NZ Oil & Gas (NZO)

[Billy Boy]

Maybe it's time for the ladies.....
as in FRE & AIA.
BB

[Balance]

The inquiry continues next week and this preview will give the die-hard Noggers and Pikers less pause for thought :

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10764529

http://www.stuff.co.nz/national/pike-river-mine-disaster/5924643/Mining-expert-frightened-by-Pike-River-mine

[blockhead]

Seems to me the Japanese fellow has a few questions to answer himself, if he was an "expert" and was as worried as he says he was the question is, why did you not tell the fellow who employed you ?? (Peter Whittal)

I would imagine he probably has a few sleepless nights thinking of what happened there.

And, before you say it (un) Balanced, I am not trying to deflect the heat from Mine management.

[Balance]

Seems to me the Japanese fellow has a few questions to answer himself, if he was an "expert" and was as worried as he says he was the question is, why did you not tell the fellow who employed you ?? (Peter Whittal)

I would imagine he probably has a few sleepless nights thinking of what happened there.

And, before you say it (un) Balanced, I am not trying to deflect the heat from Mine management.

Totally agree with you.

Or was it a case of him telling management, finding them unresponsive and so he decided best he moved on?

Remember the evidence given to date of management ignoring submissions on safety :

1. http://www.miningaustralia.com.au/news/pike-river-mining-approach-inadequate--geologists

"Newman recommended investigation and research into these anomalies, but the miner failed to follow up her suggestions."

2. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10750114

"A year before the blast, four people were to test the ascent. The first two were so exhausted that no one else even wanted to try. Neither made it as far as the surface.

Mr Rockhouse said he tried to convince Mr Whittall to buy a refuge station.

With no official sign-off on the second escape exit, other safety measures were delayed, including smokelines to navigate to safety in a smoke-filled tunnel.

Mr Rockhouse said that in late 2009, he asked Mr Whittall if he could train the management team on the emergency system. Mr Whittall refused and said he was comfortable with the company's ability to respond."

And so on and so forth .....

Let's wait though to hear why the "Japanese fellow" not tell the "Australian fellow" who employed him.

And let's wait to hear why the "New Zealand fellows" who employed the "Australian fellow" continued to have confidence in him when the "New Zealand fellow" (CEO of NZOG) expressed no confidence in the "Australian fellow."

[blockhead]

There are those who would perhaps wish it would all lie fallow for some time I think old fellow

[Balance]

There are those who would perhaps wish it would all lie fallow for some time I think old fellow

Sure they do.

But they will not be allowed to hide from the truth.

Only the truth will set NZOG free.

[Mr Tommy]

PPP just announced 5c ( I assume AUD) per share capital return.
NZOG owns about 15% so should be getting a big payout, between $4 and $5 million AUD?

[Balance]

PPP just announced 5c ( I assume AUD) per share capital return.
NZOG owns about 15% so should be getting a big payout, between $4 and $5 million AUD?

Big payout? Try the $180m cash raised at $1.50 per share and squandered, and the $100m plus already siting in cash.

[Mr Tommy]

Big payout? Try the $180m cash raised at $1.50 per share and squandered, and the $100m plus already siting in cash.

Yawn.
Well its about NZD $5.5m we didnt have yesterday.
NOG has 88m shares in PPP from last report.

[Balance]

Yawn.
Well its about NZD $5.5m we didnt have yesterday.
NOG has 88m shares in PPP from last report.

Wrong - it was siting as value in PPP. Better to be with PPP than NZOG, given NZOG's track record of squandering shareholders' wealth by burning cash.

[Queenstfarmer]

Yawn? Exactly Mr Tommy. Talk about a broken record too. Dont go away Balance..you are the source of my daily entertainment.

[Balance]

Happy to oblige as Noggers and Pikers need constant reminder of the hundreds of millions squandered, and the 29 lives lost.

Only the truth will set NZOG free.

Says one Nogger to one Piker - "They just don't get it - we mushrooms like and need to be kept in the dark".

[neopoleII]

5cents is awesome.....
and NZO will love the income to fund their share buyback!
i wonder if the board knew of the 5cent distribution when they announced the buyback?
NZO, if it was interested in looking after its shareholders would give a special divi to its own shareholders from the PPP distribution.

[bung5]

Seems like the capital pay out is just clearing the cash holding ready so they can approve NZO's takeover offer for 100 mil huh

[neopoleII]

ppp is sitting on a huge cash pile........... so is nzo.
ppp has just said that with all their searching they havent found anything worthwhile to invest in.
so i assume that nzo hasnt found anything to invest in either...... since they are in the same game.

ppp looks after in shareholders.

what is nzo doing with its income?
not buying into anything that is understood by shareholders
not giving it back to shareholders.
below bankrate divis
no major investments in proven production...... ie cue, ppp, awe, etc.
what!........ with ppp sp under cash reserve....... nzo could of bought that cash at a discount!
but share buybacks........ (burning share certificates)
1 cent prepaids for staff, management.

and kupe is a glowing success.

pike insurance came through......... but everyone got paid first....... especially the banks!
pike soon to be sold......... nzo must know the figures?
yet the shareholder is still in the dark.

i was never involved in hanover..... but starting to understand what they went through.

maybe i shouldnt say that ...... but it is my opinion and should be treated as such.

disc. i have most of my investments in NZO for 6 odd years..... and am still negative in return.

[blockhead]

disc. i have most of my investments in NZO for 6 odd years..... and am still negative in return.

Don't feel alone there Neo !

[Balance]

Don't feel alone there Neo !

Should have taken note of Notie's warnings.

[neopoleII]

""Should have taken note of Notie's warnings.""

im just a mum and dad investor.........
but am definitely more aware and critical now.

too bad directors of nz listed companies still regard shareholders/ investors as easy cash cows.

wonder how many kiwi folks will invest in the new soe public shares.......
i for one wont........
well not until company directors respect those they get their cash from.
and a government that enforces rules.

honestly......... no matter how many shares nzo buys back.......... i cant see $1.50 sp ever again.
even the jewel kupe cant do that.

im better off buying a dairy with lotto outlet under full management. the return is far better.

wet bus ticket politics has alot to answer for in nz business........ and the worst is still to come.

by then the olde boys club will be long gone smiling.

[Lion]

i cant see $1.50 sp ever again.
even the jewel kupe cant do that.


Kakapo might.

[janner]

disc. i have most of my investments in NZO for 6 odd years..... and am still negative in return. Reply Reply With Quote .

Eggs in one basket !!.. Never a really good way to go !!..

[Queenstfarmer]

I think Balance should change his/her name to Polly!!

[the machine]

Seems like the capital pay out is just clearing the cash holding ready so they can approve NZO's takeover offer for 100 mil huh

that would be nice.

I wonder which way nzo voted with their 15%.

with 2 resolutions defeated then that required a lot of shares saying NO.
Of course the board can't vote their shares for the renumeration but stopping the partial takeover provisions should open up the door for nzo - ie make a bid for 35c and get to keep all the shares they buy in same

M

[notie]

Kakapo might.

Kakapo is a dog and expect some significant delays on getting this drilled, even if they get permission to drill it from the govt which is rumored not to be happy about it being drilled under the current environmental laws.

This organization will soon loose its ceo and radford or one of his sycophants will take over. nozg will continue on its rudderless way.
While radford it there it will go no where as he treats it like his pension fund.

It will never get near $1.50 unless they really change tack. Unlikely

[Mr Tommy]

Happy to oblige as Noggers and Pikers need constant reminder of the hundreds of millions squandered, and the 29 lives lost.

Only the truth will set NZOG free.

Says one Nogger to one Piker - "They just don't get it - we mushrooms like and need to be kept in the dark".


Says one Balance to one Notie, "lets help set those poor mushrooms free"

Keep up the good work.

[Balance]

Compare and contrast the difference between PPP and NZO.

PPP looks at its cash pile, informs shareholders that it has had a close look at over 70 prospects and having decided against them, returns a big chunk of the cash back to shareholders.

If PPP needs cash, it knows it can go back to shareholders and get them to contribute.

What do NZOG directors do with the cash and how well have their investment decision making process been?

[neopoleII]

the latest news is great!.... not

[Mr Tommy]

the latest news is great!.... not

What news is that? Theyve issued another 200,000 shares to the ESOP at 1c, and bought back 45,000 at 71c

[Animeart]

I'm new to the energy sector so not sure what NZO's been doing in the past. I hope the person that has his/her cash locked up in NZO for the past 6 years or longer at least got a decent dividend every year to show for. So is every one voting for National and supporting asset sale? The last SOE stuff up I can remember was with transit rail. Didn't we (the gov't) ended up buying back the assets from the Aussie at a premium after they've given up putting more cash into a bottomless pit?
Anyway, does anyone think NZO is still worth investing at the current low price?

[Corporate]

Animeart, NZO is a good bet at current prices. I feel for holders from the $1.5 era. I lost a chuck in the GFC days buying stacks at $1.5 and bailing out at $1.15.

[bung5]

Animeart, NZO is a good bet at current prices. I feel for holders from the $1.5 era. I lost a chuck in the GFC days buying stacks at $1.5 and bailing out at $1.15.

Great buying when the have strongly hinted they will return to paying a good dividend most likely 5c or more . SItting on a PE ratio of about 3 and a Enterprise value of about 100 million with revenue of about 100million! ( very loose estimate)

[Balance]

Great buying when the have strongly hinted they will return to paying a good dividend most likely 5c or more . SItting on a PE ratio of about 3 and a Enterprise value of about 100 million with revenue of about 100million! ( very loose estimate)

Miners are not valued on PE.

Try cashflow and reserves.

Broking firms estimate (yes, estimate) value at between $1.05 to $1.35.

Huge discount applied due to mismanagement and poor track record.

[bung5]

Miners are not valued on PE.



says who? Doesn't provide a full picture because of the limited years of revenue on reserves. but it tells you the price paid for a share relative to the current net income or profit

[moggie]

Saw this on a Oil & Gas ranking commentary:

'Unfortunately, NZOG (NZO) is a slow moving entity which is unlikely to change its
spots and create value for shareholders. The company receives good long term cash
flow from Tui oil and Kupe gas, but seems content to just pay salaries to its
management and Board.'

Looking at some of the older posts, it seems to sum up NZO.....

[tobo]

Moggie,
where did you see this?

[moggie]

Moggie,
where did you see this?

It is from a Stock Analysis report:

http://www.stockanalysis.com.au/samples.htm

Click on:



Volume 8




Issue 32



October 19th 2011 (http://www.stockanalysis.com.au/samples/sample2.pdf)



494kb

[blockhead]

NZO
18/11/2011 09:17
OFFICE

REL: 0917 HRS New Zealand Oil and Gas Limited

OFFICE: NZO: New NZOG CEO Appointed

NZOG (New Zealand Oil & Gas Ltd) announces the appointment of Andrew Knight
as its new Chief Executive Officer, effective 1 December 2011.

Andrew is currently a non-executive director of NZOG. He is also a director
of Powerco Limited and several privately held investment companies.

Andrew's previous career includes senior executive roles with Vector, Natural
Gas Corporation and The Australian Gas Light Company, in addition to roles
with Fletcher Challenge Energy and Coopers & Lybrand.

The NZOG Board completed a comprehensive search process and received strong
interest from international and domestic candidates.

The Board would like to express its thanks to David Salisbury for his service
to the company as CEO for almost five years and his undiminished commitment
whilst the Board undertook the recruitment process.
End CA:00216499 For:NZO Type:OFFICE Time:2011-11-18 09:17:35

[brucey09]

Snrs.
Excellente choose. Intelligent person.

[Rabbi]

Snrs.
Excellente choose. Intelligent person.

Not an experienced CEO of an oil and gas company but worked for natural Gas and Fletcher energy. He's left with a legacy of missed opportunities, bad luck and wasted cash flow. I await his statement of intent as to what direction NZO should be heading to realise value for shareholders.
The appointment itself should reassure the market.

[fabs]

What, recruited from there own ranks for the 1/2 Mil. plus per an. position?
How Bizarre.
Clearly no intention to change anything, lets hope what worked for J.HENRY works for NZO
Any takers they do it in less than 4 years or ever?

[notie]

What, recruited from there own ranks for the 1/2 Mil. plus per an. position?
How Bizarre.
Clearly no intention to change anything, lets hope what worked for J.HENRY works for NZO
Any takers they do it in less than 4 years or ever?

Bizarre alright! Hire some HR firm to search the world then settle on someone from the existing BOD. Talk about keep it in the family. Expect nothing really to change at nzog.

I see they only drilling action they were going to be involved in has now slipped to the end of 2012 (at least) with kakapo drilling now being deferred. So it looks as if they will sit around and burn more investor's cash in the meantime.

[Corporate]

I don't see this as a bad thing. The new CEO was an independent director of NZOG not what I would call the "family".

[digger]

Bizarre alright! Hire some HR firm to search the world then settle on someone from the existing BOD. Talk about keep it in the family. Expect nothing really to change at nzog.


