NZ Oil & Gas (NZO)

[Balance]

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 !

Tiresome ole bulldust from the mushrooms who have been holding all the way down from $1.60 - accusing anyone who dare question NZO's management and direction of down-ramping.

Just keep holding - and losing.

Meanwhile, some other oil and energy companies are going higher and higher.

Eg. Look at Oil Search in Australia - 200% outperformance against NZO.

[notie]

Just to add, nzog have gone and hired another senior manager. They are listening to the chat here


Tiresome ole bulldust from the mushrooms who have been holding all the way down from $1.60 - accusing anyone who dare question NZO's management and direction of down-ramping.

Just keep holding - and losing.

Meanwhile, some other oil and energy companies are going higher and higher.

Eg. Look at Oil Search in Australia - 200% outperformance against NZO.

[LIO]

Tiresome ole bulldust from the mushrooms who have been holding all the way down from $1.60 - accusing anyone who dare question NZO's management and direction of down-ramping.

Just keep holding - and losing.

Meanwhile, some other oil and energy companies are going higher and higher.

Eg. Look at Oil Search in Australia - 200% outperformance against NZO.


Hi Balance / Notie, this tired old mushroom has held all the way from 30c actually, and done well along the way ! I do welcome posters who dare to question management, when it is constructive criticism ( Digger for example ).

[LIO]

Plenty of sellers lately, but some big buyers. Time alone will tell who is right. If NZO does nothing more than recoup it's PRC money as a secured creditor then the share price will surely benefit. Probably the market has currently factored in a total loss.

[Balance]

Hi Balance / Notie, this tired old mushroom has held all the way from 30c actually, and done well along the way ! I do welcome posters who dare to question management, when it is constructive criticism ( Digger for example ).

Digger has got nowhere with this company with his constructive criticism. Amen.

[fish]

Plenty of sellers lately, but some big buyers. Time alone will tell who is right. If NZO does nothing more than recoup it's PRC money as a secured creditor then the share price will surely benefit. Probably the market has currently factored in a total loss.

The markets main driving force currently appears to be negative sentiment .
Sharebrokers valuations are still over $1.00 .
There seems to be fewer sellers and I wonder if nzo has hit rockbottom and will now rebound .
This month we may hear the results of the tenders for PRC .
I suspect some good news at the agm-maybe an interim dividend for this year .If the sp stays down we will see resumption of the buyback .

[Chris Roberts]

Just to add, nzog have gone and hired another senior manager. They are listening to the chat here

Wrong as usual notie. NZOG's management team has actually reduced. NZOG's Reservoir Manager left for a very senior overseas job a couple of months ago. NZOG has not filled the position but has brought someone in on a part-time basis to provide engineering input.
Maybe you should stick to commenting on a company you actually own shares in, rather than one you harbour an old grudge against? Surely you must have more useful things to do?

[minimoke]

Wrong as usual notie. NZOG's management team has actually reduced. NZOG's Reservoir Manager left for a very senior overseas job a couple of months ago. NZOG has not filled the position but has brought someone in on a part-time basis to provide engineering input.
Maybe you should stick to commenting on a company you actually own shares in, rather than one you harbour an old grudge against? Surely you must have more useful things to do?
Hmm, I was wondering whether to respond or not but I find this post somewhat offensive. On reflection "offensive " is a little strong as not much really offends me but an interesting post all the same.

Here we have an employee of a publicly listed company suggesting that the only people who have a right to comment in a company is shareholders in that company. That would seem to me to be a recipe for ensuring one only gets a positive spin on company news - for surely if a person felt negatively about a company they held shares in they would look at quitting those shares.

We also have the suggestion that a person should limit another right to hold an opinion and share that opinion. That we don't like a persons view, or they way they express it should not be encouragement of suppression of that basic right.

How a person spends their time is their business. Again why would a Representative of a company suggest that are in a better position on how that time should be spent.

And I find posting such comments in a public forum either brave or foolhardy. It is either a well considered post or one which shows the level of judgement of the company hirers and author.

Either way I for one am all for the freedom of posters to post what ever they like within the Forum hosts rules. That no one reads mine bothers me not

[Oiler]

Wrong as usual notie. NZOG's management team has actually reduced. NZOG's Reservoir Manager left for a very senior overseas job a couple of months ago. NZOG has not filled the position but has brought someone in on a part-time basis to provide engineering input.
Maybe you should stick to commenting on a company you actually own shares in, rather than one you harbour an old grudge against? Surely you must have more useful things to do?

Fair comment Chris ! However NZOG does need to review the quality of its Board of Directors. Time to add some fresh young blood with a "few grey hair" members

[winner69]

Hmm, I was wondering whether to respond or not but I find this post somewhat offensive. On reflection "offensive " is a little strong as not much really offends me but an interesting post all the same.

Here we have an employee of a publicly listed company suggesting that the only people who have a right to comment in a company is shareholders in that company. That would seem to me to be a recipe for ensuring one only gets a positive spin on company news - for surely if a person felt negatively about a company they held shares in they would look at quitting those shares.

We also have the suggestion that a person should limit another right to hold an opinion and share that opinion. That we don't like a persons view, or they way they express it should not be encouragement of suppression of that basic right.

How a person spends their time is their business. Again why would a Representative of a company suggest that are in a better position on how that time should be spent.

And I find posting such comments in a public forum either brave or foolhardy. It is either a well considered post or one which shows the level of judgement of the company hirers and author.

Either way I for one am all for the freedom of posters to post what ever they like within the Forum hosts rules. That no one reads mine bothers me not

You make some good points here mate - methinks he is jsut pissed off with people getting stuck into management and lost his cool in the heat of the moment

Jeez now we have Oiler saying the quality of the Board needs to be reviewed - maybe that will cause offense as well

[Balance]

Fair comment Chris ! However NZOG does need to review the quality of its Board of Directors. Time to add some fresh young blood with a "few grey hair" members

Hardly a fair comment.

As Mini has pointed out, someone who has sold out of NZO or any company but has good insight (and good infor) makes an even better contribution by highlighting the inadequacies of a company. It is up to the company to refute the assertions or to accept them.

I have no grudge against NZO but I find good assets (especially cash from shareholders) being grossly mismanaged extremely aggravating.

Pray explain how a company like NZO siting on a pile of cash end up re-investing in PPP (sell low, buy high) and pouring in endlessly into PRC?

[Financially dependant]

Someone things NZO is worth 68c today they bought plenty of them, looks like it might be a good time to re-enter!

[Sideshow Bob]

I'll beat Balance to it and say that someone sold plenty also........

[bung5]

Well I will admit I am buying up at these prices. but nothing like what was going thru yesterday!

[fabs]

If it is any consolation AWE S/P now, where NZO was only a few weeks ago.
So,how into it.

[dsurf]

With things so cheap, the last three years scrutinising opportunities by the world class team surely must pay off. DS said that the risk /return ratios etc were not good enough so nothing has been bought to increase reserves. Some investments & risk / reward of small producing oilers surely are now NPV +ve that the SP of oilers is tanking!!! Oh thats right he is off to europe!! Guess nothing will happen - I think they should hold onto all the cash so that it is safe!! I personally am stoked with the -100%+ return this year. I hope DS stays on for a while longer to steady the ship or is he the gaping hole that is sinking the ship?

[boysy]

Speculation on hotcopper that Nzo is having a good look at Kik phillipene asset sc54a the shallows I hope for holders sake they keep well clear of Kik.

[joey]

Have you investors/speculators not heard the expression: "Don't try to catch a falling knife".

If not, it's a good one to remember!.

joey

[777]

It has been on nearly every thread today.

[Lion]

Have you investors/speculators not heard the expression: "Don't try to catch a falling knife".

If not, it's a good one to remember!.

joey

It's one of a hundred sayings about how to trade. Another one is "buy low, sell high"

[dsurf]

how about "wealth is created in down markets and realised in up markets"

[Lion]

Yes, or Warren Buffet's one ""Be fearful when others are greedy and greedy when others are fearful" (or something close to that).

But I don't think a handful of words is enough to guide decisions like this anyway.

[Corporate]

I've been pretty busy at work recently and finally had a chance to see what has been going on with NZO lately.

The thing that stands out the most for me is why this company has stopped paying dividends. For the June quarter the company had operating cash flow of $25m. Lets say it was a very good quarter and the annualised operating cash flow is actually $80m. Very conservatively that represents 33% of the current market capitalisation ($80m/$247m).

They could start off with 4 cents per share. On 392m shares that represents $15.7m per annum and a yield of 6.3% net of tax.

I'd seriously consider becoming a shareholder again if the Board and management could show how they were going to provide a return on my investment.

Alas, I can see all the cash being blown on wild cat exploration wells in areas outside our expertise.

[bung5]

I've been pretty busy at work recently and finally had a chance to see what has been going on with NZO lately.

The thing that stands out the most for me is why this company has stopped paying dividends. For the June quarter the company had operating cash flow of $25m. Lets say it was a very good quarter and the annualised operating cash flow is actually $80m. Very conservatively that represents 33% of the current market capitalisation ($80m/$247m).

They could start off with 4 cents per share. On 392m shares that represents $15.7m per annum and a yield of 6.3% net of tax.

I'd seriously consider becoming a shareholder again if the Board and management could show how they were going to provide a return on my investment.

Alas, I can see all the cash being blown on wild cat exploration wells in areas outside our expertise.


I couldn't agree more. The directors need to admit they made a mistake and put back in place the dividend. They can hardly argue that they are doing better with the money than giving it back to shareholders.

Maybe they are waiting to see how much PRC investment they get back before they do.. who knows. Really would like to get more accountability from this board.

[dsurf]

I've been pretty busy at work recently and finally had a chance to see what has been going on with NZO lately.

The thing that stands out the most for me is why this company has stopped paying dividends. For the June quarter the company had operating cash flow of $25m. Lets say it was a very good quarter and the annualised operating cash flow is actually $80m. Very conservatively that represents 33% of the current market capitalisation ($80m/$247m).

They could start off with 4 cents per share. On 392m shares that represents $15.7m per annum and a yield of 6.3% net of tax.

I'd seriously consider becoming a shareholder again if the Board and management could show how they were going to provide a return on my investment.

Alas, I can see all the cash being blown on wild cat exploration wells in areas outside our expertise.

I think they need to do this to show the market that NZO has a long term income stream which with all the PRC distraction it seems to have forgotton. This impression was re-inforce by the ill-considered decision to further rattle the market by dropping the dividend. I would like to see a 1c quarterly dividend & a strong statement saying.

The 1c dividend represents 33%?? of the cash generated from Kupe - This excellent asset will be producing for 10+ years. The other 66% will be re-invested in OIL or GAS activities. The 50? mill expected from Tui will also be re-invested.


If something is not done quickly I think NZO reperesents a takeover opportunity that could easily be funded by debrt and paid off by Kupe alone. The board has mis-read the market by dropping the dividend at a time when re-assurance was needed. They need to correct there mistake and provide signals NZO has a direction and that shareholders will benefit. It is also imperative they restore the confidence of the idsenfranchised institutional shareholders who were told for many years of the likely increasing return profile and have seen there investment slide. The poor performance of the management and decision to drop the dividend has resulted in a market downgrade and extra risk premium which is clearly expressed by the huge gap between NPV/NAV & the share price. Shareholders are pissd from mixed signals.

[Balance]

I think they need to do this to show the market that NZO has a long term income stream which with all the PRC distraction it seems to have forgotton. This impression was re-inforce by the ill-considered decision to further rattle the market by dropping the dividend. I would like to see a 1c quarterly dividend & a strong statement saying.

The 1c dividend represents 33%?? of the cash generated from Kupe - This excellent asset will be producing for 10+ years. The other 66% will be re-invested in OIL or GAS activities. The 50? mill expected from Tui will also be re-invested.


If something is not done quickly I think NZO reperesents a takeover opportunity that could easily be funded by debrt and paid off by Kupe alone. The board has mis-read the market by dropping the dividend at a time when re-assurance was needed. They need to correct there mistake and provide signals NZO has a direction and that shareholders will benefit. It is also imperative they restore the confidence of the idsenfranchised institutional shareholders who were told for many years of the likely increasing return profile and have seen there investment slide. The poor performance of the management and decision to drop the dividend has resulted in a market downgrade and extra risk premium which is clearly expressed by the huge gap between NPV/NAV & the share price. Shareholders are pissd from mixed signals.

NZOG is a company which has trained its shareholders so well that shareholders pretty much accept whatever is dished out to them.

Think about this - DS took over from Gordon Ward after the decision had been made to go ahead with PRC. He must have become increasingly alarmed at the delays, cost-overruns, mishaps and mismanagement of PRC so he blew the whistle. What did the board do? Ignored his concerns and continued with their merry path and kept shoving NZOG's shareholders funds into PRC - until the mine blew up.

If the board will not pay attention to its CEO, what makes you think that the board or management will pay an iota of attention to mushrooms (oops, shareholders)?

[Beagle]

^^ Plus 1. Gross arrogance. Board have lost sight of who owns the company. Major shareholders need to step up to the plate and demand fundamental changes. Won't invest again while TR is in office.

