise.
giving the bought back shares to shareholders as a gift and the sp would rise.
so many options..........
but instead, we get share cancellations, no divi announcements, and 1cent staff share placements.
in the meantime, the poo goes up, dollar goes down, and nzo is propping up its sp with our money...............
"giving the bought back shares to shareholders as a gift and the sp would rise." -that is exactly what the company is doing.
By cancelling shares bought in the buyback, the company pro-rata increases the nett asset backing (and therefore the EPS) of all remaining shares.
This could be a pivital point for NZO ie.return for pike-ppp hitting oil?
dsurf
11-03-2011, 09:47 AM
Agree - sentiment turns quickly & I am liking the short term prospects for a rise in NZO
papers full of stories of high oil price - funny how there was no problem til $100 crossed.
PRC has provided a -ve premium to NZO last year or so - this should reduce quickly to zero and will IMO turn into a positive factor - firstly the very likely return of the secured and unsecured money lent PRC - will have to raise NTA.
Then the big one - how much will the tenders be for PRC - no-one knows but the papers will speculate a large range. Best scenario of course is the ex-wall st banker (Key) realises the family jewels are being flogged in a distress sale and tells DOC to swap open cast rights for the new conservation land from Greymouth council. This would see the tenders increase by multiples. Worked out on the back of a beer glass that for each 100m PRC sold for (after creditors paid off) that NZO gets 7.5c per share.
This means that NZO gets 75c per share if PRC sells for $1billion.
If open-casting gauranteed via ex wall st banker decree & purchase price is 5billion NZO gets $3.75 per share.
My maths is probably wrong however NZO is heading for some good times again after a very difficult year. Looking forward very much to the next few months and would get into CFD's if I had any spare leverage right now.
What do you think Balance - has the worm turned?
dsurf
11-03-2011, 09:49 AM
Also a half year loss could turn into a full year gain very quickly!!
DSURF
Speculating, Building Castles in the air and hoping against all hopes for a Pig Swarming Seson to materialize is not very helpful. Meanwhile management has suggested a div. payment in the near future unlikely, so no expectation of a Bonanza via PRC in medium or long term.
Meanwhile out there in the real world, Toyota the biggest car manufacturer itw. reducing management nos. from 22 to 11, by contrast what are they doing with NZOs top heavy management?
On of the unfortunate results of the habit of consistent slagging is that ,when things do turn,you have missed the boat.There is considerably more upside than before,however a close eye on the general markets is prudent ATM.
the machine
11-03-2011, 12:04 PM
This could be a pivital point for NZO ie.return for pike-ppp hitting oil?
something is cooking with ppp's vietnam appraisal drill - now drilling deeper and then more logging
m
stanace
12-03-2011, 06:16 PM
Millions being bought, and sold. No one commenting. Is everyone too busy buying, or selling, to say what is actually happening here.? Is it PPP, or the POO, or the NZ Dollar, or PRC? Or all of the above.? I would like to know whether to buy, or sell, some one on this thread must have an idea? Phaedrus, Help!
digger
12-03-2011, 09:38 PM
Millions being bought, and sold. No one commenting. Is everyone too busy buying, or selling, to say what is actually happening here.? Is it PPP, or the POO, or the NZ Dollar, or PRC? Or all of the above.? I would like to know whether to buy, or sell, some one on this thread must have an idea? Phaedrus, Help!
Hi Stanace,
Has it occured that in fact no one knows. There are only opinions for what they are worth. Take the large turnover of the last few months. Until recently the large turnover was seller driven.Sellers dominate when the price is falling. Clearly to me this period atarted just after the explosion of PIKE and NZO was sold down more than the value of pike worth and in fact sold down to less than the value of KUPE itself. This period was seller driven. Some holders for whatever reason wanted out regardless of tomorrow.
In the last two weeks it is slowly starting to look as if the nil value of PIKE will come in on the low side.Punters and investers are slowly factoring this in and we are seeing a creep in SP to reflect this.As the price id rising it is buyer driven but at this stage quitely and with soft movements. A sale of PIKE will put value on NZO holding and the SP will jump in responce ,but for now it is just theory and little value is being placed on it.
I do not believe any of the recent small rise has anything to do with PPP. That seems to be forgotten at the moment both here and with PPP.As no value seems to be put on PPPV getting anywhere a pleasant suprise could happen here as well.Currently PPP is on assit backing so should not slip too much if all negative. Results for PPPV are sometime in the unknown future.