My first impression with this appointment was suprise as Andrew is young and has been with NZO only three years.On the flip side that means that if he comes very committed to NZO he has the potential for a very long future with the company.Have only had the opportunity to talk with him on short occasions but he did seem quick and sharp.
DS has to be the unluckly CEO of all times. He has been with the company when the four drills were all negative,PIKE was clearly never his brain favorate child and managed to blow up before he could flog it off,and probably the worst is that DS has been at the helm during the GFC the worst since the 1920's.
So now we move on with AK.
Here is a few things i would like to see in the coming future under new leadership.
Firstly we need to get back to some drilling mainly near TUI and KUPE. For now i am not that much in favor of raceing off around the globe competing in areas where it is hard to see a comparative advantage to NZO.I still believe more oil is to be discovered here.
Secondly we should look again at lifting or taking over PPP when it is still at a market value less than monies in the bank
Thirdly we are entering a new era where the 99% are likely in coming years to have a serious go at super high CEO incomes. Therefor i suggest that we face that and have some or a good part of that income as share instead of cash. That would certainly show confidence in the company and some acceptance that events can happen where we all must take up the loss.
Good luck AK you my well find that luck is sometimes as important as knowledge or experience.

[Corporate]

Digger, some good thoughts on NZO going forward.

I'd like to see:

PPP and NZO merger at maybe 1 NZO share for 4.5 PPP. This would leave NZO with 22.5% of Tui and almost $250m in cash. This would really give them some leverage to look at acquisition.

My preference would be for NZO to increase its share in Kupe. A now well understood but relatively young asset. A dividend policy would be set based on a percentage of the Kupe's free cash flow.

Leftover funds would be used as you say for drilling close to home.

[Paint it Black]

Digger, some good thoughts on NZO going forward.

I'd like to see:

PPP and NZO merger at maybe 1 NZO share for 4.5 PPP. This would leave NZO with 22.5% of Tui and almost $250m in cash. This would really give them some leverage to look at acquisition.

My preference would be for NZO to increase its share in Kupe. A now well understood but relatively young asset. A dividend policy would be set based on a percentage of the Kupe's free cash flow.

Leftover funds would be used as you say for drilling close to home.I don't see PPP selling at a 4.5 multiple Corporate - 3.0 maybe - there are sub large PPP substantial holder buys happening at present with a 5c dividend in the offing and a development drilling decision in Vietnam to be made by Premier in early December.

[the machine]

after payment of the 5c per share then ppp directors might be interested in progressing their desire to merge with another company.

if it's nzo then that would make sense to me, however a premium would be needed if ppp are to be just absorbed.

M

[Mr Tommy]

The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.

[jonu]

Trouble is if they raise their own sp they just spend more shareholder funds in doing so

[bung5]

I can't agree with you Mr Tommy. They should be buying back shares as cheap as possible .. the upside for us is when they distrubute the funds there is more to go around becauase there are less shares.
With agressibe buybacks all that happens is the shareprice rises while it is happening then quickly returns to its orginal levels ( unless of course there is some good news that keeps it going)

The only grudge I have is that it should of been 40 million shares bought back.

[bung5]

At the current buying they will complete the buyback within the year timeframe

[digger]

The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.


Yes and no to that one Mr Tommy. I do not agree with you in saying it is not working as it is just too early to say. Somewhere in the back of my mind another share i held many years ago did the same buy back with zero results in the short term then suddenly it all hit home and the reduced shares on issued finally took effect.
I do agree that if the company is sure the SP will be bigger in the future then they should step it up to buy more shares while they are still cheap
On another topic,what has happened to this 100 million deal nog was supposted to have been in. It seems in the last few years the company was into deals about to be completed in a few weeks to vanish without trace.

[bung5]

yes very strange. I'm guesing either the deal fell over or they are waiting for PPP to make the capital payout then make the T/O :P

[upside_umop]

The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.

Tommy, share buybacks are not targetted to make the supply demand imbalance and therefore the shareprice rise - this is a short term measure.

It is to purchase shares, at what is deemed to be below "fair value" and thus increase earnings per share on the remaining shares in the future. It's usually used as more of a signal....

As has been discussed on here, the amount of shares is probably going to have an insignificant effect on the share price due to increases in EPS, so I would take it as more of a "signal" more than anything.

[neopoleII]

so the "signal" is more esop?

[arjay]

Hmmmm ... I need to pay for my new shed but can't decide whether to seel my Bonus Bonds or NOG. They're giving equal returns, but which has the greatest potential for upside?

[percy]

Hmmmm ... I need to pay for my new shed but can't decide whether to seel my Bonus Bonds or NOG. They're giving equal returns, but which has the greatest potential for upside?

Just as well you asked that question.I can give you expert advice.Science here,choose a $2 coin.Take heads you keep NOG,tails you keep the bonus bonds,now toss the coin,and you will have the answer.Should you have doubts you may wish to try two out of three.
ps.Welcome to club tosser.!!!

[upside_umop]

so the "signal" is more esop?

I think you need to put it in perspective how many ESOP they're actually issuing.

[fabs]

No worries the Israel-US Axis will soon bomb the hell out of Iran, they certainly have ranted on about it now for nearly 10 years, Action must be getting closer.
Result rapid increase in O/P & NZO S/P
Not my desire but odds getting shorter.

[bung5]

Plenty of small cap oilers on the ASX they could be buying that have good permits and negative EV . But then maybe they would have to do some work eh

[digger]

OFFICE: NZO: New CEO takes up role 09:14a.m.

NZO
08/12/2011 09:14
OFFICE

REL: 0914 HRS New Zealand Oil and Gas Limited

OFFICE: NZO: New CEO takes up role

NZOG (New Zealand Oil & Gas Ltd) confirms that Andrew Knight has signed a
contract and taken up the role of Chief Executive Officer.

He replaces David Salisbury, who had given six months notice in June this
year.

Andrew Knight, who's 41, has been a director of NZOG since 2008. He is also a
director of Powerco Limited and several privately held investment companies.

Andrew's previous career includes senior executive roles with Vector, Natural
Gas Corporation and The Australian Gas Light Company, in addition to roles
with Fletcher Challenge Energy and Coopers & Lybrand.

The ASX Corporate Governance Principles and Recommendations note that
entering into an employment agreement with a senior executive may trigger a
continuous disclosure obligation under ASX Listing Rule 3.1.

A summary of the key terms of Andrew Knight's employment agreement is
therefore provided.

Key terms of employment for Chief Executive Officer of New Zealand Oil & Gas
Ltd

1. Appointee: Andrew Knight

2. Contract duration: Indefinite term

3. Commencement Date: 7 December 2011

4. Remuneration: Base compensation of NZ$510,000 per annum
Short term incentive: A Bonus Scheme is operated under NZOG's Remuneration
and Performance Appraisal Policy. Any payment of a bonus to the CEO is at the
absolute discretion of the Board and will be assessed based on performance
against NZOG's business plan objectives.
Long term incentive: NZOG operates an Employee Share Ownership Plan. Subject
to approval at a meeting of shareholders, the Board intends to offer the CEO
the right to subscribe to up to 3 million partly paid shares with a final
issue price of $1.00 per share.
Other terms: The employment agreement also includes standard terms covering
confidentiality, termination, redundancy, restraint upon termination of
employment and conflicts of interest.
End CA:00217419 For:NZO Type:OFFICE Time:2011-12-08 09:14:51








© Direct Broking Limited 2005.

[neopoleII]

500k salary..... ok.
3 million part paid shares with final issue of $1.

haha

so if he gets the sp back to the old option price of $1.50.

he makes $1.5 mill profit!

not a bad deal
and most shareholders will STILL be out of the money.

just as well we have share buybacks

[digger]

500k salary..... ok.
3 million part paid shares with final issue of $1.

haha

so if he gets the sp back to the old option price of $1.50.

he makes $1.5 mill profit!

not a bad deal
and most shareholders will STILL be out of the money.

just as well we have share buybacks

Well from my point of view i will make mor than the 1.5 million if AK does get the SP back to 1 dollar fifty. So i will be happy and he will have earned the money.

[bung5]

Well from my point of view i will make mor than the 1.5 million if AK does get the SP back to 1 dollar fifty. So i will be happy and he will have earned the money.

Daaaam digger thats a big holding!

[neopoleII]

yes digger, your one of the very few outside the boardroom / staff that has done very well.
congrats to you.
i was reading your posts way back then when you started to purchase that huge holding.
i remember that this guy has guts or knows something.
it wasnt long after that i started to buy...... as you were one guy on ST that was always honest and knowledgeable and i thought to myself........ if your ever going to take a punt..... now is the time to start..... trouble is i only invested small amounts over a several year period, so my average is just over a $1

if you ever try to get on the board..... you have my votes.

cheers

[digger]

Daaaam digger thats a big holding!

Too daaaam big when it is on the way down from its hay day of 185 to the low point of 58.
You have to add back in the 22 cent dividends and the free PPP shares of years ago.
As i bought early mostly i never got into a loss in the holding but with everything going sour in the last few years it is not the share we all had hoped for in 05 to 08.
2012 will be NZO's year. Firstly it has been oversold . PIKE will give a bit back from what the market preceives.Income from Kupe will rise and TUI as well with the high oil price,and just maybe will will get back into drilling. Higher dividends will focus the market on the value of NZO Also our new CEO sweeps clean and hopefully can turn around the bad luck years that DS seemed to have had.

[J R Ewing]

But where are our drillable prospects Digger? Back then we seemed to have leads on a whole host of potential gas and oil fields. They were all either dusters or the permits got abandoned. It's been a while now since we heard about picking up any new permits, doing any seismic etc. At least as far as Taranaki is concerned. Maybe the focus will be overseas from now on, hopefully without repeating the PPP Vietnam experience!

I've been in for a good few years now, and I'm definitely behind overall.

[the machine]

But where are our drillable prospects Digger? Back then we seemed to have leads on a whole host of potential gas and oil fields. They were all either dusters or the permits got abandoned. It's been a while now since we heard about picking up any new permits, doing any seismic etc. At least as far as Taranaki is concerned. Maybe the focus will be overseas from now on, hopefully without repeating the PPP Vietnam experience!

I've been in for a good few years now, and I'm definitely behind overall.

ppp went into vietnam knowing that their holding would be reduced to 5% with success
by end on march 2012 ppp should know if they are going to double their reserves if vietnam is a goer without more drilling, or if not another appraisal to get it over the line [and double their reserves then]. not bad for something that has cost them under us$15m.

but I still think the 2 companies should merge, then the combine warchest can be put to work

M

[J R Ewing]

ppp went into vietnam knowing that their holding would be reduced to 5% with success
by end on march 2012 ppp should know if they are going to double their reserves if vietnam is a goer without more drilling, or if not another appraisal to get it over the line [and double their reserves then]. not bad for something that has cost them under us$15m.

but I still think the 2 companies should merge, then the combine warchest can be put to work

M

Well if they did know they would be reduced to 5%, I would have thought they should have disclosed that to the market.

[boysy]

It was always there in the back ground petrovietnam had 10% back in rights on PPP 15% in vietnam. In saying this 5% of something is much better than 100 % of nothing. People think NZO is undervalued PPP is under cash backing so for a negative EV you get TUI and Vietnam for free as well as cash balance

[Mr Tommy]

500k salary..... ok.
3 million part paid shares with final issue of $1.


from NZOG website:
NZOG has a small team (around 20 employees) based in Wellington, New Zealand. We are not currently operating any projects or facilities, so have no field office or staff.

So how does running a company of 20 justify a $500k salary ?
I might go join the Occupy Wellington movement.

[J R Ewing]

It was always there in the back ground petrovietnam had 10% back in rights on PPP 15% in vietnam. In saying this 5% of something is much better than 100 % of nothing. People think NZO is undervalued PPP is under cash backing so for a negative EV you get TUI and Vietnam for free as well as cash balance

I wasn't holding at the time having exited much earlier and having done fairly well with PPP, but as I recall the sp took one hell of a hit when the stake got reduced to 5%.

[arjay]

from NZOG website:
NZOG has a small team (around 20 employees) based in Wellington, New Zealand. We are not currently operating any projects or facilities, so have no field office or staff.

So how does running a company of 20 justify a $500k salary ?
I might go join the Occupy Wellington movement.


Andrew Knight was 14 years old when I first invested in NZO. Good on him for cashing in on what others established for him, although in return I expect him to very soon indicate his strategy for creating shareholder wealth. Hopefully his thinking goes beyond being Santa to those in his rather small team.

[jonu]

This Tunisia deal looks the goods. At last something to pat management on the back for!

[Corporate]

This Tunisia deal looks the goods. At last something to pat management on the back for!

The purchase is equivalent to $10 per barrel for p50 reserves. My concern is whether 6mmboe offshore is economic to develop..I don't no?

[jonu]

The 6 million barrels PLUS adjacent lobes. They obviously feel its viable or they wouldn't be stumping up. Also gives them a foot in the door for further exploration.

[bung5]

The 6 million barrels PLUS adjacent lobes. They obviously feel its viable or they wouldn't be stumping up. Also gives them a foot in the door for further exploration.

so producing 20,000 barrels a day has a life of under 1 year.

