NZ Oil & Gas (NZO)

[fabs]

That is just one of many other things that brought it on.
The fact that, after being quite unfairly punished and sent to the lower 80s nearly 6 months ago, management appears to have done nothing meaningful to lift the S/P.
General lifting of the market, high O/Ps and coming off such lows gifted them what would appear an above average S/P improvement.
Also not sure of buying shares back at top of the day prices being all that useful under the circumstances but I can pass on that.
Still think and hope very much the Co. will and can excel, but my faith in the management is at an all time low and while I accept this to be my personal take I am by a long shot not alone.
Interestingly a lot of small investors have sold out and seem to have been replaced by fewer but bigger holders could be significant and be aided by the co. being in a seeming slumber mood, time will tell.
Hope that helps.
cheers

[Mr Tommy]

There will be a quarterly report out before end of this week, maybe something to cheer you guys up in there?

Back in Feb there was this comment in the half yearly report, maybe there will be some progress on that.
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.

[BigBob]

Back in Feb there was this comment in the half yearly report, maybe there will be some progress on that.
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.

and further to that, the latest web cast on their web site (from early March) has their exploration manager state that "an agreement is complete, it just needs to be penned"... or words to that effect.... maybe it's slow drying ink they're using....

[dsurf]

I expect an upbeat report due to the rise in the oil price.

[Mr Tommy]

I expect an upbeat report due to the rise in the oil price.

Yeah I got a surprise this morning, the DominionPost has oil at $123.
But from today they have dropped WTI and are now using Brent.
Tapis is still winning on $131

[Mr Tommy]

And some huge forex losses with the kiwi over 80c! :t_down:

It'll be time for Shasta to sing his song again. :D

Well this will cheer you guys up then ...

In March, NZOG took advantage of the sudden, and short-term, decline in the New Zealand dollar to convert US$13.7m to New Zealand dollars, as part of re-balancing NZOG’s currency holdings toward a 50/50 mix of USD and NZD holdings.

I checked the NZD-USD chart and in March the rate dropped from 75c to 72c, before climbing back up in april.

[KentBrockman]

Wow, administration costs of $2.2 mill last quarter. Who are these guys, Woodside?

[winner69]

Well this will cheer you guys up then ...

In March, NZOG took advantage of the sudden, and short-term, decline in the New Zealand dollar to convert US$13.7m to New Zealand dollars, as part of re-balancing NZOG’s currency holdings toward a 50/50 mix of USD and NZD holdings.

I checked the NZD-USD chart and in March the rate dropped from 75c to 72c, before climbing back up in april.

Shasta will NOT be impressed .... NZO speculating on movements in the USD

[digger]

Well the good news first. Back when the dollar fell to 71 cents a few months ago,i felt like asking managment to take advantage and put some into NZ dollars or AUS dollars. They did it anyways so up to speed there.
The SP fell today on this mad idea that NZO should be taking on the big boys and developing in the nothern hemisphere where we clearly have no economic advantage over the million and one companies already there.And as i said at the start that will require an special post being set up to run the show.Todays release now admits this.Then it will be business class tickets and expensive wines each way one a fortnight to run the show---a show that over time will likely show nothing but continued expenses.
What do others think.??

[notie]

Well the good news first. Back when the dollar fell to 71 cents a few months ago,i felt like asking managment to take advantage and put some into NZ dollars or AUS dollars. They did it anyways so up to speed there.
The SP fell today on this mad idea that NZO should be taking on the big boys and developing in the nothern hemisphere where we clearly have no economic advantage over the million and one companies already there.And as i said at the start that will require an special post being set up to run the show.Todays release now admits this.Then it will be business class tickets and expensive wines each way one a fortnight to run the show---a show that over time will likely show nothing but continued expenses.
What do others think.??

NORTH AFRICA IS A SAFE ENVIRONMENT! It will be fine

[Bixbite]

Todays release now admits this.Then it will be business class tickets and expensive wines each way one a fortnight to run the show---a show that over time will likely show nothing but continued expenses.
What do others think.??

Business class tickets!!!!????

We should have a jet plane to show our NEW ZEALAND's status, shouldn't we?

[Mr Tommy]

Well did PPP have to set up an office in Vietnam for their buy in? Why does Nog need one in Europe then>

Separate issue, what are all the weird trades going thru on NZO, every 15 mins or so?
Today its parcels of 230, yesterday it was 1328.
On http://www.stocknessmonster.com/ you can see the individual trades.
I wonder if its the share buy back.

[brucey09]

Snr. Tom
The ceo lived in Europe for some time so he can catch up his friends yes?

[fabs]

I wonder, is it really wise for management to spend more money trying to underpin or stabilize the S/P instead letting it find its true level?
It seems to have now entered into a stable and market driven cycle.
Maybe entering again if drastic circumstances drive it well below 80 cents.
Any opinions?

[blockhead]

Its a decision already made so they have to go with it, Mr market will decide the value which ever way.

On another angle, how would NZO shareholders react if NZO's name appeared on the list of interested bidders in Pike ???

[fabs]

Lets hope not, but would not be surprised, they have such a wealth and depth of Coal mining expertise and the seeming unlimited funds not to speak of the commensurate professional gamblers easy to come by salaries to engage.

[J R Ewing]

I can't see NZO bidding for Pike. That would be a major U-turn on the long stated policy of wanting to exit Pike and concentrate on oil in due course.

[digger]

I can't see NZO bidding for Pike. That would be a major U-turn on the long stated policy of wanting to exit Pike and concentrate on oil in due course.


JR Ewing,this policy was set up under very different circumstances than now exist.The U Turn happened when the mine blow up.


Under the conditions now existing i would not be entirely unhappy if they did take part. It all depends on what is happening below the radar of what the average shareholder knows. NOG might very suspect know that opencast is possible from private govt hints, or that the mine is in better order than a blind sell now will force it to be desposed of.Remember NOG 30% holding under receivership carries no weight unlike the importance it would be under normal trading circumstances.But dispite this NOG is in the best position to get the best value and if the blind sell now does not deliver this i certainly would hope Management does step into the action. In fact for now getting the right price is far far more important than mucking around setting up overseas deals and expensive offices.
So there is my call---Nog should be in up to a reasonable sell level.

[blockhead]

I'm with you Digger, if it was a good idea 5-6 years ago then surely it is an even better idea now with a swag of the ground work completed.

[oldowl]

NOW READ THIS

Suitor Solid Energy undermining Pike River's value,
says receiver
Last updated 05:00 07/05/2011
Government-owned coal miner Solid Energy is accused of playing "a clear commercial game" to sink the
value of the Pike River Coal mine, which it wants to buy.
In a High Court action sought against the state-owned enterprise and two West Coast land owners,
Pricewaterhouse Coopers receiver John Fisk said "Pike's creditors will likely suffer significant detriment" if
Solid Energy's takeover of leases over crucial coalhandling facilities at Ikamatua, near Greymouth, are
allowed to stand.
"Its actions appear to be an attempt to place Solid Energy in a better commercial position than other
prospective purchase of the mine by taking over a key infrastructure asset, making the sale process more
complex and uncertain and adding a value-destructive element."
Solid Energy has rejected the allegations in the receiver's affidavit but said it couldn't respond in detail as
the matter was to come before the court.
Mr Fisk's affidavit cites a March 20 statement by Solid Energy's chief executive, Don Elder, saying "any
solution to invest in and work the mine must address the interests of the unsecured creditors on the West
Coast as a top priority."
"However," the affidavit says, "Solid Energy's actions in obtaining leases over the land which holds key
infrastructure for the mine, at the expense of Pike, is in direct contrast to that statement.
In a statement on the Thursday deadline for expressions of interest to the receivers, Solid Energy said it
was committed to recovering the bodies of the 29 men and "if possible to address the situation of the
unsecured West Coast creditors."
"We expect that any company seeking to acquire the assets should be held to the same expectations," said
Solid's chief operating officer Barry Bragg. "The worst that could happen for the families and the West
Coast is that a speculator acquires the assets and banks them in their resource portfolio."
He said it was a matter of record that since the tragic explosions at the Pike River Mine, Solid Energy has
committed staff, equipment and other resources to assist the recovery effort and has also supported Pike
River Coal by selling some coal on its behalf just before the company went into receivership.
However, the receiver's affidavit says the coal-handling facilities stoush is just the latest in a string of
actions that have made life more difficult for the Pike receivers, including alleged under-payment for coal
sold on Pike's behalf by Solid.
The receiver alleges Solid Energy's other actions include:
*"onerous penalties Solid Energy has looked to crystallise in respect of the Coal Transportation Agreement
with Pike", under which Solid was to allow Pike to send up to one million tonnes of coal by rail to Lyttelton
annually. Solid Energy effectively controls the rail links between the West Coast coalfields and Lyttelton;
*"initial rejection of Pike's force majeure under the CTA and attempt to cancel the CTA; and
*"a material variance in the actual versus market prices Pike has received for coal it has sold to Solid
Energy which remains unexplained."
PATTRICK SMELLIE
Solid Energy's corporate communications director, Vicki Blyth,said the company had pursued the Ikamatua
coalhandling facilities "opportunistically", as it represented the only site in the area where longer trains could
be loaded and would be useful for additional stockpiling.
In its Thursday statement, the company said it had "recently leased the land at the Pike River rail loadout at
Ikamatua to complement its development projects in the Reefton and Greymouth area."
Mr Fisk's affidavit details the receiver's efforts to keep paying rent on leased, disused farmland where Pike
had spent $7 million on new facilities and access roads.
"The best value for Pike will be in its ability to sell the Ikamatua facility as a working operation to the
successful purchase as part of the overall sale package," in order to "extract the best value for the company
and its creditors."
It says one of the two lessors, O'Malley Farming, had counter-signed documents on January 31 varying the
lease to allow the receiver to keep paying the $50,000 annual ground rent, which is currently paid up to
June 16.
Trustees of the R W Brown Family Trust, which also owned part of the Ikamatua land, did not respond to
the receivers, but sought on March 21 to cancel its lease with Pike, and an identical cancellation came that
day from O'Malley Farming.
"On 1 April 2011, the receivers were informed by solicitors acting for O'Malley Farming and the Trust that
they had entered into new leases with Solid Energy on substantially similar terms."
While clearly a bidder for the whole Pike operation, Solid had never indicated it had "specific interests in the
Ikamatua Facility or that it wished enter into arrangements for it outside of a full purchase of the mine and
associated assets."
The receivers want the O'Malley cancellation declared void, and to overturn the Trust's cancellation on
grounds that the Pike receivership did not constitute grounds for breaking the lease.
- BusinessDesk

[fabs]

As pointed out on the PRC forum less than 24 hrs earlier, any potential deal requires inclusion and assurance of same condition access to transport arrangements with SE.
Could drag out into a long and costly legal battle scaring away genuine bidders
BTW. About 12 months ago I commented that SE was probably for some time silently waiting and watching the ongoing struggle and set backs of PRC.
Also not so long ago explained that it will be a cash cow for some, lets just hope somehow by some miracle it will be for PRC & NZO S/H.

[LIO]

Me too Digger. With NZO already owning a third of the shares and the price of coking coal on the up (again), their apparent reluctance to widen their 'Oil/Gas' horizon for such a wonderful opportunity......................... especially with all the infrastructure etc in place. Bit of a no-brainer really I would have thought.

[boysy]

Tunisia anyone ?

http://www.energynewsbulletin.net/storyview.asp?storyid=2391206&sectionsource=s0

NZOG spreading its wings

Neil Ritchie, New Zealand
Monday, 9 May 2011

NEW Zealand Oil & Gas may be about to enter the Tunisian oil and gas sector, acquiring an exploration lease and setting up an office in that North African country.



Tunisia flag

Late last month managing director David Salisbury said he hoped to seal a Northern Hemisphere deal soon and that he expected to be flying to the country concerned in May or June for a signing ceremony.

He talked about "quite a sizable, reasonably well defined but overlooked” offshore oil prospect that NZOG hoped to initially hold on a 100% equity basis.

Salisbury also said NZOG already had other exploration companies talking about participating in the lease, “even before the ink had dried”.

Rumours since then have been that NZOG, New Zealand’s largest listed oil explorer, is considering an offshore lease in the Strait of Sicily, under Tunisian jurisdiction.

However, all NZOG corporate affairs manager Chris Roberts would tell EnergyNewsBulletin was that “we can’t comment yet on the location but should be able to do so in a matter of weeks”.

“Most of the necessary paper work has been completed, and we are waiting to hear on what date the government minister will be available for a signing ceremony.”

He said NZOG was considering several opportunities but they were all in the same northern hemisphere country.

“In the country we are entering, it is well known among the existing industry players active there that we have picked up an attractive permit.

“Several have already approached us to discuss working together and we are reviewing a number of opportunities put to us.

“This permit acquisition is very much a first foothold. We are establishing an office, installing an experienced explorationist and intend to build a portfolio,” he told ENB from Wellington.

Roberts said NZOG was also very actively looking in Indonesia and expects to be announcing progress there in the coming weeks.

Salisbury said NZOG was currently involved in eight possible opportunities in Indonesia, though he again declined to detail any of these.

They were, however, lower risk opportunities that offered lower possible reward, compared to the higher risk profile offshore New Zealand now had, given the recent unsuccessful offshore campaigns, including six involving the Kan Tan IV semi-submersible rig.

He talked of a “significant downgrading of interest” and a “somewhat pessimistic mood” regarding offshore New Zealand.

Quite a number of Australian companies, including Oil Search, Cooper Energy and ADX Energy, are already operating in Tunisia.

[fabs]

Thank goodness they gone for those sort of countries.
On the positive side, a 100% better than falling for some conning Nigerians which for months have targeted me with some easy to make money schemes.