The value of the falling dollar and interest rates and the rising POO are all good news for NZO.Theses to do not seem to have had the effect they should have had. Still it all means more income for NZO in the longer term and once the money is in the bank it should all help.The biggest negative for NZO is management and leadership.If i ran the company and was facing the 99 million writeoff i would have also been careful to insure that the belt tightning applied to management as well as shareholders.Now there might very well be belt tighting at the board level but it has not been spelled out that i am aware of.I think the other negative is that we clearly have too many problems here in NZ at the moment without getting out of our depth with overseas empire building and the million and one hidden costs that will bring up.This is an unknown that will rear on the SP.
I personally have never been in favor of foreign exchange cover for my experience with the Dairy company being not any better than doing nothing. In the last few years we have lost heavily as the NZ dollar rose against the greenback but now thta is turning the other way.We are stuffed and the Yanks are stuffed.It all comes down to who is the most stuffed and with earthquakes and whatever that keeps changes by the hour,so just leave the dollar cover out of it and with time it should all average out.Cover cost money and it is onlt in hindsight that it is clear if it was a good idea or not.
Arbitrage
13-03-2011, 10:30 AM
Interesting to see Martin Hawes says in the Sunday Star Times this morning that he is buying NZO shares as a hedge against fuel price rises.
Phaedrus
13-03-2011, 12:03 PM
What is actually happening here?NZO is slowly being accumulated. We can see that from the rising OBV plot.
I would like to know whether to buy, or sell. Phaedrus, Help!Technically, NZO is now a Hold. Multiple Buy signals (marked with green arrows) have fired over the last 3 months, with most giving an entry at around 87 cents. Note how the same indicators all gave excellent Sell signals (marked by Red arrows) getting you out of NZO in a very timely manner, well before the big fall. They should again provide useful Sell signals when the current uptrend ends.
http://i602.photobucket.com/albums/tt102/PhaedrusPB/NZO313.gif
.
dsurf
13-03-2011, 04:54 PM
DSURF
Speculating, Building Castles in the air and hoping against all hopes for a Pig Swarming Seson to materialize is not very helpful. Meanwhile management has suggested a div. payment in the near future unlikely, so no expectation of a Bonanza via PRC in medium or long term.
Meanwhile out there in the real world, Toyota the biggest car manufacturer itw. reducing management nos. from 22 to 11, by contrast what are they doing with NZOs top heavy management?
"Speculating, Building Castles in the air and hoping against all hopes for a Pig Swarming Seson to materialize is not very helpful."
why not is about as useful as this gibberish
"Meanwhile management has suggested a div. payment in the near future unlikely"
agree - I never mentioned me getting a dividend - just speculating on effect on NTA values
"no expectation of a Bonanza via PRC in medium or long term."
What price do you think the mining rights will be worth in 3 or 4 months if a sale proceeds - you seem to think NZO will be paying someone to take them off them?????
Yes, keep on dreaming Dsurf it is free, unless you back it with your money. So you give me a figure of profit in % in 3-5 months time if you buy now for $0.90 plus.
Speculating on a potential net distributional amount after any sale, is well beyond any body's guess.
the machine
18-03-2011, 11:23 PM
nzo's 15% investment in ppp - whilst presently well into the red should see a colour change come monday - pink for starters - next friday with a green shading.
this vietnam drill is looking very good and now doing a drill stem test of the deepened section - said section could not be tested in the discovery well.
ppp is set for a major revaluation.
M
digger
19-03-2011, 08:03 AM
nzo's 15% investment in ppp - whilst presently well into the red should see a colour change come monday - pink for starters - next friday with a green shading.
this vietnam drill is looking very good and now doing a drill stem test of the deepened section - said section could not be tested in the discovery well.
ppp is set for a major revaluation.
M
The Machine has the color of optimusm me thinks. I sure hope you are right but by the color of the SP the market does not seem to be putting too much hope on success.Naturally the market has no more chances of getting it right than you or i but The machine i do feel you are coming from a position where you could be in for a big letdown if it turns out to be negative or even margionally successful.