[Beagle]

NZOG is a company which has trained its shareholders so well that shareholders pretty much accept whatever is dished out to them.

Think about this - DS took over from Gordon Ward after the decision had been made to go ahead with PRC. He must have become increasingly alarmed at the delays, cost-overruns, mishaps and mismanagement of PRC so he blew the whistle. What did the board do? Ignored his concerns and continued with their merry path and kept shoving NZOG's shareholders funds into PRC - until the mine blew up.

If the board will not pay attention to its CEO, what makes you think that the board or management will pay an iota of attention to mushrooms (oops, shareholders)?

Well said. All management appear to want to do is feather-bed their own existence. Directors appear to have run out of logic and idea's. Logic suggests running for the door before they destroy any remaining value.

[bung5]

http://www.nzog.com/n110.html

this new release from 3 years does not even seem recognizable now. 285 million cash in the bank.

[Sayce]

As a long time share holder in NZO I can only agree that the market is correct in its current appraisal of the company. The list of negatives is long. For example in the last two years there has been a succession of dry wells, the share buy back was never likely to be a substitute for value adding activity, the company is associated with a tragic coal mining venture, there has been a reserve’s downgrade for Tui and on top of all this, the Board has declared that there will be no dividend in the immediate future. No wonder the share price is low.

There are some immediate things that the company can do to alleviate this market rating. The most obvious of these is an announcement that the payment of dividends will be restored.

Sayce

[digger]

[QUOTE=Sayce;354873]As a long time share holder in NZO I can only agree that the market is correct in its current appraisal of the company. The list of negatives is long. For example in the last two years there has been a succession of dry wells, the share buy back was never likely to be a substitute for value adding activity, the company is associated with a tragic coal mining venture, there has been a reserve’s downgrade for Tui and on top of all this, the Board has declared that there will be no dividend in the immediate future. No wonder the share price is low.

There are some immediate things that the company can do to alleviate this market rating. The most obvious of these is an announcement that the payment of dividends will be restored. End Quote

Hi Sayce,
Your list of negatives for NZO is correct. You are not correct in saying that the board has declared there will be no dividend. After the PIKE tragedy and a 99 million capital right off the board said it had no intension to pay a dividend.That is different from the way you put it. At the end of each August the board sits and decideds what it will do . That should be this coming week if past years are any indication.

I like the way you general put things but i would add as i have many time before that if the board does decide to not have a dividend its absance will hide the true value of the companys assets. Kupe in itself should support a dividend.In fact if i owned all the company i would not only give a div but declare an intension to put aside some of Kupes future income to be funded back to shareholders. This i have said many times before,but it is exactally what the market is looking for in these very uncertain times.NZO has had the negatives but we should not now hide the positives.
We will know what the board thinks by end of this month.
Cheers

[sideline]

..................... Kupe in itself should support a dividend.In fact if i owned all the company i would not only give a div but declare an intension to put aside some of Kupes future income to be funded back to shareholders. This i have said many times before,but it is exactally what the market is looking for in these very uncertain times.NZO has had the negatives but we should not now hide the positives.
We will know what the board thinks by end of this month.
Cheers

Agree entirely, digger. With net operating cash flows of 60.7m out of Tui and Kupe alone a dividend could easily be paid - Kupe is now 2/3 of NZO's cash flow with Tui only 1/3. Last year the dividend amounted to 13.5m.
When the secured money from PRC is recovered that should be distributed as well, as a special divi.
Think there should be enough imputation credits left over from previous years (not much income tax was paid this year because of PRC).
Edit: Just checked: 2008+2009 NZO paid 72m in income tax, plenty of imputation credits left.

[arjay]

I also agree: 5c per annum underpins a $1 shareprice (ie, compared to bank return). The company can afford it and this is where it should be. I would like to see at least half of any Pike recoveries distributed to the company owners (ie, us).

[Balance]

We will know what the board thinks by end of this month.
Cheers

Digger, you have been talking about NZOG since time immemorial like it is a company run by a competent board.

Do you honestly believe that?

A company with good assets can be destroyed through bad management. Just ask Fletcher Challenge.

A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

[percy]

.

A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.[/QUOTE]

Difficult thing to do Balance,as he has been dead for awhile.

[Balance]

.

A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

Difficult thing to do Balance,as he has been dead for awhile.[/QUOTE]

Good one, Percy.

Let's just ask John Key and Winston Peters then.

[sideline]

I also agree: 5c per annum underpins a $1 shareprice (ie, compared to bank return). The company can afford it and this is where it should be. I would like to see at least half of any Pike recoveries distributed to the company owners (ie, us).

Maybe a rule that the Kupe net profit gets paid out and the Tui net profit can be plowed back into more exploration would give some clearer visibility and certainty.

[percy]

Difficult thing to do Balance,as he has been dead for awhile.

Good one, Percy.

Let's just ask John Key and Winston Peters then.[/QUOTE]
Glad you enjoyed it.Couldn't help myself.!! lol.

[digger]

.

A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

Difficult thing to do Balance,as he has been dead for awhile.[/QUOTE]

From time to time i have wondered if Balance does in fact speak to the long dead.Often his comments keep coming back to basket cases and lost causes.

[percy]

Difficult thing to do Balance,as he has been dead for awhile.

From time to time i have wondered if Balance does in fact speak to the long dead.Often his comments keep coming back to basket cases and lost causes.[/QUOTE]
digger,Well done,must be the post of the year. lol.

[dsurf]

The best way for NZO to promote itself positively would be a quarterly dividend. There should also be news releases on share of Kupe production. The dividend could then be tied back to Kupe production as a % eg & accompany a positive news item. The silence from management is deafening & hurting the SP

[neopoleII]

""The silence from management is deafening & hurting the SP ""

they are too busy burning the mid night oil working out their strike price for the next lot of 1cent shares.......my guess 68cents.
maybe even ringing around all the major shareholders to see if they still have support.
as for divis...... we all know they should...... they know they should...... but we all know TR hates divis and will do anything to not pay it....... looking forward to the spin doctoring about to happen in a couple of weeks.

[fabs]

NEO,
you mean by that consummate Head Honcho himself D/S [DR. SPIN]

[bung5]

Well they must of been half listening. 2c dividend for the year fully imputed.

[Balance]

Well they must of been half listening. 2c dividend for the year fully imputed.

A few left-over crumbs from the top table to the groveling masses or a just a little more dung for the mushrooms to keep them ready for the next (rights issue) harvest?

The directors must wake up each morning and marvel at how easy it is to manage the groveling masses - throw them a few bones and they are happy! So easy to lord over them even after the board has presided over the destruction of hundreds of millions of dollars of shareholders' wealth through gross mismanagement of all that lovely cash of $285m 2 years ago - Pike, PPP, dry wells and above all, missed opportunities when assets were dirt cheap.

[bung5]

I do not understand why they are paying interest on a loan when they could easily have this loan facility on standby.

[the machine]

its not so much the value of the dividend thats important, moreso that one is being paid.

M

[digger]

It turns out i am the last to know about the dividend. Been selling cattle at Morrinsvile saleyard.Cattle prices are tops this year as confidence returning into the farming sector.
Well done managment for giving the 2 cents dividend even after a year that included a 99 million capital writeoff.It should show the value of Kupe and a still functing TUI. The market needs to wake up that NZO is hughly under valued.
I want to be the first to say that in the event that we get more back from PIKE than the 45 million [i think] that is still on the books that for this year we need to start drilling again. We have directors that have spent a lot of our money and time into researching permits and now we need to move on with a drill or drop.They have been paid so what is our best shot and lets get the drilling underway before any more money is returned to shareholders. I am very much aware that not all investers will agree with me that the next monies need to go back into drilling but now that we have been heard postively by the company about a dividend we as a company need to move on to the next phase.

[digger]

A few left-over crumbs from the top table to the groveling masses or a just a little more dung for the mushrooms to keep them ready for the next (rights issue) harvest?

The directors must wake up each morning and marvel at how easy it is to manage the groveling masses - throw them a few bones and they are happy! So easy to lord over them even after the board has presided over the destruction of hundreds of millions of dollars of shareholders' wealth through gross mismanagement of all that lovely cash of $285m 2 years ago - Pike, PPP, dry wells and above all, missed opportunities when assets were dirt cheap.


Now Balance just a few weeks ago you said i could posts as much as i liked about a dividend but we would not see one.
Balance can you hear me or are you still talking to the dead and other lost causes.

[Balance]

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.

Read exactly what I wrote, Digger - don't try that stunt of putting words into my mouth lol.

You are back to cheerleading a bunch of incompetent management because they throw the groveling masses a few crumbs off the top table - no wonder they treat shareholders with the contempt that they do.

[Xerof]

Slap me Balance, I almost pushed the buy button on this today......

[pietrade]

Wow Balance - you really are 'something else' . Apart from the (rare) minor 'gem' , you do spout one heap of super -ve $@#t with your implication that it was somehow the NZOG directors who were responsible for the death of the Pike miners. You've said your piece - again and again - now why don't you go away and play somewhere else?

[Tyro]

Come on 'Balance' you can do better than that. Surely the resumption of dividends is a disaster for shareholders and the SP. -So please explain how. Or are you waiting for an upgrade to Tui reserves and a resumption of the buyback before you
reiterate what "a bunch of dead-beat directors" NZOG has.

(Quote is from your post 20-08-2011 06:39 PM, but its the kind of inside knowledge posing as comment that you have often graced us with)

NZO its faults, but balance is what we all need.

QUOTE=Balance;355259]A few left-over crumbs from the top table to the groveling masses or a just a little more dung for the mushrooms to keep them ready for the next (rights issue) harvest?

The directors must wake up each morning and marvel at how easy it is to manage the groveling masses - throw them a few bones and they are happy! So easy to lord over them even after the board has presided over the destruction of hundreds of millions of dollars of shareholders' wealth through gross mismanagement of all that lovely cash of $285m 2 years ago - Pike, PPP, dry wells and above all, missed opportunities when assets were dirt cheap.[/QUOTE]

[Corporate]

I've been pretty busy at work recently and finally had a chance to see what has been going on with NZO lately.

The thing that stands out the most for me is why this company has stopped paying dividends. For the June quarter the company had operating cash flow of $25m. Lets say it was a very good quarter and the annualised operating cash flow is actually $80m. Very conservatively that represents 33% of the current market capitalisation ($80m/$247m).

They could start off with 4 cents per share. On 392m shares that represents $15.7m per annum and a yield of 6.3% net of tax.

I'd seriously consider becoming a shareholder again if the Board and management could show how they were going to provide a return on my investment.

Alas, I can see all the cash being blown on wild cat exploration wells in areas outside our expertise.

Well I posted this on the 14th and purchased 30,000 NZO this morning. Cheap producer and now paying dividends again.

[Corporate]

p.s. my view is that 80c is achievable in the short term...20% from here

[blockhead]

04c rise in a day, unseen for a fair while, some (other than (un) balanced) obviously like the mystery of spending $100mil somewhere !

[the machine]

Notice in PPP annual report they aspire to a merger - now I wonder how that sits with NZO?
Perhaps merge with NZO and as a bonus PPP provide DS's replacement with Tom Prudence.

M

[bung5]

Well it was reported that NZO are going to announce an investment around 100 million very shortly
PPP has a market cap of about 100mil so is quite possible considering they already have a stake

[Corporate]

hmmmm and PPP directors buying more stock recently.

[iceman]

FInally an Energy Minister and Government that proudly wants to responsibly maximise the economic benefit of our vast resources !

The New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy released today by the Acting Minister of Energy and Resources, Hekia Parata, show an energy future that delivers for all New Zealanders.

“New Zealand is blessed with an abundance of energy resources,” says Ms Parata.

“Our Government’s goal is to make the most of all the assets we have – hydro, wind, geothermal, oil, gas and minerals.

“We want to use those resources responsibly to secure our energy future and to lift our standard of living. That is why the Government is taking a balanced approach to building a sustainable energy and resources future."

On the renewables side of the energy and resources portfolio, New Zealand’s renewable energy levels are the second highest in the OECD, behind Iceland.

“Renewables and energy efficiency are a big part of our energy picture,’’ says Ms Parata.

”Renewables made up 79 per cent of our total electricity generation in the March 2011 quarter. New Zealand has a target of 90 per cent of electricity generation to be from renewable sources by 2025, and we are well on our way to achieving that.’’

Like the rest of the world, New Zealand needs a range of renewable and non-renewable energy sources to meet its energy needs in the immediate future.

“Fossil fuels will continue to play an important role in the global economy. Around half of the energy we currently consume is from petroleum,’’ says Ms Parata.

“We can’t just turn off the tap in our journey to a lower carbon economy. We also can’t ignore the major economic opportunity that continuing global oil demand could provide New Zealand. Petroleum was our fourth biggest export earner in 2010.’’

In addition to the energy strategies, the Minister today released an independent report assessing New Zealand’s oil and gas potential.

The Woodward report shows that New Zealand is set to earn more than $3 billion in royalties from oil and gas fields already in production.