[neopoleII]

hey boysy, any chance of posting this story from the same site?
THE Sidewinder-4 well has struck oil and gas for New Zealand-focused Canadian junior TAG Oil, as have all the previous three wells in the onshore Taranaki field.
maybe NZO should look alittle harder in its own back yard

[geezy]

didnt tunisia just went through a change of government? this is a very bold move from a company who has been playing "VERY" safe with its investment opportunities. they look more and more like wannabes

DISC: Hold NZO in (L) size

[digger]

didnt tunisia just went through a change of government? this is a very bold move from a company who has been playing "VERY" safe with its investment opportunities. they look more and more like wannabes

DISC: Hold NZO in (L) size

The top man was replaced but the military still run the show.The youth of the country have today started up again as their demands are not met. Also from neighbouring countries people are quitting the oil industry as fast as they can.
So for a big gamble anyone.Remember the Kosova war.An investment there at the height of the war to 5 years after won the world prise as the best property investment in that period.So big ganble big reward sometimes.Tunisia would sure have not too much compitition now but the big question is what will the govt look like in a few years.,or should i say what govt?
I agree with the board that Taranaki is not looking as good as 5 years ago for sure,but this looks like a scarry jump to me. If they intend to do it anyways sure hope they are correct.
Would have been nice to clear up the PIKE thing first.SE might now use NZO attention else where to walk off with a steal.

[Mr Tommy]

Hmmm, Tunisia is not a big oil producing country.

Oil and gasOil production of Tunisia is about 97,600 barrels per day (15,520 m3/d). The main field is El Bourma.
Oil production began in 1966 in Tunisia. Currently there are 12 oil fields.

[Casa del Energia]

Hmmm, Tunisia is not a big oil producing country.

Oil and gasOil production of Tunisia is about 97,600 barrels per day (15,520 m3/d). The main field is El Bourma.
Oil production began in 1966 in Tunisia. Currently there are 12 oil fields.

Big fish in small pond - that's ok, profit per share. Mighty volitile part of the planet these days though. (Perhaps NZO can call thier field "El Cheapo")

[Mr Tommy]

David Salisbury used to work for OMV, see theyre into Tunisia too.


Austria's OMV doubles Tunisia production in oil field takeover
Feb 18, 2011, 16:21 GMT

Vienna - Austrian energy group OMV doubled its production in Tunisia by taking over oil and gas assets of US firm Pioneer for 839 million dollars on Friday, the company said.
The closing of the deal comes just six weeks after president Zine el-Abidine Ben Ali was ousted in a popular revolt and a transition government took office.
'The transaction was carried out in coordination with the Tunisian government,' the Vienna-based company said, referring to the interim leadership.
OMV acquired oil and gas production concessions of 5,700 barrel of oil equivalent per day (boe/d) and exploration concessions with 38 million boe of probable reserves.
The deal raises the firm's production by 1.8 per cent and its reserves by some 3 per cent.
Companies like OMV have trouble competing for major reserves with giants such as Britain's BP and therefore have to invest in minor oil production countries like Tunisia, said Ehsan Ul-Haq at the British energy consultancy KBC.

[fabs]

After more than 3 years of diligently searching for new opportunities
and the same time stating the promising offshore Taranakei-Basin well worth pursuing and investing in------
TUNISIA ????
BTW is the seller paying for DS's upcoming journey to attend and celebrate the signing of this very promising and well considered project.

[Sideshow Bob]

Tunisia.

To quote the esteemed Mr McEnroe.....'You can NOT be serious'!

[Corporate]

Tunisia.

To quote the esteemed Mr McEnroe.....'You can NOT be serious'!

Hmmm no opportunities in Taranaki. Doesn't wash with me, OMV just completed a farmin to a permit recently granted to Octanex.

[the machine]

announcement on asx yesterday by 10% holder of PEP31511 - Kaupokonui

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01179375

M

[pietrade]

What kind of blindness is effecting these guys? Instead of a persuing worthwhile interests here, in a country with a (relatively) stable government and a known scource of high quality coking coal, (that NZO ALREADY has a large stake in) they are (have gotten ?) involved in a very volatile part of the world chasing oil and gas.
It seems to me that they are so attached to 'being an oil/gas company' their view is blinkered and has them completely missing the point - which is - 'Why are they in business?' Maybe it's not to capitalise on how best to make money for their share-holders but some paranoid sense of 'sticking to their knitting' so fervently they no longer see the wood for the trees?? Hmmmmmmmmmmmmmmmmmm.
Maybe it's all a 'smoke screen' to disguise the fact they are about to pounce and win the tendering process for Pike River. Yeah. Right.

[blockhead]

Hard to figure why they would go away to hell up the top of Africa when there is a partly finished coalmine just down the West Coast which will present good returns when up & running.

Admittedley the swimming is probably better in the Med than the Tasman but they aren't there for the beaches...are they ????

[digger]

announcement on asx yesterday by 10% holder of PEP31511 - Kaupokonui

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01179375

M

Interesting reading. I read somewhere that an gas column was expected and hopefully overlay a oil deposit. But this is the first i have seen of an upgrade in resource [hopefully] size going from a previous minium of 200,000 to 380000. It could be all seawater so i will go back to buying a lotto ticket.
if Kaupokonui is drilled and empty then i think we have to give further drilling in Taranaki a miss until better methods of perdrill are developed.Not a lot of profit in continued dry wells.

[notie]

nzo management seem to be more delusional that ever. Great idea going and investing in a north african country that has just been through a revolution. It reminds me of Fletcher Challenge investing in SE Asia and loosing a lot of money. This nzo investment looks as if it has the potential to go this way.

Senior management are pulling some serious coin, but after 3 years this is the sum of their investment search? The delusional management behave like a big oil company so think they need to comb the world looking for investments. While they do this they manage to blow a lot of money. Office and geology cost last quarter ~3.5 million. They certainly know how to spend share holders money! These guys are really a joke

There do seem to be several oil companies in nz doing OK. TAG oil for instance are exploring Taranaki and have made several discoveries recently.

[Lion]

Digger, I see NZOG have 90% of Kaupokonui, and are operator.

90% of 380 million barrels of gross mean recoverable looks better than a Lotto ticket to me.

[digger]

Digger, I see NZOG have 90% of Kaupokonui, and are operator.

90% of 380 million barrels of gross mean recoverable looks better than a Lotto ticket to me.

Me two if it happens,but until it happens it is just predrill hype. If it comes up empty the lotto ticket is the winner.90% of nothing is nothing as we have discovered many times before in the last few years drills.

[Mr Tommy]

Me two if it happens,but until it happens it is just predrill hype. If it comes up empty the lotto ticket is the winner.90% of nothing is nothing as we have discovered many times before in the last few years drills.

From stuff website...
The well is expected to cost US$15m to drill. NZOG has farmed out a 10 per cent share of the prospect to Peak Oil & Gas, which will pay for 20 per cent of the well. Ideally, NZOG wants to bring in another partner to bring its holding down to 50 per cent, so it pays nothing for the well to be drilled.

Keeping 50% for no drilling cost would be a good outcome. Doesnt sound like any drilling will happen until mid-late next year though, if at all.

[brucey09]

Snrs. It looks as NZO may be trying bad infomatione regards Tunis while Pike is looked secretly at.

[blockhead]

What brings you to that conclusion 'ombre ?

[tricha]

Not that I hold this flea bitten dog, a bit to much like PPP for my liking.. How much has NZO lost in holding $US in the last few years (like PPP) and it could accelerate.
Again a bit like PPP, diving off into area's of soverign risk, shame on them.

The best thing they could do would be to buy shares in someone like WPL, a blue chip investment.

Hmm

[brucey09]

Snr. Block. We say when man no say much -watch carefully. NZO saying little.

[Casa del Energia]

I see much wringing of hands and gnashing of teeth over the 'risks' NZO is enjoining. C'mon guys - they're an oil exploration/production company - not a baby bootie knitting club. Suck it in or sell and buy baby booty bonds.

Roll the dice and drill, baby drill.

[tim23]

Good call enjoyed that!

[Awamoa]

Will Tunisia be another reason not to pay dividends?

[notie]

Will Tunisia be another reason not to pay dividends?

While nzog are wasting their time chasing white rabbits in the Northern Hemisphere, some oil companies have been producing oil at home in NZ. Look at TAG Oil-these fellas have a 1.3 million barrel field on land in Taranaki.
http://www.tagoil.com/20110518-Tag-Oil-Taranaki-Basin-Year-End-Reserves.asp

At 100 dollars a barrel that is a lot of money. Seems to me that nzog should have looked closer to home and should not have written off Taranaki so quickly. Has this little Canadian company stolen a march on nzog? While nzog were talking up their plans these guys were drilling wells and finding oil!

[Mr Tommy]

Deep-sea drilling for oil and gas off the Canterbury coast is a prospect by Christmas, as Anadarko Petroleum Corp, a 25 per cent shareholder in the permit drilled by the Deepwater Horizon rig in the Gulf of Mexico, prepares to make decisions on whether, where, and when to drill.
Anadarko has senior executives in New Zealand this week speaking to journalists and the ENEX oil industry conference as the latest part of a stakeholder engagement programme which has already encompassed key government and iwi contacts.
It faces imminent decisions on whether to bring a rig to New Zealand for this summer's drilling season or wait until 2012/13, with rig availability and interest from other explorers key factors, Anadarko's external communications manager John Christensen told BusinessDesk.

Their canterbury prospects (Carrack/Caravel) are right next to NZOGs Barque.
I wonder if NZOG will gets it act together in time to share a rig.


From NZOGs exploration page:
PEP 38259 (Barque)
NZOG 40%, AWE 25% (Operator), Beach Energy 20%, Roc Oil 15%
Subject to Ministerial approval, NZOG will take over operatorship of this permit from AWE. This permit contains the Galleon well, which was drilled in 1986 and discovered what was at the time considered to be sub-commercial quantities of gas and light oil. It also contains the promising Barque prospect, which is considered to be structurally similar to, but larger and more favourably located for oil and gas charge, than Galleon. NZOG has identified a further lead that extends across the permit boundary into the Clipper permit.
The Barque permit is subject to a change of conditions application, to allow the joint venture sufficient time to evaluate the cost of drilling and developing the prospect.

[fabs]

Quite correct Mr Tommy
will NZOG get its act together not only in time but over all?

[Chris Roberts]

AWE is currently the Operator of the Barque permit, although a change of operator to NZOG has been agreed by the joint venture and is awaiting formal government approval. The jv is also waiting for a change of permit conditions to be approved, which has been with MED since late 2010. Any drilling at Barque will require 1. government approval of the change of permit conditions; 2. a firm commitment from all the jv partners and 3. the availability of a suitable and cost effective rig. A rig needed for the deepwater of Anadarko/Origins permit is not necessarily the right rig for Barque.

[notie]

AWE is currently the Operator of the Barque permit, although a change of operator to NZOG has been agreed by the joint venture and is awaiting formal government approval. The jv is also waiting for a change of permit conditions to be approved, which has been with MED since late 2010. Any drilling at Barque will require 1. government approval of the change of permit conditions; 2. a firm commitment from all the jv partners and 3. the availability of a suitable and cost effective rig. A rig needed for the deepwater of Anadarko/Origins permit is not necessarily the right rig for Barque.

and a pair of testicles which nzog may or may not have :mellow:

[the machine]

interesting to compare awe and nzo sp over last 12 months.

june 11 2010 awe $2.13 nzo $1.17
june 10 2010 awe $1.35 nzo .705
down awe .78 nzo .465
-37% -40%

considering nzo took the big hit from pike then it implies a much more robust stock.

as evidenced by performance in last 3 months - awe down about 18% and nzo up about 10%

M

[Corporate]

interesting to compare awe and nzo sp over last 12 months.

june 11 2010 awe $2.13 nzo $1.17
june 10 2010 awe $1.35 nzo .705
down awe .78 nzo .465
-37% -40%

considering nzo took the big hit from pike then it implies a much more robust stock.

as evidenced by performance in last 3 months - awe down about 18% and nzo up about 10%

M

Or alternatively, AWE is a BUY because its actually pretty cheap!

[digger]

interesting to compare awe and nzo sp over last 12 months.

june 11 2010 awe $2.13 nzo $1.17
june 10 2010 awe $1.35 nzo .705
down awe .78 nzo .465
-37% -40%

considering nzo took the big hit from pike then it implies a much more robust stock.

as evidenced by performance in last 3 months - awe down about 18% and nzo up about 10%

M

This i feel is the effect of KUPE which has been very long in the pipeline but now very valuable dispute the damage of PIKE. I do not follow AWE so closely but i doubt AWE has anything precentage wise that came on producing in this time frame.

[the machine]

headlines from energy review website

Anadarko hopes for rig fête
(Friday, 10 June 2011)

HIGH rig mobilisation costs may cause US major Anadarko to postpone drilling two wells in New Zealand waters this summer until other joint ventures join it for a multi-operator program.
Full Story...


M

[the machine]

tunisia is now the go for usd$3m - looks good.

wonder if nzo will also spend a few $ topping up their ppp investment while sp so cheap.

M

[Mr Tommy]

tunisia is now the go for usd$3m - looks good.

"Tunisia gives us diversity, by adding a lower risk/smaller reward core area to our portfolio. The exploration targets tend to be of moderate size - so do not generally attract the interest of the really big industry players - but the likelihood of striking oil is typically higher than what we experience in New Zealand"

Yes doesnt look too bad. Probably a better investment than the share buy back.

[Balance]

"Tunisia gives us diversity, by adding a lower risk/smaller reward core area to our portfolio. The exploration targets tend to be of moderate size - so do not generally attract the interest of the really big industry players - but the likelihood of striking oil is typically higher than what we experience in New Zealand"

Yes doesnt look too bad. Probably a better investment than the share buy back.

What expertise does NZO bring to Tunisia?

Eh? None.