Hope you are correct though.
the machine
19-03-2011, 01:28 PM
The Machine has the color of optimusm me thinks. I sure hope you are right but by the color of the SP the market does not seem to be putting too much hope on success.Naturally the market has no more chances of getting it right than you or i but The machine i do feel you are coming from a position where you could be in for a big letdown if it turns out to be negative or even margionally successful.
Hope you are correct though.
Digger be assured am set incase the appraisal is not successful - would probably buy more shares as one would expect sp could drop to 20-30% below cash backing.
My optimism is in part due to what my stockbroker said when he was reading the report "development" and my stockbroker owns some ppp.
M
digger
19-03-2011, 02:52 PM
Digger be assured am set incase the appraisal is not successful - would probably buy more shares as one would expect sp could drop to 20-30% below cash backing.
My optimism is in part due to what my stockbroker said when he was reading the report "development" and my stockbroker owns some ppp.
M
Well that is it then as stockbrokers are never wronge. Still hoping that is the case this time anyways.
All we have to do now is wait.
Cheers
dsurf
21-03-2011, 10:54 AM
Yes, keep on dreaming Dsurf it is free, unless you back it with your money. So you give me a figure of profit in % in 3-5 months time if you buy now for $0.90 plus.
Speculating on a potential net distributional amount after any sale, is well beyond any body's guess.
Well beyond yours it would appear! I have already given you the numbers and was speculating on effect on NTA not SP. Already large holder thanks. My guess is that the mining license is actually worth something if up to 12 people may bid! I will predict the return of all money "lent to PRC" as a worst case scenario when the sale is settled and happy to predict a SP of $1.20 at that time as I think that there will a small return to shareholders as well.
Do you think that the sale will not happen and that is why PRC & the coal is worth nothing to NZO? Am interested in finding out why you would think that?
bung5
21-03-2011, 08:19 PM
Well beyond yours it would appear! I have already given you the numbers and was speculating on effect on NTA not SP. Already large holder thanks. My guess is that the mining license is actually worth something if up to 12 people may bid! I will predict the return of all money "lent to PRC" as a worst case scenario when the sale is settled and happy to predict a SP of $1.20 at that time as I think that there will a small return to shareholders as well.
Do you think that the sale will not happen and that is why PRC & the coal is worth nothing to NZO? Am interested in finding out why you would think that?
Agree with the opinion that NZO are likely to get the money lent back when the mine is sold but wouldn't of thought that they will return money to shareholders. The snouts in the trough want to invest in ventures overseas and do some overseas trips business class
Cheap share price at the moment if factoring in the money from PRC. Market has written that off completely. Just hoping the management don't loose anymore money to change this.
Agree with the opinion that NZO are likely to get the money lent back when the mine is sold but wouldn't of thought that they will return money to shareholders. The snouts in the trough want to invest in ventures overseas and do some overseas trips business class
Cheap share price at the moment if factoring in the money from PRC. Market has written that off completely. Just hoping the management don't loose anymore money to change this.
market hasnt factored in the increase oil and gas prices also .
NZO share of kupe is approx 2000000 litres lpg per month-have a look at the current price of lpg !
notie
23-03-2011, 10:25 PM
market hasnt factored in the increase oil and gas prices also .
NZO share of kupe is approx 2000000 litres lpg per month-have a look at the current price of lpg !
these guys are going places. Just wait until they get into Africa. They'll be going places
arjay
25-03-2011, 06:29 AM
If you carefeully place a mirror on Phaedrus's graph you will see a major uptrend approaching.
Phaedrus
25-03-2011, 12:45 PM
If you carefeully place a mirror on Phaedrus's graph you will see a major uptrend approaching.Arjay, do you mean that without a mirror you see a major downtrend approaching?
If that is what you are really trying to say, I would have to disagree. While NZO is in a short-term downtrend, this is only on average volume and well within the current trading range, so nothing major there.
This minor downtrend should come as no surprise, of course - Sell signals began triggering 2 weeks ago (as marked by red arrows) with most firing at 92 cents.
http://i602.photobucket.com/albums/tt102/PhaedrusPB/NZO325.gif
Sideshow Bob
04-04-2011, 08:00 PM
3c rise today and no comment?
Share price pushes through the resistance level on the graph above.
digger
04-04-2011, 08:39 PM
3c rise today and no comment?
Share price pushes through the resistance level on the graph above.