That could increase to $12.7 billion with future discoveries, which would help pay for schools, hospitals, broadband and roads.

“People want to be sure that the environment is protected and they also want jobs and growth,’’ says Ms Parata.

“We have seen the difference the oil and gas industry has made in Taranaki, employing over 5,000 people (in 2009) and contributing $2 billion to our country’s GDP.’’

Environment Minister Nick Smith last week introduced legislation to manage the environmental effects of activities in New Zealand's Exclusive Economic Zone and Extended Continental Shelf and announced interim measures to manage the environmental effects of activities before the new law is passed.

Labour Minister, Kate Wilkinson, has also announced the establishment of a High Hazards Unit of eight inspectors specifically dedicated to the petroleum and mining industry.

The Minister of Transport is also reviewing the liability insurance requirements for the industry and is looking to raise it above the current level of NZ$30 million.

“Together these measures provide assurances that the industry operates within a sound regulatory and operational framework.’’

Ms Parata also announced today proposed changes to the way permits are issued for oil and gas exploration. Currently companies can apply to explore any area in New Zealand, the proposed approach would see the Government open up a limited range of specific areas for tender.

“The proposed approach would allow us to focus on areas of greatest potential, and will be more transparent for the public, who would know which areas are available for permitting and which are not. Communities and iwi would have an opportunity to comment on the proposed areas to be opened up,” says Ms Parata.

There is a 40-day working period for which people can make submissions on the proposed change to the permitting system.

Ms Parata also announced the Government is reviewing the Crown Minerals Act (1991) and that a Discussion Document will be put out for consultation before the end of the year, with revised legislation in 2012. This follows on from the earlier round of consultation in August 2010.

“The Act is 20 years old and the review will focus on updating and aligning it with the Government's economic agenda,’’ says Ms Parata.

[Corporate]

Sometimes I get a funny feeling about stocks and I've got it for NZO. Still quite cheap and the buy side is buildings and the sell side is thinning. I don't think it will be long before you can't buy in the 60's.

[Rabbi]

Sometimes I get a funny feeling about stocks and I've got it for NZO. Still quite cheap and the buy side is buildings and the sell side is thinning. I don't think it will be long before you can't buy in the 60's.

I tend to agree Corporate, with the stock being very undervalued on earnings. They need another partner for their main offshore prospect (was kaupokanui) and there are other factors such as recovering Pike secured debt and the sale of the mine which is holding the SP back .
Then there is the possibility of $100 million investment which could be good news if they can finalise the deal.
NZO has been a bit of a dead horse all year.
With a bit of luck sentiment could change quickly.

[dsurf]

This year has been the perfect storm - the weather will clear. I think that the current lack of bad news in itself will see a re-rating upwards. Lets face it it had to stop falling eventually! I even read a post from Balance mentioning "good assets". Say no more. Chart suggests long term bottom IMO.

[fish]

This year has been the perfect storm - the weather will clear. I think that the current lack of bad news in itself will see a re-rating upwards. Lets face it it had to stop falling eventually! I even read a post from Balance mentioning "good assets". Say no more. Chart suggests long term bottom IMO.

Long may the weather clear over nzo.

Increasingly stormy in usa though-metaphorically and physically-1/2 of gulf of mexico oil production now shut in by this slow moving cyclone.

China continues its phenominal growth to more than make up for the relatively static usa economy .

[fish]

Much higher production in august than july-gas,lpg and light oil all up
Kupe is certainly making up for the lower predictions on Tui .

[Corporate]

Good point fish, loving the big bid in at 67c

[jwang]

Much higher production in august than july-gas,lpg and light oil all up
Kupe is certainly making up for the lower predictions on Tui .

Where you get info on latest Kupe production?

[Corporate]

Where you get info on latest Kupe production?

It's on the NZOG website under the kupe section

[fish]

Where you get info on latest Kupe production?

NZOG website gives monthly production figures.

Also confirmed by Chris
-You are correct, Kupe is doing very well. So well that the planned in-fill drilling has been delayed until 2013/14. This means any further exploration drilling at Kupe is also delayed until then.



At Tui there are several promising exploration targets. We are waiting for a firm proposal from the Operator. But there will certainly be no drilling before 2012/13.



We are well advanced on our planning to drill the Kakapo well (formerly Kaupokonui) but are struggling to secure a rig. No-one else is planning to drill this summer in NZ waters so it is a bit of a lonely slog to get a rig. If we miss out on drilling this summer we will drill in 2012/13.



A lot of our efforts are focussed on Tunisia and Indonesia. In addition to what has been announced, we have a steady stream of other potential deals in both locations were are being assessed and I’d expect some further announcements in the next few months.

[fabs]

YES IT IS ALWAYS THE NEXT & NEXT & NEXT this or that, at least we go back to the formula that lead to success 10 years ago. Here is hoping!

[bung5]

will be a shame if the Kakapo well is not drilled this summer but understandable re the struggling to secure a rig. Has been a boring year on the exploration side.

[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.

Talk the talk, but was PW walking the walk?

29 miners dead.

http://www.stuff.co.nz/national/pike-river-mine-disaster/5569174/Pike-River-survivor-moves-many-to-tears

"there had been no evacuation practice at the mine during his 2 1/2 years working there."

[Mr Tommy]

NZOG website gives monthly production figures.

Also confirmed by Chris

We are well advanced on our planning to drill the Kakapo well (formerly Kaupokonui) but are struggling to secure a rig. No-one else is planning to drill this summer in NZ waters so it is a bit of a lonely slog to get a rig. If we miss out on drilling this summer we will drill in 2012/13.


Maybe NZOG should talk to Tag, they seem to be going to drill this summer:

http://www.stuff.co.nz/business/industries/5568684/East-coast-drilling-lifts-job-prospects

Cadenhead said yesterday that initially a couple of dozen staff would be involved in the project on the east coast, but as that moved to the seismic testing programme and drilling in the first half of next year, it could involve "hundreds".

"We will definitely be drilling in the first half of next year," he said, after assessing the results of the seismic testing.

"We don't mess around, you have to get on with these things", with Tag working at a faster pace than some other exploration companies in New Zealand.

[Corporate]

As predicted NZO is slowly clawing back some lost ground. I think the share price will move towards the mid 80c's in the medium term.

[evander]

Corporate, if you get any more funny feelings about a stock will you let us know.

[Corporate]

I sold NZO during the week - needed the cash elsewhere. Still think it is a reasonable buy.

[Balance]

I sold NZO during the week - needed the cash elsewhere. Still think it is a reasonable buy.

Good one, Corporate.

Talk it up and offload.

You obviously have the measure of them mushrooms.

[blockhead]

Ok so there is a halt in trading, where do you think the next base for the directors to hive off to might be (un) Balanced ? Turkey ??, Croatia ?? some nice beaches there ??

[bung5]

South east asia is my guess

[digger]

Ok so there is a halt in trading, where do you think the next base for the directors to hive off to might be (un) Balanced ? Turkey ??, Croatia ?? some nice beaches there ??

Well blocky if it is another downgrade of TUI it then will be so little left that we may have to put so oil back into the well to meet the new target.
My guess is that it is a new prospect in asia or a new partner for that near KUPE prospect that has just had a name change,whatever it is now called.

[zigzag]

The well is henceforth known as Digger-1 in honour of NZO'S most faithful shareholder.

[sideline]

NZO
12/09/2011 11:55
GENERAL

REL: 1155 HRS New Zealand Oil and Gas Limited

GENERAL: NZO: Insurance settlement for Pike River Coal Limited

NZOG (New Zealand Oil & Gas Limited) has been advised by the Receivers for
Pike River Coal Ltd (In Receivership) (PRCL) that a conditional agreement
has been reached with PRCL's insurers in respect of material damage and
business interruption insurance claims associated with the tragic events of
19 November 2010. While all of the parties have reached an in principle
agreement to the terms of the settlement, the settlement remains subject to
execution of formal documentation by NZOG, BNZ and the owners of the leased
mining equipment who have priority rights.

The Receivers and NZOG have agreed that some of the insurance settlement
should be directed to PRCL's unsecured creditors, including contractors and
former employees, through an early payment plan.

At the time of the events in November 2010, PRCL held extensive insurance
with a cap of $100m. PRCL's Receivers have advised today that they have
agreed with the insurers to a payment of NZ$80m in full and final settlement
of claims under those insurance policies. The Receivers expect to receive the
settlement proceeds around the end of September this year.

Approximately $6.3m will be paid to the owners of leased mining equipment
arising from their priority rights, leaving approximately $73.7m to put
towards PRCL's debts.

The Bank of New Zealand is a first ranking secured creditor owed
approximately $23.2m and will be paid in full.

As the other first ranking secured creditor, NZOG has legal priority to all
of the remaining monies. However, Chief Executive David Salisbury says NZOG
recognises the huge and ongoing impact the tragic events have had on the West
Coast community.

"Hopefully all of PRCL's creditors can receive full payment when the sale of
the mine occurs. However, for the mine workers, contractors and suppliers
this has been a very stressful time, emotionally and financially. We
therefore support the Receivers using some of the insurance payout to make a
voluntary early payment now to all unsecured creditors."

The details of the early payment arrangements have been determined by the
Receivers and are supported by NZOG.

Under the proposal, unsecured creditors will receive a payment of the first
$10,000 of their claim (or their full claim if less than $10,000) and up to
20c in the dollar for any balance above that amount, up to a capped aggregate
amount of $10.5m. Unsecured creditors are not being asked to reduce their
total claim and will still be entitled to claim for the full remaining
balance, once the Receivers complete the sales process. Unsecured creditors
will be asked to agree to a moratorium on certain actions they could
otherwise contemplate, including seeking the appointment of a liquidator.
This will support the Receivers' sales process in the interests of all PRCL's
creditors and investors. As the total amount available for early payment to
unsecured creditors under the proposal is limited, the amount to be paid to
each creditor may need to be reduced if actual claims accepted are greater
than the amounts of claims known to date.

Under Section 229 of the Companies Act 1993, a Notice of Meeting is being
sent to all creditors and they will be asked to submit postal votes on the
early payment plan, which if accepted by a majority in number representing at
least 75% in value of each class of creditors, will be binding on all
creditors. NZOG understands that details of the early payment plan will be
mailed to creditors within the next week.

If the early payment plan is approved, the unsecured creditors (including
NZOG and the owners of leased mining equipment) will receive payments. On
the basis of known creditor claims to date, around 243 creditors will be paid
in full and 222 creditors will receive a part-payment.

NZOG will receive $3.0m as part-payment of its total unsecured debt of
$15.1m. The remaining sum from the insurance settlement will pay off
approximately $38.3m of the $53.0m in secured debt held by NZOG. This will
reduce NZOG's remaining debt to $14.7m secured and $12.1m unsecured. NZOG
also has a 29.4% shareholding in PRCL.

David Salisbury says as a secured creditor, NZOG has sought to have a
constructive influence since the tragedy occurred.

"Following the mine explosion on 19 November last year, NZOG loaned PRCL
$12m. After the Receivers were appointed it was this funding that allowed the
Receivers to carry out their duties - to support the mine stabilisation
efforts, pay employees their statutory entitlements, co-operate with the
various inquiries, begin a sales process and pursue the insurance claims."

"Now, by supporting the early payment plan for unsecured creditors, NZOG is
again acknowledging the widespread impact this tragedy has had, and that the
support of the local community is crucial if the sales process is to realise
the full value of the assets and the mine is to be safely reopened."

David Salisbury says the agreement reached in settlement of the principal
insurance claims is a good outcome.

"The insurance settlement ticks off one of the primary tasks of the
Receivers. The sales process is also well advanced, with the Receivers having
advised us that a number of interested parties are conducting due diligence
ahead of making final offers."

"The mine stabilisation efforts have always been given priority and NZOG
understands that the Receivers are working with an Expert Panel to advance a
plan to allow a safe reclamation of the access tunnel, which is a necessary
precursor to any move to re-enter the mine or to attempt a body recovery
exercise."

"A very complex set of tasks are having to be managed and while we all would
hope for quick resolutions we believe the Receivers are doing their job with
great empathy and skill."

Key Points:
- An $80m conditional settlement has been agreed between PRCL's insurers and
the Receivers.
- Approximately $6.3m will be paid to the owners of leased mining equipment
on a first priority basis.
- The BNZ, as a secured creditor, will receive approximately $23.2m in full
settlement.
- NZOG, as the other secured creditor, has agreed that the Receivers should
offer an early payment to PRCL's unsecured creditors.
- Under the proposal, unsecured creditors will receive a total of
approximately $10.1m in early part-payment.
- NZOG will receive approximately $38.3m as a secured creditor and $3.0m as
an unsecured creditor.
- NZOG will still be owed approximately $14.7m in secured debt and $12.1m in
unsecured debt.
- The mine sales process is ongoing and NZOG expects to recover its remaining
secured debt and possibly some or all of its remaining unsecured debt through
that sales process.
- The Receivers are continuing with the mine stabilisation and tunnel
reclamation activities.