Does Tunisia want something from NZO?

Yes. Dumb cash.

Marriage made in heaven for Tunisia. Can just see the Tunisians breaking out the champagne.

[digger]

What expertise does NZO bring to Tunisia?

Eh? None.

Does Tunisia want something from NZO?

Yes. Dumb cash.

Marriage made in heaven for Tunisia. Can just see the Tunisians breaking out the champagne.
Balance that is one way of seeing it but is it the only way?
Well right or wrong DS is staking his repetation on a drill in this area after giving up on Romana. They have done a lot of homework now so i just hope it all comes out right.Certainly after 8 or 9 dusters in a row in Taranaki something has to be considered differently.I am a relucant starter here but after being so pro PIKE and seeing where that ended up maybe i should also step back a bit on which way up is.
Best of luck and good management here DS with your direction you are taking NZO.

[POSSUM THE CAT]

Suggestion only NZ oil & gas would be stupid enough to do this deal at the moment think of the political situation

[digger]

Suggestion only NZ oil & gas would be stupid enough to do this deal at the moment think of the political situation

It is just a risk reward thing. If the political situation was ideal the permit would have been long gone.We can surely assume that management are more than well informed about the Tunisia situation and it is fully factored into the equation.
See that the release today is also on Upstreamonline.com

[Mr Tommy]

If you look at the production chart from the latest presentation released today, 2011 is the peak, and its slowly downhill from now. Kupe is now the bulk of it with Tui rapidly declining. So it is good to have a few things on the go, including this new Tunisia venture.

Balance, I cant see the Tunisians breaking out the champagne yet with this little $3m investment. A lot of that will be spent on getting new seismic data. And Im sure after the 2 years is up they will review the political situation at that stage.

[digger]

Chris Roberts

On page 18 of your presentation you gave to the Shareholders association you show the Diodore Block in the Gulf of Gabes.
Just to the east of that block we have a dotted line showing on land the boundary between Tunisia and Libya.That dotted line then extends out to sea and comes very very close to the Diodore Block.My question is is that sea line an agreed boundary between Tunisia and Libya and how internationally accepted is that boundary?

[Chris Roberts]

Digger, it is an internationally recognised boundary and is not in dispute. There are other permits between our permit and the boundary.

[fabs]

I am somewhat intrigued, for months the management has been busy buying shares back around 90-97 cents by the thousands, why has that stopped now , are they too cheap?
Or are they expecting them to fall a lot further.

[J R Ewing]

Fabs,

One would assume that they have spent the budget. The fact that they are now out of the market could account for the recent sp fall.

[digger]

Fabs,

One would assume that they have spent the budget. The fact that they are now out of the market could account for the recent sp fall.

I had assumed that as NZO is taking up overseas permits and looking seriously at others that it stoped buying so as to not be held accountable of insider trading.

[fabs]

Doubt that they bought there 8 mil $ worth yet, nor should insider trading be relevant.
But if they keep on falling further could end up in the cross-hairs of predators, if not there already.
Bathurst & S/E spring to mind

[BigBob]

I'm with digger on this. They have confirmed at other times that they ceased buying when they had unreleased, market sensitive information.

I think something is brewing.... It was partly the Tunisia permit, but maybe there's news re PRC on the horizon too...

[fabs]

If something is BREWING end of the year report out in about 2 months, hold on to your seats.

[digger]

See today's release. ACC has lifted holding by another 4 million shares to now hold 29million or lifting percentage from 6.4 % to 7.4%. Most likely buying off the little fellow.

Also note the percentage in the class falls by 1,798,783. That is the number of shares NZO has bought and cancelled in that period.

[Tyro]

Indeed that is close to the number boughtback so far. They have authority to buy a lot more yet.


See today's release. ACC has lifted holding by another 4 million shares to now hold 29million or lifting percentage from 6.4 % to 7.4%. Most likely buying off the little fellow.

Also note the percentage in the class falls by 1,798,783. That is the number of shares NZO has bought and cancelled in that period.

[Mr Tommy]

NZOG (New Zealand Oil & Gas Ltd) advises that Chief Executive and Managing Director David Salisbury has given six months notice of his resignation.

David Salisbury joined NZOG in April 2007. He is resigning for personal reasons and his last day with the company will be 29 December 2011.

NZOG Chairman Tony Radford said "the Board is disappointed to be losing someone of David's calibre. David has made a tremendous contribution during a period of growth for our business that has included many significant challenges.

"David has brought great enthusiasm, rigour, discipline and insight to our business strategy. I know he is keen to conclude a number of important initiatives over the coming months."

Tony Radford said the six month notice period provides time to ensure a smooth transition and a process will commence shortly to recruit a replacement Chief Executive

[dsurf]

I am glad his options are probably worthless and hope he does not get a pay out. IMO he has been useless.

[brucey09]

Snr. surfer
we say " seno de repuesto un toro'

[the machine]

I am glad his options are probably worthless and hope he does not get a pay out. IMO he has been useless.

thats a bit harsh.

the important thing now is to find a replacement, someone who has not had anything to do with pike would be a good starting point

M

[fabs]

Quite a few months ago on this forum i predicted that this guy will leave the trough, T/ R in a much more diplomatic manner than me talks of CONTRIBUTIONS MADE TO THE CO.
What a joke,should and would have been booted out long ago by a more astute management.

[digger]

I am glad his options are probably worthless and hope he does not get a pay out. IMO he has been useless.

I agree fully that he was useless.During his tenture all the wells drilled were duds,the pike mine blew up and PPP had a successful drill 2/3 taken off them. Now DS did not have full say on all these projects and in fact had close to nil input on some of them,but that is the nature of a CEO or president.On the other hand let say all these projects were successful,then i am sure he would step forward and take a bow.Knowledge is very important for success but luck is better. DS had no luck. Lately i had been wondering the softness of the SP.All recent events did not seem to explain it.In fact some would have suggested a SP rise---pike,the need to release stragedicts reserves ,the Tunisia permit. DS leaving gives the impression of the rat abounding the ship regardless of the truth or otherwise.The market will see it as very bad timing .

[fabs]

WITHOUT PREJUDICE:

BALANCE:
POSTED ON THE FORUM 14/12/2010
My sentiments now for at least more than 12 months.
22 Staff a board with supposed 200 years experience
A head Honcho on wait for it 1/2 mil. per ann. only a question of time before he leaves on his own accord i guess, although would not hold my breath, will have impeccable timing to milk this to the hilt.
Tony is the only one in that mix that can claim and be credited with meaningful contribution

[Beagle]

I called him a very poor CEO quite a number of times on this thread and sold out on the strength of my conviction of exactly that. Keep your chins up guys, its great news he's leaving, he's been a complete failure, lacked vision or leadership and collected a fat pay cheque for doing very little. Lets hope this company finds a good new CEO and cleans out all the other dead wood in the company.
Put this company back on my watch list, with possible interest to re-invest if it starts to be run properly again.

Not sorry I sold out months ago in the early 80 cent range and invested in Ryman at $2.30, now $2.76. Good management add value not destroy it. Harsh reality I know, but true and these two contrasting companies are a classic case in point.

[peterfindlay]

It is inappropriate to single out the CEO, as distinct from the NZOG Board of Directors, and attempt to crucify him in this forum. If concerns about Pike are an underlying issue for members of this forum, the simple question that may provide some direction regarding the burden of responsibility is: who were the NZOG representatives on the Pike River Board of Directors.

It simply doesn't help anyone, and adds nothing to a greater understanding of NZOG, and the wider issues facing NZOG, to wrongfully accuse people of matters for which they are either not responsible, or based on known information, it is not reasonable form the conclusions that have led to the accusations made in this forum.

My experience and involvement with NZOG over many years strongly suggests that NZOG is held in far higher regard than it was when Tony Radford was CEO/MD, with Gordon Ward as GM. I am sure that those well acquainted with NZOG have cause to thank David for installing a professional culture and professional processes within NZOG, and for perhaps interrogating and challenging some of the thoughts, decisions, and actions of the NZOG Board of Directors over recent years.

I think that it is highly commendable that David has given 6 months notice. A lot can happen in that time, and it shows whose interests David has at heart.

Attached is Mcquarie Equities current view of NZOG.

Macquarie Equities Research

Event

David Salisbury, CEO and MD of NZO, has resigned for personal reasons. His last day will be the 29 December 2011.

Impact

Highly regarded CEO will be a loss: Mr Salisbury was highly regarded in the industry and has led NZO through the most traumatic period of its existence. Following the success of the Tui field he has dealt with the GFC, extreme oil price movements and the Pike River Coal disaster. He has guided the business with care and conservatism, avoiding too many expensive mis-steps. The recent acquisition of acreage in Tunisia could herald the start of a successful secondary exploration opportunity for the company. Mr Salisbury has left for personal reasons and a desire to spend time with family before looking at other opportunities.

Hand over period looks good: Given the six month notice period we see limited risk to NZO in the short term. The business has good opportunities and is well capitalised, which should prove attractive to an incoming CEO. With no drilling planned over the next 6 months and plenty of projects to progress over the period (Kaupokonui, Tunisia, PRC) NZO will continue to move forward.

Pike River Coal still important: NZO has retained $45.6m of PRC debt on its balance sheet, worth 11.5cps. We do not include any value for PRC in our $1.21 target price, but consider there is potentially significant upside from the mine sale process, which is currently underway. Further information may be forthcoming in the next few months.

Action and recommendation

We remain comfortable with our Outperform recommendation and $1.21 target price for NZO. ·

[Beagle]

To be fair Peter, I was equally scathing of the board and especially the conflict of interest so readily apparent that Tony Radford has. What have they done with all the cash flow from Tui and Kupe ?, any way you slice and dice it NZO has been a woeful underperformer, especially measured in the context of record oil prices in recent years.

[Bixbite]

We don't need a new CEO, what we need is just a predator.

[fabs]

PETER
PRC is and was the pet of T/R,
never blamed D/S for what went wrong there other than the buck stops with the one that collects 10 grand every week.
TUI & KUPE where not only there before D/S but quite well handled by 2 other companies, as to anything else well big deal, not all that impressive really, but who is in charge of the big TEAM in the end?
This co. was in exceptional shape 4 years ago, reduced my holding to less than half long ago, for more than double what it is worth now and although got also rid of any PRC.s long ago stayed in NZO because what i always considered a big gamble [ Pike ] seemed that close to success.
As you can see from above posting on this forum 14/12/10 now more than 6 months ago my prediction of present events where bang on, so draw your own conclusions.
But to each his own.
BIXBITE PRECISLIE

[Balance]

Squandered - cash coming from Tui and share conversion.

Squandered - the great investment opportunities during the GFC.

What else needs to be said?

[Beagle]

Squandered - cash coming from Tui and share conversion.

Squandered - the great investment opportunities during the GFC.

What else needs to be said?

Seems an appropriate time to reflect on how D.S. has on more than one occasion referred too how he's continued to "strengthen" the management team with this appointment and that, all those overheads and travel and what exactly have they achieved ??, oh yes I nearly forgot, there was there wonderful multi million dollar "donation" to PRC when it was readily apparent to everyone on here that they were insolvent, which we've covered in detail previously. That was quite "THE ACHIEVEMENT" The whole team and board really thought that one through "carefully". Look at the share price relative to how properly managed resource companies in Australia have performed during this oil boom. There, vented frustration, nuff said.

[777]

As a holder of over 200,000 NZO shares at the the time of that "carefully thought through donation" I am more than happy that it was made. Money was required in an attempt at saving lives an as a major shareholder (read owner) in Pike River they fronted up.

[neopoleII]

yeah..... i have to agree...... nzo had to stump up.
but........ this co and pike and ppp were and / or are dominated by TR.
the board is there only as a legal requirement and pretty much chosen by him.
i still find it hard to believe that people here think the board, ceo and management can move the co in directions that TR doesnt want it to go. the board, ceo and management is what TR uses as tools and hides behind.

i read on one of the websites..... either NZO or PRC that TR used to sit at the base of the ridge and look at the coal sitting there in plain view and wanting to get it........ so almost 1/2 his life later..... and all your money....... he got it.... and blew it.

in the meantime...... no one is knocking on his door for answers regarding the explosion, that is left to the mine manager.
imho..... everything that has played out should go back to TR, not voted board members or employed ceo's or managers.
because none of the fore mentioned have any choice but to tow the line.

[digger]

Macquarie valuation of $1-21 is about right given the strength of KUPE. What is very weak is public preception of leadership.DS decision today to quit by end of year will just reinforce that public perception. I am at a loss to understand why he wants to leave now that his personal overseas plans are getting realised.That was his baby and now when it is just getting underway he abscones. Sadly the public will see this as a rat leaving that ship thing.Only Ds can say from the inside if it is a sinking ship as his departure in these hard times will imply.

He was over rewarded with generous free shares in the short time he was at the helm so his departure package should reflect the SP preformance during his term of office.With that i guess he will have to refund about 90% of all received.

[fabs]

Fat chance of that happening with this lot Digger, they are seemingly answerable to no one any more take the money and run is the mantra and cover each others backs.
The only skill required is SPIN.

[arjay]

Hello chaps,

It's tax time and I find myself filling in an IR3 online overseas without some of my documents. Can anyone tell me where I can find out how much last years RWT and credits were paid out on dividends? (or give a figure I can multiply by). Thanks in advance.

[777]

Depends on the companies. Some have only imputation credits, some have only RWT and some have a combination of both. You need the dividend statements to get it right.

[arjay]

Hi 7's, I was referring to NZO. We got 5c/share with a bit knocked off for RWT from memory.

OK - found the info Computershare, thanks.

[Beagle]

Can't afford to pay the real owners a divvy this year, (or more likely that's the spin they would like you to believe), but you mark my words, that won't stop them giving D.S. a generous farewell present for his "stellar" performance.