Lets not spook it with a sudden surge of over confidence. It is heading in the right direction with a long way back to recovery.It must be some link back to PIKE looking a little better than the nil value the market has put on it. Sure can not be anything to do with PPP as it has gone nowhere.
blockhead
05-04-2011, 09:07 AM
For whatever its worth
Daily ShareChat: New Zealand Oil & Gas
By Jenny Ruth
Tuesday 5th April 2011
Upgrades to oil price forecasts by his firm's sister company Credit Suisse has led him to upgrade his forecasts for New Zealand Oil & Gas, says Jason Familton, an analyst at First NZ Capital.
He has raised his forecast net profit for the year ending June by 17.7% to $34.9 million and his 2012 forecast by 33.8% to $46.8 million.
Credit Suisse is now assuming the long-term price of crude oil will be $US90 a barrel (NZ$117.31), up from $US80 a barrel previously.
He has also raised his sum-of-the-parts valuation of the stock to $1.19 from $1.06 previously.
"Without the prospect of an immediate upside catalyst to our valuation for NZO from exploration, the investment case for NZO comes back to the operational performance of Tui and Kupe and the price of crude in New Zealand dollars which has continued to be stronger than expected," Familton says.
"The focus from the market will also continue to be on NZO utilising its cash balance successfully with the prospect of some new exploration acreage outside New Zealand being announced shortly," he says. The market is also likely to focus on progress by Pike River Coal's receiver.
Without progress on the Kaupokonui prospect or confirmation of new exploration acreage being acquired, "we struggle to find a near-term calayst for the stock."
BigBob
05-04-2011, 12:32 PM
Maybe the SP move over the last two days is because news of the company's foray into the northern hemisphere is leaking out...? According to the latest company presentation, the deal was done and just needed to be "inked" and maybe it isn't in Libya or Romania after all (or whereever it was that notie claimed they were going)...
or maybe it's a realisation that the value wiped out by the Pike tragedy far exceeded anything reasonable & and that management actually dealt with that very difficult situation in a dignified and sensible manner...?
or maybe it's simply a rerating based on the seemingly ever increasing POO...?
oldowl
07-04-2011, 09:10 AM
Pike River Coal's biggest shareholder, New Zealand Oil & Gas, will not hand over any cash to help the coal company's receivers cover legal fees for the mine disaster inquiry.
NZOG also hopes to see the return of some of its $72 million in secured and unsecured loans to Pike after an expected sale of the mine by receivers later this year. A preferred buyer is likely to be identified by the end of June.
The sale may include the rights to the mine company's insurance claim, which at most could be $100m, though the payout is unlikely to reach that level.
It remains unclear whether the sale of the mine and any insurance payout following the mine explosion last year would result in any return to Pike shareholders. That would require the cash from both the sale and insurance to top $110m.
NZOG's 29 per cent shareholding in Pike was worth $82m before the explosion.
At the mine disaster inquiry, Pike lawyer Stacey Shortall said the company could not afford to participate fully in the inquiry, and the Government had ruled out taxpayers covering its legal fees.
NZOG corporate affairs manager Chris Roberts said there was no reason why Pike's 6000 shareholders should contribute to the legal costs of the officers and directors of Pike. But as a secured creditor, NZOG supported the receiver providing the inquiry with "what assistance they are able to".
The receiver still has about $7m left from the $12m NZOG put into the company after the mine explosion. The $12m is included in the $72m total owed to NZOG.
"We never anticipated getting any of that [$12m] cash back. We presumed most of it will be used through the receivership process," Mr Roberts said.
But NZOG still hoped to see a return from the sale of the mine for both secured and unsecured creditors and potentially even shareholders, who stand at the end of the line.
NZOG's share price slumped from about $1.25 to a low of almost 80c after the explosion, but has recovered some ground since then to 94c yesterday.
NZOG will make a submission to the inquiry on the history of the Pike mine. Pike was an NZOG subsidiary till 2007.
Former Pike directors and executives should get some help in their legal costs from professional indemnity insurance, although there is debate about whether that applies because they have been asked to appear voluntarily.
BNZ is owed $23m as a secured Pike creditor.
dsurf
08-04-2011, 09:43 AM
Will be interesting to see how much NZO earns 4Q & 2H this FY. Market appears to have totally forgotten this stock is sensitive to POO!
Mr Tommy
11-04-2011, 08:42 AM
Will be interesting to see how much NZO earns 4Q & 2H this FY. Market appears to have totally forgotten this stock is sensitive to POO!