[Queenstfarmer]

Good coin...quick turnover?

[fabs]

NZOs 40% share at present day prices of $USN 100.00 = 240 MIL $US GROSS.
Will probably take quite a bit longer than 1 year but production start not until 2 1/2 -3 years away.
This is the M/EAST.
Good to learn that they still intend to be active in the oil & gas Business, so have to keep our fingers crossed M/T.

[blockhead]

On a quick look, I like what I see.

[Corporate]

NZOs 40% share at present day prices of $USN 100.00 = 240 MIL $US GROSS.
Will probably take quite a bit longer than 1 year but production start not until 2 1/2 -3 years away.
This is the M/EAST.
Good to learn that they still intend to be active in the oil & gas Business, so have to keep our fingers crossed M/T.

I wonder how much it would cost to develop all up $200m, or $80m for NZO? Maybe I'm way off

[upside_umop]

At a quick glance, I don't think the deal offers that much - unless there is leads that can be effectively tied in.
I think they're being too generous with the burden of costs they have taken on.
It's difficult to know for sure without more information - I'm sure they must have looked at it on a risk/reward basis pretty hard...

[impacman]

My understanding/read on it is that the current 2P reserves offer a reasonable (but not stellar) ROI. The upside of this deal is the potential to increase those reserves with more exploration drilling in what is regarded as a fairly reasonable concession.

Cheers,

I-man

[digger]

My understanding/read on it is that the current 2P reserves offer a reasonable (but not stellar) ROI. The upside of this deal is the potential to increase those reserves with more exploration drilling in what is regarded as a fairly reasonable concession.

Cheers,

I-man

Hi Impacman
That is my understanding as well.
It should do all right as it is called Cosmos which is my son's name so it is all go.
Things take time to deliver and what we are seeing is the ground work laid down by DS. He was hot on Tunisa for some years.

[impacman]

Hi Digger, yep will take a little time but I think this will be good for NZOG... and with the a name like Cosmos it bodes even better:)

Have a good weekend.

Cheers,

I-man

[arjay]

Cosmos is the name of our new Intranet at work. It is proving to be extremely sluggish, not at all like NZO.

[Sideshow Bob]

http://www.stuff.co.nz/business/6219532/For-NZOG-the-good-oil-may-be-in-Tunisia

Former New Zealand Oil & Gas chief executive David Salisbury hopes to see a possible $100 million deal in Tunisia come to fruition for the company he left last week.

While the potential deal is still in negotiation, it would mark a significant step overseas for NZOG, after some recent baby steps to expand outside New Zealand.

Leaving after five years as the head of NZOG to spend more time with his family, Salisbury came in as production from the highly successful offshore Taranaki Tui oil field was just starting. That was followed a couple of years later by the Kupe gas field, in which NZOG also had an interest.

NZOG has been a joint venture partner in a handful of wells in New Zealand in the past five years, but all have come up dry. Earlier plans to drill a prospect called Kakapo have been put off till next summer.

Last year NZOG won a prospecting permit in the newly democratic Tunisia in North Africa, and announced plans to spend close to $4m on gathering seismic data at the Diodore permit. In the middle of December, NZOG said it executed an agreement to take a 40 per cent stake in the offshore Tunisian Cosmos concession that contains an oil field which could be brought into production as early as 2014.

At November's annual meeting, Salisbury hinted that a significant international deal was in the wings, with talks "quite advanced".

The recent investment in Tunisia was a "smallish investment up front" but in an oil discovery which, if all went well, would be an oil field development in a year's time, which would be a big step, potentially a $100m deal.

"That would change the face of the company, if NZOG invests that sum of money, and there is an `if'," Salisbury said of the potential deal.

If it went ahead, the investment would be bigger than the remaining value of the highly successful Tui field in New Zealand.

"They are small steps, but steps in the right direction," he said.

In New Zealand, NZOG has been involved in the drilling of five wells, including Hector, Kahu and Tui southwest.

While all came up dry, and that was disappointing, "that's part of the game we are in".

"You go in knowing that usually they are more likely to fail than not. It is very disappointing," Salisbury said.

"It is a numbers game".

New Zealand was also a difficult geology and it was hard to get a look in on successful areas that did have potential.

Ad Feedback That drove the company to look overseas.

"New Zealand tends to be higher risk/higher reward. If you go to other places like Indonesia it is lower risk and lower reward," he said.

Salisbury announced plans to step down in June.

After his final day clearing his office, he said he planned to take a few months off work, including a holiday up north, after 20 years in business. The plans include a bit of boating and snorkelling.

He had received some work offers but had "deliberately turned down some opportunities" for now to keep himself free to decide what to do next, though said he could do some consulting work in the coming year.

"I'm having a sabbatical ... though I've had some conversations," he said.

He is considering roles both in New Zealand and overseas, where there were "amazing opportunities".

Salisbury said he liked being back in New Zealand, but had also enjoyed working in Vienna with OMV before joining NZOG in early 2007, but had not talked to his former employer.

Austrian company OMV also has a big operation in New Zealand. OMV is New Zealand's largest liquid hydrocarbon producer, with stakes in the Maui, Maari and Pohokura fields in Taranaki. The company holds two exploration permits in the Great Southern Basin and another four in the Taranaki Basin.

Salisbury arrived in April 2007 to replace Tony Radford, who became NZOG chairman. Salisbury has now been replaced as chief executive by Andrew Knight, who has been an NZOG director since 2008.

Salisbury arrived just a month before the Pike River Coal initial public offering was launched, after it had been stalled for some time.

As chief executive he has ridden through the troughs at NZOG, which was a 29 per cent shareholder in Pike when the mine disaster happened just more than a year ago.

The mine explosion that killed 29 men marked the low point in Salisbury's time at NZOG.

"We watched in horror as everyone did as that situation unfolded," he said. "It was dreadful."

But some people did misunderstand NZOG's role.

"We were a shareholder [in Pike]. We were not in there operating or managing Pike," he said.

Though help was offered, NZOG was not involved in the operations at Pike after the explosion.

"Most of my information came through the media," Salisbury said.

NZOG also had to go through the decision to put Pike into receivership. As well as being a 29 per cent shareholder, NZOG was a secured creditor, owed tens of millions of dollars by Pike.

But NZOG was horrified as the details had come out about Pike's safety performance during the Commission of Inquiry into the disaster. The figures given to NZOG before the explosion didn't suggest any sort of problems.

"Post-explosion when people started delving into it ... it is a dreadful set of circumstances," Salisbury said, but it would take some time to form a final judgment.

The disaster wiped out the value of NZOG's stake in Pike.

NZOG's share prices slumped from more than $1.30 a share before the disaster to about 71c now, hit more recently by a downgrade on the reserves of the Tui field.

Even before the explosion, Pike's development was plagued with large cost overruns and production delays because of the complex geology of the West Coast mine.

However, Salisbury said NZOG made good progress in getting full value out of their assets during his five years.

"We have set the company up for growth, with people and skills and systems. I'm proud that the results of that are starting to flow. In the last year, we have gone into Indonesia and into Tunisia," Salisbury said.

While the investments were relatively small so far, NZOG had gone looking but had not found "the investment" to expand the company.

New Zealand remained on the international radar for oil explorers with the likes of Brazil's Petrobras looking for oil off the East Coast of the North Island and OMV exploring the Great South Basin. NZOG is not involved in those prospects.

"There was enthusiasm [in the Great South Basin] but it is very high risk, but very high reward," he said. "But it is not a must-have type of investment. It has a place in a portfolio" for a big oil company.

There was still exploration going on, but nobody was close to drilling an offshore well in the Great South Basin which could cost about US$100m (NZ$127m). Even then, the chances of success would be relatively low, "perhaps a one-in-five chance of success, if you are lucky".

"So you have an 80 per cent chance of losing your money," he said.

But there had also been small successes onshore in New Zealand, with Canadian-based Tag Oil notching a string of small wins in Taranaki in 2011. "But in the global scale, it is small beer," Salisbury said.

American oil and gas exploration giant Anadarko has been exploring off Taranaki recently.

Tag Oil has also entered into an agreement with United States firm Apache Corp to explore the East Coast Basin for oil and gas.

Apache will spend up to US$100m to earn as much as half of Tag's present 100 per cent share of the exploration prospects, on completion of a third phase of proposed work. Exploration work would run for four years, with seismic testing starting late last year and a decision where to drill expected in the first half of this year.

- © Fairfax NZ News

[the machine]

so thats why sp gone up 2% today

M

[NOCASH]

Can anyone advice me why is NZO buying its ordinary shares back?

[macduffy]

Can anyone advice me why is NZO buying its ordinary shares back?

I don't know if NZO has made any statement about its intentions but the usual rationale is that the shares have got too cheap - in the company's view - and that there is no present better use for the cash. With less shares on issue the value of the remaining shares increases - bigger slices of the company pie!

[Sideshow Bob]

so thats why sp gone up 2% today

M

At the moment 10 trades for a total of 39,000 shares, so no volumes. Maybe also a slight benefit from 1 or 2 of the brokers choose in their 2012 picks.......

[digger]

At the moment 10 trades for a total of 39,000 shares, so no volumes. Maybe also a slight benefit from 1 or 2 of the brokers choose in their 2012 picks.......

The most positive thing you can read in share price movement is an up on very small volumn.Shows sellers are shy and that for any large number to change hands the price will have to be higher.This Tunisia thing from DS has the market starting to take notice given the short time frame they are talking about for production to start.
Cheers all and the best for the new year.

[lissica]

The most positive thing you can read in share price movement is an up on very small volumn.Shows sellers are shy and that for any large number to change hands the price will have to be higher.

Conversely, that can be taken as 'buyers are shy and that for any large number to change hands the price will have to be lower'

Go figure ^o^

[macduffy]

Just a quiet holiday market, IMO, but then I don't hold NZO.

[digger]

Conversely, that can be taken as 'buyers are shy and that for any large number to change hands the price will have to be lower'

Go figure ^o^

No not at all. The way you put it applies when the SP is falling on small volumn.
Note since i posted earlier today the SP rose on todays largest volumn.

[fabs]

Or could be management ramping S/P up by buying shares back at top of the trading days prices.

[lissica]

No not at all. The way you put it applies when the SP is falling on small volumn.
Note since i posted earlier today the SP rose on todays largest volumn.

I don't think you can take much from small volumes, whichever direction it heads in.

Your interpretation suggests a degree of confirmation bias.

[digger]

I don't think you can take much from small volumes, whichever direction it heads in.

Your interpretation suggests a degree of confirmation bias.

Tell you a story about where this 'confirmation bias' as you put it comes from.
Way back in 1963 i was sitting in a run down youth hostle in Australia reading this first ever sharemarket book about how this guy claimed he invented moving averages and made a million dollars on the market. A lot of money way back then.How strange it was for me to be reading such a book as at the times i only had two pennies to rub together.Anyways this book had two themes it pushed---moving averages and the predicitive value of future SP directions by noticing if it went up or down on small volumn.Going down on small volumn suggested that a future buy would only then take place if the price dropped further. And the same with rises.
So back in the pre computer days and direct market manipulations so common today that thing sort of worked.Today i say it still applies if you are sure some-one is not fiddling the books.
Anyways each to his own on that subject
Cheers, over and out

[lissica]

But do you have a plausible explanation for this, aside from stating that someone else said so?

Anyway, if you're right, I'm happy. I hold NZO too :-)

[bung5]

It seems most people I talk with that are holding NZO recently are waiting for a revaluation on the outcome of PRC sale. Most expect the secured debt to be repaid and anything extra is a bonus. After that however there is not too much happening this year to keep it going unless the some of the overseas plans start moving forward

[Queenstfarmer]

The possibilities are endless..but with oil currently holding around $100/barrel, it makes for good cashflow and reasonable earnings this year.

[dsurf]

There is currently great apathy in the market torwards NZO. Institutions do not want seem interested which is understandable
due to the many capital raisings and failed drills and then the PRC disaster. The TUI downgrade was the last straw.
Investors see no point buying as there seem to be no catalysts for SP appreciation. They have ignored $100 oil which a few years ago was a major talking point.
NZO management could easily turn the negative market sentiment around with a consistent simple dividend policy that is
communicated repeatedly and is easily understood. The current dividend policy is vague, unquantified and not well received by the market.
It is "that a reasonable portion of accounting profits will be paid out".
The level of financial management this implies is one of schoolboys yet to complete finance 101 in a tertiary institution.
To start off with the "accounting profit" measure has been out of date for decades with even the most simple textbook stating that
"dividends are paid from free cashflow" after the company has retained money for investment / growth purposes.
Plenty of free cashflow was generated in FY11 but there was a huge accounting loss so the dividend was not paid.
Incredibly this bad news was released 4 months before the end of the year and helped build up negative momentum just when
the SP was already in freefall & investors already capitulating. This was serious capital mis-management.
A low SP leaves the company vulnerable to takeover and reduces borrowing capacity.
The executive owe the long suffering shareholders at least a competent performance when it comes to dividend policy
since there actions have resulted in large negative returns for shareholders, particularly in FY11.
I have a very simple solution which I hope Chris Roberts can communicate to the executive on my behalf should he agree.
A new CEO gives a chance to improve on previous practises including dividend policy.