ENDS
End CA:00213615 For:NZO Type:GENERAL Time:2011-09-12 11:55:17

[Mr Tommy]

So NOG getting about $41m which is over 10c a share.
Good to see NOG helping out the small creditors in the deal too.
Sounds like BNZ is taking their full lot though.

[blockhead]

Good to see a bit of common sense shown in this plan, can't see who might be too unhappy with this

[brucey09]

Snrs.
The little creditors pay will stop any lawsuites - good strategic nzo - yes!

[digger]

The well is henceforth known as Digger-1 in honour of NZO'S most faithful shareholder.

Ease up there zigzag,balance has a name for faithful shareholders of NZO.Yesterday i turned 70 and one of the cards i got says something about knowing a thing then a mimute later it slips your mind.So all you good shareholders under 70 will have to get together and work out what it is that Balance calls faithful NOG sharholders.Now how could something you heard 2 or 3 hunderd times not have stuck???

[digger]

So NOG getting about $41m which is over 10c a share.
Good to see NOG helping out the small creditors in the deal too.
Sounds like BNZ is taking their full lot though.

Well thought out NZO. A less intelligent company would have stood on there legal rights and taken the lot.To have done so would be a very short term gain and leave no future chance of ever reopening the mine with NZO having any future say.This tragedy will in the end allow a future PIKE to be run in the best interest of safety and not in the best interest of DOC or the greenies,as i have outlined several times before about the best way to remove the methane.
The outstanding thing about this agreement if it should go ahead is that there is a future.
The banks are of coa-se the ones that have to have all there monies.But that is too big to comment here but has a lot to do with the lenders taken on some of the risks instead of just expecting govt baleout if there policies turn sour.But as i said too big for here.

[percy]

Ease up there zigzag,balance has a name for faithful shareholders of NZO.Yesterday i turned 70 and one of the cards i got says something about knowing a thing then a mimute later it slips your mind.So all you good shareholders under 70 will have to get together and work out what it is that Balance calls faithful NOG sharholders.Now how could something you heard 2 or 3 hunderd times not have stuck???
Well congratulations on your birthday.Just remember that advice about things slipping your mind,if you ever get stopped for speeding."Had to speed to get there before I forgot where I was going,officer."

[Mr Tommy]

Good to see a bit of common sense shown in this plan, can't see who might be too unhappy with this

Im sure Balance will soon let us know.


The insurance claim means $73.7m to go against claims, of which the latest PWC report says total about $120.
So if a sale results in more than $50m theres a chance of shareholders getting something.

[iceman]

Snrs.
The little creditors pay will stop any lawsuites - good strategic nzo - yes!

Good strategy indeed and great to see a lot of the financial strains of the smaller contractors finally relieved and a good outcome for us NZO and PRC shareholders.

[Balance]

Ease up there zigzag,balance has a name for faithful shareholders of NZO.Yesterday i turned 70 and one of the cards i got says something about knowing a thing then a mimute later it slips your mind.So all you good shareholders under 70 will have to get together and work out what it is that Balance calls faithful NOG sharholders.Now how could something you heard 2 or 3 hunderd times not have stuck???

Congratulations, Digger. Hope you had a great day yesterday! Good present today then from NZOG?

[bermuda]

Well thought out NZO. A less intelligent company would have stood on there legal rights and taken the lot.To have done so would be a very short term gain and leave no future chance of ever reopening the mine with NZO having any future say.This tragedy will in the end allow a future PIKE to be run in the best interest of safety and not in the best interest of DOC or the greenies,as i have outlined several times before about the best way to remove the methane.
The outstanding thing about this agreement if it should go ahead is that there is a future.
The banks are of coa-se the ones that have to have all there monies.But that is too big to comment here but has a lot to do with the lenders taken on some of the risks instead of just expecting govt baleout if there policies turn sour.But as i said too big for here.

Digger,
Well said. This has been very well thought out by NZO. I just wish the BNZ could have fosaken 10 or so million. It would have been very good PR for them.

[Tyro]

Balance of course. We can rely on Balance to find the dross among the gold.


Good to see a bit of common sense shown in this plan, can't see who might be too unhappy with this

[neopoleII]

""So if a sale results in more than $50m theres a chance of shareholders getting something. ""

the permit is still in place,(i think) and that very expensive tunnel is still in place,(it seems) as is 99.9% of the coal.

if the highest bid is $50m it better be NZO's

in fact.......... NZO should of held a special meeting of shareholders and had a vote to see what the majority of shareholders would of backed the directors bids up to, to secure the mine.

[digger]

""So if a sale results in more than $50m theres a chance of shareholders getting something. ""

the permit is still in place,(i think) and that very expensive tunnel is still in place,(it seems) as is 99.9% of the coal.

if the highest bid is $50m it better be NZO's

in fact.......... NZO should of held a special meeting of shareholders and had a vote to see what the majority of shareholders would of backed the directors bids up to, to secure the mine.

Not a good idea as then only NZO would have their cards on the table,giving the opposition free look into your situation.Usually called commerically sensititive info.

[iceman]

Not a good idea as then only NZO would have their cards on the table,giving the opposition free look into your situation.Usually called commerically sensititive info.

Agree Digger but I do expect NZO Board to make sure PRC is not sold too cheaply and be ready to go in and buy it out of receivership rather than have it gifted away to another bidder. The assets are still there (largely) and a lot of the monetary value of the mine remains intact. No reason to give it all away.

[the machine]

Snrs.
The little creditors pay will stop any lawsuites - good strategic nzo - yes!

the acceptance vote by value should be a done deal since BNZ, equip hirers and NZO should all agree, plus the 200+ unsecured creditors who paid in full.

lawsuites being stopped would only be binding if the unsecured creditors signed the agreement, accepting up to 20c in the dollar, but in saying that one would hope most unsecured creditors would agree.

the big plus in this is the insurance payout, tips the balance to the positive [no pun re 'balance' though]

once payout accomplished then less people involved and who knows what will happen - a corporate play by nzo to payout remaining unsecured creditors in exchange for more script?

M

ps, happy 70th digger

[Balance]

A man took money in from others, borrowed some more and bought an expensive car.

He wrecked it through careless driving.

Insurance paid out some of the value of the car.

The mushrooms jump up and down, proclaiming what a great thing the man has done!

Look at how well NZOG has trained you lot.

Pathetic.

[blockhead]

So do we take it you don't agree with the payout plan (un) balanced ???

I think even you (after feeding the mushrooms) would see merit in this plan

[Balance]

So do we take it you don't agree with the payout plan (un) balanced ???

I think even you (after feeding the mushrooms) would see merit in this plan

NZOG is simply making the best out of a bad situation - so that's okay.

But for some of the mushrooms, they are acting like they have just been given a big windfall!

Go figure.

[Queenstfarmer]

Who are these mushrooms you refer to? Get off of your extremely long legged horse and sell sell sell..if you havent already packed your little gonads away in your back pocket!!

[Balance]

Who are these mushrooms you refer to? Get off of your extremely long legged horse and sell sell sell..if you havent already packed your little gonads away in your back pocket!!

Another mushroom (or toadstool?) on the scene.

Wishing for some blood on his hands obviously.

Pathetic.

[bung5]

A man took money in from others, borrowed some more and bought an expensive car.

He wrecked it through careless driving.

Insurance paid out some of the value of the car.

The mushrooms jump up and down, proclaiming what a great thing the man has done!

Look at how well NZOG has trained you lot.

Pathetic.


This is buisness recovering secured and unsecured debt that has been written off by the market. You may not like the company balance but this is about making money. The shareholders believe the shareprice is going up.
Lets see who is correct in 6 months..? Unless of course you think that the share price will go up?

[Queenstfarmer]

You have a good day Balance..you fungi u!

[Queenstfarmer]

As an employer myself Ive come to learn over the years, the benefits in looking after the smaller people....the ol say "what comes around goes around" is extremely true. I feel its a clever decision coming from a forward thinking NZO. The people on the Westcoast..the businesses and even the next government will remember this. If in fact NZO do have a future with the mine..many of the local people will be very supportive with the company in control.

[minimoke]

This is buisness recovering secured and unsecured debt that has been written off by the market.
I'm not sure the market had written off all the debts had they? There was $100m in insurance up for grabs for a start. Toss in a few more mil from Solid Energys sale of coal. Take out BNZ's $23m they were always going to get a fairly decent sized chunk of their loot back. The issue is about recovering their investment in PRC. What they have done is bough a pile of good will which has seen NZO rise $12m on that tide. NZO probably have a hint that the sale of PRC will be for more than $40m so they'll get all their loan cash back - its possibly about positioning themselves in the sale process

[bung5]

Well the shareprice drop was well overshot under the value of the loss of PRC equity and debt... however the company did not write off the secured debt.

[Balance]

This is buisness recovering secured and unsecured debt that has been written off by the market. You may not like the company balance but this is about making money. The shareholders believe the shareprice is going up.
Lets so who is correct in 6 months..? Unless of course you think that the share price will go up?

It is a good move but the way some of the mushrooms are reacting - like it's a vindication of their heads-in-the-sand support NZOG at all costs stance.

29 miners are dead, remember?

You guys keep bringing up this "sp 6 months from now" stunt.

What has the sp been doing for the last 3 years? Remember the $180m odd raised via the $1.50 options exercise?

[bung5]

I can't speak for the long term holders as I have only come in for the short term gains. However the shareprice drops of recent have been out of the control of the company. No point looking at the past Balance . IMO is some cheap assets right now that when sentiment improves will be revalued on market to reflect in the shareprice.

[blockhead]

I hear DS say on the wireless this morning, "the insurance deal is worth 10c per share", add in a 2c div and there should be a bit more upward direction yet

[brucey09]

Did NZO management start this move regarding unsecured ones or follow recievers advice?

[Mr Tommy]

What they have done is bough a pile of good will which has seen NZO rise $12m on that tide. NZO probably have a hint that the sale of PRC will be for more than $40m so they'll get all their loan cash back - its possibly about positioning themselves in the sale process

Yes that ties up with this bit from STUFF. Wonder if the current Indian part owners of Pike are having a look at bidding as well.

The deal was announced amid growing signs that the mine will return to commercial production.
PWC said several interested parties were conducting due diligence, and receivers would ensure the new owners would continue attempts to recover the bodies "and ultimately to recommence commercial mining activity".
Kokshoorn said he was aware of interest in the mine from companies from India, China, Australia and New Zealand.

[Mr Tommy]

Did NZO management start this move regarding unsecured ones or follow recievers advice?


Not the receivers idea apparently:

John Fisk, of receiver PricewaterhouseCoopers, said it was the first time he had seen such a payment. "NZOG has shown a huge amount of sympathy towards what has happened and the impact that it has had on creditors, particularly on the West Coast".

[Beagle]

Yes NZO are very altruistic with your money, (remember the $12m donation when it
was obvious to all that PRC were insolvent) and pay all their "heavily strengthened"
management team extremly well indeed...for what exactly I'm not sure as the only
projects they're involved in that actually generate returns are managed by other parties.

No doubt the insurance proceeds will come in handy for D.S's golden handshake when
it comes time to farewell him for his fantastic world class performance over the years.

TR continues to ensure this company remains a goldmine for directors and
management for his remaining tenure, and if you're lucky you might get the odd
crumb in the way of a pathetic dividend every now and again.

[blockhead]

Have you just been round to (un) balanced's place for a cuppa Rog ??

[LIO]

Roger/Balance, you must be aware that management and directors hold many shares. It makes no sense that they wouldn't want dividends....when appropriate.

[LIO]

Hi Blockhead, maybe they're such good mates as to be one and the same !

[Queenstfarmer]

They must be both "Nigel no mates" Perhaps they could wipe each others chins? :)

[J R Ewing]

Roger/Balance, you must be aware that management and directors hold many shares. It makes no sense that they wouldn't want dividends....when appropriate.

That's true, but maybe not that many that have been bought at market. Some of these criticisms have a ring of truth, unfortunately.

[Snapper]

As a long-suffering mushroom, oops I mean shareholder I don't get all this vitriol towards Balance. If my shares were north of $2 with dividends rolling in on a regular basis then I could understand the criticism but unfortunately Balance has been right all along about NZO. Bugger!

[shasta]

That's true, but maybe not that many that have been bought at market. Some of these criticisms have a ring of truth, unfortunately.

Good point, even though the Board/Mgmt saw fit to buy back there own shares!

They didn't mind using shareholders money to do it, but getting their own cheque books out is another thing

Hope they have "invested" in a treasury accountant by now, there "Ostrich" approach to treasury management/FX exposure baffles me

Finding Treasury Accountants in Wellington is akin to finding snow/ice in the south pole!

[blockhead]

No vitriol for (un) Balanced, hes like a good fit horse, needs to be reined in from time to time, and yes Blockhead would be much the happier with a $2 share and a div flow.

[percy]

No vitriol for (un) Balanced, hes like a good fit horse, needs to be reined in from time to time, and yes Blockhead would be much the happier with a $2 share and a div flow.
Pleased to see your boy Paddon is The Production Class World champion.Great news.
Balance like a fit horse? Some of his posts make me think he is the old nag ready for the pet food factory.!!!!! lol.