Yes you would think NZO is producing POO !
From todays paper:
Oil surged to a 32-month high on Friday above US$126 a barrel on concerns about long-term supply cuts, while expectations of more interest rate hikes in Europe drove the euro to a 15-month peak against the US dollar.
Brent crude surged US$3.98 to settle at US$126.65 a barrel, its highest level since August 2008, as the war in Libya, unrest elsewhere in the Arab world and postponed elections in Nigeria drove bullish sentiment on oil.
US crude settled up US$2.49 to a 30-month high of US$112.79.
digger
11-04-2011, 09:41 AM
Will be interesting to see how much NZO earns 4Q & 2H this FY. Market appears to have totally forgotten this stock is sensitive to POO!
In fact if anyone can remember i said about a year ago that income from TUI alone would for the next 10 years would never be less than it was then. TUI falling production would easily be outweighted by increased returns per barrel.
Corporate
11-04-2011, 10:39 AM
In fact if anyone can remember i said about a year ago that income from TUI alone would for the next 10 years would never be less than it was then. TUI falling production would easily be outweighted by increased returns per barrel.
Digger, remember that as a field gets older the cost to produce a barrel increases!
swissboy
11-04-2011, 11:08 AM
Just watch what is happening to PPP and consequently to NZO Just as the POO ---- nothing
the machine
11-04-2011, 11:34 AM
Just watch what is happening to PPP and consequently to NZO Just as the POO ---- nothing
and what is happening to PPP?
m
manxman
11-04-2011, 06:45 PM
Digger, remember that as a field gets older the cost to produce a barrel increases!
This was the point of renegotiating the lease terms for Umuroa so as to load the lease costs on the high initial production and allow low costs for the long tail of diminishing output.
Mr Tommy
21-04-2011, 11:12 AM
hope the 2 yachts and the fishing boat arent using any of that dirty petrol to get out there !
http://www.stuff.co.nz/national/4914357/Protest-boats-return-to-oil-prospecting-site
Three protest boats have sailed back to an area off the East Cape of the North Island overnight but organisers will not say how they plan to disrupt a survey ship looking for oil.
Two yachts and a fishing boat left Hicks Bay yesterday and reached the exploration area last night.
Greenpeace spokesman Dean Baigent-Mercer said today the boats had not found the Brazilian exploration ship Orient Explorer by late last night but would be in the area looking today.
The protest, which included local iwi, put swimmers in the path of the exploration ship earlier this month but resulted in exclusion notices being issued when the navy took police out to the area.
The oil giant Petrobras was surveying in the Raukumara Basin to drill for oil under a five-year licence issued by the Government.
Baigent-Mercer said he did not know what the plans were to restrict the activities of the exploration ship.
The protesters say the oil exploration fuels climate change and the environmental risks of offshore oil rigs are unacceptable.
However, New Zealand Oil and Gas corporate affairs manager Chris Roberts said he was confident oil companies which drilled in New Zealand would do their best to prevent accidents from happening.
"The companies themselves have the greatest incentive to get things right, they can't afford reputationally or financially to get things wrong," he told Radio New Zealand.
"The industry in New Zealand has been operating for more than 50 years, has comprehensive existing safety systems in pace and has an excellent safety record," he said.
QUO VADIS NZO
Seems the 22 well salaried experts of the co. are stuck in a no end in sight Hibernation mood, well provided for mind.
The lost gamble for the Jackpot [ PRC ] plus the falling out of favor with investors and most brokers alike, being perceived as bereft of ideas how to carry this co. forward, shell-shocked them into seeming total inertia.
Luck is slowly emerging on there side tough, at least this Forum, long a thorn in there side is dieing a natural death.
As a consequence less SCRUTINY by the public et all of their charming, leisurely but profitable existence.
scamper
26-04-2011, 04:45 PM
Is there something particular that brought this on, fabs?
nzo hit its low point last December, and has been inching upwards ever since.
From 86 to 97 in the last 3 months isn't all bad. It has outperformed the index 12% to 4%.
while the management might all have a window seat (from which they stare out and do nothing), the short-term chart is looking quite good.
weeell... goodish. the 30-day MA has crossed up through the 90-day.
and, in another 6 weeks, the downtrend that started in december 09 might be breached... cheers.
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