NZO should announce with the half yearly results a new dividend policy of either:

1/ A quarterly dividend that represents 5% of profit resulting from Kupe.

This would leave 80% of the profit to be re-invested and is my preferred choice as it highlights the cashflow generating strength of Kupe

or

2/ A 1c quarterly dividend

As shareholders we should be asking for a clear dividend policy that helps the SP instead of one which continues to hold it back.

[brucey09]

Snr. Surf
Well said!!

[swissboy]

All the other variables are out of their hands as every project and investment is out of NZO's personal control

[fabs]

It is truly amazing how long it takes for some s/h to wake up and realize what has been so obvious to some s/h and would be s/h, what a bunch of hopeless managers they are constantly lauding and backing.
The NZ S/Market at least with this co. is wide awake whats wrong here and rightly give it a wide berth.
Lets forget about NZO for the next 3-4 years, it will either fade away, be T/o, mercifully cash up, or dare I hope against hope, attract some competent talent to realize its potential and turn it around.

[Chris Roberts]

dsurf, Happy New Year.
I regularly pass on to the CEO and the Board various shareholder views on dividend policy. Those views cover the spectrum - at one end suggestions like yours for quarterly dividends, and at the other, shareholders who do not want us paying any dividends at all. Their view is that all earnings should be retained for re-investing in growth opportunities. This is standard practice in our sector. There are over 70 small to mid-cap E&P companies in Australia and NZ - only 3 regularly pay dividends, NZOG being one of those.
With regard to quarterly dividends, the administration cost would be high. And at 5% of gross Kupe profit, a quarterly dividend would be less than half a cent. An annual dividend is much more efficient.
In terms of market sentiment, institutions continue to increase their shareholding in NZOG. Our institutional holdings have never been higher. The sellers are predominently retail investors.
I hope this is helpful - I repeat as always that any shareholder can email us directly through our website if they have a query.

[dsurf]

Thanks for your response Chris.

[digger]

dsurf, Happy New Year.
I regularly pass on to the CEO and the Board various shareholder views on dividend policy. Those views cover the spectrum - at one end suggestions like yours for quarterly dividends, and at the other, shareholders who do not want us paying any dividends at all. Their view is that all earnings should be retained for re-investing in growth opportunities. This is standard practice in our sector. There are over 70 small to mid-cap E&P companies in Australia and NZ - only 3 regularly pay dividends, NZOG being one of those.
With regard to quarterly dividends, the administration cost would be high. And at 5% of gross Kupe profit, a quarterly dividend would be less than half a cent. An annual dividend is much more efficient.
In terms of market sentiment, institutions continue to increase their shareholding in NZOG. Our institutional holdings have never been higher. The sellers are predominently retail investors.
I hope this is helpful - I repeat as always that any shareholder can email us directly through our website if they have a query.

I think anyone hopimg for a quartely dividend should seek out bank deposits that can be arranged to do such a thing.An annual dividend is enough for me. More is too expensive and has the look of desperation.

[J R Ewing]

I can't see how changing the dividend policy will fix the share price. That's just slicing up the pie in a slightly different way. We need some growth.

[dsurf]

It is about emphasising the cashflow generating that is going on. I think it would change the market's perception of NZO and provide some good news. It would say "NZO makes money every quarter!

[dsurf]

I can't see how changing the dividend policy will fix the share price. That's just slicing up the pie in a slightly different way. We need some growth.

Bad sentiment = company trading below NTA or "undervalued"

Good sentiment = par value or better.

[Corporate]

I wonder if this is the deal NZO were also looking at?

http://www.asx.com.au/asxpdf/20120123/pdf/423wgtljgdtm8w.pdf

Maybe with their close relationship with AWE they might be the partners AWE is looking for.

[winner69]

Bad sentiment = company trading below NTA or "undervalued"

Good sentiment = par value or better.

The sentiment currently is .... those cash flowd are not going to last forever

[the machine]

I wonder if this is the deal NZO were also looking at?

http://www.asx.com.au/asxpdf/20120123/pdf/423wgtljgdtm8w.pdf

Maybe with their close relationship with AWE they might be the partners AWE is looking for.

hope so as looks very good.


M

[fabs]

Has NZO the management to do something like that?
AWE & VPE have made some changes after being in the doldrums for some time, but are now getting on with it.
AWE will probably double its S/P over the next 12 mots. or so and VPE has more than doubled theirs in the the last 8.
Mind you the nzo man. seems to be quite happy meandering along as it has for quite some time, getting well payed for it and life is good.
Lots of incentives issuing new shares for staff on 1 cent deposit faster than the co. buys them back. Displaying magnificent skills in the process.
Making no apologies for being a bit cynical here, its such a hoot..

[dsurf]

It is about emphasising the cashflow generating that is going on. I think it would change the market's perception of NZO and provide some good news. It would say "NZO makes money every quarter!

I see another negative news release regarding the PRC impairment and am wondering why this negative news needs to be released right now by itself and cannot wait til the full six month disclosure?? I assume it is because it is to keep the market fully informed, yet the profit & cashflow generated can wait for the six monthly result? Another very poor release & timed perfectly to take out the stuttering recovery that had begun in the share price.

[bung5]

dsurf i think its much of muchness. More of an accounting issue than anything bad.. ( apart from the fact that mine is not sold yet )

[Baddarcy]

dsurf i think its much of muchness. More of an accounting issue than anything bad.. ( apart from the fact that mine is not sold yet )

Agreed it is just an accounting issue, they don't really have any choice but to take a pessimistic position, accounting standards virtually demand it.

Only thing the announcement told me really was that the actual sale of PRC still is a way off.

My gut feeling is that the sale of PRC will be a good result for NZO. So the advantage of writing all the value off now could be that they will get to write it all back in again when the sale actually happens.

[digger]

Agreed it is just an accounting issue, they don't really have any choice but to take a pessimistic position, accounting standards virtually demand it.

Only thing the announcement told me really was that the actual sale of PRC still is a way off.

My gut feeling is that the sale of PRC will be a good result for NZO. So the advantage of writing all the value off now could be that they will get to write it all back in again when the sale actually happens.

My 2 cents worth says your on to it Baddarcy. Exactally as i see it.

[Xerof]

Personally, I think the further writedown represents a 'true and fair view' of where things stand. I dont buy the story of them taking an overly pessimistic view - disposal of this mine is fraught with difficulties and IMO is a very hard sell. I dont expect NZO to write anything back up and it seems to me they are wanting to put the whole sorry affair behind them and move on (with all due respect to the lost 29)

[janner]

My thoughts in a nut shell Xerof..

As Aunty Hulun would say .. " nothing to see here... Move on "..

[fabs]

HEY you guys take it easy, you can not rush this and take the building of castles in the air away from the dreamers, they have to be let down gently.
Stark reality is not easily accepted by them, even tough they had a fair and long crack with wishful phantasy sing at it by the time this has been put to rest.

[bermuda]

HEY you guys take it easy, you can not rush this and take the building of castles in the air away from the dreamers, they have to be let down gently.
Stark reality is not easily accepted by them, even tough they had a fair and long crack with wishful phantasy sing at it by the time this has been put to rest.

Yes, it has been a long road. Good luck to them in Tunisia. I would have preferred them to remain in Taranaki, particularly around Kupe.
I hope these greenies put their thinking caps on before further protesting ruins Taranaki. A Kupe area expansion would escape the protesters. I got in early because I believed their story. Got out after a guy gave me a tip on Australian CSG.

Time to move on.

[fabs]

Yes Bermuda,
NZO moved up 1.5 cents since Oct.last year oil around $100.00 US Shear-markets in resources generally rising all-round, the Market has this management and share well summed up and the only surprise is that the S/P is actually that high.
Balance had this stock well summed up, one for Mushrooms only.
Look at AWE & VPE go
OHHH FOR AN IMPROVEMENT IN MANAGEMENT

[neopoleII]

""OHHH FOR AN IMPROVEMENT IN MANAGEMENT""

well someone/s with a pile of voter rights is still voting for the board and management,
would love to see which entities keep voting for the incumbents.

seems to be an olde boys club that massages big shareholders.
how?...... have no idea, but there cant be many still in the money.

[arjay]

Just looked through the quarterly report. Not very inspiring, with activities designed to increase shareholder wealth not planned to be completed until well out into the future. For a change, I look forward to the day when meetings to approve perks for the CEO are called after their strategies have been proven, rather than before. The last guy left after getting several million of our funds for no benefit to shareholders. Or am I being a tad negative?

[fabs]

Just a-------COT-CASE--------that's all.
The co. that is.
Cheers!

[Sideshow Bob]

Hi Chris,


I would appreciate if you could answer a question for me please.

Today I got notice of the Special Meeting on the 20th of Feb (along with the quarterly activities report). It appears that the meeting is solely called for the issue of shares to the chief executive. Is this the case?

Thank you

SSB

[arjay]

That's my concern too SSB. Seems to be putting the cart before the horse to be dishing out benefits before the new CEO has proven himself. Let's see a special meeting called to fast-track the building of shareholder wealth instead. Anyone else agree?

[mistymountain]

Absolutely Agree.

Mind you I live in Christchurch and we're now used to taking on our elected CEO's...

[arjay]

I sympathise Misty - Tony M had a prior history as CEO of Hamilton too. Getting back to young Andrew K though, my understanding of the offer is that for an initial outlay of only $30,000 he can walk away with a $1.5 million dollar profit after 5 years, provided he can get the SP up to the break-even point ($1.50) that the last lot of shareholders paid to convert their options. Hardly seems fair does it?

[the machine]

its part of the package for a CEO. alternative being pay a lot more in base salary.

the CEA has to perform [to a degree] to get sp higher, mind you I think $1.50 is very optimistic.

If sp rises then all shareholders gain.

M

[fabs]

ts part of the package for a CEO. alternative being pay a lot more in base salary.

the CEA has to perform [to a degree] to get sp higher, mind you I think $1.50 is very optimistic.

If sp rises then all shareholders gain.

GOT NO ARGUMENT WITH THAT


Well can you realy expect an unproven new-comer to be payed only $600000 pa. ????
He has to be given a bit of an incentive top get off his chair.
After all this is a good earning co. with a splendid record of applying its S/H resources and huge potential in 3 or 5 years.
At the moment they add ten new
shares to every one they buy back, that sort of slight of hand borders on genius, they do not come cheap.

[Mr Tommy]

Well can you realy expect an unproven new-comer to be payed only $600000 pa. ????

Hes actually been at nzog since January 2008.

I chucked my meeting notice straight in the rubbish, I guess most people will do the same. What a waste of money.

[Chris Roberts]

Hi Chris,


I would appreciate if you could answer a question for me please.

Today I got notice of the Special Meeting on the 20th of Feb (along with the quarterly activities report). It appears that the meeting is solely called for the issue of shares to the chief executive. Is this the case?

Thank you

SSB

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.

[Silverlight]

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.

Dear Chris,

How does the $1 issue price account for dividend payments ie. if NZOG pays a 5 cent dividend in the coming year, does the issue price fall to 95 cents?

regards

[brucey09]

quoted Snr. Robert
"we all benefit if the share price rises significantly.'
how many shares Snr. Roberts buy in market?

[Chris Roberts]

I have 10,000 fully paid NZO shares which cost me $1.23 per share.
Re the question on dividends - they do not change the issue price. Partly paid shares receive a proportional share of the dividends - so in the offer to the CEO, he would receive 1/100th of a dividend.

[Silverlight]

I have 10,000 fully paid NZO shares which cost me $1.23 per share.
Re the question on dividends - they do not change the issue price. Partly paid shares receive a proportional share of the dividends - so in the offer to the CEO, he would receive 1/100th of a dividend.

Dear Chris,

Thank you for your response, while you state "the intention is to align employees interests with those of shareholders", all shareholders are different, and while NZOG shares remain undervalued, and there is more than 30 cents per share in cash, an increased dividend would be welcomed, or even a special dividend, by shareholders.

However this is not in the interests of management or the employee share scheme, as in contrast the current share buyback may increase the EPS of remaining shareholders, it also enriches those with interests in the employee share scheme, at a leveraged rate, at the expense of other shareholders.

On this issue, it would be prudent for NZOG to hold a SGM on the current employee share scheme, as while I agree with incentivising Mr Andrew Knight as CEO, the current scheme is only mildly aligned with shareholders interests.

regards

[fabs]

Hes actually been at nzog since January 2008.



And what outstanding contributions has he or for that matter the management made, to justify such a promotion.
Surly sooner or later there has got to be a time frame within which some beneficial positive and progressive results can be expected to manifest.
They have had a lot of time, money and lots of so called---experienced---? personnel.
All we got at the moment and actually for quite a while, is potential for something in the next 3-5 years.