[blockhead]

Yes he is a good lad, I have an interest in Hayden Paddon Rallysport Global Ltd www.haydenpaddon.com there are a good number of local people offering financial support and if/when he gets picked up by a WRC team there is a chance of a good return on the investment, of course this is motorsport and nothing is guaranteed.
However as shareholders in HPRG we would welcome any involvement as a shareholder or financial supporter. I went to Argentina with them this year and was greatly impressed will all facets of his performance.

[percy]

thanks for the link.I will enjoy reading it.

[Balance]

Balance like a fit horse? Some of his posts make me think he is the old nag ready for the pet food factory.!!!!! lol.

Keep laughing.

NZOG kept pumping in money and seconding gross mismanagement into PRC with the result of 29 dead miners - all rather funny, isn't it?

[blockhead]

DS this morning,

New Zealand Oil and Gas says it is working to conclude a possible US$100 million investment.

As well as the producing Kupe and Tui fields in New Zealand, the company has been expanding its exploration horizons to Tunisia and Indonesia.

Chief executive David Salisbury says the company is in "a bit of an arm-wrestle" with the significant new investor.

He says the company is well-advanced in the due diligence process, but negotiations are taking time.

[Queenstfarmer]

Im certain there is not one person within all these threads whom is not aware that its fast approaching 12 months since that terrible tragedy where 29 "people" lost their lives. Balance??

[arjay]

I was under the impression that the Pike deaths were caused by an underground explosion. According to Balance's last remark they perished due to fatally high pressures caused by money pumped into the mine by NZO. If they were pumping in $5 bills then I can see how that would amount to gross mismanagement. $20 bills would have resulted in much lower pressures for the same total dollar value.

[brucey09]

well said Snr. Arjay

[minimoke]

I was under the impression that the Pike deaths were caused by an underground explosion.
I think you'll find that the Royal Commission of Enquiry will find there was an explosive event which led to the death of those miners. The cause of death will be blast injuries (impact and burn injuries) and asphyxiation.

The questions to be answered will focus on what led up to that explosive event. The quality of the management and their decision making will be addressed.


According to Balance's last remark they perished due to fatally high pressures caused by money pumped into the mine by NZO. If they were pumping in $5 bills then I can see how that would amount to gross mismanagement. $20 bills would have resulted in much lower pressures for the same total dollar value.It is arguable that NZO pumped money into its management structure. It pumped more money into its management as the mine grew and transitioned from construciton to operations.The question to be answered is "was there value in that extra money being spent". That is worth pondering. Lets look for example at post explosion decisions. PRC management instructed contractors to seal the mine with polyurethane contrary to the risk assessment which stated it is likely to self ignite. What happened? It self ignited sending hydrogen cyanide into the mine. In the highly unlikely event there were survivors this would have sealed their fate.

Is that an example of NZO getting good value for your money?

[fabs]

DS this morning,

New Zealand Oil and Gas says it is working to conclude a possible US$100 million investment.

Only hope DS aka DOCTOR SPIN will inform us that it will be in OIL or GAS not, heavens forbid in Coal.
Or worse, partnership with devious Don oF S/E.

[Balance]

well said Snr. Arjay

Very funny.

I am sure the families of the 29 dead miners will really appreciate Arjay's sense of fun at their expense.

[percy]

Very funny.

I am sure the families of the 29 dead miners will really appreciate Arjay's sense of fun at their expense.


So again you have nothing new to say.No foresight,no humour.?

[POSSUM THE CAT]

Arjay Balance is right if NZO did not pump in money the mine would have been closed IE no Miners in it to Die

[Mr Tommy]

Keep laughing.

NZOG kept pumping in money and seconding gross mismanagement into PRC with the result of 29 dead miners - all rather funny, isn't it?

You say NZOG kept pumping money in.

Well look at the major shareholders. ACC has 17m shares and the NZ Govt Super fund has 6m shares.
They were buying up on your behalf Balance, to keep you in old age, and fix you up when you fall over and hurt yourself.

[POSSUM THE CAT]

Arjay  Balance is right if NZO did not pump in money the mine would have been closed IE no Miners in it to Die

[Awamoa]

You say NZOG kept pumping money in.

Well look at the major shareholders. ACC has 17m shares and the NZ Govt Super fund has 6m shares.
They were buying up on your behalf Balance, to keep you in old age, and fix you up when you fall over and hurt yourself.
Old age may be upon him already.Judging by the number of times he repeats himself.

[pietrade]

Arjay* Balance is right if NZO did not pump in money the mine would have been closed IE no Miners in it to Die

Yeah yeah yeah ....and if the Australian tectonic plate wasn't riding up over the Pacific plate then there might well have been no coal, no mine, no NZ.
And there's more 'ifs' where they came from?

[digger]

Balance you have made a few good post and quite a few rubbish ones. The bit about NZO being somehow responsbility for the 29 deaths because they put money into PIKE tops the rubbish ones. That would make anyone the cause of a road death that bought or helped buy a car.See what i mean it is rubbish thinking.
There was only one cause of the explosion and that being that PIKE was forced to take on a third or fouth rate way to remove the gas in the first place,a requirement put on them by greenies and DOC.

[pietrade]

Wow Digger --are you catching the same complaint as Balance?? In what possible way did 'the Greenies' contribute to the Pike explosion????

[minimoke]

There was only one cause of the explosion and that being that PIKE was forced to take on a third or fouth rate way to remove the gas in the first place,a requirement put on them by greenies and DOC.
Hmm - excuse me if I misinterpret this post but this suggests to me that PRC, and by association NZO, were motivated solely by greed. You are suggesting they knew it was a dangerously gasy mine yet they still went ahead and put in a fourth rate solution. Surely at some point someone would have said "given the restraints we face and the potential for significant loss of life we can no longer make this venture viable". Unless the lure of the black gold was too strong.

And a point I'm not succeeding in making is that if you choose to dig on DOC land you play by their rules. If you don't like the rules go play somewhere else. If mine access wasn't required over DOC land the Greenies and DOC would have had a whole lot less to say.

[POSSUM THE CAT]

NZOG would have been far better off to have done the sensible thing & pulled the plug. When problems with the main ventilation shaft showed how fragile the area was. And they could not get access for alternatives

[J R Ewing]

It will be interesting to see if any evidence is presented to the commission that shows that NZO had requested or wanted better arangements for venting gas and exiting the mine in case of emergency, but were thwarted in these plans by DOC. DOC is an easy target, but I seriously doubt that they were aware that NZO had compromised safety to gain consent (if NZO did in fact compromise safety to gain consent).

[minimoke]

It will be interesting to see if any evidence is presented to the commission that shows that NZO had requested or wanted better arangements for venting gas and exiting the mine in case of emergency, but were thwarted in these plans by DOC. DOC is an easy target, but I seriously doubt that they were aware that NZO had compromised safety to gain consent (if NZO did in fact compromise safety to gain consent).

it is PRC that is under the spotlight as they are the ones that owned the mine. I doubt NZO will be dragged in - if this happens the Indians can expect a call up.

You might have missed the evidence which suggests DOC is not interested in mine design or health and safety (other than that these things be considered) - their interest is in "resource allocation"

You might also have missed evidence which suggests Pike did not raise the issue of second egress with DOC.

You might have missed evidence which says in the 2005/06 work plan PRC did not list the ventilation shaft as a second egress but its 100m height made it unsuitable as an emergency egress. And that in 2006/07 they changed it to a not suitable for permanent emergency egress and how PRC didn't seek consent until 2008 for a second egress - and even then they didn't get around to lodging the paper work.

You might also have missed the evidence that the 4 inch gas riser was known by Peter Withall to be inadequate but it seems PRC just never got around to doing much about it (other than putting a larger fan in the mine) by the time of the explosion.

The issues you raise aren't DOC issues - they are mine construction and management issues. PRC is responsible for those. The Board of PRC is responsible for employing the senior staff of PRC. Look to see who is on the Board.

DOC is an easy target but its PRC who lodged over 144 plan variations and were the ones delaying the build.

[Balance]

it is PRC that is under the spotlight as they are the ones that owned the mine. I doubt NZO will be dragged in - if this happens the Indians can expect a call up.

You might have missed the evidence which suggests DOC is not interested in mine design or health and safety (other than that these things be considered) - their interest is in "resource allocation"

You might also have missed evidence which suggests Pike did not raise the issue of second egress with DOC.

You might have missed evidence which says in the 2005/06 work plan PRC did not list the ventilation shaft as a second egress but its 100m height made it unsuitable as an emergency egress. And that in 2006/07 they changed it to a not suitable for permanent emergency egress and how PRC didn't seek consent until 2008 for a second egress - and even then they didn't get around to lodging the paper work.

You might also have missed the evidence that the 4 inch gas riser was known by Peter Withall to be inadequate but it seems PRC just never got around to doing much about it (other than putting a larger fan in the mine) by the time of the explosion.

The issues you raise aren't DOC issues - they are mine construction and management issues. PRC is responsible for those. The Board of PRC is responsible for employing the senior staff of PRC. Look to see who is on the Board.

DOC is an easy target but its PRC who lodged over 144 plan variations and were the ones delaying the build.

And who is really behind the management, development, funding and operation of PRC? NZOG, of course.

[percy]

And who is really behind the management, development, funding and operation of PRC? NZOG, of course.
Nothing new to add.?

[minimoke]

And who is really behind the management, development, funding and operation of PRC? NZOG, of course.The connection is as plain as day. I'm at a loss to understand why people keep trying to point the bone at DOC. The responsibilities are much closer to home.

[troyvdh]

Ive missed a lot this mini....but dear Digger made a statement ...it sounded fairly "factual"....that DOC would/did not entertain the (his idea) of vents every 300 meters....

[digger]

Ive missed a lot this mini....but dear Digger made a statement ...it sounded fairly "factual"....that DOC would/did not entertain the (his idea) of vents every 300 meters....

The things that were not allowed to happen is what caused this tragedy.The very first thing i noted in a day or two after this accident is that DOC all of a sudden allowed a track to be built to access the top of the mine.PW told me that my idea for a small hole every 30 metres was completely out of the question for two reasons .The first i have already said several time now and the second that it would require a track above the mine and DOC would not allow it. But as soon as the accident happens the track is suddenly OK.
We have become a culture like that.Note how quickly the Govt can suddenly take over the Auckland transport arrangements just as soon as the mess looks like it would impact on the elections.
Minimoke,i had an arguement publically in Morrinsville with a DOC member and he was adminate that DOC would restrain PIKE in ever way he could.It seems clear that in many ways they succeeded.
We will all now end up with our own views on which way up is but for me PIKE-2 must never take place unless the mine can be run as a mine without DOC and the greenies imposing restrictions on the operation.

[arjay]

Digger, 'the greenies' appear to be largely mythical beasts who are wheeled out whenever this type of discussion takes place. Can you name anyone in particular? The principal person I recall was Eugenie Sage of Forest and Bird who was quite vehement in opposition. To be fair, if the opposing forces of green persuasion had had there way there would not have been a mine, so no deaths (no jobs for the Coast either). As someone has already pointed out, it is DOC land so DOC has a say in how it is used, and it may well turn out that the restraints put on the mine were perfectly reasonable for a safe operation, provided the mine was operated safely (and that has yet to be determined). We also must accept that there is a good reason why it is protected land. Anyone who has been there will realise it's value to NZ over and above that to extractive industries.

BTW Balance, you missed my earlier point - I was having some fun at your expense, not the family's of the unfortunate miners.

[skid]

Man,I come back after a 3 month trip and its the same ole arguments-"greenies"-"mushrooms"-"goldbugs"--this is getting to be one small step from talkback radio.--meanwhile its not been a bad month for NZO-wishing all you holders best of luck

[fabs]

Is there some more revising down of reserves at TUI, or other negative news?
Seems like both NZO & AWE S/P spiraling down. I can accept justified perception by market of poor governance at NZO. But AWE too.

[Xerof]

The indices are in 'killer wave C' or a 3 or 5 but someone with a decent charting package might do something for you. Nothing is totally immune from this sort of selling

[DarkRed]

Interesting comment in a stuff article today about JK and PRC.
"New Zealand Oil and Gas, the mine's largest former shareholder, was happy to fund the re-entry and recovery process."

http://www.stuff.co.nz/national/5669704/Key-No-mining-without-a-recovery-plan

[fabs]

Thanks xerof,
yes have also considered other causes for the trend and no doubt there are.
Although i hold no AWE shares there decent intrigues me a bit, while noting surprises me with NZO any more.

[minimoke]

Interesting comment in a stuff article today about JK and PRC.
"New Zealand Oil and Gas, the mine's largest former shareholder, was happy to fund the re-entry and recovery process."

http://www.stuff.co.nz/national/5669704/Key-No-mining-without-a-recovery-plan
And we might find that largesse has an element of self interest. The Pike inquiry finished round 2 last week. The closing words were around who would appear in the next round and what evidence they would give. Witnesses solicitors are very aware of their clients right to silence and to not incriminate themselves through this process. OSH has only a bit longer to work out who to prosecute and directors of PRC will be in the firing line. The police are also investigating criminal charges but these can be laid after the Inquiry has finished. In the event NZO is implicated, through a Directors interests, and subsequently found guilty, the judge will look at the actions of the defendant when it comes to sentencing. NZO's generosity will be raised if the need arises.