[Corporate]

Did NZO miss a trick here?

PEP 51906 granted to OXX
http://www.asx.com.au/asxpdf/20091119/pdf/31m5dxbsf7dpbl.pdf

PEP 51906 OXX farm in agreement with OMV
http://www.asx.com.au/asxpdf/20110510/pdf/41yktldkv28ykg.pdf

PEP 52593 granted to OXX
http://www.asx.com.au/asxpdf/20110401/pdf/41xszwctjykv5q.pdf

PEP 52593 granted to OXX and OMV
https://ost.asbbank.co.nz/F8983CFD73FA6606BE5E3044A14E7A45/external/pdf/oxx/asx/357459

[Chris Roberts]

NZOG held those areas for many years. From 2000 to 2005 they were part of a large permit but were considered areas of low interest and were relinquished after the Tui, Amokura and Pateke oil discoveries were made at the northeastern end of the permit.

[brucey09]

Snr. Robert
let us hope NZOG not wrong again.

[Corporate]

NZOG held those areas for many years. From 2000 to 2005 they were part of a large permit but were considered areas of low interest and were relinquished after the Tui, Amokura and Pateke oil discoveries were made at the northeastern end of the permit.

Thanks Chris, that clarifies NZO's position clearly. Happy to see OXX pick them up and farm one out to OMV who I imagine have significant knowledge of the area.

[fabs]

Meanwhile in Tunisia, we have bigger fish to fry in warmer surroundings, oh for being on a Mediterranean Beach right now.
Let these silly ignorant foreigners spend money on dry holes here.

[Oiler]

Meanwhile in Tunisia, we have bigger fish to fry in warmer surroundings, oh for being on a Mediterranean Beach right now.
Let these silly ignorant foreigners spend money on dry holes here.

Fabs I wouldnt call Shell, OMV, Origin, AWE, TAG, KEA etc "silly ignorant foreigners" :confused: I would be interested in hearing your thoughts on Tunisia deal.

[fabs]

OILER
sorry if you got that the wrong way round.
Either way only the future will tell of course who got it right.
Not sure if it will be NZO which if i understand took over in Tunisia OMVs share of the permit and according to CH/R above, relinquished the permit here and now it has been taken on by OMV
I stand to be corrected.

[Chris Roberts]

OILER
sorry if you got that the wrong way round.
Either way only the future will tell of course who got it right.
Not sure if it will be NZO which if i understand took over in Tunisia OMVs share of the permit and according to CH/R above, relinquished the permit here and now it has been taken on by OMV
I stand to be corrected.

I hope you are standing Franz. Here come your corrections:
The permits now being surveyed by Octanex/OMV includes areas relinquished by the AWE-operated Tui joint venture in 2006 after the discovery of the Tui, Amokura and Pateke fields in 2003/4; and relinquished by the AWE-operated Hector joint venture in 2009 after drilling a dry hole at Hector in 2007. The areas have been available to new permit applications since 2006 and 2009 respectively.
NZOG's permit in Tunisia was acquired from the Government, not from OMV.

[fabs]

Fair enough and thanks for that Chris, that assessment was a off the top response to an earlier posting namely.

[ Meanwhile in Tunisia, we have bigger fish to fry in warmer surroundings, oh for being on a Mediterranean Beach right now.
Let these silly ignorant foreigners spend money on dry holes here. ]
.
While we are roaming far, the big players seem to have confidence spending money here on our doorsteps.

[Oiler]

Fair enough and thanks for that Chris, that assessment was a off the top response to an earlier posting namely.

[ Meanwhile in Tunisia, we have bigger fish to fry in warmer surroundings, oh for being on a Mediterranean Beach right now.
Let these silly ignorant foreigners spend money on dry holes here. ]
.
While we are roaming far, the big players seem to have confidence spending money here on our doorsteps.

Not a problem FABS and thanks Chris for explanantion.

[fabs]

Dates of AGM announced.
Why don't they skip it and put the money saved towards a pay-rise for those hard working Darlings in Management .

[Sideshow Bob]

Dates of AGM announced.
Why don't they skip it and put the money saved towards a pay-rise for those hard working Darlings in Management .

Stop it Fabs....they think you are being serious!!

[Arbitrage]

Not sure why they shifted back to Wellington. There was a good turnout in Auckland last year and the food was good. Maybe too many shareholders live in Auckland? Hope they are not trying to do what GPG did for years having their AGM's in London to avoid tricky questions from the floor.

[Balance]

This probably explains why David Salisbury resigned from NZOG.

Most profound revelation yet - CEO of NZOG lost confidence in Peter Whittal several months before month's explosion and before Peter took over as CEO of PRC:

http://www.nzherald.co.nz/nz/news/ar...ectid=10739851

Looks like the board of NZOG should have listened to David Salisbury?

What a bunch of incompetent nincompoops the Board of NZOG are coming across as.

[LIO]

This probably explains why David Salisbury resigned from NZOG.

Most profound revelation yet - CEO of NZOG lost confidence in Peter Whittal several months before month's explosion and before Peter took over as CEO of PRC:

http://www.nzherald.co.nz/nz/news/ar...ectid=10739851

Looks like the board of NZOG should have listened to David Salisbury?

What a bunch of incompetent nincompoops the Board of NZOG are coming across as.


Maybe the NZOG board did listen to Salisbury but did not agree with him. It would be interesting to hear from Bermuda. I remember he commented once on ST that after meeting Peter Whittall he was impressed with his competence as mine manager. I'm keeping an open mind on this, because I think there may be some parties happy to make PW the scapegoat.

[fabs]

WHAT IS GOING ON HERE ALL DAY , SOMEBODY PLAYING SILLY BUGGERS?




84
21 Jul @ 2:47pm




Recent Trades
Time Price Volume
2:47pm 83 26
2:46pm 84 500
2:32pm 83 27
2:31pm 84 500
2:16pm 83 26
2:15pm 84 500
2:02pm 83 26
2:00pm 84 500
1:48pm 83 27
1:47pm 84 500
1:32pm 83 26

[the machine]

WHAT IS GOING ON HERE ALL DAY , SOMEBODY PLAYING SILLY BUGGERS?




84
21 Jul @ 2:47pm




Recent Trades
Time Price Volume
2:47pm 83 26
2:46pm 84 500
2:32pm 83 27
2:31pm 84 500
2:16pm 83 26
2:15pm 84 500
2:02pm 83 26
2:00pm 84 500
1:48pm 83 27
1:47pm 84 500
1:32pm 83 26

looks like bot buying to me ,whereby someone trying to flush out a seller with a decent volume

M

[bermuda]

Maybe the NZOG board did listen to Salisbury but did not agree with him. It would be interesting to hear from Bermuda. I remember he commented once on ST that after meeting Peter Whittall he was impressed with his competence as mine manager. I'm keeping an open mind on this, because I think there may be some parties happy to make PW the scapegoat.

I was always impressed with Whittall. He paid a lot of attention to safety issues when I visited the mine with him. I was surprised that David Salisbury made these comments particularly as I thought he would have been part of the team that appointed Whittall as CEO of Pike.

Still, I have not really been up with the play on Pike and NZO matters over the last few months. Nevertheless this was disappointing news.

[Balance]

I was always impressed with Whittall. He paid a lot of attention to safety issues when I visited the mine with him. I was surprised that David Salisbury made these comments particularly as I thought he would have been part of the team that appointed Whittall as CEO of Pike.

Still, I have not really been up with the play on Pike and NZO matters over the last few months. Nevertheless this was disappointing news.

Not disappointing - extremely disturbing and damning of how NZOG and PRC have been managing the mine and company.

Peter Whittall stated he had not been provided with a Report which highlighted concerns about gas management at the mine. He cannot be expected to manage without being aware of the Report unless he was instructed to fix the issues arising from the Report - that seems to be the case here. Let's see what else transpires at the inquiry.

Meanwhile, this is rather damning :

"Simon Mount, counsel assisting the commission, said underground mining regulations required mines to have a secondary exit for an emergency, which Whittall accepted. The fresh air base was not linked to the surface, so was not an exit. Whittall said the shaft had ladders and safety harnesses for workers to use to escape but he was unaware if a trial evacuation had ever been done.

However, Mount said a Pike River emergency equipment and self-escape audit, done in August 2009 by Mines Rescue Service, highlighted serious concerns about using the ventilation shaft as an escape route.

A second exit had been planned for the mine since 2005 but had never been built."

No trial evacuation? Says it all about attention to safety.

[Tyro]

Questing after a scapegoat is irrelevant to valuation. Does anyone know what's happening with the sale process?

[patrick]

Solid Energy not in the running to purchase.

[Balance]

Questing after a scapegoat is irrelevant to valuation. Does anyone know what's happening with the sale process?

The truth will set PRC free - not finding a scrapegoat.

Doubt any buyer will touch PRC until inquiry is out of the way.

[notie]

While some of the blame of the PRC mess is being laid with Peter Whittal, the real culprits in this, Gordon Ward and Tony Radford seem to have escaped any blame. Radford is the ultimate person in charge of this mess as he was the one pushing hard to pike to be developed then when things started going wrong he got NZOG to bail them out.

Gordon Ward was forced to resign and Peter Whittal took over. It seems to me that the mine with its attendant problems was set up under Gordon Ward's leadership. Why was he not fronting at this enquiry? Radford is equally to blame for pulling the strings being the scenes.

Real reason David Salisbury is leaving nzog is he is probably sick of Radford's meddling.
What happened at prc is symptomatic of what is also wrong with nzog.

[fabs]

It may very well be that T/R is running the show, but it is D/S that suppose to be in charge.
Is he quite happy to be a YES man, collecting 10 Grand a week feet in trough as long as possible.
If that where true, that as a S/H would be far more insulting and disturbing.
The Tragedy at Pike aside, what has D/S contributed to NZOG compered to T/R?
One can of course always argue things could be or could have been done better,by x persons.

[Lizard]

Trading halt for NZO and PPP - what's up?

[Master98]

NZO eat PPP?

[Balance]

NZO eat PPP?

Usual NZOG strategy - throwing good money after bad.

[upside_umop]

i'd say it will be more of a friendly merger to gain synergies.

[brucey09]

Snrs.
Maybe Vietnam good

[KentBrockman]

i'd say it will be more of a friendly merger to gain synergies.

LOL. What synergy? You mean to combine both lethargies?

[upside_umop]

Kent, when you consider that Tom Prudence pulled in $1m last year and they both take part in Tui, I'm sure there are synergies.

As Bermuda has said before, it just makes sense.

[blockhead]

Would be suspecting the same umop, (un) balanced would always see a disaster or a conspiracy theory

[Balance]

Kent, when you consider that Tom Prudence pulled in $1m last year and they both take part in Tui, I'm sure there are synergies.

As Bermuda has said before, it just makes sense.

Bermuda thought that NZOG management were simply wonderful?

[KentBrockman]

Kent, when you consider that Tom Prudence pulled in $1m last year and they both take part in Tui, I'm sure there are synergies.

As Bermuda has said before, it just makes sense.


I don't get what you mean. That both companies' managements pull enormous salaries, while otherwise not accomplishing much?

That's a synergy that holders don't need.

Someone mentioned Vietnam. Was NZO even in on the Vietnam deal?

[Lizard]

Reduction in Tui...
http://www.asx.com.au/asxpdf/20110725/pdf/41zy2z22ddw3d8.pdf

[Balance]

Reduction in Tui...
http://www.asx.com.au/asxpdf/20110725/pdf/41zy2z22ddw3d8.pdf

Downgrade cycle begins.

Last chance to get out before the downgrade accelerates?

[the machine]

Reduction in Tui...
http://www.asx.com.au/asxpdf/20110725/pdf/41zy2z22ddw3d8.pdf

so looks like they have deleted the extra production hole from tui in the recalculation

the drill bit needs to do some talking and find us some more oil!

M

[Lizard]

Well PPP's announcement is now out on the ASX. Nothing on the NZX yet though.

[Balance]

Well PPP's announcement is now out on the ASX. Nothing on the NZX yet though.

Should have figured out by now - NZO likes mushrooms as shareholders.

[upside_umop]

I don't get what you mean. That both companies' managements pull enormous salaries, while otherwise not accomplishing much?

That's a synergy that holders don't need.

Someone mentioned Vietnam. Was NZO even in on the Vietnam deal?

Synergies usually come from cutting double ups. I.e. management.

Downgrade does not look good...

[Lizard]

Hmm, well at this rate, they'll still be stuck in halt on the NZX when trading opens on the ASX...

[the machine]

so ppp saying 10-15% reduction in tui, pending no more drilling.

for nzo that equates to approx 3-5% reduction of reserves.

both companies [and AWE] will probably take a hit today


M

[blockhead]

sh..tt can't take a trick at all these days, lme was a fizzer last week and now a downgrade here, oil and coal are not going to see me into that Porsche I had in mind after all !

[sideline]

so ppp saying 10-15% reduction in tui, pending no more drilling.

for nzo that equates to approx 3-5% reduction of reserves.

both companies [and AWE] will probably take a hit today


M

Wonder why AWE make this announcement now when an independent review of this is supposed
to be completed 'early August' i.e. only one or two weeks away? Or are they pre-announcing the
review's results???

[Balance]

sh..tt can't take a trick at all these days, lme was a fizzer last week and now a downgrade here, oil and coal are not going to see me into that Porsche I had in mind after all !

Great stuff by NZX and NZO!

Announcement made by AWE on ASX at 10.40 am.

NZO and PP made same announcement on NZX at 11.13 am - half an hour later.

Trading resumes at 11.23 am.

Mushrooms, anyone?

[Mr Tommy]

Someone has been targetting NZOG shareholders with less than 2000 shares, offering 73c cash for them with no brokerage. My kids got the letter on the weekend. Wonder if they should take it now - I bet he has pulled the offer though.