[Awamoa]

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.
"We all benefit if the share price rises significantly"
I doubt whether too many disagree with this statement.
The major discrepancy is when the share price declines.
So far there has been no evidence of employees taking a proportional pay cut.
A lot of the shareholders wrote large cheques for $1.50 per share.

[arjay]

That's an interesting contrast Awamona, and quite true. The lower the SP, the longer the crawl back up for shareholders to recover their investment. However, for employees and management in the share scheme, when the SP goes lower they simply lower the strike rate for the new shares (currently $1). =Profits for some at a low threshold and accompanying diminished effort to work harder.

I would pefer to see a results-based reward system for staff. eg, 1 fully paid share for every xx barrels discovered.

[RRR]

No pun intended to anyone, but this buy back of shares is a joke when they are diluting it by issuing 3 times more shares. Are they going to buy back 1 million shares or 10 million? Cant be bothered to check. Still a value buy!

[Tyro]

Approved to buyback 10million

[digger]

Could not get all this to come through.It is on Upstreamonline.com
Check it out.

New approach: New Zealand will offer about 25 blocks in its first licensing round since announcing changes to its permitting system


Related stories

NZ takes new bid approach
NZ to define exploration areas
New Zealand has 'ambitious plans'
.

[777]

http://www.upstreamonline.com/live/article302440.ece

[upside_umop]

"We all benefit if the share price rises significantly"
I doubt whether too many disagree with this statement.
The major discrepancy is when the share price declines.
So far there has been no evidence of employees taking a proportional pay cut.
A lot of the shareholders wrote large cheques for $1.50 per share.


Dont think you will ever find a company that gives 'proportional paycuts' to salaries based on shareprice performance.

ESOP ensure's that management and shareholders interests are aligned - as Chris said, he still had to pay $1.23 per share to the company.

[fabs]

NZOG Chief Executive Andrew Knight says "John has been consulting to NZOG for
some time and most recently helped us with our expansion into Tunisia. I am
very pleased to have someone with his knowledge and experience join us
permanently. John will be a key member of the senior management team at NZOG
and I expect him to contribute strongly to the company's future success."

LOOK FORWARD TO THAT WITH BAITED BREATH!

[notie]

quite right. another overpaid exec sucking at the nzog nipple.



NZOG Chief Executive Andrew Knight says "John has been consulting to NZOG for
some time and most recently helped us with our expansion into Tunisia. I am
very pleased to have someone with his knowledge and experience join us
permanently. John will be a key member of the senior management team at NZOG
and I expect him to contribute strongly to the company's future success."

LOOK FORWARD TO THAT WITH BAITED BREATH!

[timmy]

quite right. another overpaid exec sucking at the nzog nipple.
fully agree, this co. only attracts wrong type people, it is sad to be its owner

[arjay]

I see others have not missed young Andrew's lollies:

http://www.stuff.co.nz/business/industries/6411382/Shareholders-query-CEOs-share-option

[arjay]

Sadly I think the vote will likely go in Andrew's favour because the majority of NZO shareholders are small-holders who are not sufficiently motivated to vote against (if they required a >50% turnout from shareholders it would be different I'm sure). This means it will be passed by the instos who, for whatever reason, will be supportive. I have no objection if the strike price was $2 per share because then everyone wins and the CEO really will have to earn it. However, but $1 is far too low. Over the next 5 years NZO shares are bound to range above $1 for various reasons not connected to the CEO's performance. That leaves little incentive for him to work too hard for us. There are far too many lollies being dished out by this company. It's been nearly 10 years since anyone added real value to the company (ie, discovery of Pateke). We have to get back to wildcatting mentality instead of this nest-feathering.

[dsurf]

$1,50 should be the strike price given the $ raised via the last option round

[Awamoa]

$1,50 should be the strike price given the $ raised via the last option round

I agree.
Why cant the Board use this logic?

[arjay]

It's also a bit on the nose the comment Chris made that if Andrew can't get his full package with shareholder approval he can go back to the board and get it topped up without shareholders having a say. Rewards have to come from performance, not because of what people in other companies get.

[fabs]

Hey, They buy them back just about every day, for around 70 cents so they can be generous to give them away to fellow hogs and get well payed in the process.
This management bunch seemingly abounds with creative and brilliant talent.
I for one would appreciate a leaner and more productive lot of company builders than that.

[Chris Roberts]

Hey, They buy them back just about every day, for around 70 cents so they can be generous to give them away to fellow hogs and get well payed in the process.
This management bunch seemingly abounds with creative and brilliant talent.
I for one would appreciate a leaner and more productive lot of company builders than that.


Franz, what you have actually pointed out is that NZOG is buying shares through the share buyback at around 70 cents, and is proposing, subject to shareholder approval, to issue some for $1.00 a share to the CEO. The two actions, while quite separate, are both in the best interests of shareholders.

[digger]

Franz, what you have actually pointed out is that NZOG is buying shares through the share buyback at around 70 cents, and is proposing, subject to shareholder approval, to issue some for $1.00 a share to the CEO. The two actions, while quite separate, are both in the best interests of shareholders.

Chris Roberts what seems to be missing here is that it sort of reads like 3 million shares are being issued to the CEO when in fact what is being voted on is a 3 million option. I strongly feel that the 3 million option to the CEO should be included but as part of a general option to be issued prorata to all shareholders.Those that have been with NZO for a very long time know that options can have a very mixed final outcome and certainly there were times when holders wished they had never seen them.Some were successful for a while until the mine blew up and the cost of conversion was down the drain. Just thought i would bring this up because it is a 3 million option we are voting on.
Anyways it may be time for a general option to be issued and again it is ashamed it was not done so as part of the CEO deal.Just sounds better and gets the thinking back on track that it is an option.

[digger]

Forget to say that if anyone now wanted to spend 3 million buying shares in NZO they would end up holding more shares than Andrew would if and when he converts these options.In fact they would own 4.225 million.
Nevertheless i favor a smaller wage package with a tie back to company shares.

[fabs]

Yes Chris, i agree the former in a minute way may benefit all, have rely not any problem there.
The issue of the later, well only time will tell.
Going by incentives & salaries handed out in recent years have in my view and it maybe only mine alone, not resulted in much so far.
Given that the present income producing projects had been due to the Team efforts predating the last 5 years crop of well enumerated additions.
Considering both Kupe & Tui are not operated by NZO Management seems to be top-heavy.

[neopoleII]

i would surmise or guess that the ceo doesnt have 3 mill cash to exercise his options if the share price gets up to $1+ in 5 years time, but i could premise that if the options are in the money he will get a bank draft to buy them and then sell them to get his profit. because the divi flow wouldnt pay the interest on a 3 mill loan.

so.... his job is to get the sp over say $1.20 for his banker to approve a loan so he can cash in.
his profit will rely on him selling his 3 mill of shares and not making the shareholders question why he is selling.
(or the ceo has millions in the bank and he wants to help the shareholders as well as himself)

if NZO is strong and making money for shareholders in 5 years times ........ all is well.
if not...... then he will probably walk and leave us shareholders in sub $1.50 option limbo.

some might say that stock options for ceos is positive, personally i dont think so.

i would prefer the ceo and rest of staff get bonus payments for lifting the wealth of the company and shareholders..... that way we all win, and the ceo earns his respect.

ie HIS choice of the next drill or investment strikes 100mbbls oil and he receives a 5 mill bonus year on year till the well is dry....... as long as the shareholders get a healthy divi too.

[bermuda]

All these renumeration packages amuse me. They try and convince me that people do better if given bonuses. For example imagine if you were the CEO of NZO. Do you think you would work harder if you were on a bonus scheme? Would you wake and say wow, I am on a bonus scheme and I have to work harder .And if you answer yes you shouldn't be in the job.

I think all of us agree that everyone should turn up and do their best every day. Give a few awards away okay but please spare me these bonuses and option gravytrain packages. You either want the job or not.

NZO has been treated a bit harshly lately. Room for upside.

[bermuda]

All these renumeration packages amuse me. They try and convince me that people do better if given bonuses. For example imagine if you were the CEO of NZO. Do you think you would work harder if you were on a bonus scheme? Would you wake and say wow, I am on a bonus scheme and I have to work harder .And if you answer yes you shouldn't be in the job.

I think all of us agree that everyone should turn up and do their best every day. Give a few awards away okay but please spare me these bonuses and option gravytrain packages. You either want the job or not.

NZO has been treated a bit harshly lately. Room for upside.

[Sideshow Bob]

Research has shown that higher executive pay does not equate to higher performance. No rocket science that and just have to look around to prove this.

I am not impressed how the company is run (or appears to be run).

[arjay]

Forget to say that if anyone now wanted to spend 3 million buying shares in NZO they would end up holding more shares than Andrew would if and when he converts these options.In fact they would own 4.225 million.
Nevertheless i favor a smaller wage package with a tie back to company shares.

Not quite the same thing Digger because anyone else has to front up with the 3 million now. AK only has to pay 30K. If he invests the remaining 2.97mill at 5.5% (current minimum Westpac deal for large sums) he will have 3.9 million after 5 yrs (ie, can buy his 3 million shares plus many more as well as having the safety of not having to buying if his leadership heads us further downward).

Bermuda is correct - if you're on a good whack to start with bonuses are less likely to motivate a person to spend more time away from their family etc. Better to pay a low salary with bonuses. In a way they have addressed this - DS got over 600K (plus extras) and did not perform. Nevertheless, 500K is a good whack in anyone's language, especially when (as Fabs has indicated above) NZO aren't operator of anything.

[brucey09]

Snrs.
NZ has about 4.5mil personas - about a normal city - city of Mexico has 23mil. You pay your men much to much to run little companys? yes - is this making more money for stock holder.

[arjay]

Brucey, unfortunately stockholders are losing control of the salaries their directors and CEO's get because of what could be described as an 'equivalence rort'. In a fair world, executives would be paid to do their job and given a bonus that reflected how their performance materially benefited the company above expectation for any given year. Against this, our directors and CEO considers that pay and benefits should relate to what people in other organisations and countries unrelated to NZO get. As an example of this, note how the latest news item highlights how little AK gets in relation to similar sized organisations in the sharemarket (an irrelevant comparison). The board and CEO approve each others packages, so it gets hard for shareholders to get the company to attract people who are interested more in the job than the pay. It's similar to what we are seeing in politics where MPs pay has become detatched from economic realities and consequently more greedy people are attracted into the system

[fabs]

If memory serves me right, the miners at PEC where offered a $ 10000 bonus not that long before the tragedy, to get production going.
Up till then the mine had a huge cost & time over-run.
In a sense there is a parallel in that NZO too in recent times have deteriorated from a very promising co. to what it is now.

So it seems the management of these two co. either do or did bugger all until they get big money offered, only to reveal latent incompetence.
Then depart after4-5 years with a pocket full of dough quoting personal reasons as an excuse.
YEAH RIGHT!
Good at something, anything but what S/H should be able to expect them to be good at.

[fish]

ceo salaries around the world are still out of kilter with reality of what they are worth . As if 1/2 million dollars p.a. salary ,lots of round the world 1st class travel and hotels and expenses are not enough we have an offering of 3,000,000 options exercised at $1 in 5 years being given away at 1 cent . Existing money in the bank and shares of kupe and tui are worth more than $1 . The ceo wouldnt have to do anywork at all to make a bonanza in 5 years -just let his staff do all the work and the shares most likely will double in 5 years .

As I proposed 4 years we need digger on the board to prevent the bad things happening and get some real productive work going .

[arjay]

Andrew's lollies are approved

A poll was taken. The result of the voting (including proxies) was:
For: 93,751,597 (80%)
Against: 23,506,144 (20%)
Abstain: 2,817,683

The resolution was carried.

"NZOG has 15,351 shareholders and 393,237,795 listed ordinary shares. Votes
were recorded for 14 shareholders at the meeting, with 818 shareholders
submitting valid proxy votes prior to the meeting."

So, although 95% of shareholders did not vote (making up 75% shares) the motion was passed. Democracy I guess.

[Jay]

So, although 95% of shareholders did not vote (making up 75% shares) the motion was passed. Democracy I guess.

True
Do not hold
But if you hold shares , don't vote and don't like the outcome - you can't complain

[winner69]

Just shows you that most have no sense of 'ownership' in the companies they hold stock in .... they just trade prices and as long as these are heading or likely to head to where they want tahts all they interested in .... bet you many holdinhg NZO at the moment don't even know what NZO stands for .... just the ticker code they need to but and sell

[neopoleII]

""So, although 95% of shareholders did not vote (making up 75% shares) the motion was passed. Democracy I guess""

yes democracy it is.
but why should non votes count as siding with the management?

what if this was the voting outcome for NZ government?

imagine a voter turnout out of 5%.

either the government would ask the public why they dont want to vote.
or Moodies or some such folk would seriously be looking at the credit rating of NZ and asking serious questions.

a country that has a 5% voter turn out is a country falling into apathy.

in NZO's case.... the sp is in the dumps, and the co is in apathy and the board continues on is merry democratic way collecting all non votes and claiming it has 80% shareholder approval!

what they dont seem to realise or care about is the only way the sp is going up is from people wanting to buy the shares.

it seems that only the management really want to buy the shares to help stop a takeover and secure their paypackets.

people who can really drive the sp higher seem to be sitting on the sidelines, waiting for, ummm ..... drilling i guess.

even the golden egg Kupe means nothing anymore as the income is going ...... well...... somewhere?

share holders arent seeing much and most like me cant be bothered to vote either.

so...... if i didnt vote, i wont complain.
but i dont like my non vote stolen and put into the yes camp.

my non vote was a pointed note that i dont think the management is worth voting for, yet i dont want to sell my stock and take a loss.

i guess this is where the management has shareholders over a barrel.