[dsurf]

Interesting comment in a stuff article today about JK and PRC.
"New Zealand Oil and Gas, the mine's largest former shareholder, was happy to fund the re-entry and recovery process."


Minimoke you have been believing too many comments from the dark side who wish people to be burnt at the stake. NZO will be a creditor & possibly secured for all the money to retrieve the bodies. The sale is conditional on a "recovery plan" for the license to be able to be transferred. NZO also (must talk to reciever confidentially) know that it is very likely that the creditors will eventually be paid out in full. NZO gains most from a sale where the discount for outstanding risk (including obviously body retrieval) is reduced. All they are doing is lending money so that the sale will be at a higher price. It is about $ only.

[minimoke]

Minimoke you have been believing too many comments from the dark side who wish people to be burnt at the stake. .
I don't think so.

We have just had NZ's largest industrial accident in recent history and the worst accident since the economy has been deregulated. It is highly improbable that a government will allow such an event go by without major change. We can expect to see a toughening up of mining and drilling regs after the election.

It is improbable that the judicial system can let 29 deaths go by without all those who may have contributed to those deaths in one way or another being placed under intense scrutiny. That scrutiny will be by OSH who have the ability to prosecute directors of PRC. They also have the ability to prosecute PRC. It is incomprehensible to think PRC will not be prosecuted for the death of the employees (as the employer) and the death of the contracotrs (as the contract principal). The Directors will be sweating over the next month or so to see if they are in the firing line. Once PRC is prosecuted it is highly improbable they will be found "not guilty". When they are found "guilty" they will present facts to mitigate their sentence. What better mitigation than having already made cash contributions to the employees and contractors estates. Teh judge wil look at PRC's ability to pay a fine. They will have the ability to pay substantial fines once the sale has gone through - though I am not sure if fines get paid ahead of secured creditors. Someone wil know. There will be substantial fines and reparation. I'm assuming PRC won't be able to draw on its insurance to pay the reparations.

Where OSH does not prosecute private individuals can. Again the Directors will be worried.

We do not have Industrial Manslaughter in NZ - but it will come. In the meantime the police will be looking very closely at what criminal charges can be laid. They will be going over the Crimes Act with a fine tooth comb to see who could be prosecuted and whether there is enough evidence to sustain a prosecution. NZO Directors may not be out of the woods yet.

[Xerof]

And we might find that largesse has an element of self interest

mimimoke, you're on to it.........

[J R Ewing]

Minimoke,

I'm not so sure that there is such hunger in NZ to seek out and prosecute individuals. In the cases of both Erebus and Cave Creek, the findings were more directed at general systemic failures that kind of socialised the blame. With Erebus, they didn't pursue the people that changed the co-ordinates and with Cave Creek they didn't pursue those that left the bolts out of the platform. Likewise with Pike I think it is more likely that they will find the primary cause to be poor regulations and an inadequate legislative framework rather than home in on individuals and lay manslaughter charges.

[minimoke]

Minimoke,

I'm not so sure that there is such hunger in NZ to seek out and prosecute individuals. In the cases of both Erebus and Cave Creek,
Erebus was, as I recall, before we deregulated and too far back for me to recall why there weren't prosecutions. Cave Creek was on the cusp of deregulation and is a blot on our history. That the incompetence wasn't prosecuted and that the CEO of DOC didn't resign is a testament to the lilly livered judiciary at the time. (an a bit of a refection on the political landscape at that time as well).

NZ is at the bottom of the developed world evolutionary chain when it comes to industrial death. Here you can kill with immunity. Whats our worst fine - $200k for a life?. In England and Australia Directors are prosecuted and jailed. Companies are heavily fined. In USA individuals and corporations have the pants sued off them.

NZ is evolving. Evolution is based on natural selection. The police will go where the public good is served. OSH will go where it can get more funding. Politicians will go where they will get votes.

Is NZ well served by these three groups doing nothing. I think not.

If police don't prosecute the public will, for a short time, loose faith in thier ability to manage a disaster as well as identify culpable people.

If OSH doesn't prosecute it may as well shut up shop since its functions become totally redundant. They don't issue improvement / prohibition notices they just advise don't even recommend. Anyone can do that.

If politicians don't signal that they want laws enforced this will potentially undermine all other laws - making politicians a bit redundant. Even passing new Regs is redundant if there is no-one around prepared to enforce them.

I sense there is a hunger for directors to be held accountable. We are starting to see Financial Institution directors being held accountable - a few have now been imprisoned. The Nathans Directors have just been sent down for a couple of years which follows the Five Star directors incarceration. It was only back in 2009 that Clegg got Home D.

Wayne Gratton, Director of Icepak Coostores was fined $30,000 for his part in failing to ensure his employees were safe - that wasn't even tied to the death of the firefighter!. There were $123k in fines and $270k in reparations for one death. And you don't think there will be an appetite to see someone related to PRC prosecuted.

[Chris Roberts]

Here are some facts:
NZOG is one of 8,000 PRCL River shareholders (the biggest).
NZOG is one of 470 PRCL creditors (the biggest, and appointed the Receivers on PRCL's request).
All of the PRCL Board was appointed by PRCL shareholders (Two individuals did also sit on the NZOG Board but as PRCL directors they represented all PRCL shareholders, not NZOG).
NZOG has no legal responsibility for the actions of PRCL.
There are three inquiries underway.
1. Royal Commission - NZOG has provided written statements but has to date not been asked to appear at the hearings.
2. Police - The Police do not want to speak to anyone from NZOG.
3. Department of Labour - NZOG has had no involvement.

NZOG is supporting the Receivers to achieve the best outcomes for all interested parties - through an insurance settlement, stabilisation of the mine and sale of the assets. There are no hidden motives.

[dsurf]

Well said Chris!

[J R Ewing]

Erebus was, as I recall, before we deregulated and too far back for me to recall why there weren't prosecutions. Cave Creek was on the cusp of deregulation and is a blot on our history. That the incompetence wasn't prosecuted and that the CEO of DOC didn't resign is a testament to the lilly livered judiciary at the time. (an a bit of a refection on the political landscape at that time as well).

NZ is at the bottom of the developed world evolutionary chain when it comes to industrial death. Here you can kill with immunity. Whats our worst fine - $200k for a life?. In England and Australia Directors are prosecuted and jailed. Companies are heavily fined. In USA individuals and corporations have the pants sued off them.

NZ is evolving. Evolution is based on natural selection. The police will go where the public good is served. OSH will go where it can get more funding. Politicians will go where they will get votes.

Is NZ well served by these three groups doing nothing. I think not.

If police don't prosecute the public will, for a short time, loose faith in thier ability to manage a disaster as well as identify culpable people.

If OSH doesn't prosecute it may as well shut up shop since its functions become totally redundant. They don't issue improvement / prohibition notices they just advise don't even recommend. Anyone can do that.

If politicians don't signal that they want laws enforced this will potentially undermine all other laws - making politicians a bit redundant. Even passing new Regs is redundant if there is no-one around prepared to enforce them.

I sense there is a hunger for directors to be held accountable. We are starting to see Financial Institution directors being held accountable - a few have now been imprisoned. The Nathans Directors have just been sent down for a couple of years which follows the Five Star directors incarceration. It was only back in 2009 that Clegg got Home D.

Wayne Gratton, Director of Icepak Coostores was fined $30,000 for his part in failing to ensure his employees were safe - that wasn't even tied to the death of the firefighter!. There were $123k in fines and $270k in reparations for one death. And you don't think there will be an appetite to see someone related to PRC prosecuted.

There is of course the important point as to whether there are individuals who are culpable in the first place! That is after all what the commission has been set up to find out. All I'm saying is that I would not be surprised if the commission finds that there were systemic failures rather than culpable individuals.

[minimoke]

Just so we are clear.
Tony Radford and Ray Meyer are Directors of NZO and PRC. Tony has over 20 years experience in mining and petroleum. Ray has over 40 years engineering experience. They were arguably appointed to the PRC board on the basis of their industry experience which they could translate into a governance role. A Directors responsibility is to ensure the company (PRC) does not carry out its business in such a way that will cause serious loss to shareholders or creditors. They cannot knowingly allow the business to carry on in a reckless manner. Directors have to ensure there are adequate emergency procedures and that accidents are reported.

If they are under investigation in their role as a Director it will be in their role as a Director of PRC. The question that will be asked of these two is "did he direct, authorise, assent to, acquiesce in, or participate in, the failure". If he is found guilty of the failure he is liable on conviction to the punishment provided for the offence, whether or not PRC has been prosecuted or convicted.

Tony Ratford and Ray Meyer were elected as PRC directors on the vote of Shareholders. NZO is the major shareholder of PRC. I presume NZO's vote also helped secure the other PRC directorships. NZO is unlikely to be criminally liable for the outcome which came from their vote.

The more money PRC pays in fines the less will be available to secured creditors (NZO being the major one) and if steps are not taken to mitigate PRC losses there is little chance of shareholders (NZO being the largest) getting any money back.

If NZO think any eye being cast over PRC will not stray into NZO's operations then NZO are deluded. That is not suggesting NZO faces prosecution directly related to PRC - it means NZO has to look at the ripples that come from the stone thrown in the PRC pool and work out if they are going to feel those ripples. I say they will.

[minimoke]

All I'm saying is that I would not be surprised if the commission finds that there were systemic failures rather than culpable individuals.You are right there. The role of the Commission is to work out what happened, why it happened and suggest ways for preventing it happening in the future. It is not set up to lay blame - hence individuals will not be directly culpable.

It will be for the police and OSH to allege individual culpability under the varuios legislation they are responsible for. They will find that there are individuals who, on evidence they will determine, ought to face charges. Systems are only as good as those individuals who created and managed them. Clearly the systems weren't that great. It stands to reason there are individuals who aren't that great.

[tony64peter]

If the information in the link below is a goer then its time to get out of all hydro carbon fuel investments. Nickel will sky rocket.
http://www.journal-of-nuclear-physics.com/?p=473

[notie]

If the information in the link below is a goer then its time to get out of all hydro carbon fuel investments. Nickel will sky rocket.
http://www.journal-of-nuclear-physics.com/?p=473

Probably a great idea. NZOG isn't going anywhere fast.

[tony64peter]

Further to my previous post. Stayed up last night to sell on the US market and did more investigation re the E-Cat. Rossi claims to have made a Low Energy Nuclear Reaction device and operates from a prominent engineering university in Bologna, Italy. His Youtube presentations seem credible EXCEPT for the omission of the energy required to produce the Hydrogen.I'm now more a sceptic than a believer

[Mr Tommy]

Here are some facts:
NZOG is one of 8,000 PRCL River shareholders (the biggest).
NZOG is one of 470 PRCL creditors (the biggest, and appointed the Receivers on PRCL's request).
All of the PRCL Board was appointed by PRCL shareholders (Two individuals did also sit on the NZOG Board but as PRCL directors they represented all PRCL shareholders, not NZOG).
NZOG has no legal responsibility for the actions of PRCL.
There are three inquiries underway.
1. Royal Commission - NZOG has provided written statements but has to date not been asked to appear at the hearings.
2. Police - The Police do not want to speak to anyone from NZOG.
3. Department of Labour - NZOG has had no involvement.

NZOG is supporting the Receivers to achieve the best outcomes for all interested parties - through an insurance settlement, stabilisation of the mine and sale of the assets. There are no hidden motives.


Hi Chris
the Herald today has a story on Pike, about possible re-entry by Christmas. Theres a one liner at the end:
New Zealand Oil and Gas is spending $1.4 million in reclaiming the tunnel to 2.4km.

Is this something new? Or is it tied into the insurance claim that was settled a few weeks ago?

[dsurf]

From same Herald article.

"Receiver Malcolm Hollis of PricewaterhouseCoopers said reclaiming the tunnel also made commercial sense.

"We are happy with the interest we have in the mine. There is international and local interest but that is confidential information. Intended parties will need to have a firm bid on the table at the end of the month - we will then have a far clearer picture of where parties are at."

[minimoke]

Hi Chris
the Herald today has a story on Pike, about possible re-entry by Christmas. Theres a one liner at the end:
New Zealand Oil and Gas is spending $1.4 million in reclaiming the tunnel to 2.4km.

Is this something new? Or is it tied into the insurance claim that was settled a few weeks ago?The insurance, as far as I can tell was an arrangement between PRC and its insurer. The insurer and PRC receivers have agreed to a $80m full and final settlement. NZO have temporarily forgiven $14.7m secured and $12.1m unsecured debt in favour of contractors and other secured / unsecured creditors. I think we can assume NZO is spending NZO shareholder money. Which begs the question: what return do they anticipate on this spend?

[Chris Roberts]

The insurance, as far as I can tell was an arrangement between PRC and its insurer. The insurer and PRC receivers have agreed to a $80m full and final settlement. NZO have temporarily forgiven $14.7m secured and $12.1m unsecured debt in favour of contractors and other secured / unsecured creditors. I think we can assume NZO is spending NZO shareholder money. Which begs the question: what return do they anticipate on this spend?