[Balance]

Would be suspecting the same umop, (un) balanced would always see a disaster or a conspiracy theory

Oh dear - looks like they have been over-estimating reserves in the past? More downgrades to come for sure?

And NZO and PPP shareholders get to know it half an hour later than on ASX with AWE.

[Silverlight]

And NZO and PPP shareholders get to know it half an hour later than on ASX with AWE.

Like it matters, all shares were in a halt from the open, couldn't trade it anyway.

[fabs]

NZOG Management may did know, or
had an inkling quite some time ago, when it stopped underpinning S/P with on-market buy back
Does that mean, them having not resumed now at these price levels, that there is more negative info. in the pipe line?
The co. is not that far away from being cheap.
Take-over at 30-40 cents anyone?

[Master98]

Gross income from tui field will reduce 33usc per share (1.3*100/393), am I correct?

[Sideshow Bob]

I always thought the reserves were proven reserves, based on conservative figures?

Maybe it leaked away somewhere........

[Lizard]

Maybe it leaked away somewhere........

Yep, very deep 5.2 earthquake nearby last night - probably opened up a wormhole :D

[dsurf]

Would you swap a cash payment in the next few months of 31c per share and a capital return of 20c a year for two years followed by 15c for the next 8 or more years? at least Does anyone else think that this company should no longer managed at all? I believe the best option is for a proposal be put to the AGM that all exploration activities be stopped as the management are useless and the CEO doesn't even want to remain. The company should change structure and become an income paying trust IMO. The revenue from TUI & Kupe could be distributed quartery as distributions. NZO has no management input since they are not the operator. Really all they need is an accountant and a trustee. All the management & staff should be made redundant. This would immediately create value for all shareholders as the cash drain would stop. Net cash should be immediately returned to shareholders. The buyback stopped. PPP investment sold & cash returned. I am not that keen on a departing CEO pocketing an extra 250K either. When PRC is sold the cash should be returned. The table below shows what the cashreturn would be and allows no upside for PRC sale.

Cash equivalents $mill c per share
net cash 31 Dec 49.8
PPP 87.5million shares @ 12c NZ 10.5
immediate payment 60.3 15.38


PRC sale
PRC US 28mill convertible bond @ FX US/NZ .85 33.52
PRC secured funding advanced 12
PRCun- secured funding advanced 13 14.93

Quarterly Cashflow
Net operating Cashflow for Quarter to March 31 17.6
Add back exploration & evaluation expense 1.3
Add back administration of 2mill from 2.2 total 2
Add back net interest paid 0 .5
21.4 5.46

[KentBrockman]

Would you swap a cash payment in the next few months of 31c per share and a capital return of 20c a year for two years followed by 15c for the next 8 or more years? at least Does anyone else think that this company should no longer managed at all? I believe the best option is for a proposal be put to the AGM that all exploration activities be stopped as the management are useless and the CEO doesn't even want to remain. The company should change structure and become an income paying trust IMO. The revenue from TUI & Kupe could be distributed quartery as distributions. NZO has no management input since they are not the operator. Really all they need is an accountant and a trustee. All the management & staff should be made redundant. This would immediately create value for all shareholders as the cash drain would stop. Net cash should be immediately returned to shareholders. The buyback stopped. PPP investment sold & cash returned. I am not that keen on a departing CEO pocketing an extra 250K either. When PRC is sold the cash should be returned. The table below shows what the cashreturn would be and allows no upside for PRC sale.

Cash equivalents $mill c per share
net cash 31 Dec 49.8
PPP 87.5million shares @ 12c NZ 10.5
immediate payment 60.3 15.38


PRC sale
PRC US 28mill convertible bond @ FX US/NZ .85 33.52
PRC secured funding advanced 12
PRCun- secured funding advanced 13 14.93

Quarterly Cashflow
Net operating Cashflow for Quarter to March 31 17.6
Add back exploration & evaluation expense 1.3
Add back administration of 2mill from 2.2 total 2
Add back net interest paid 0 .5
21.4 5.46

lol. Management are on too good a deal to ever let this happen ;)

[digger]

Would you swap a cash payment in the next few months of 31c per share and a capital return of 20c a year for two years followed by 15c for the next 8 or more years? at least Does anyone else think that this company should no longer managed at all? I believe the best option is for a proposal be put to the AGM that all exploration activities be stopped as the management are useless and the CEO doesn't even want to remain. The company should change structure and become an income paying trust IMO. The revenue from TUI & Kupe could be distributed quartery as distributions. NZO has no management input since they are not the operator. Really all they need is an accountant and a trustee. All the management & staff should be made redundant. This would immediately create value for all shareholders as the cash drain would stop. Net cash should be immediately returned to shareholders. The buyback stopped. PPP investment sold & cash returned. I am not that keen on a departing CEO pocketing an extra 250K either. When PRC is sold the cash should be returned. The table below shows what the cashreturn would be and allows no upside for PRC sale.

Cash equivalents $mill c per share
net cash 31 Dec 49.8
PPP 87.5million shares @ 12c NZ 10.5
immediate payment 60.3 15.38


PRC sale
PRC US 28mill convertible bond @ FX US/NZ .85 33.52
PRC secured funding advanced 12
PRCun- secured funding advanced 13 14.93

Quarterly Cashflow
Net operating Cashflow for Quarter to March 31 17.6
Add back exploration & evaluation expense 1.3
Add back administration of 2mill from 2.2 total 2
Add back net interest paid 0 .5
21.4 5.46

dsurf Hi,
I am still in a state of shock about this large down grade and really have not yet taken it all in.Probably do not want to.I to thought reserves were to us proven and not what it turns out to be expensive guess work,to be changed at a later date.Under such a state i see little point in the models existing or the staff that make them.




Yes dsurf your idea is worth looking into as i see now that far too many of these high income earners on staff really just to not know clearly what they are doing.Little point in just carrying on drilling dry holes and setting up branch offices overseas to eventuall drill someone elses well.
Have to go now as am going out. Cheers and do not disappear with this idea.
Balance you on sharetrader are coming to be the most correct in your vision and mine certainly needs upgrading.

[fabs]

HARD TO BELIEVE, SOME DYED IN THE WOOL DIE HARD,s WAKING UP.
This Mob will shaft the S/Hs long before doing something honorable, this is all about money remember, cynical yes but sadly true.
There may of course be a completely different agenda.
Time will tell.

[Corporate]

Fellas, I agree this isn't great news - but not all together a surprise. I say this because 2P stands for proven and probable reserves and can also be refer to as P50.

P50 means the company is more than 50% confident that the volumes specified can be recovered. In this case they were wrong. Had this been a reduction in P90 reserves (90% confidence level), I'd be shocked.

[neopoleII]

with this news of a downgrade, you can kiss next years divi away as well.
the only bad thing about you idea dsurf........ and i like it a lot..... is that TR and the boys have access to millions of part paid shares. and with this news they will downgrade the strike price yet again (from a dollar or so now) to 60 / 70 cents which make them the winners no matter what the shareholders vote for.

there must only be a small handful of shareholders outside of the boardroom that is still in the black on their investment in NZO. i started buying at 57cent and kept buying up to $1.27...... what with the few divis i have broken even on cash value only over the last 6 or 7 years, therefore im behind bank rates.
and im one of the lucky one......... how many need $1.50 or more?

this has turned out to be a bad investment........ but thats the game in the oil industry.
now its time for the boardroom to feel some pain or cutbacks....... or close up shop.
and the thing that sluzzes me the most is the millions spent on share buybacks.

[Sideshow Bob]

I suppose one aspect is that NZO aren't operators of the well, just part-owners. If we were kind we could say it was more 'bad luck'. But I think the kindness has run out......

Although I don't necessarily disagree with DSurf's idea.

[fish]

HARD TO BELIEVE, SOME DYED IN THE WOOL DIE HARD,s WAKING UP.
This Mob will shaft the S/Hs long before doing something honorable, this is all about money remember, cynical yes but sadly true.
There may of course be a completely different agenda.
Time will tell.

Fabs I met nzo management last november and am convinced they are all well -intentioned people but hindsight has proved bad decisions were made . Digger and myself felt nzo could be better managed . Unfortunately nzo investors didnt give digger the support he needed to become a director.
DS assured me that pw was driving prc to meet revised targets .I invested heavily in prc on the day of the explosion -i had put in a low bid which was taken up at the close of trading .If any investor should feel bitter it should be me -but I didnt lose a son in the explosion so can only feel sorrow for those that did .
Digger and myself felt NZO needed a director with real life experience and aptitude and so I supported diggers attemt to get on the board-sadly not supported by shareholders and some person I think with legal expertise was nominated and elected by the board .
It is telling that when I spoke to digger after the explosion he asked who lit a match ? PRC looks as if it was an explosion waiting to be ignited . DS did tell me he had no coal expertise and nzo wanted to sell when they had a better offer-they had received offers deemed not good enough

[the machine]

NZOG Management may did know, or
had an inkling quite some time ago, when it stopped underpinning S/P with on-market buy back
Does that mean, them having not resumed now at these price levels, that there is more negative info. in the pipe line?
The co. is not that far away from being cheap.
Take-over at 30-40 cents anyone?

fabs, nzo stopping buying in june may have been influenced by pending reserves update - however the directors resolution was only until june 30, so they could not buy any after that date.

M

[shasta]

Fabs I met nzo management last november and am convinced they are all well -intentioned people but hindsight has proved bad decisions were made . Digger and myself felt nzo could be better managed . Unfortunately nzo investors didnt give digger the support he needed to become a director.
DS assured me that pw was driving prc to meet revised targets .I invested heavily in prc on the day of the explosion -i had put in a low bid which was taken up at the close of trading .If any investor should feel bitter it should be me -but I didnt lose a son in the explosion so can only feel sorrow for those that did .
Digger and myself felt NZO needed a director with real life experience and aptitude and so I supported diggers attemt to get on the board-sadly not supported by shareholders and some person I think with legal expertise was nominated and elected by the board .
It is telling that when I spoke to digger after the explosion he asked who lit a match ? PRC looks as if it was an explosion waiting to be ignited . DS did tell me he had no coal expertise and nzo wanted to sell when they had a better offer-they had received offers deemed not good enough

You mention about them employing a treasury accountant?

Surely they wont wait til we have parity with the US before they act (come August 3, that could well happen!)

[arjay]

I'm with DSurf also. This year's AGM should be interesting in that, while management don't appear to have done much over the last year, the shareprice has gone down a third from a string of bad luck. The proudly touted 'Three Columns' underpinning the company now form th elegs of a distinctly wobbly stool, with Pike having fallen off and a big bite taken out of Tui by a Downgrading Beaver. My guess is that given the success of NZO's expensive modelling experts over the last 7 years, the next time they chuck a drill bit into Taranaki waters they will have just as much chance of striking oil in a passing whale than they will of finding anything under the seabed.

[brucey09]

Snrs.
As always is said - two many as you say - the fat cats. When you do little , example why have a PR man - PR for what - to me it seems information is scarcer than oil.

[fabs]

Lets take the bottom estimate 1.1mil. Barrels left to NZO.
At 120 us $ converted to nz at 0.865$= $152mi. instead of nz $190 mi. a downgrade of nz $ 38mi.
Say over 9 years a loss of GROSS revenue of 4.2 mil.per annual.
Question: is downgrading of at one point 18% and end of day trading yesterday of 13% realistic ,what is going on here?

[Mr Tommy]

Interesting - here are the previous reserves upgrade announcements. So now we are back to 41m, takes us back to the first review on Nov 2007, which was 50% above initial estimates on which the project went ahead. So look on the bright side, Tui has still been a great success, and its still pumping away and all paid off.

22/11/2007
Oil Reserves for the Tui Area Oil Project have been increased to 41.7 million
barrels, 30% above the previous estimate and nearly 50% above pre-development
predictions.
The new figure for proved and probable (2P) reserves compares with estimated
reserves of 27.9 million barrels on which the Tui Area Oil Project in
off-shore Taranaki was first sanctioned, and an interim re-estimate of 32
million barrels following completion of the development drilling campaign.

21/05/2008
The operator of the Tui oil project, AWE Ltd, has assessed that this
extension is expected to allow at least five million barrels of additional
oil to be recovered from the known Tui field reservoirs, bringing the current
proven and probable (2P) reserve to at least 47 million barrels.

20/06/2008
The initial proved and probable (2P) reserves for the Tui Area Oil Fields
have been further increased from 47 million to 50.1 million barrels,
following a detailed field reassessment by the Operator.

[Balance]

Interesting - here are the previous reserves upgrade announcements. So now we are back to 41m, takes us back to the first review on Nov 2007, which was 50% above initial estimates on which the project went ahead. So look on the bright side, Tui has still been a great success, and its still pumping away and all paid off.



What great success? What did shareholders in NZOG got out of all that lovely money from Tui?

Pity all that money from Tui has been pixxed down the black holes of PRC and PPP, and of course huge salaries and benefits for NZOG directors/executives.

Meanwhile, remember shareholders had the privilege of pumping in extra money at $1.50 per share?

[Balance]

In July 2008, NZOG took in $193.7m from shareholders via the exercise of options at $1.50 per share. Rather 'lucky' to have the 'triple' oil reserves upgrades prior to that?

$55m was raised in 2005 via options and placements.

So a total of $249m has been raised from shareholders and what is the market cap today?

$286m!

Mushrooms, anyone?

[swissboy]

Can anyone quantify if s/h have any chance whatsoever to take on the Directors at the AGM especially as it is in Wellington??????