[digger]

Went to the Wellington meeting today and became one of the .001% that was in attendance. It was short and dealt with the single motion on the table that being to offer AK 3 million options for 1 dollar in 3 to 5 years time. 30% of all avaliable vote were cast for,against or abstain. The remaining 70% of votes were not received in time for the meeting so as with any democracy were not part of the action.
These figures differ from what some of you are saying but i can not see where you cals are coming from.Where do you see that non votes were counted as votes in favor. That one beats me.
The presentation at the end of the meeting was given by AK after the formal meeting closed .It is on the web site and well worth a read.We have some very interesting things coming up in the next year or two,any of which could change the value of the company.Now i know that about 10 years ago Arjay and I were coming back from Auckland AGM saying the same thing.Still the overseas ventures make it different now with both more upside and downside.I personally would have stayed in NZ[look at how well TAG has done]. Note also the directors are pointing out that there is limited downside to the overseas ventures but i am not convinced on that one.
A big hello to the woman who sat next to me who wanted a cup of tea after the meeting but could only find that all being offered was cold water.I hope that in every way AK leads his team in the same penny pinching spirit until we find some more oil,and if he does we can all look forward to a large drop in adminstration expenses.
Cheers all

[brucey09]

Snr. Digger
Did you say these things to Ak about less costs?.

[digger]

Snr. Digger
Did you say these things to Ak about less costs?.

No this did not come up as the women was looking for cup of tea after the meeting and other things came up.Thought i would post it like that so the directors get the idea that ecomomy begins at home.Anyways water is cheaper than champagne on overseas travels.
I voted in favor of the resolution as i see it as part of his startup package. I did before the meeting say that i would vote in favor but will not do so on an annual basis like we did for DS. After this startup package now completed today i believe we all should vote against any futher perks unless they are clearly earned as in that we sharholders also see an equal increase in value.
Also i did ask what happened to the many and yearly options given to DS and the chairman Peter Griffiths replied that most lasped as out of the money. Some were shares so they still have some value.Some options while curently well out of the money still have time to run.All in all it turned out for DS not as good as first it looked when the options were issued.

[iceman]

Went to the Wellington meeting today and became one of the .001% that was in attendance. It was short and dealt with the single motion on the table that being to offer AK 3 million options for 1 dollar in 3 to 5 years time. 30% of all avaliable vote were cast for,against or abstain. The remaining 70% of votes were not received in time for the meeting so as with any democracy were not part of the action.
These figures differ from what some of you are saying but i can not see where you cals are coming from.Where do you see that non votes were counted as votes in favor. That one beats me.
The presentation at the end of the meeting was given by AK after the formal meeting closed .It is on the web site and well worth a read.We have some very interesting things coming up in the next year or two,any of which could change the value of the company.Now i know that about 10 years ago Arjay and I were coming back from Auckland AGM saying the same thing.Still the overseas ventures make it different now with both more upside and downside.I personally would have stayed in NZ[look at how well TAG has done]. Note also the directors are pointing out that there is limited downside to the overseas ventures but i am not convinced on that one.
A big hello to the woman who sat next to me who wanted a cup of tea after the meeting but could only find that all being offered was cold water.I hope that in every way AK leads his team in the same penny pinching spirit until we find some more oil,and if he does we can all look forward to a large drop in adminstration expenses.
Cheers all

Thank you for your summary Digger. As always, I appreciate hearing what you do have to say about this company. I will read AK's presentation in the next couple of days. Like you, I did not understand earlier posts about treatment of non votes so am glad that you have confirmed I am not the only one confused. Unfortunately I could not attend but did send in my proxy, voting against the resolution, which I think is far too generous coming from today's SP which most of us believe is a fairly low starting point. They should set the bar for AK much higher in my view.

[arjay]

Neopole - taking your observation to it's extreme, if one person only, holding only one share only, had gone to meeting and voted (say) against the motion it would have been defeated (the opposite is also true). This represents a decision being made based on the view expressed by the holder of 0.0000003% of the listed shares. It's a strange way to run business. I would like to see motions requiring a decent turnout to receive a mandate.

[digger]

Neopole - taking your observation to it's extreme, if one person only, holding only one share only, had gone to meeting and voted (say) against the motion it would have been defeated (the opposite is also true). This represents a decision being made based on the view expressed by the holder of 0.0000003% of the listed shares. It's a strange way to run business. I would like to see motions requiring a decent turnout to receive a mandate.

Hi Arjay,

Interesting point this brings up. I am almost certain that the directors require a quorum before they can make decisions,but i doubt that applies to an advertised public meeting of a listed company when it is clear that a decision will be finalised.
Non participation in a free vote can show any number of things depending where your coming from.Could be apathy,lack of confidence that you can influence the outcome,trust in the organisers to do the right thing,or a neutral concern with the outcome.

[Chris Roberts]

Just to clarify - a poll was taken at the meeting. So the votes of the dozen or so shareholders who attended the meeting were added to the 818 valid proxy votes received before the meeting to give the final result. Voting forms were sent to every shareholder. 95% chose not to send it back in the supplied reply paid envelope so missed out on the chance to participate in the decision.

[arjay]

Digger, I suspect your suggestion of apathy was the main factor for the low response. Admittedly, many of us have been grumbling about the package voted on, but in the big picture it was not a major issue and certainly not something that would motivate many shareholders to take the day off and head to Wellington for a meeting that didn't really warrant being called for such a minor (and single) vote. As Chris has re-iterated, voters could still have sent in their proxy, but for many (especially the bulk of small-holders) maybe it just wasn't an issue big enough to encourage them to do the paperwork. Arguably, this sort of situation might favour the company position.

[777]

The top 25 shareholders hold 46% of the shares. What ever they decide goes. Pointless anyone else voting. I am sure management look for support from the bigger holders before putting forward a proposal. They won't want it to fail.

Hold 160,000. Didn't vote. Not apathy just being practical.

[Balance]

Directors and management of NZOG have the full measure of shareholders - they know exactly the kind of shareholders they have.

The postings on this thread and site are indicative of the behavior of these shareholders.

[arjay]

The top 25 shareholders hold 46% of the shares. What ever they decide goes. Pointless anyone else voting. I am sure management look for support from the bigger holders before putting forward a proposal. They won't want it to fail.

Hold 160,000. Didn't vote. Not apathy just being practical.

Interesting - that means half of the top 25% of shareholders didn't vote. Blows my theory away!

[fabs]

The main trust of the last 5 years was to increase S/Hs wealth, now the partly revamped managements says, they want to, turn a new leaf from the last 5 years,---- wait for it---
it aims to increase wealth for the S/Hs over the next 5 years.
well, any wonder then why the investment $ especially with increasing O/Ps goes to other COs. mainly in the resource sector in OZ.

[Sideshow Bob]

Directors and management of NZOG have the full measure of shareholders - they know exactly the kind of shareholders they have.

The postings on this thread and site are indicative of the behavior of these shareholders.

Welcome Back Balance! (I think....)

[dsurf]

NZOG (New Zealand Oil & Gas Ltd) has delivered another strong result with the Tui and Kupe fields contributing to a net operating cash flow of $26.5 million in the first half of the financial year.

Net cash for the 6 month period increased by 50 million

Net cash for the 12 month period increased by 87.9 million

Shareholders were rewarded with a -ve return from the SP of -15%

excellent!!!!

[fabs]

AWE Sept. -Oct.2011 S/P 93 CENTS NOW $1.70
VPE June. 2011 29 CENTS NOW $1.06

And there are others CUE Etc, etc.

NZO 12 Mts. ago 87-88 CENTS now 74 cents.
But then some investors have different expectations, values, maybe on an other planet altogether.

[troyvdh]

...fair point...I suppose ....but hopefully there those folk like me who hold CUE AWE ...and NZO....even though the word "portfolio" fair makes me vomit....I suppose its just spreading the risk...

8000 AWE
130000 CUE
35000 NZO

cheers....

[neopoleII]

"Kupe and Tui are expected to provide ongoing cash flows and we intend to
invest a sensible portion of those cash flows in new investments in order to
grow the business and provide long-term value for our shareholders."

isn't it amazing how one word can change a sentence......

"Kupe and Tui are expected to provide ongoing cash flows and we intend to
invest a sensible portion of those cash flows in new investments in order to
grow the business and provide long-term value for our staff."

where's the value or divi for shareholders?

who stumped up the cash for the board to play with?

the board is happy to pontificate that they are making money while giving a couple cents back.

geez... the Ozzie banks pay a higher rate of return on no risk bank deposits.

as balance says (welcome back) the board has the SHers measure.

why doesnt the board just say..........
if you want to gamble in an oiler..... go with us.... we'll gamble it for you, look after ourselves, and if....... a big if..... there is something left....... we will share some with you.

and the cash from the golden geese kupe and tui, is ours to spend..... not for you.

we just dished out a bonus divi to get the option money secured. tyvm

[digger]

NZOG (New Zealand Oil & Gas Ltd) has delivered another strong result with the Tui and Kupe fields contributing to a net operating cash flow of $26.5 million in the first half of the financial year.

Net cash for the 6 month period increased by 50 million

Net cash for the 12 month period increased by 87.9 million

Shareholders were rewarded with a -ve return from the SP of -15%

excellent!!!!

There can be no arguement that NZO has taken a hugh kick in the guts with PIKE and the TUI downgrade.With Tui all we can say is that the probably of the former higher assesment turned out not to stand up to what the production figures are now saying.My anger with PIKE here and in public will be held until the royal commission is finished.Still without a doubt we should have all sold way back in the days when the price was a dollar higher than present.
Where to now? Has the market got it right and the shares are only worth 74 cents? NOG has 35 cents in net cash per share in the bank.Good drilling prospects and and further excellent earning for the next 10 years from producing assets.Almost certainly the reduction in volumn from these fields will be matched by further increases in the POO baring a second great or greater recession.Also we have the hint some months back that dividends will return to their former average.And in summary lets keep it in mind that NZO has now written off 99 million and then just recently its last commitment to PIKE of 22 million. Still the revenue from producing assets have increased to 136.7 million.The market seems to be valueing NZO as if these mostly capital losses will keep reoccuring
So to me the market can only be right in the longer term if NZO keeps losing 100's of millions in some projects. I remain hopeful that NZO will now take stock and turn this company around regardless of what the market is currently thinking.Dsurf's post above is factually correct but it must be a nightmare that can not be allowed to happen again. So we must move on.

[neopoleII]

nice post digger, but IMHO this sentence..

""The market seems to be valueing NZO as if these mostly capital losses will keep reoccuring""

could be taken simply as...

if we invest in NZO what with their track record, whats in it for a shareholder?
when they make money...... not much is coming back to SHers
when things go wrong.... nothing comes back to SHers

in the meantime the staff, management and board are doing rather if not very very well.

i hate losing money...... thats human, and it happens to all investors.
but in the case of NZO things are starting to look like pigs in troughs.

and that is what seems to be valuing the sp.

something is re occurring..... and its not the capital losses.

[digger]

nice post digger, but IMHO this sentence..

""The market seems to be valueing NZO as if these mostly capital losses will keep reoccuring""

could be taken simply as...

if we invest in NZO what with their track record, whats in it for a shareholder?
when they make money...... not much is coming back to SHers
when things go wrong.... nothing comes back to SHers

in the meantime the staff, management and board are doing rather if not very very well.

i hate losing money...... thats human, and it happens to all investors.
but in the case of NZO things are starting to look like pigs in troughs.

and that is what seems to be valuing the sp.

something is re occurring..... and its not the capital losses.


Yes ,I do agree that more was lost than just capital.As you put it the market sees a clear loss of confidence and a gut wrenching feeling that in hard times all do not suffer equally. This is not strictly true as TR's loss would be the greatest of all of us and DS resigned most likely as a result of PIKE. Note here at the Monday meeting a question from the floor was did DS resign because of PIKE and the chairman Peter Griffiths said that DS gave personal reasons but his belief was that it was most likely related to the PIKE tragedy.

At that point of the meeting I piped up with my four thoughts on DS which were clearly out of order and I knew it but it made me feel better.Remember we were only there to discuss the remit to issue 3 million options to the CEO. Lets face it we humans are not just logical thinkers but feeling individuals as well.Look at the market value of NZO.It is not just made up of logical reasoning but feelings around the management abilities comes into it .The market has spoken.