NZOG appointed the Receivers. NZOG also loaned PRCL $12m following the explosion, which is essentially the only cash that the Receivers have had to run the receivership process. So essentially NZOG is funding all of the Receivers activities, including the mine stabilisation plan.

[minimoke]

NZOG appointed the Receivers. NZOG also loaned PRCL $12m following the explosion, which is essentially the only cash that the Receivers have had to run the receivership process. So essentially NZOG is funding all of the Receivers activities, including the mine stabilisation plan.Perhaps. NZOG also opened up the balance of the $25m facility. But there was also the $3.3m from the sale of coal and $1.1m GST refund. The receivers probaby also had their eye on the $100m insurance policy and any potential proceeds from the sale if the mine. Receivers are first in line when it comes to dishing out any available cash.

[Coalman]

Can someone please tell me why $30.00 was taken out of my dividend deposit? I have 35,000 NZO and recieved only $670.00. I reckon I should of recieved $700.00. If it went to help out the Pike River miners so be it. But please tell me. I gave to them already!

[777]

Tax. It shows up on the dividend statement.

700/.7*.67=670.

Imputation at 30c therefore grossed up to $1000

less 30c in the dollar+ less 3c in the dollar RWT.

Next year it will be 28 and 5.

Well that is my understanding.

[blockhead]

Probably withholding tax deduction I would say

[fabs]

COALMAN!
Be happy that you have the chosen cash payment of your Div.
Consider the alternative.

[Lion]

COALMAN!
Be happy that you have the chosen cash payment of your Div.
Consider the alternative.

The alternative being lots of shares because they are so cheap just now?

I just read the Company report. I know it's a kind of self-promotion, but still, it seemed to have some encouraging pointers for the future.
That's if the world financial system doesn't implode, which seems quite possible.

Karl Marx, maybe you were right, capitalism is inherently unstable.


Off-topic, sorry, but the cold fusion story was interesting. I read some links and it seems they did measure energy input and it was far less than energy out - a good thing. Who knows, it could just work. If it does, you wouldn't blame them for keeping a few secrets back as it would be extremely profitable. The biggest secret is the catalyst. The nuclear reactions are possible -it's a field I know a bit about, but only if some wonderful catalyst can make the reactions actually happen.

[fabs]

LION
By alternative I meant taking the Div. in cash, instead of Shares.
You are right as to the price of NZO/S,s how low can they go?

[tony64peter]

Whilst I am still in the sceptic camp, this is starting to gain world media attention and the test yesterday appears to have been a success with over 30 scientists in attendance.

"They have all gone on the record to say that they believe that there is a nuclear reaction taking place, " says Acland, "that the levels of energy output the E-Cat produces could not come from a chemical reaction."
http://www.wired.co.uk/news/archive/2011-10/06/e-cat-cold-fusion

W (http://www.wired.co.uk/news/archive/2011-10/06/e-cat-cold-fusion)ill need to be watched.

[notie]

awe is looking to sell out of Tui. Are NZOG going to buy them out?

[Corporate]

awe is looking to sell out of Tui. Are NZOG going to buy them out?

notie, where did you hear that?

[brucey09]

Snr. Corporate
Maybe in a note book.

[bung5]

should have some huge cash holdings by the next half yearly report if they don't make any purchases. 100 -150 mil?

[Mr Tommy]

awe is looking to sell out of Tui. Are NZOG going to buy them out?

There was talk a few months ago about NZOG having some $100m deal in the pipeline.

[Balance]

Sp tells you that NZOG is ready to buy something which will NOT be good for shareholders.

Something though which will keep the directors in their jobs longer and to enjoy the good corporate life.

[blockhead]

You forgot "snouts in the trough" (un) Balanced

[drillfix]

Hi folks,

I dont think I have ever posted in the NZ thread so this feels weird for me.

How are all the NZ stocks going for many of you folks?

[fabs]

Sp tells you that NZOG is ready to buy something which will NOT be good for shareholders.

Something though which will keep the directors in their jobs longer and to enjoy the good corporate life.


But HEY, it will be something with lots of implied potential, 3-4 years down the track.

[shasta]

Hi folks,

I dont think I have ever posted in the NZ thread so this feels weird for me.

How are all the NZ stocks going for many of you folks?

You picked a good thread Drilly, NZO & its former title NOG is Sharetraders most active thread of all time, & this is the 2nd NZO thread, other one is archived.

The NZ index is basically weighed towards FBU & TEL, & FBU had a profit downgrade, as u know on the ASX threads plenty of NZ folk keen on O&G companies hence the wide interest in NZO.

They have PR folk who from time to time post on here. but NZO polarizes people like no other NZX stock!

[Balance]

They have PR folk who from time to time post on here. but NZO polarizes people like no other NZX stock!

All credit and power to the Noggers - through thick and thin (mostly thin), holes after holes (mostly dry) - their faith in NOG's directors and management are undiminished (but unrewarded!).

[Mr Tommy]

NZOG has now received $38.3m from the Receivers in part payment of the secured PRCL debt held by NZOG. Under the early payment plan, NZOG will in coming weeks receive $3.0m as part payment of its unsecured debt.

So with 392m shares thats 10c per share they just banked.

[Beagle]

http://www.sharechat.co.nz/article/fa58c546/nzog-commits-another-5mln-to-pike-river.html

Dont pretend to understand why they would have to advance $5m to the receivers while unsecured creditors are being paid in full but this whole thing is so messed-up I suppose you just trust the directors have some idea of what they're doing, or you don't. SP languising near an all time low despite the recent insurance proceeds recovery and higher oil prices speaks volumes about the markets distrust of the directors "abilities", IMO.

[notie]

wow, what a bargin and surprised no one has taken them over.

Why not you ask? They are a dog.

Their management and board is so useless that the CEO has jumped ship and it wouldn't surprise me if others didn't do the same.

[fabs]

Maybe CEO big part of the problem, was never impressed with him and predicted on this forum months before he declared his intentions, that he would quietly slip out of the picture.

[Mr Tommy]

http://www.sharechat.co.nz/article/fa58c546/nzog-commits-another-5mln-to-pike-river.html

Dont pretend to understand why they would have to advance $5m to the receivers while unsecured creditors are being paid in full but this whole thing is so messed-up I suppose you just trust the directors have some idea of what they're doing, or you don't. SP languising near an all time low despite the recent insurance proceeds recovery and higher oil prices speaks volumes about the markets distrust of the directors "abilities", IMO.

I think we can take from this that the offers on the table to buy Pike are a lot higher than $5m.

[Balance]

I think we can take from this that the offers on the table to buy Pike are a lot higher than $5m.

Fair assumption and on past history, accurate.

Sp going lower and lower however indicates some bad news coming - the US$100m investment?

[Mr Tommy]

Sp going lower and lower however indicates some bad news coming - the US$100m investment?

Yep that worries me.
Back in July the Tui field was downgraded after "preliminary work". The statement also said:
An independent review of the reserves estimate is being undertaken by
RPS Energy Pty Ltd (RPS). The RPS review is anticipated by AWE to be
completed in early August 2011. A finalised 2P reserves estimate will be
advised after the Joint Venture and RPS review has been completed.

Whats happened with this other review? Notie was hinting the other day AWE were keen to get out of Tui.

[pietrade]

Notice that ACC bought ANOTHER 950,000 yesterday. Hmmmmmmmmmmmmmmmm...........

[percy]

Notice that ACC bought ANOTHER 950,000 yesterday. Hmmmmmmmmmmmmmmmm...........


I think we can take it Balance does not work as an investment manager for ACC. !!!!!

[J R Ewing]

Notice that ACC bought ANOTHER 950,000 yesterday. Hmmmmmmmmmmmmmmmm...........

I hope that is a good sign, but ACC are not clairvoyant. They were into ALF at one stage IIRC.

[Corporate]

There was talk a while back about Genesis selling out of their downstream assets. I wonder if NZO is considering a bigger stake in Kupe? They'll certainly need more than a $100m though.

[Mr Tommy]

Notice that ACC bought ANOTHER 950,000 yesterday. Hmmmmmmmmmmmmmmmm...........

The SSH for ACC also reveals they have bought 4.5million NOG over last couple of months, now holding 8.5%
ACC were heavily into Pike too, with about 5%

I match your Hmmmmmmmmmmmmmmmmm and raise you another Hmmmmmmmmmmmmmmmmmmmmmmmm

[minimoke]

The SSH for ACC also reveals they have bought 4.5million NOG over last couple of months, now holding 8.5%
ACC were heavily into Pike too, with about 5%

I match your Hmmmmmmmmmmmmmmmmm and raise you another Hmmmmmmmmmmmmmmmmmmmmmmmm
They have also supported the Energy Mad IPO. ACC isn't shy in supporting NZ business even if the intial business case doesn't look that flash. Doesn't matter though. As we have seen if things go wrong for ACC they just put up their premiums. Therefore it is is all of NZ who are underwriting ACC's play's.

[pietrade]

The SSH for ACC also reveals they have bought 4.5million NOG over last couple of months, now holding 8.5%
ACC were heavily into Pike too, with about 5%

I match your Hmmmmmmmmmmmmmmmmm and raise you another Hmmmmmmmmmmmmmmmmmmmmmmmm

OK........I'll see ya.

[Balance]

So where's the Tui update?

[Balance]

Yep that worries me.
Back in July the Tui field was downgraded after "preliminary work". The statement also said:
An independent review of the reserves estimate is being undertaken by
RPS Energy Pty Ltd (RPS). The RPS review is anticipated by AWE to be
completed in early August 2011. A finalised 2P reserves estimate will be
advised after the Joint Venture and RPS review has been completed.

Whats happened with this other review? Notie was hinting the other day AWE were keen to get out of Tui.

NOG's sp dropping away, based upon history, suggests a bad announcement coming out soon. Starting to look like it's another Tui downgrade?

Tui was upgraded 3 times (rather nicely timed for NZO to obtain over $180m of cash from shareholders at $1.50 per share) so are we now looking at 3 downgrades?

[Mr Tommy]

NOG's sp dropping away, based upon history, suggests a bad announcement coming out soon. Starting to look like it's another Tui downgrade?

Tui was upgraded 3 times (rather nicely timed for NZO to obtain over $180m of cash from shareholders at $1.50 per share) so are we now looking at 3 downgrades?

Well AWE has been ticking up over the last month, but then Tui is only a small bit for them


Chris Roberts - is there any info on when the RPS review of Tui will be announced ???

[Chris Roberts]

Well AWE has been ticking up over the last month, but then Tui is only a small bit for them


Chris Roberts - is there any info on when the RPS review of Tui will be announced ???

There is a Contact Us page on our website and any shareholder can ask us a question at anytime - and many do. I only glance at this thread occasionally so if you have a question I suggest you use our website service.

With regard to Tui reserves, following the review the Operator has proposed a number that is within the previous range and NZOG has adopted that figure. The details will be revealed in our Quarterly Report, to be released 26 Oct.

[minimoke]

Bids on Pike River close today with Solid Energy appearing to be in the hot seat. Receivers may not get a great price as Solid Energy own the rights to rail coal out of Greymouth so any bidder would not only have to open up the mine but also build a wharf facility. Consequently I'm picking not a lot of demand for Pike so a lower sale price (assuming any potential sale gets past the Overseas Ownership Commission) so at best NZO might get its loans pack but there won't be anything left as a shareholder.

[Balance]

Bids on Pike River close today with Solid Energy appearing to be in the hot seat. Receivers may not get a great price as Solid Energy own the rights to rail coal out of Greymouth so any bidder would not only have to open up the mine but also build a wharf facility. Consequently I'm picking not a lot of demand for Pike so a lower sale price (assuming any potential sale gets past the Overseas Ownership Commission) so at best NZO might get its loans pack but there won't be anything left as a shareholder.

When has OIO ever turned down any deal to a reputable overseas shareholder/investor? Heck, most of the oil fields and mines in NZ are owned by overseas interests!

[Crypto Crude]

Christchurch Investor Briefing
Date: Thursday 27 October 2011
Time: 5.00pm
Venue: The George Hotel, 50 Park Terrace, Christchurch.
Notice of Meeting
:cool:
.^sc

[Mr Tommy]

Wellington AGM meeting notes, and quarterly report are out on Direct Brokings site.

Any reports on the sausage rolls? Maybe noone went?

[the machine]

NZO wanting to increase stake in Tui & Kupe - maybe Mitsui wanting to reduce.

M

[Sideshow Bob]

NEWSFLASH - The shareprice is ridiculously cheap!!

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10761780

[Corporate]

NZO wanting to increase stake in Tui & Kupe - maybe Mitsui wanting to reduce.

M

machine, where did you get that information from?

I purchased a chunk of NZO shares today :) very low EV compared to producing assets. Also recovery of some of the pike equity investment could offer upside.

[Corporate]

Good volume today. Few people digesting the quarterly report and AGM presentation. I'm expecting this to head into the mid 70c range minimum.