[the machine]

if this bloomberg article eventuates into reality, then it would be a nice xmas present for producers - tapis of course a premium to wti


http://www.bloomberg.com/news/2011-07-25/oil-at-120-becomes-biggest-energy-bet-as-futures-leave-forecasters-behind.html

M

[digger]

Lets take the bottom estimate 1.1mil. Barrels left to NZO.
At 120 us $ converted to nz at 0.865$= $152mi. instead of nz $190 mi. a downgrade of nz $ 38mi.
Say over 9 years a loss of GROSS revenue of 4.2 mil.per annual.
Question: is downgrading of at one point 18% and end of day trading yesterday of 13% realistic ,what is going on here?

Fabs you could have also said that when the oil reserve expected fron KUPE was upgraded by a some slightly greater amount than the now TUI downgrade,that the SP from the KUPE upgrade did not move the SP one cent north.So what is going on. To answer my own question i would say a slow but deeply developed lack of confidence in the board.
DS desire to overseas empire build even when the base at home is erodding away leaves the average shareholder asking what is the point in holding this share .The board is oversupplied with academic wisdom and show a continual lack of practical knowledge.This board of accountants,geoligists and laywers needs a drastic downsizing just as the Dairy board had to do 10 years ago. Under DS leadership in these last three years the company market value is approaching one third it size and getting weaker each day.
Gross income is projected to be 100 million but with overseas dreams and a overladen non preforming management structure none of that money is expected to be available to shareholders. But no doubt though plenty available for the departing CEO.

[jwang]

Lets take the bottom estimate 1.1mil. Barrels left to NZO.
At 120 us $ converted to nz at 0.865$= $152mi. instead of nz $190 mi. a downgrade of nz $ 38mi.
Say over 9 years a loss of GROSS revenue of 4.2 mil.per annual.
Question: is downgrading of at one point 18% and end of day trading yesterday of 13% realistic ,what is going on here?

Just my curiosity: where you get $190mi from?

Per my understanding, NZO shared Tui reserve is 2.6m barrels at 31/12/10. Now this number come down by almost half, So if it has only 1.3m barrels left. Assume oil price at USD 100 pb, ex rate at 0.80, which NZD is 125 pb. This will represent nearly $163 mi revenue loss for next 9 years, or $18mi revenue loss p.a.

[notie]

well the way some of the big boys are bailing out this stock isn't a great endorsement on where they see nzog going long term, or in the short term for that matter. Over 5 million shares sold today, well up on the 300K normally traded.

terminal spiral looks to have started

[jwang]

well the way some of the big boys are bailing out this stock isn't a great endorsement on where they see nzog going long term, or in the short term for that matter. Over 5 million shares sold today, well up on the 300K normally traded.

terminal spiral looks to have started

Who are the buyers?

[fabs]

As per 25/7/11 = 1.1--1.3 NZO share.
I took 1.1 in sample
downgraded from 50.5 to 40-42 mil by 16 - 20%
Prior to downgrade NZO share =1.375 less 20% now 1.1 as above. loss of 275000 barrels.
I.I MIL. BARRELS OF TAPIS OIL 25/7/11 us $120 @ ex.rate 25.7.11 of 0.865 c US = NZ $152
Loss of 275000 barrel calculated by same formula as above = 38 mil NZ $ over 9 years 4.2 mil NZ$ per year.

SO TOTAL BEFORE DOWNGRADE OVER NEXT 9-10 YEARS OF NZ$ 190MIL.NZ$
NOW REDUCED TO NZ$152

[tim23]

There are some big buyers - always amuses me when a stock goes South that for every seller (pessimest in this case) there is buyer who sees a good deal - which it is time will tell I guess.

[Balance]

There are some big buyers - always amuses me when a stock goes South that for every seller (pessimest in this case) there is buyer who sees a good deal - which it is time will tell I guess.

Exactly. Just as there were big buyers when NZOG was $1.60 and there were big sellers too?

And there were huge buyers at $1.01 - big volume.

[tim23]

So are they taking the bath?

[Xerof]

I've been out and on the sidelines since the mid $1.60's with this one but am starting to get interested again

I'd like to see a changing of the guard first then I'd probably see it as a value trade again

Stale money getting out is usually a good sign of a capitulation event

[sideline]

Lets take the bottom estimate 1.1mil. Barrels left to NZO.
At 120 us $ converted to nz at 0.865$= $152mi. instead of nz $190 mi. a downgrade of nz $ 38mi.
Say over 9 years a loss of GROSS revenue of 4.2 mil.per annual.
Question: is downgrading of at one point 18% and end of day trading yesterday of 13% realistic ,what is going on here?

Yes Fabs, seems totally overdone to me.
What seems to be missed in the picture is that this is only gross revenue - there are costs
associated with generating this revenue and that cost (per barrel of produced oil) was always
expected to increase proportionally as the production rate of Tui was projected to decline.
The Umuroa has basically a fixed cost per month to lease, staff and run and as production
of barrels per month declines it becomes eventually uneconomical to carry on, despite the fact that
more oil is there and could be produced if cost didn't matter.
The impact on NET PROFIT is therefore a lot less than above figures since the reduction of production
happens at the far less profitable tail end of the extraction. Then halve that impact again for NPAT
because approximately 50% would have disappeared in taxes anyway.

[Corporate]

I say you'd have to have some balls to buy some NZO right now....falling knife! NZO's EV is approximately $205m....does Kupe and Tui justify it?

What return can share holders expect, and what serious opportunities do NZO have to build production?

[jwang]

As per 25/7/11 = 1.1--1.3 NZO share.
I took 1.1 in sample
downgraded from 50.5 to 40-42 mil by 16 - 20%
Prior to downgrade NZO share =1.375 less 20% now 1.1 as above. loss of 275000 barrels.
I.I MIL. BARRELS OF TAPIS OIL 25/7/11 us $120 @ ex.rate 25.7.11 of 0.865 c US = NZ $152
Loss of 275000 barrel calculated by same formula as above = 38 mil NZ $ over 9 years 4.2 mil NZ$ per year.

SO TOTAL BEFORE DOWNGRADE OVER NEXT 9-10 YEARS OF NZ$ 190MIL.NZ$
NOW REDUCED TO NZ$152

Thanks Fabs, but I still can't agree with you. Following is my calculation.

Initial Tui Reserve 50.5m, productions: 2008: 14.23m, 2009: 9.12m, 2010: 4.83m, 2011: 2.8m, total production to date: 14.23+9.12+4.83+2.8=30.98m, remaining reserve: 50.5-30.98=19.52m, NZO share: 19.52 x 12.5%=2.44m.

Revised Tui Reserve, say: 40m, production to date: 30.98m, remaining reserve:40-30.98=9.02, NZO share: 9.02 x 12.5%=1.13m

Therefore NZO share is down from 2.44m barrels to 1.13m barrels. Take your tapis oil US120@ex rate 0.865, gross revenue will be down by $182m( (2.44-1.13)m x120/0.865) over next 9-10 years, or approx $18m revenue loss p.a.

[Master98]

I agree with you jwang, same as my calculation.

[the machine]

Thanks Fabs, but I still can't agree with you. Following is my calculation.

Initial Tui Reserve 50.5m, productions: 2008: 14.23m, 2009: 9.12m, 2010: 4.83m, 2011: 2.8m, total production to date: 14.23+9.12+4.83+2.8=30.98m, remaining reserve: 50.5-30.98=19.52m, NZO share: 19.52 x 12.5%=2.44m.

Revised Tui Reserve, say: 40m, production to date: 30.98m, remaining reserve:40-30.98=9.02, NZO share: 9.02 x 12.5%=1.13m

Therefore NZO share is down from 2.44m barrels to 1.13m barrels. Take your tapis oil US120@ex rate 0.865, gross revenue will be down by $182m( (2.44-1.13)m x120/0.865) over next 9-10 years, or approx $18m revenue loss p.a.

revenue is down for last 3-5 years - not until after 2014/2015.
also any early ceasing of production by 3-5 years is also less tax, royalties and production costs, so net reduction to nzo is a lot less than nz$182m.

by having the independant review of awe calculations draws a line in the sand, thus if any partners do not want to participate in next round of development/erxploration, then they can opt out, leaving remaining participants with higher share for any increased production - heck of a calculation to make determining who gets what, but doable.

M

[geezy]

time to take on some losses and move on for me..

[fabs]

Yes JWANG You are correct,
tackled this from the wrong end.
My main point was however the overreaction of the market, figures as pointed out since too
by other members above, where gross figures-- more like nett. profit of 6 -7mil p.a.
Unless the predicted and estimated flow rates are still within range, not much will change in the next couple of years.
Yes it could mean of course a shorter life for the well.
It is indeed a funny market, when good news like D/S departing is greeted with a downgrading.
Wonder how much as ORIGIN, AWE & OTHERS are among the circling Vultures

[Balance]

Could be more downside yet as final reserve number to be determined in August.

Downgrades are slippery things and it is hard to understand how Tui can go from upgrades (3 in a row) to one single big downgrade - indicative of amateurs at work?

[digger]

Thanks Fabs, but I still can't agree with you. Following is my calculation.

Initial Tui Reserve 50.5m, productions: 2008: 14.23m, 2009: 9.12m, 2010: 4.83m, 2011: 2.8m, total production to date: 14.23+9.12+4.83+2.8=30.98m, remaining reserve: 50.5-30.98=19.52m, NZO share: 19.52 x 12.5%=2.44m.

Revised Tui Reserve, say: 40m, production to date: 30.98m, remaining reserve:40-30.98=9.02, NZO share: 9.02 x 12.5%=1.13m

Therefore NZO share is down from 2.44m barrels to 1.13m barrels. Take your tapis oil US120@ex rate 0.865, gross revenue will be down by $182m( (2.44-1.13)m x120/0.865) over next 9-10 years, or approx $18m revenue loss p.a.

I have checked your cals and i agree with them.Also cost stay the same so not too good
The big one though is what were the company going to do with the money.My point is if you were just going to throw it at brance offices to ego build while the home front collapses then the loss of income is no real loss. It is a bit like a smoker facing an income decrease when even if he got the origional sum was just going to burn it up anyways .

[digger]

Could be more downside yet as final reserve number to be determined in August.

Downgrades are slippery things and it is hard to understand how Tui can go from upgrades (3 in a row) to one single big downgrade - indicative of amateurs at work?

That two i agree with and have already made that point. Again what is the point of these models when they can easily be this far out.What is the point of expensive modelers that make reports this far out? All around i see a big need for corporate down sizing.Too many snouts at the trough just not earning anything like there keep.Again the Dairy company several times downsized and have over time rises to be NZ biggest income earner.
It is well past time for the board to look at itself and ask where it is going.

[dsurf]

[QUOTE=Corporate;352353]I say you'd have to have some balls to buy some NZO right now....falling knife! NZO's EV is approximately $205m....does Kupe and Tui justify it?

Kupe does by itself for a normal company where the shareholders get a share of the returns. I feel that NZO made a big mistake by cancelling the ANNUAL dividend 6 months before the years result was known. The truth is that the NPAT loss is an accounting loss so why focus on it 6 months before it was necessary. during the year 80mill? cash has been generated. Yes 50% wasted but that would still have left $40m to cover a dividend. Instead they signalled to the market that management were panicking and this has trashed the shareprice by focusing attention on PRC's failure.

But back to the original question of does Kupe & Tui justify it. What about the net cash? What about the return of money leant to PRC. Thesae are worth 30c a share. What about upside from PRC sale. What about PPP. etc my point is that I think capitulation is here. That does not mean the shareprice will go up however as the CEO has decided to hang around for another six months so that another 20 tio 30% of value can be wiped off. Most likely he will then succeed in getting the company taken over and then the complete demise of this company will be realised from the perspective of current shareholders. I want him to leave immediately and give this company a chance to regain a smidgeon of market credibilty and perhaps a chance not to be taken over with the inevitable transfer of wealth overseas.

[fabs]

Near the end of say 8-10 they upgrade, like with Maui 2011 is long forgotten then.
Like you say BALANCE up and down grading is a slippery thing.
Lets ponder and focus on who my gain in the long run, including the present weekly beneficiary's on the trough.
A few days ago i suggested a S/P OF 30 -40cents will definitely bring this to a head, unless we all underestimate this management.

[sideline]

That two i agree with and have already made that point. Again what is the point of these models when they can easily be this far out.What is the point of expensive modelers that make reports this far out? All around i see a big need for corporate down sizing.Too many snouts at the trough just not earning anything like there keep.Again the Dairy company several times downsized and have over time rises to be NZ biggest income earner.
It is well past time for the board to look at itself and ask where it is going.
I agree that the corporate overhead in Wellington needs some serious downsizing.

However, I find it easy to understand how the 'models can be this far out': in the case of Tui the
'economic cut off point' and hence the 'P2 reserves that can be ECONOMICALLY produced' are
dependent on the the price of oil!!!!! As the price of oil went up in 2008 so did the P2 reserves,
because at the higher oil price you can keep going longer profitably while paying for the fixed
monthly costs of the Umuroa. Notice that both the POO and the P2 estimates peaked at the same
time. My guess is that little of the upgrades at the time had much to do with the reservoir
being found to contain more oil than originally thought and most was based on the changing
economics of production because of the changing POO.

Similarly I guess that the current downgrade of P2 reserves has quite a lot to do with a less
optimistic estimate of what the POO will be through to 2019/20. We all know that there are
wildly diverging views on this.

Since the P2 highly depends on the POO I would like to know what estimates were used and
would also like the company to comment on the validity of my guesses.

[Master98]

Again the Dairy company several times downsized and have over time rises to be NZ biggest income earner.
It is well past time for the board to look at itself and ask where it is going.

Dairy company and Oil company are totally different, they are not comparable.

[J R Ewing]

Dairy company and Oil company are totally different, they are not comparable.

I think that Diggers' point is that NZO spends a lot of money on salaries and directors fees and it is hard to see what value is being added as a result. We could trim a lot of expenditure without necessarily reducing any revenue, after all AWE operates Tui, Origin operates Kupe and there seems to be very little happening on the prospecting side.