So yes we certainly did lose more than just 99 million and 22 million in secured loans.The big question is how do we turn this thing around. Well IMHO a good first step has been taken with a new CEO,now the board needs directors coming with a more diverse and committed background.

[the machine]

perhaps a statement from the board to the effect that a substantial part of this years operating profit will be paid as a full year dividend, even if that means any 2012/2013 capital management "buyback" plans are put on ice.

if the market can expect a decent dividend then that might be the icebreaker.

i only own 20,000 shares so certainly not chasing a dividend - i just want sp be be out of this rut, without relying on the drillbit

M

[Tyro]

Why your preference for a taxable dividend over a non taxable gain in NTA from a buyback?


perhaps a statement from the board to the effect that a substantial part of this years operating profit will be paid as a full year dividend, even if that means any 2012/2013 capital management "buyback" plans are put on ice.

if the market can expect a decent dividend then that might be the icebreaker.

i only own 20,000 shares so certainly not chasing a dividend - i just want sp be be out of this rut, without relying on the drillbit

M

[iceman]

Why your preference for a taxable dividend over a non taxable gain in NTA from a buyback?

The buyback is not very successful in lifting the shareprice, particularly when the shares are then just handed over cheaply to staff !

[neopoleII]

the buyback is very successful....
it has stopped the sp slipping further and risking a takeover.... which could be funded by the cash sitting in the bank and the income from kupe.

very dangerous situation at present.

but your board is spending your money buyinig and technicly burning the stock certificates...... only to issue news ones to themselves.

they are spending some 20 odd million to prop up their jobs from a takeover

think about it.

its your company.

[arjay]

Has the market got it right and the shares are only worth 74 cents? NOG has 35 cents in net cash per share in the bank.

I think the market is (rightly) concerned that NZO will spend the 35c/share on magic beans.

[fabs]

End of Feb.
and still no word by the receivers in regards to sale of Pike assets.
Just another case of making hay while the sun shines, by the receivers that is.

[digger]

End of Feb.
and still no word by the receivers in regards to sale of Pike assets.
Just another case of making hay while the sun shines, by the receivers that is.

fabs,give up on the hope of selling PIKE. NZO has written off the last 22 million of secured loans and i would say is leaving it at that. Maybe somewhere some time something might happen but with the govt and laywers involved in body recovery ,hell has the better chance of freezing over sooner first. After the meeting in Wellington AK did say in reply that the further funding of the receiver would only be in the thousands and not millions. Forget it move on.

[fabs]

DIGGER,
I have sold out my PRC/s years ago and said on this forum there was no hope for s/h in it to expect anything back 14 months ago.
So in that regard have moved on long ago.
However i am not sure where you get the write -off regards the 2o odd millions of secured funds, which by the way i understood it NZO have written off in there books for tax purposes, but on completion of the sale will get reimbursed.
Assuming the sale after expenses has anything left over.

So i hope for closure of this tragic event, at least concerning the financial issues and also with a bit of luck a boost to NZOs War-chest, it is in regard to those two aspects that i posted above comment.
So all the best to NZOs S/H.

[arjay]

What's the bet Barque gets relinquished due to lack of progress?

http://www.stuff.co.nz/business/industries/6516688/Hunt-for-oil-gas-set-to-intensify

[fabs]

Wish it otherwise,
but chances are very slim give it about 10-20% to go ahead, Mang. will milk it for as long as possible of course, anything to support an increasingly shaky S/P.
Lets not forget the specter of the Warrior Princess and her merry companions, disrupting anything and all adding cost and delays.

[neopoleII]

in the last few day the volume of trades has increased, could this be someone adding up the potential payout to nzo from the ppp 5cent distribution and the expected small divi from nzo and added up that the return is worth the investment at current prices?
im sure nzo will give the ppp payout to shareholders as a gift. hopefully the sale of prc isnt too far away and that cash..... what ever it is may be going to shareholders as well. and then a little divi from nzo's core business of oil and gas production from their 2 jewels should give us ...... more than 1 cent and less than 7cents divi this year.
my guess 5cents.
anything less would show the new ceo as being TRs lacky.

[peterfindlay]

in the last few day the volume of trades has increased, could this be someone adding up the potential payout to nzo from the ppp 5cent distribution and the expected small divi from nzo and added up that the return is worth the investment at current prices?
im sure nzo will give the ppp payout to shareholders as a gift. hopefully the sale of prc isnt too far away and that cash..... what ever it is may be going to shareholders as well. and then a little divi from nzo's core business of oil and gas production from their 2 jewels should give us ...... more than 1 cent and less than 7cents divi this year.
my guess 5cents.
anything less would show the new ceo as being TRs lacky.

I agree that someone is buying into NZO. Good for them. Who knows the motive. I agree that a solid dividend should be forthcoming. In my view, an interim dividend, or a special dividend should have been paid. I disagree with views expressed in earlier posts that suggest the contrary. An infrequent dividend does not help maintain the interest in a stock, particularly when there is little else happening to get investors excited and motivated to buy in. With this stock the loyalty of shareholders ought to be rewarded more frequently than currently occurs.

To retain profits a company needs to demonstrate that it can earn better than the cost of capital, and that it can generate additional profits of a magnitude that warrants the retention of profits, all of which need to be recognised by the market. I do not consider that NZO's track record demonstates that it can consistently earn the cost of capital or that it warrants the faith of shareholders for all profits earned to be reinvested in growth or acquisition. Shareholders have not seen enough acquistions or growth opportunities run the gauntlet of time to wholeheartedly back the Directors of NZO to retain a significant proportion of profits. The SP malaise reflects the markets belief in NZO, in spite of its net tangible assets or future earning ability.

For PRC, you seem to be ignoring the known facts:


NZOG has written off all its remaining Pike debt and its Pike shareholding.
You can’t do write-offs on a whim – there has to be information that satisfies the auditors.
NZOG appointed the receivers and will be getting regular updates on the sales process.
In its announcement about the write-off (26 Jan) NZOG said there were three possible outcomes – a sale of the mine, a sale with payments made when the mine is reopened, and disposal of the moveable assets. That third option means no buyer for the mine – sell what you can, lock the gate and walk away.
The Receivers have been trying to find a buyer for over a year. Clearly there is little enthusiasm in the market to take on Pike.
The access tunnel has still not been recovered. There is the unknown – and potentially unlimited - cost of recovering the men’s remains.
Solid Energy control the rail transport network so how do you get the coal to market. A purchaser needs that assurance. Access to the rail network/infrastructure is not currently regulated like other infrastructural assets.
Solid Energy has publicly stated that it is not a bidder, and in the past has acted in a way that seem to have hindered attempts to maximise the value of PRC's coal assets.
The production targets set by Pike were probably never achievable. The geology is much more complex than thought and dozens of bore holes will have to be drilled. A second exit will have to be constructed.
The Royal Commission won’t report until September and may impose all sorts of restrictions – it could even suggest that there be no mining at Pike.
A workforce will have to be built from scratch.
Given all that, it is not surprising that a buyer hasn’t been found.


It appears that the Receivers must think they can still achieve a sale, but anything they get is going to be small.

[jonu]

Pike River sold to solid energy-Herald report

[dsurf]

Well that answers the question as to why the volume picked up in the last week or so. Pity there is no sale price mentioned, conditional or not.

[Mr Tommy]

Thought NZOG should jump a bit on this news, as they had written off the remaining debit.
Maybe Solid E has got it for nothing after scaring off all the competition.

[jonu]

You'd expect a trading halt surely-at least until it's confirmed and a price given

[Xerof]

only if it was to have a material impact on NZOG - clearly not....

[iceman]

Going unconditional not expected until May so a trading halt is not an option. This is not good news for those of us still (until now) holding out some hope of a small recovery of our investment. Don Elder certainly succeeded in scaring all other potential bidders of and probably got this valuable asset for nothing ! Why on earth does this sorry saga need to be dragged out until May !

[jonu]

only if it was to have a material impact on NZOG - clearly not....

O Xerof,ye of the large member, don't you know nothing is clear when looking into oil?

[stanace]

only if it was to have a material impact on NZOG - clearly not....

How would they know, if the price has not been revealed.

[Xerof]

in the same manner they "knew" to write off the debt...... but then everything I have said on the topic has been wrong of course......

who appointed the Receivers stanace? - the answer to that will surely clarify things for you

[neopoleII]

whats the point of saying the mine is sold and not disclosing the sale price, or the sale price range?
are nzo shareholders supposed to sell, hold or accumulate?
the board knows the price, and i guess their family and friends.
so what is the trading environment of nzo now?

those that know will do their thing, the rest will take a punt sell or buy.
there should be full disclosure or nothing at all.

this limbo unknown is wild west rubbish.

i hope the newly armed fso and securities commission is watching.

this is typical nzo management at its best.

scenario........ national party sells 49% of all its soe's 6 weeks before a general election and announces the sale but decides to withhold the sale price until after the election.

at least the families now have the beginnings of closure... that is very good and much needed.

no doubt nzo will state that this statement is the responsibilty of the reciever, and nzo is in the same unknown shoes as the general public.

[neopoleII]

disregard my above post..... im just miffed at the way this is panning out after all this time and speculation. i'll just be a good shareholder and sit in the dark and wait, like our uniformed board.

[Bella52]

NZOG (New Zealand Oil & Gas Ltd) wishes to provide further comment to the market regarding the announcement this afternoon by the Receivers for Pike River Coal Ltd, with regard to the implications for NZOG as a secured creditor.
NZOG understands that Solid Energy has offered to purchase the business and assets of Pike River Coal Ltd (in Receivership), subject to the terms set out in the offer letter being satisfactorily concluded. The final terms are still to be agreed and the sale is subject to various conditions being met.
NZOG expects it will be able to provide further details of the structure and timing of the distribution of funds when the final sale and purchase agreement is signed between Solid Energy and the Receivers.

[iceman]

I can only come to one conclucion and it is that NZO Board is completely incompetitent giving this multi BILLION asset away like this. I am out of NZ resources for now (OZ I''m coming)

[digger]

I can only come to one conclucion and it is that NZO Board is completely incompetitent giving this multi BILLION asset away like this. I am out of NZ resources for now (OZ I''m coming)
P.S. Welcome "B52"

Iceman,IMHO the NZO board made a big mistake by not asking for gas reading when PIKE did small pilot drills to make sure they stayed in coal before drilling ahead. One big rock in the coal was enough and if you remember at the time we did not want to immediatly hit another so those pilot holes were drilled. NZO could have got this info by linking it to any further money borrowed by PIKE from NZO. At the time i thought the nZO board would surely do this but they didn.t. Seems they have so many professional directors,but none that can think practically.
Iceman you are not correct in saying that NZO gave this milti resource away. Firstly the licence to mine belongs to PIKE and the GOVT has said it would not reissue it to NZO. So NZO was not in any possition to grab it off the receiver if they felt the price was too low.That is how i understand it from inquires i made about a month ago.

[fabs]

Heaven forbid thy get any money out of this, cause they will go straight out and hire some more directors.

[arjay]

Thanks heaps Fabs :-( I got all excited when I read this bit:

"NZOG expects it will be able to provide further details of the structure and timing of the distribution of funds when the final sale and purchase agreement is signed".

The question you raise is just who they plan to distribute the funds to. Perhaps some pats on the back will deemed to be in order for negotiating the sale?

[jonu]

I wonder if the buyback is on hold. Presumably the board & CEO are aware of the likely purchase price of Pike and a continuation of the buyback when this is not public knowledge is not a good look IMHO.

Mr Roberts?

[skydog]

jonu, you hit the nail on the head on your earlier thread that there should be a trading halt. I think it's so unfair to trade when there is such influential non disclosed information floating about. The management shouldn't be doing any further buy backs or an increase in director’s holdings etc. Any current trade is no doubt on pure speculation and a guess. Although, if I had spare funds (not the house) I would take a punt in the dark, as there would be nothing else to support my trade.

p.s I've been a silent reader of this thread for many years, and held this stock for far too long.

[Chris Roberts]

The share buyback was suspended last week as soon as we learnt that the Receivers were considering making an announcement. We have always taken a cautious approach and have suspended the buyback on a number of occasions.

NZOG took a full write-down of its remaining PRCL debt in its half year accounts, because of the considerable uncertainty about the timing, extent and nature of any further recovery of that debt. Our view at this time has not changed. We expect further information will emerge from the discussions between the Receivers and the conditional purchaser.

[winner69]

jonu, you hit the nail on the head on your earlier thread that there should be a trading halt. I think it's so unfair to trade when there is such influential non disclosed information floating about. The management shouldn't be doing any further buy backs or an increase in director’s holdings etc. Any current trade is no doubt on pure speculation and a guess. Although, if I had spare funds (not the house) I would take a punt in the dark, as there would be nothing else to support my trade.

p.s I've been a silent reader of this thread for many years, and held this stock for far too long.

So you want NZO to go into a trading halt for several months .....maybe even longer

[skydog]

So you want NZO to go into a trading halt for several months .....maybe even longer

I don't expect for months, but it would be nice to know what they know. Time will tell I suppose.