[upside_umop]

I've got some recently too Corp.
I saw that in the chairman's address they were looking to increase tui/kupe stakes.
Radford also mentioned resuming dividends to prior levels....does this mean 5 cps?
Remember, NZOG have a few tax losses now don't they so cashflows should be strong over the next couple of years...

He mentioned that Kupe alone is worth more than the market cap, but that alone doesn't mean much given the G&A they have! haha

[blockhead]

He should take the bait any time soon I predict

[Corporate]

I've got some recently too Corp.
I saw that in the chairman's address they were looking to increase tui/kupe stakes.
Radford also mentioned resuming dividends to prior levels....does this mean 5 cps?
Remember, NZOG have a few tax losses now don't they so cashflows should be strong over the next couple of years...

He mentioned that Kupe alone is worth more than the market cap, but that alone doesn't mean much given the G&A they have! haha

Good stuff UU. Key points from todays annoucements for me are:


Net cash of $95m as at 30 September

Unsecured creditors expected to receive full payments on sale of the mine. NZO are currently owed $38m.

Receivers are at an advanced stage of negotiations with potential buyers

Farm-out discussions are ongoing with several interested companies (Kakapo - 200mmbl prospect)

Potential to increase ownership of Tui and/or Kupe

Dividends to resume at previous levels (5cps is currently 11% gross!)

The value of Kupe exceeds current market capitalisation.


Sorry I've doubled up on a couple of your points.

[blockhead]

Don't you just love it !!

Today’s Gainers
Code Last Move
NZO 0.700 ▲+7.69%
OIC 1.900 ▲+1.60%
NPX 2.690 ▲+1.13%
FBU 6.510 ▲+0.93%

[Corporate]

Don't you just love it !!

Today’s Gainers
Code Last Move
NZO 0.700 ▲+7.69%
OIC 1.900 ▲+1.60%
NPX 2.690 ▲+1.13%
FBU 6.510 ▲+0.93%

Can't compliance BH. I bought yesterday at 63c.

[blockhead]

Wish I could say that, most of mine owe me something a fair bit north of $1, however contrary to (un)balanced's advice I am sticking with them.

[fabs]

NZOG will have no further involvement in PRCs mine after its sale!
Does this suggest NZO is not in the bidding process for the mine?
If so finally perhaps, an admission and acceptance that the board and there advisers never had any demonstrable expertize in West coast coal mining.
Maybe a lethal speculative and expensive gamble, or worse still driven by self interest of cross holding interests by certain individuals.
Also it seems we need to appoint another Carpetbagger on a $600000 Salary, can the present staff of 22 not handle the [ HARD WORK ] to bring the now projected 18 to 24 months future and in place projects to fruition?

[Balance]

Don't you just love it !!

Today’s Gainers
Code Last Move
NZO 0.700 ▲+7.69%
OIC 1.900 ▲+1.60%
NPX 2.690 ▲+1.13%
FBU 6.510 ▲+0.93%

Go back a year and it's :

NZO 0.700 Down 46%
OIC 1.900 Up 5.5%
NPX 2.69 Down 21%
FBU 6.61 Down 18%

Option exercise raising $180m at $1.50 a piece = Down 54% or $98m.

Give them some crumbs and they come begging for more punishment!

No wonder NZO directors and management treat shareholders with the contempt they deserve!

[Ian]

or does it mean the price is going to be high enough that they are prepared to accept it


NZOG will have no further involvement in PRCs mine after its sale!
Does this suggest NZO is not in the bidding process for the mine?
If so finally perhaps, an admission and acceptance that the board and there advisers never had any demonstrable expertize in West coast coal mining.
Maybe a lethal speculative and expensive gamble, or worse still driven by self interest of cross holding interests by certain individuals.
Also it seems we need to appoint another Carpetbagger on a $600000 Salary, can the present staff of 22 not handle the [ HARD WORK ] to bring the now projected 18 to 24 months future and in place projects to fruition?

[Balance]

Wish I could say that, most of mine owe me something a fair bit north of $1, however contrary to (un)balanced's advice I am sticking with them.


Long term predication is Pike will fail. They won't be able to get the amount of coal out of the mine they have said they will. When Pike fails nzog will lose a whole bunch of money and their share price will drop to 70c. My predication and I'm sure many of you will disagree, but this is a realistic assessment

Notie made this prediction a year ago. Could have saved yourselves a lot of money, aggro and grief by opening the other eye and listen carefully and objectively to those (like Notie) who have been deadly accurate with their assessments of NZO and PRC.

[blockhead]

Yes that was a very perceptive post made by Notie, I didn't believe it would happen at the time but after taking a fair old bath on NZO it is now time to look forward and see what the next 12 months brings

[Balance]

Yes that was a very perceptive post made by Notie, I didn't believe it would happen at the time but after taking a fair old bath on NZO it is now time to look forward and see what the next 12 months brings

Notie has been very accurate with his predictions - pays to take note of his postings.

[Mr Tommy]

Wonder why they have just released this statement. Was there something said at the AGM yesterday raising expectations?


GENERAL: NZO: Update on PRCL debt recovery

NZOG (New Zealand Oil & Gas Ltd) advises that at this time there is no change
in its assumptions regarding the possible further recovery of its investment
in Pike River Coal Ltd (PRCL).
The Receivers for PRCL have publicly commented that they have received
multiple bids for the mine assets. Further discussions with the bidders will
be entered into and the Receivers have indicated that concluding a sale could
take until the end of the year, or longer.
From the settlement reached with PRCL's insurers, NZOG has received $38.3m in
part-payment of its total secured debt. Next week NZOG will receive $3m in
part-payment of its unsecured debt. NZOG has also advanced $4.3m back to the
Receivers under a $5m short term loan agreement to meet the Receivers'
working capital requirements.
It is NZOG's expectation that the loan advance to the Receivers and the
remaining secured debt and interest of approximately $18m will be recovered
through the sales process.
The remaining unsecured debt and interest of approximately $12m, along with
the $77m book value of NZOG's 29% shareholding in PRCL, remains fully
impaired, as there is insufficient certainty at this time that this will be
recovered.

[Balance]

Wonder why they have just released this statement. Was there something said at the AGM yesterday raising expectations?


GENERAL: NZO: Update on PRCL debt recovery

NZOG (New Zealand Oil & Gas Ltd) advises that at this time there is no change
in its assumptions regarding the possible further recovery of its investment
in Pike River Coal Ltd (PRCL).
The Receivers for PRCL have publicly commented that they have received
multiple bids for the mine assets. Further discussions with the bidders will
be entered into and the Receivers have indicated that concluding a sale could
take until the end of the year, or longer.
From the settlement reached with PRCL's insurers, NZOG has received $38.3m in
part-payment of its total secured debt. Next week NZOG will receive $3m in
part-payment of its unsecured debt. NZOG has also advanced $4.3m back to the
Receivers under a $5m short term loan agreement to meet the Receivers'
working capital requirements.
It is NZOG's expectation that the loan advance to the Receivers and the
remaining secured debt and interest of approximately $18m will be recovered
through the sales process.
The remaining unsecured debt and interest of approximately $12m, along with
the $77m book value of NZOG's 29% shareholding in PRCL, remains fully
impaired, as there is insufficient certainty at this time that this will be
recovered.

See page 14 of the NZO AGM presentation.

[blockhead]

I suspect it is to allay ideas shareholders may have of full repayment forthcoming after the receivers stated , "The Receivers for PRCL have publicly commented that they have received multiple bids for the mine assets"

[Mr Tommy]

See page 14 of the NZO AGM presentation.

Found that document on the NZOG website, you think the "debts paid off" implies all the secured and unsecured money recovered?
•
Outlook: Sale concluded, debts paid off, mine handed over to new owners, receivership over

David Salisburys speech notes give no indication of how much of the debt will be recovered:
The sales process is well advanced, with the Receivers having advised us that final bids were received last week and are being assessed.
Looking forward, we would expect the Receivers to conclude the sales process and the proceeds would go towards PRCL’s remaining debts, including those owed to NZOG – which currently amount to around $35m.

[bung5]

"NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing
Rule 7.6.2, the intention to buy-back up to 10 million of its fully paid
ordinary shares.

The NZOG Board is of the view that the current share price is significantly
below fair value and does not reflect a reasonable current valuation of the
company or its prospects for further growth.

A buy-back of shares at this time is an opportunity to provide a return to
shareholders in excess of NZOG's cost of capital. NZOG will continue to
maintain a strong balance sheet to fund capital expenditure for on-going
growth initiatives."



Would of liked to see something more like 40,000,000 shares bought back at these current prices. But is better than nothing

[Balance]

"NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing
Rule 7.6.2, the intention to buy-back up to 10 million of its fully paid
ordinary shares.

The NZOG Board is of the view that the current share price is significantly
below fair value and does not reflect a reasonable current valuation of the
company or its prospects for further growth.

A buy-back of shares at this time is an opportunity to provide a return to
shareholders in excess of NZOG's cost of capital. NZOG will continue to
maintain a strong balance sheet to fund capital expenditure for on-going
growth initiatives."



Would of liked to see something more like 40,000,000 shares bought back at these current prices. But is better than nothing

10m shares to be bought back over 1 year! So that's less than 200,000 shares per week.

The directors of the company aren't exactly committing much of the cash of the company to supporting the sp and their assertion that the shares are undervalued, are they?

Anyone think it's a bit coincidental that the sp starting going up from a week before this announcement?

And the selling which is coming out now?

[bung5]

Yes you are right balance.. but its normaly strange when you don't see that these days ;)

[neopoleII]

groan........
a 4cent divi instead of 2cents would of put a real floor under the sp.
so the next step after cancelling 10mil shares is to alocate several mil of part paid shares to themslves.

[bung5]

how many shares were issued under the SPP few weeks ago?

[bung5]

well the answer is 3,560,852

[RRR]

well the answer is 3,560,852

Almost the same number of shares they bought back on market not so long ago! What a joke! If they thought the shares are hugely undervalued, they should have bought back shares on market for the investors participating in DRP.

[peterfindlay]

Almost the same number of shares they bought back on market not so long ago! What a joke! If they thought the shares are hugely undervalued, they should have bought back shares on market for the investors participating in DRP.

As NZO have held the view that their shares have been substantially undervalued, it may have been better for NZO shareholders if the DRP was suspended in September 2011 in order to avoid the dilution of shareholder value that results from issuing shares at a price of 67.314 cents. As I recall, in the webcast on the 24th August 2011, Jason Familton of First NZ Capital raised the point about the further dilution of value that could arise in the context of the DRP and the 2 cents dividend declared at that time. That said, it is the average cost paid by NZO to acquire the 3,560,852 shares issued as a consequence of the DRP that ultimately determines the net cost to shareholders of issuing shareholders under the DRP. At yesterdays close of 73 cents, the net cost (excluding brokerage) to shareholders of acquiring the "DRP shares" would be $202,470 (3,560,852 x 5.686 cents (73 cents - 67.314 cents)). However, the actual cost to shareholders will be determined by the actual cost of the shares purchased on or after the 7th November 2011.

I support the capital management initiated by NZO, and further support confirmation of the payment of an interim dividend upon the release of December 2011 quarterly activities report in late January 2012, or upon the release of the 6 monthly result in February 2012, or even earlier if the sale of Pike River Coal is confirmed before the end of January 2012, and the recovery of both the secured and unsecured debt is achieved.

[fish]

I support the capital management initiated by NZO, and further support confirmation of the payment of an interim dividend upon the release of December 2011 quarterly activities report in late January 2012, or upon the release of the 6 monthly result in February 2012, or even earlier if the sale of Pike River Coal is confirmed before the end of January 2012, and the recovery of both the secured and unsecured debt is achieved.[/QUOTE-peter findlay]

Kupe alone is generating approx 2 cents a share per month . A reasonable dividend to reflect this should be made-e.g a 5 cent interim dividend to be made in march .This would go a long way towards reassuring investors that an investment in nzo will result in adequate returns .

NZO already has sufficient cash reserves plus likely loans to be repaid from the sale of prc .

[Mr Tommy]

NZO already has sufficient cash reserves plus likely loans to be repaid from the sale of prc .

Remember theres the big $100m deal coming .....

Maybe NOG is buying Greece?

[Balance]

Kupe alone is generating approx 2 cents a share per month . A reasonable dividend to reflect this should be made-e.g a 5 cent interim dividend to be made in march .This would go a long way towards reassuring investors that an investment in nzo will result in adequate returns .

NZO already has sufficient cash reserves plus likely loans to be repaid from the sale of prc .

So who trusts NZOG's directors and management to put shareholders' interests first?

[neopoleII]

""So who trusts NZOG's directors and management to put shareholders' interests first? ""


ditto the current sp.

[LIO]

I thought NZOG's directors and management were shareholders !

[Balance]

I thought NZOG's directors and management were shareholders !

"4 legs good, 2 legs even better".

[Sideshow Bob]

Remember theres the big $100m deal coming .....

Maybe NOG is buying Greece?

Don't be silly, Greece wouldn't cost that much!!