[digger]

Dairy company and Oil company are totally different, they are not comparable.

Successful people and companies all have in common that they look at their situation and try as much as possible to change whatever needs to be changed as circumstances require.Just as the dairy industry have made succesful changes now NZO needs to lookat itself,so in theses circumstances the two totally different companies are comparable.

[fabs]

Is there more negative news to come?
One finds it hard to believe that a management team consisting of 22 highly touted members can in this day and age be so incompetent to take a Co. that had so much going for it 3-4 years ago to this.
BTW: How much or little are those US-$ worth they are still hording , hope they have not added more since they have been such a bargain lately and dare i say may soon even be worthless.

[digger]

I think that Diggers' point is that NZO spends a lot of money on salaries and directors fees and it is hard to see what value is being added as a result. We could trim a lot of expenditure without necessarily reducing any revenue, after all AWE operates Tui, Origin operates Kupe and there seems to be very little happening on the prospecting side.

Exactaly and further more even the thought of setting up overseas posts to further the errosion of cash with more salaries fees and prime overseas travel, lodgings is my main point of why the SP is in freefall. The sooner DS leaves the better.That is all part of the price of being a CEO. The buck stops there.Just like a political leader--lose too often your out .
I would put the next CEO on a SP preformance income. In fact why not all the directors on a SP preformance basis. Afterall that would then put them exactally where the shareholders are.We win together or lose together.

[notie]

Where's Chris Roberts now when you have some helpful hints for nzog?


Exactaly and further more even the thought of setting up overseas posts to further the errosion of cash with more salaries fees and prime overseas travel, lodgings is my main point of why the SP is in freefall. The sooner DS leaves the better.That is all part of the price of being a CEO. The buck stops there.Just like a political leader--lose too often your out .
I would put the next CEO on a SP preformance income. In fact why not all the directors on a SP preformance basis. Afterall that would then put them exactally where the shareholders are.We win together or lose together.

[KentBrockman]

Where's Chris Roberts now when you have some helpful hints for nzog?


LOL, I am sure he's still reading here.

[bung5]

Market has overshot this one big time. Cheap takeover target now .

[Master98]

Market has overshot this one big time. Cheap takeover target now .

LOL, high 50c will be some day.

[bung5]

you don't think after taking cash and ppp shareholding out:

MC 260 @ 67c
-65m cash
- 15m PPP holding


180m for KUPE and TUI producing 100mil a year reveune

Plus the permits

Just need to take the snouts out the trough ;)

[fish]

you don't think after taking cash and ppp shareholding out:

MC 260 @ 67c
-65m cash
- 15m PPP holding


180m for KUPE and TUI producing 100mil a year reveune

Plus the permits

Just need to take the snouts out the trough ;)

Fully agree nzo is grossly oversold -patience is really being tested . I really wish we could get digger or another big shareholder elected as a director .

[Master98]

you don't think after taking cash and ppp shareholding out:

MC 260 @ 67c
-65m cash
- 15m PPP holding


180m for KUPE and TUI producing 100mil a year reveune

Plus the permits

Just need to take the snouts out the trough ;)

bung5, you have made good excuses to let you have a good sleep, but for a downtrend stock like NZO all these excuses are mean nothing, NZO has done very bad investment both in PRC and PPP, those cash reserve will not take long to burn out. I already clean out all my holding at 73c( at loss ), maybe come back at some stage, keeping close look.

[bung5]

bung5, you have made good excuses to let you have a good sleep, but for a downtrend stock like NZO all these excuses are mean nothing, NZO has done very bad investment both in PRC and PPP, those cash reserve will not take long to burn out. I already clean out all my holding at 73c( at loss ), maybe come back at some stage, keeping close look.

Follow the sheep and the bad sentiment. I don't disagree that the mgmt has been bad but also very unlucky . The bright side is the CEO is on his way out and I'm sure that there are plenty of company's sniffing around these cheap assets

[Sideshow Bob]

From the 2010 Annual Report, the top 15 earners earnt approx $3.5m in total, so about $233k on average, plus shares? The board were an extra $540,000 on top of this.

I had a look at the careers page as thought that i might apply for DS's job, as I believe I can run a company that 'has a small team (around 20 employees) based in Wellington, New Zealand. We are not currently operating any projects or facilities, so have no field office or staff'. But alas wasn't advertised!!

Otherwise the tealady position sounds good!!

[brucey09]

Snr. Roberts
Please tell to this forum
All current job description and number of people in category and salary bands with , as you say, "perkeys" example auto and cell.
thankyou

[Chris Roberts]

Snr. Roberts
Please tell to this forum
All current job description and number of people in category and salary bands with , as you say, "perkeys" example auto and cell.
thankyou

Bruce, as I explained in my reply to your email a few weeks ago, under the Privacy Act I am not able to supply personal information – or even get access to it. I do not know what other staff members are paid. However, salary bands are published each year in the Annual Report.

In general terms I can say that NZOG's technical people – geologists, geophysicists – are reasonably well paid compared to most vocations in NZ; however, they would be paid at least 50% more in Australia, and over 100% more in many parts of the world. A senior geologist in the Middle East would typically receive US$500,000 a year tax free.

NZOG's CEO’s total remuneration is on the public record - NZ$559,000. A NZ Herald survey earlier this year showed that this was the second lowest CEO remuneration level out of the NZX50 companies.

NZOG's salary cost in FY11 was approximately 4% of revenue.

Followers of this thread with other questions should tune in to tomorrow's Quarterly Report audio webcast, available through the NZOG website from 11.30am.

[Balance]

NZOG desperately need a rejuvenated board.

DS leaving is not good - he did not like what PW was doing and said he had lost confidence in him.

The Board disagreed.

After PRC blew up, DS resigned.

Does that sound right to anyone of you?

[bung5]

Public Affairs Manager - we can probably cut that role?

[airedale]

Balance, your second sentence seems to contradict itself. Can he like what PW was doing but lose confidence in him?

[Balance]

Balance, your second sentence seems to contradict itself. Can he like what PW was doing but lose confidence in him?

Well spotted.

[Beagle]

The Pike fiasco, the current Tui de-rating, most of all all the squandered opportunites that the free flowing cash from Tui should have thrown up during the GFC, the inclination towards exploration on the other side of the world where its all but impossible to see how NZO have a competitive advantage, cancelling the dividend long before free cash flow from normalised operations for the year was known, management salaries, the entrenched positons in the board, especially TR and his conflict of interest regarding the PRC matter, the $12m donation to PRC when almost all on here could see that it was unlikely to be a going concern and they could easily have excercised their force majure clause to further financial assistance, the bad luck, DS leaving, head office overheads now appearing to be woefully excessive, "management" if you can call it that of foriegn exchange reserves and ALL this against a backdrop of record oil prices.

How do you value a company with this sort of record and present issues ?
Well I'll have a stab. As a takeover its probably worth north of a $1, another company could strip all overheads, staff and exploration and simply milk Tui and Kupe and extract value that way.

Without a takeover and if one assumes the company maintains its current board, core management and "so called" strategic direction with their "heavily strengthened management team" quite simply i think shareholders are on a very slow and painful hiding to nothing.

Maybe a speculative buy at 40-50 cents for the very brave on the basis that they could be a takeover target, at present I'd rate them a sell on the basis that poor directors and management will continue to erode shareholder value just like they've done over many, many years now.

[the machine]

Public Affairs Manager - we can probably cut that role?

bung5, are you going fishing or what.

CR is the only feedback we receive from company apart from releases to stock exchange

Should CR be paid $250k pa then that would be money well spent.

m

[Corporate]

Should CR be paid $250k pa then that would be money well spent.

m

You're taking the mickey right?

[fabs]

BALANCE
RE:D/S leaving is no good!
Have you been contaminated by us Mushrooms by being on this forum to long, that would be a shame.
D/Ss dislike for P/W being chosen by the board, hearsay at best, but even if true, he sat on a board which seems to have made so many blunders in the 4 years since he came on board and done nothing till now and wait for it still hangs in there, then on any level his not worth a tin of fish.

[digger]

BALANCE
RE:D/S leaving is no good!
Have you been contaminated by us Mushrooms by being on this forum to long, that would be a shame.
D/Ss dislike for P/W being chosen by the board, hearsay at best, but even if true, he sat on a board which seems to have made so many blunders in the 4 years since he came on board and done nothing till now and wait for it still hangs in there, then on any level his not worth a tin of fish.

What this board needs is a large long term shareholder that come what may is in this company for a return on equity.It is called stability. At the present it has too many directors that are professionals that themselves have put nothing into the company,are jonny come lately and will leave at the first sign of trouble.
If practical intelligence could be brought to the for right now any thought of a share buy back should be scrapped for all time . Fair enought it was tried but found wanting. It rewards too much those who are leaving and only minial to the staying as those share are cancelled.The board if it could find practical intelligence would announce a dividend this year.It has the money and for sure it is a far better investment than a branch office. In fact i find it very easy to say that with the monies coming in from KUPE a yearly dividend of a fixed % of that revenue should first and foremost be set aside as dividends.If we just leave it in their hands unquestioned it is all to easy to be waisted on office attachments and other staff perks. In fact the idea of no intention to pay a dividend this year is a reflection of a over dominated board that have themselves put very very little into NZO[apart fron TR] and now are running the finances to maintain perks for staff.This attitude is also a large part of the faling SP. Why bother when the staff are getting the rewards and shareholders are pushed aside.
We need to examine why we have the directors we have and how best to make up the board.It is over dominated by professionals that in reality would better be employed by the company if required. A dividend is required to show the market that a large gap exist between the SP and its value. But then if the board is just going to waist its still considerable income then i guess its value is correct now if not in fact too high.

[sideline]

............ A dividend is required to show the market that a large gap exist between the SP and its value. But then if the board is just going to waist its still considerable income then i guess its value is correct now if not in fact too high.

Entirely agree that the cashflow-positive operations like Kupe and Tui should pay a dividend to
shareholders. A certain portion of their net-revenue should be set aside for this!

[fabs]

Well said Digger more or less my sentiments too, they promised long ago a fair return to S/Hs from profits.
Lets see how arrogant, selfish and contemptuous they will continue to act.

[fabs]

CHRIS ROBERTS
Re Salaries:
Kaspar Villiger top boy of UBS
Has a degree of mechanical engineering NOT BANKING
In charge of 2nd biggest investment bank in the world
64000 staff in 50 countries
Salary including bonus for 2010 777000.00 NZD
UBS Profit for 2010 10.3 BILLION
So paste that in your hat.

[Chris Roberts]

CHRIS ROBERTS
Re Salaries:
Kaspar Villiger top boy of UBS
Has a degree of mechanical engineering NOT BANKING
In charge of 2nd biggest investment bank in the world
64000 staff in 50 countries
Salary including bonus for 2010 777000.00 NZD
UBS Profit for 2010 10.3 BILLION
So paste that in your hat.

I can google too Franz.
Villiger is Chairman of UBS and his total remuneration in 2010 was CHF 1,491,308.
The CEO is Oswald Grubel and he received a salary of CHF 3 million.
UBS allocation to staff bonuses in 2010 was CHF 4.2 billion - 42% of the profit to staff.
Little point in comparing UBS with NZOG.

A detailed webcast briefing is now available at www.nzog.com/webcasts for anyone who wants a comprehensive overview of NZOG.

[Ayrton]

Anybody else receive the off market offer from 'Zero Commission NZ Ltd' ? Managing director is Roy Jackson. Offering me 76c per share. The letter was printed on 20th July, when NZO was trading at 84c. The offer is open till the 15th of August.

Basically trying to convince me that by selling at a discount to the market price to them I can sell without incurring fees or commission, but now NZO is trading below their offer.. Could work to my benefit.

[fabs]

Yes Chris
I was only comparing Salaries, the rest of his earnings is a complex issue and you are right can not be compared with with Nzog, speaking of which you forgotten to mention that he and MR. GRUBEL both took far less in UBSs previous bad year. So like the board of NZO can make unfortunate decisions but unlike our board, get punished for non performance.

[notie]

If you read the company's quarterly activity report you would think everything is fine and there are no problems. http://nzog.com/f283,165961/165961_NZOG_June_2011_QR.pdf

For all that money they raised and then the flush Tui production nzog has managed to do bugger all. So all you have got for your money is a prospecting permit in Tunisia with no right to drill a well and a study group in onshore Indonesia. wow, really going places.

This company blew a shed load of cash bailing out Pike River and didn't bother to invest in anything else. Now that Tui has had a reserves downgrade investors now realize they have been sold a pup. Remember AWE the operator of Tui has done an in-house reserve downgrade. Expect the independent reserve study to be carried out to further reduce the field size.

Expect nzog to pull out of Barque in offshore Canterbury and Kaupokonui to be dropped before any wells are drilled.

[arjay]

Just finished listening to DS webcast. To be fair, I thought he did a good job tackling some of the recent negative press. I did however love his comment (this is my translation:) that "corporate effort is largely aimed at securing upside, and because figures for the potential value of upside are not included in the analysis it would be inappropriate to include the cost of corporate." That statement is so beautifully slippery you could put fins on it and call it an eel.

[Sideshow Bob]

From Brian Gaynors Column in the NZ Herald today:

Unfortunately many listed New Zealand companies, including those in the NZX50 Index, are lacking management depth and it is not obvious who will replace the current chief executive if he suddenly resigns.

New Zealand Oil & Gas is an excellent example of this.

David Salisbury was appointed chief executive of the oil exploration and production company in April 2007. He had just returned from Vienna where he had been vice-president business development of OMV Exploration & Production.

Salisbury was quoted as saying "I relish the opportunity of working with business partners, shareholders and staff to capitalise on NZOG's current major projects and to position the company for further growth opportunities".