[iceman]

Iceman,IMHO the NZO board made a big mistake by not asking for gas reading when PIKE did small pilot drills to make sure they stayed in coal before drilling ahead. One big rock in the coal was enough and if you remember at the time we did not want to immediatly hit another so those pilot holes were drilled. NZO could have got this info by linking it to any further money borrowed by PIKE from NZO. At the time i thought the nZO board would surely do this but they didn.t. Seems they have so many professional directors,but none that can think practically.
Iceman you are not correct in saying that NZO gave this milti resource away. Firstly the licence to mine belongs to PIKE and the GOVT has said it would not reissue it to NZO. So NZO was not in any possition to grab it off the receiver if they felt the price was too low.That is how i understand it from inquires i made about a month ago.

Digger I agree with everything you say about the Boards failures to do with drillings etc (as I agree with & respect all of your considered comments over a long period of time) and in fact, overall management of PRC. But I do not agree that I am wrong in saying NZO "gave" this multi billion resource away. NZO could have been in the running/bidding for PRC from the Receivers, either alone or with selected partners, at a price that they considered as the minimal price acceptable. By doing so, they could have basically put their foot down for the Receiver selling this asset for an unacceptably low price. I absolutely realise that many NZO shareholders don't agree with me on this, mainly because they don't trust NZO's Directors to make the right decisions on PRC and turn it into a producing & profitable mine. Obviously the Directors have a similar lack of confidence in themselves and have decided to "give it away" and write of 100% of this investment.

What upsets me the most is the fact that a Boss of a SEO (Solid Energy) has managed to talk the value of PRC down and scaring away any potential foreign investors, resulting in his SOE picking this asset up for a song (I maybe be proven wrong when the final price comes out but don't think so).
It looks to me, that this has been a strategic play assisted by the Government not willing to clarify any rules that will apply to PRC in the future and Solid Energy being the sole bidder as a result, even after saying they were out. Obviously they were very confident of their strategy. Of course this is great for the Government which is about to sell off 49% of SE.
Hey presto, along come a group of Maori lawyers taking the Govt to court for part selling the SOE’s without their approval as the “rightful owners”, Mana Party wants to picket and protest against any foreign shareholders (Crafar farms & SOE’s) and Xena Greena Queen protesting about anything at all that may move our country forward.
All of the above brings me to question why foreign investors should even consider investing in these sectors of NZ when other countries and Governments are much more in favour of outside investment. And if they don’t, why should I ?
These musings probably don’t belong on this thread but I felt a need to explain myself Digger. I can not finish this though, without saying that I would like the 29 families that have suffered the most from this tragedy to be fully consulted and have a say in any future decisions, decisions that should try to recognise and respect the interest of all the many suffering parties involved and which will hopefully result in the grieving families coming to terms with their loss and the lost souls resting in peace.

[Balance]

Gross mismanagement in everyway possible by the directors of NZOG - squandering hundreds of millions of shareholders' wealth and funds - and no accountability.

Now they are selling NZO's coal mine, potentially very valuable with the right JV partner, for a song (they would be shouting from the mountaintop otherwise) so that they can wash their bloodied hands from the affair.

Otherwise, why the big rush to sell? Let the coal sit in the ground for another 10 years if need be for the right JV partner to come along to extract the coal and optimise value for NZO's shareholders?

John Key has promised that if there's a way to recover the bodies, the government will pay, hasn't he?

Wake up, Noggers - assert yourselves and stop listening to some of the posters on this site who spend all their time supporting NZOG's management and directors, make excuses for their glaring mismanagement and allowing the scam of gross incompetence to continue.

[POSSUM THE CAT]

Balance Would they be that bigger fools to pay the receivers more than Solid Energy offered just on your say so. If you think it would be a good purchase why not buy it yourself. If I had been stupid enough to be a NZO shareholder I would at least be proposing a motion that all members of present management be dispensed with.

[Balance]

Balance Would they be that bigger fools to pay the receivers more than Solid Energy offered just on your say so. If you think it would be a good purchase why not buy it yourself. If I had been stupid enough to be a NZO shareholder I would at least be proposing a motion that all members of present management be dispensed with.

Point I am making, Possum, is that the directors of NZO seems to be in an unseemly haste to sell Pike. Something smells badly.

Think about this for a minute :

Pike is worth zero (शून्य)according to NZO's experienced, worldly wise, well paid and highly esteemed directors and management (as far as some of the posters here are concerned) - https://www.nzx.com/companies/NZO/announcements/218898

Now why would any director or individual or seller of an asset or business or anything do that?

Signal to every potential buyer and bidder that the mine was worth zero as far as the directors were concerned?

If the directors are a bunch of young teens without much experience in the ways of the world and are selling a used completely broken down piece of machinery which has to be removed from valuable land, fine.

But this is not the case here - these directors are the same individuals who happily pumped in tens of millions of shareholders' funds into Pike.

Same directors who supported Peter Whittall as CEO when NZO's MD wanted Peter gone.

As for buying it myself, read what I wrote carefully - the mine is worth a lot with the right JV partner who can mine Pike safely and properly.

That's why NZO's haste in writing off its investment and getting the receiver to sell smells. And it's not coal gas which is stinking up NZO's board room either - its something else.

[Onthemoney]

Well said Balance.... Just like the NOG of old....

[neopoleII]

question, when the board has its meetings, by law they have to take minutes (write it all down etc)
are these minutes available to shareholders? and if so, is it all or just the results... which we read from the anouncements.

[POSSUM THE CAT]

Balance the directors of NZO have no choice they have to make an offer to the receiver that they will beat any other offer or forget about it. They cannot stop the Receivers selling it any other way. The receivers make the decision not a shareholder like NZO. Instead they are telling their shareholders that they are honestly not expecting to get any money back from the sale of PRC. Any statement to the contrary could make them liable to damages. You bought a Dog admit it & get on with life.

[digger]

There is one thing that stands out in this discussion about NZO buying PIKE that all of you have failed to comment on. After placing PIKE into receivership the govt has stated it will not reissue the mining licence to NZO. So from that moment what is the point in believing that NZO can do anything about PIKE ownership??? What use is PIKE without the mining licence?

[Onthemoney]

NOG has more say than what you think it was them as secured creditor that appointed the receiver. Power is in their hands.....

[Xerof]

The only 'power' they had was to appoint a Receiver of their choice. Bear in mind BNZ was also a secured creditor and could have beaten them to it. Not that it really mattered in the end.

And digger I think you are right re mining license

[Onthemoney]

The only 'power' they had was to appoint a Receiver of their choice. Bear in mind BNZ was also a secured creditor and could have beaten them to it. Not that it really mattered in the end.



It matters as the receiver is working for the secured creditor.

[Balance]

Balance the directors of NZO have no choice they have to make an offer to the receiver that they will beat any other offer or forget about it. They cannot stop the Receivers selling it any other way. The receivers make the decision not a shareholder like NZO. Instead they are telling their shareholders that they are honestly not expecting to get any money back from the sale of PRC. Any statement to the contrary could make them liable to damages. You bought a Dog admit it & get on with life.

#1 - I did not buy into this dog, but share your sentiment about the dog!

#2 - NZO appointed the receiver and as the only secured creditor left in Pike, can terminate the receivership. So they do not have to beat anyone to 'buy' the asset!

#3 - The word 'honestly' does not equate to NZO directors.

#4 - What damages are they liable for? The market has already effectively written Pike off already!

#5 - Question remains - why the unseemly haste to get rid of Pike?

#6 - 29 dead miners. They will continue to haunt this bunch of incompetent, unprofessional and cowardly directors for a while yet - Pike sold or not.

[the machine]

There is one thing that stands out in this discussion about NZO buying PIKE that all of you have failed to comment on. After placing PIKE into receivership the govt has stated it will not reissue the mining licence to NZO. So from that moment what is the point in believing that NZO can do anything about PIKE ownership??? What use is PIKE without the mining licence?

digger, why would it have to be reissued - could it not stay in the name of PRC?

M

[iceman]

NOG has more say than what you think it was them as secured creditor that appointed the receiver. Power is in their hands.....

My poiint exactly !

[iceman]

#1 - I did not buy into this dog, but share your sentiment about the dog!

#2 - NZO appointed the receiver and as the only secured creditor left in Pike, can terminate the receivership. So they do not have to beat anyone to 'buy' the asset!

#3 - The word 'honestly' does not equate to NZO directors.

#4 - What damages are they liable for? The market has already effectively written Pike off already!

#5 - Question remains - why the unseemly haste to get rid of Pike?

#6 - 29 dead miners. They will continue to haunt this bunch of incompetent, unprofessional and cowardly directors for a while yet - Pike sold or not.

Balance I agree with all your 6 points. Spot on !

[brucey09]

Snrs. Balance , Machine and Iceman. Correcto - why cant some person live in Australia telephone the top man Radford please.

[Chris Roberts]

Contributors to this thread are entitled to their views, but some facts would help.
The Receivers have been running a sale process for well over a year. Dozens of international companies have considered it and a number conducted thorough due diligence. They know far more about the challenges in resuming a commercial mining operation than anyone on this thread. Not one made a firm offer.
The Receivers ran out of cash in September 2011. Since then NZOG has been funding the tunnel recovery work and the sales process through a loan agreement with the Receivers. A sale means NZOG no longer has to provide that ongoing financial support. It is in the best interest of NZOG shareholders that a sale is concluded.

[Onthemoney]

Contributors to this thread are entitled to their views, but some facts would help.
The Receivers have been running a sale process for well over a year. Dozens of international companies have considered it and a number conducted thorough due diligence. They know far more about the challenges in resuming a commercial mining operation than anyone on this thread. Not one made a firm offer.
The Receivers ran out of cash in September 2011. Since then NZOG has been funding the tunnel recovery work and the sales process through a loan agreement with the Receivers. A sale means NZOG no longer has to provide that ongoing financial support. It is in the best interest of NZOG shareholders that a sale is concluded.

Thanks for your comments Chris. It is quite common for a secured creditor to provide extra cash to enable a sale to be concluded - you are certainly not inventing the wheel here. Cash is usually provided to ensure the best possible return on the secured asset by a sale or otherwise is achieved. There is certainly substancial value in the asset otherwise PRC would have never been set up to pursue it - read the your own and PRC companies reports.

I certainly hope NOG has achieved a sale that satisfies the company's owners (shareholders of NOG) in relation to the value that was put upon this asset before the mine was constructed.

[Wiremu]

Chris, your input is appreciated. A few facts do help.

[Tyro]

Thanks Chris, but you are wasting your time offering facts to Balance. Pure vitriolic emotion is his stock in trade. He claims to have no exposure to NZOG, so one might wonder why he bothers with this thread.


Contributors to this thread are entitled to their views, but some facts would help.
The Receivers have been running a sale process for well over a year. Dozens of international companies have considered it and a number conducted thorough due diligence. They know far more about the challenges in resuming a commercial mining operation than anyone on this thread. Not one made a firm offer.
The Receivers ran out of cash in September 2011. Since then NZOG has been funding the tunnel recovery work and the sales process through a loan agreement with the Receivers. A sale means NZOG no longer has to provide that ongoing financial support. It is in the best interest of NZOG shareholders that a sale is concluded.

[Lizard]

Kaheru farm-in looks like a good move. Should see another interesting target drilled in a years time? (Presume ROC are still trying to farm down their 50% before drill though).

[digger]

Kaheru farm-in looks like a good move. Should see another interesting target drilled in a years time? (Presume ROC are still trying to farm down their 50% before drill though).



Looks like a good one to me as well. Mr market is cracked to drop 3 cents on the news. Does Mr Market want to hear that NZO has gone into another mining venture to go up 3 cents. Cracked ,mad and drugged.
Actually NZO is starting to shape up in the right direction and things could well look very different this time next year with PIKE out of the road and oil drills under way.Mr Market be dammed.

[arjay]

Kaheru looks interesting, although being on the same trendline as a series of relatively small on-shore discoveries a discovery may need to be somewhat bigger to bring it in off-shore - despite its proximity to the Kauri/Rimu production facilities.

Nice to be talking oil again.

[Balance]

Thanks Chris, but you are wasting your time offering facts to Balance. Pure vitriolic emotion is his stock in trade. He claims to have no exposure to NZOG, so one might wonder why he bothers with this thread.

Sorry to disappoint you but I am very very proud to have been a loud dissenting voice and am 100% confident I have caused many to pause from blindly investing in NZO and Pike.

Are you actually suggesting that this forum is only for those who want to talk up shares?

In the final analysis, who has been right and who has been wrong?

Who should investors and posters have listened to?

Hundreds of millions have been lost.

29 miners are dead - why?

[Balance]

Chris, your input is appreciated. A few facts do help.

Let's get factual - who in their right mind would start advertising and promoting a blown-up mine with dead bodies in there, 4 months after the explosion?

Is this quality decision making or a continuation of the appalling mismanagement of Pike River?

[Chippie]

Balance this is the NZO thread not PRC. I appreciate a different view but you sound like a "broken record".