"Tui with its strong initial oil flows, Kupe as a solidly-based long-life asset, and the diversity brought to the portfolio by Pike River Coal together creates a very sound financial platform for an exciting growth path for NZOG".

Unfortunately these growth opportunities have not been realised and on June 30 Salisbury gave six months' notice of his resignation and will finish on December 29. Chairman Tony Radford said the company "will commence shortly to recruit a replacement chief executive".

When Australian Worldwide Exploration, the operator and 42.5 per cent owner of the Tui field, announced this week that Tui's reserves had been downgraded from 50.5 million barrels to 40 to 42 million barrels, NZOG seemed to be rudderless. The company made a short factual comment to the NZX with no quotes and no executive contact details. This was in stark contrast to earlier Tui reserves upgrade announcements which contained contact details for Salisbury and another company executive.

One of NZOG's problems is that Radford is based in Australia and he is not a great communicator. He was appointed to the NZOG board in June 1981 and has been chairman for most of this 30 year period.

NZOG's corporate governance leaves a lot to be desired and shareholders are now paying a big price for the company's inability to secure a long-term chief executive, as well as for its inadequate succession plans and its poor communications, particularly in adverse situations


http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10741723

[Corporate]

From Brian Gaynors Column in the NZ Herald today:

Unfortunately many listed New Zealand companies, including those in the NZX50 Index, are lacking management depth and it is not obvious who will replace the current chief executive if he suddenly resigns.

New Zealand Oil & Gas is an excellent example of this.

David Salisbury was appointed chief executive of the oil exploration and production company in April 2007. He had just returned from Vienna where he had been vice-president business development of OMV Exploration & Production.

Salisbury was quoted as saying "I relish the opportunity of working with business partners, shareholders and staff to capitalise on NZOG's current major projects and to position the company for further growth opportunities".

"Tui with its strong initial oil flows, Kupe as a solidly-based long-life asset, and the diversity brought to the portfolio by Pike River Coal together creates a very sound financial platform for an exciting growth path for NZOG".

Unfortunately these growth opportunities have not been realised and on June 30 Salisbury gave six months' notice of his resignation and will finish on December 29. Chairman Tony Radford said the company "will commence shortly to recruit a replacement chief executive".

When Australian Worldwide Exploration, the operator and 42.5 per cent owner of the Tui field, announced this week that Tui's reserves had been downgraded from 50.5 million barrels to 40 to 42 million barrels, NZOG seemed to be rudderless. The company made a short factual comment to the NZX with no quotes and no executive contact details. This was in stark contrast to earlier Tui reserves upgrade announcements which contained contact details for Salisbury and another company executive.

One of NZOG's problems is that Radford is based in Australia and he is not a great communicator. He was appointed to the NZOG board in June 1981 and has been chairman for most of this 30 year period.

NZOG's corporate governance leaves a lot to be desired and shareholders are now paying a big price for the company's inability to secure a long-term chief executive, as well as for its inadequate succession plans and its poor communications, particularly in adverse situations


http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10741723

Jeez that is fairly scathing, but spot on!

[Corporate]

I just had a look at the cash flow statement for the 12 months ending 30 June. One number stood out....NZ$12.7m in administration cost. I thought it looked on the high side given NZO is a non-operator in all its production assets. I then checked out CUE's admin costs for the same 12 months. It was A$4m.

Why such a disparity between the two companies? Unbelievable.

[Balance]

Just finished listening to DS webcast. To be fair, I thought he did a good job tackling some of the recent negative press. I did however love his comment (this is my translation:) that "corporate effort is largely aimed at securing upside, and because figures for the potential value of upside are not included in the analysis it would be inappropriate to include the cost of corporate." That statement is so beautifully slippery you could put fins on it and call it an eel.

Figuratively speaking, you are a wordsmith of exceptional talent!

I have never had any time for NZOG's directors and management. Go back far enough and it was already a company structured to keep the board (especially TR) and management in clover, champagne and first class air travel for the rest of their lives. Sad to see DS fall into the same category - but at least he has the integrity to move on.

Meanwhile, shareholders have pumped close to $250m into this company since 2005 and what have they got to show for it?

[troyvdh]

Dear balance....as a comparison ...could you please enlightlen us to which company(ies)...really gets your concentrated,repeated and unbridled approval.

cheers troy

[Balance]

Dear balance....as a comparison ...could you please enlightlen us to which company(ies)...really gets your concentrated,repeated and unbridled approval.

cheers troy

Try this 5 to 10 baggers - http://www.sharetrader.co.nz/showthread.php?5408-Diligent-Boardbooks-IPO/page8&highlight=diligent

[percy]

Try this 5 to 10 baggers - http://www.sharetrader.co.nz/showthread.php?5408-Diligent-Boardbooks-IPO/page8&highlight=diligent

Balances up RNS disaster. Yeah Right. lol.

[Balance]

Loel - no brainer, Percy.

1 x .5 + 1 x 5 = 5.5 against entry price of 2 = 175% gain.

You savvy?

Now if I was really smart, I would have been shorting NZO all the way down to here. But then, you would all accuse me of down-ramping.

As a few others in this forum have found over the years, management is almost everything in a company. As is famously said once "I like to invest in companies which can be run by monkeys, because one day you will get one running it."

[percy]

No brainer, Percy.

1 x .5 + 1 x 5 = 5.5 against entry price of 2

You savvy?

Yes. That is the beauty of the market.One winner,and you are well ahead.
Look forward to more foresight,rather than hindsight from you.

[Balance]

Yes. That is the beauty of the market.One winner,and you are well ahead.
Look forward to more foresight,rather than hindsight from you.

Got to be a big winner, of course.

Not easy to pick those.

[digger]

Got to be a big winner, of course.

Not easy to pick those.

Given its current SP nog stands at the cross road of becoming a big winner or continue on as a loser.The cause of this is the problem of our director makeup.In the last few years we have added directors who have hunderds of years of professional experience in there academic fields who are so confidence in NZO and their own abilities that they have only been prepared to put pennies of their own money into this company,at the same time they will take all the free issues we keep giving them.
The reason I say NZO stands at the cross roads is that currently NZO shareprice does not come even close to its break up value.DS recent presentation of the quartly shows together with the last six months that NZO gross income is just more than 133 million. A annual adminstration cost of 12.7 million hids a lot of direcrtor perks and a nil dividend for shareholders shows where the problem is. You might ask,and you certainly shold be asking,why has the Diodore prospect in Tunisia never received any positive uplift from the market.Why does the market not focus on it? The reason IMHO is simple.Why would any income from the Diodore block ever get back to the shareholders when we have waited some 30 years for the income from KUPE which is prime right now and we are told it will be 'no intension to pay a dividend'.Same with Diodore.
The director makeup is now so heavily overweighted with 200 some odds years of professional experiences that it is polluted.It lacks practical knowledge to understand the damage a nil dividend has done and will do to the company.
Again you might ask and you should ask is the PIKE blowup and the TUI downgrade the sole problem.With a 133 million gross income if it were shared would more than push aside these negative hits.So this is where i see NZO at the cross roads.We have had to very unfortunate events against us but the third big hit of nil shareing of the income is the greatest .The damage it does is tell the market there is not positive in the future to home in on.

[the machine]

good post Digger.

If no dividend then commit to drilling Kaupokonui and retain 90% interest.

Its our money and I for one like to see the drill bit do the talking.

M

[Awamoa]

Yes. That is the beauty of the market.One winner,and you are well ahead.
Look forward to more foresight,rather than hindsight from you.
Reminds me of a chap I used to work with who punted the horses.He was very vocal about his wins and never mentioned the losses.Funny thing was he didnt own a car,house or anything of any substance.
My conclusion was that there must have been a few losses.
I am yet to meet a stockmarket investor who hasnt experienced any losses however Balance may be an exception.

[digger]

good post Digger.

If no dividend then commit to drilling Kaupokonui and retain 90% interest.

Its our money and I for one like to see the drill bit do the talking.

M

Hi the machine,

Mate i think you have missed my fundamental point.Why bother drilling Kaupokonui? If kupe after 40 years and fully developed and at its peak with gross income of 133million can not in itself generate a dividend ,then why will Kaupokonui be and better? Or Diodore or any well you care to name. This is what i think the market is saying.The 100% professional acedamic loaded board has priortized expenses so that their perks,overseas branch offices,etc,etc all come before the shareholders.The shareholders will get something if the board can not think of any other way of spending it.

[RRR]

What happened to the share buy back plan? Why dont they do it when the share price is much lower? They haven't communicated the reason why NZO stopped buying back shares. NZO got the award for the best communicator not so long ago!

[brucey09]

Snrs.
no more drilling, 1 or 2 employes, no pr - just get the income, kupe and tui and pay all as divs so we get returns - yes.

[the machine]

What happened to the share buy back plan? Why dont they do it when the share price is much lower? They haven't communicated the reason why NZO stopped buying back shares. NZO got the award for the best communicator not so long ago!

RRR, the share buy back plan was only valid until June 30 2011.

It would require another resolution from the board to have another share buy back plan but I would be surprsied if the board did that - PRC distaster and then TUI downgrade.

M

[Balance]

Reminds me of a chap I used to work with who punted the horses.He was very vocal about his wins and never mentioned the losses.Funny thing was he didnt own a car,house or anything of any substance.
My conclusion was that there must have been a few losses.
I am yet to meet a stockmarket investor who hasnt experienced any losses however Balance may be an exception.

LOL - wish I was an exception!

Just because I had NZO so right (and copped heaps of abuse along the way for daring to take on the one-eyed believers) does not mean I am right in everything.

Just because some of you are so blinkered stubborn wrong in NZO does not mean that you get aggro against those who tried to warn you about the perils of putting your hard-earned money with a bunch of incompetent, self-serving, manipulative, self-glorified and ultimately, arrogant Board and management.

NZOG has some great assets - that's undeniable. It needs good management to extract the best out of those assets and take care of shareholders. Do you think that's the sort of management what you have?

[Corporate]

Digger, you are spot on with your point. I don't understand why management stopped paying a dividend either!

[digger]

What happened to the share buy back plan? Why dont they do it when the share price is much lower? They haven't communicated the reason why NZO stopped buying back shares. NZO got the award for the best communicator not so long ago!

A share buy back was worth a try but it is no where as good as a dividend for showing the value of NZO. As i said before a buyback is more rewarding to the leavers of the company and really has minual value to the stayers. A dvidend does far more to support the SP by giving a yield.
In the last few years the world has significantly changed,and i now believe this new economic order will be the case for at least the rest of my time on this planet. Most of the last 100 years real wealth winners were involved in capital gain,and i suspect most of us here have in one way or another enjoyed the ride. That i believe has now gone for the foeseeable future and now it is back to the old old old fashion yield. That is why we need a dividend.

[Balance]

That is why we need a dividend.

Say all you want, Digger but you will not get a regular dividend from this crowd. They are too busy holding onto the cash, especially the $250m raised from shareholders, and busy squandering it on bad investments.

[Billy Boy]

[QUOTE=Awamoa;352821]Reminds me of a chap I used to work with who punted the horses.He was very vocal about his wins and never mentioned the losses.Unquote]

Or what is cost to get those winnings !!!!
Same goes for those Pokie Machines .

I think NOG is running down the same theme.
Time is allmost up Mr. NOG Man.
BB

[LIO]

I understood that the dividend payment was suspended for this year, due to Pike River and associated expenses. We were not told that dividends would cease permanently. Wouldn't Kupe alone support a dividend ?

[Balance]

[
Tapis at a new record-now over us $148

NZO attracting lots buyers and selling pressure declining

I feel the rise in sp during july will be very rapid and the quarterly profit announcement at the end july will be phenomenal .

Lets hope no one here makes the mistake of selling a rising stock-as some did with prc.

If selling pressure continues to subside the institutions might have to pay a more reasonable price to get in .

IMO nzo at current conventional valuation of assets is about $3 but as a successful company 30 yrs experience and knowledge is worth double that .

This is the kind of unbridled exuberance which allowed NZOG to pull in another $197.3m from shareholders.

[neopoleII]

page 559 on this thread is a year ago...... reading it now one year on tells me alot about management,
what can we, as small / er holders do about it?
and who are the entities that control large voting stock....... and what are their goals in supporting the boards horrendous direction? this is just going on and on...... and the direction the board chooses just keeps getting voted for.
if my large investment (for me) wasnt on the line i'd be laughing at the fiasco that is slowly rolling along.......
what makes me question my sanity is the large voting blocks supporting this all along..... thats alot of money being evaporated...... which belongs to some one who is voting yes to the board.

[Balance]

page 559 on this thread is a year ago...... reading it now one year on tells me alot about management,
what can we, as small / er holders do about it?
and who are the entities that control large voting stock....... and what are their goals in supporting the boards horrendous direction? this is just going on and on...... and the direction the board chooses just keeps getting voted for.
if my large investment (for me) wasnt on the line i'd be laughing at the fiasco that is slowly rolling along.......
what makes me question my sanity is the large voting blocks supporting this all along..... thats alot of money being evaporated...... which belongs to some one who is voting yes to the board.

A bunch of lame duck institutional investors looking after other people's money, behaving just like NZOG's directors and management - big salaries, perks and couldn't give a hoot.

Why would they want to draw attention to their glaring failure to invest in a real oil and gas company?

[blockhead]

You been loading up this morning (un) Balanced ????

[LIO]

Agree Blockhead. There certainly have been a few grizzles from various posters lately. However, the persistent and repetitive attacks from 'Balance' suggest a hidden agenda. The more of these I hear, the less likely I am to part with my shares !

[J R Ewing]

I don't see why Balance would need to down ramp in order to get a cheap entry point, the sp seems to be heading low enough all by itself! Clearly Balance isn't a fan of NZO board and management, but the patience of some very long term holders is wearing thin and it is hard to find much to be enthusiastic about at present.