NZ Oil & Gas (NZO)

[the machine]

with 13m traded on Friday then nzo have fallen about 17m shares short of 50%

I guess the shares that were bought higher than 10c after the bid announced is the difference and the punters who bought in anticipation of making a profit may just hand there're shares until a better offer comes along

meanwhile if nzo do not extend the offer or increase it, then any support for the sp is lost

it will be interesting to see what happens now

nzo could do nothing for a year and then make another bid
with the au/nz$ almost parity, nzo have certainly made a well timed play with there're surplus funds

They could sell to SPC for 20c if that's what SPC think the share is worth

M

[fish]

The 5th and latest takeover announcement states that nzo has plans to delist cue from the ASX .They want to save costs for all shareholders.
If this comes to fruition nzo could use cue in all sorts of ways.
If it doesn't it looks as if nzo will still have control over CUE but has to abide by ASX regulations.
I guess it will be like origin control over CEN.
It only takes a suggestion and the sp is hit hard.
Then Zeta can move in and pick up cheap shares

[Corporate]

You've got to give NZO credit for how this takeover has been orchestrated. They've managed to get control very cheaply. Why they want to own CUE is another question.

[fish]

You've got to give NZO credit for how this takeover has been orchestrated. They've managed to get control very cheaply. Why they want to own CUE is another question.
As you say they are cheap but surely for cash,current production and eventually lots of synergies?

[fish]

You've got to give NZO credit for how this takeover has been orchestrated. They've managed to get control very cheaply. Why they want to own CUE is another question.
As you say they are cheap but surely for cash,current production and eventually lots of synergies?

[fish]

Pateke is looking good-43000bpd achieved but of course production rate will be scaled back for long-term production

[ziggy415]

Pateke is looking good-43000bpd achieved but of course production rate will be scaled back for long-term production
cant help but think Pateke might surprise on the upside with regard to size of reserviour...at this stage they seem cagey about "in line with previous estimates"...also read Bukit energy web site with regard to Kisaran wells in indonesia,,,,,,they sound very positive with words like discovery and 100 plus column of oil etc.....still not sure bout indo tho...once nzo gets all drill costs reimbursed by indo govt... the drill partners get 20% of well production and seeing as nzo has only 20 odd % of Kisaran joint venture...whats 20% of 20% worth

[neopoleII]

with only 2.4million bbls estimated in this field it wont take long to empty it.
with a bit of luck it might be 4million bbls
then there is the "double" drill cost ... what with the drilling balls up....
then there is the very low cost of crude today.......
nothing to get excited about.

sad really........ go back 10 years and most shareholders were discussing what colour Ferrari to buy.

[fish]

Talk about seeing a glass 1/2 empty.
Personally I like what I have been seeing recently(apart from what is out of nzo control-the price of oil).

[Joshuatree]

Article in the Australian "NZ Oil % Gas plans corporate revamp of Cue". NZO have 48.11%

[arjay]

Article in the Australian "NZ Oil % Gas plans corporate revamp of Cue". NZO have 48.11%

Not modelled on themselves I hope.

[dodgy]

Talk about seeing a glass 1/2 empty.
Personally I like what I have been seeing recently(apart from what is out of nzo control-the price of oil).
Hi Fish
Fishes that swim against the tide drown. The tide (market) thinks otherwise - doesn't the share price reflect this?
My take on events is the head fish (CEO) must be tiring of the backward current and preparing to swim in another pool. Comments?
Regards
-dodgy (reluctant owner/shareholder).

[fish]

Hi Fish
Fishes that swim against the tide drown. The tide (market) thinks otherwise - doesn't the share price reflect this?
My take on events is the head fish (CEO) must be tiring of the backward current and preparing to swim in another pool. Comments?
Regards
-dodgy (reluctant owner/shareholder).
Little fish are eaten by bigger fish-eg CUE
Fish that are efficient convertors of food sources into growth thrive -eg pateke-and take more than their share-24% !
Fish that find new food sources tend to be successful-?Indonesia, etc

NZO is a survivor in heavy seas
So far Zeta is steering nzo in directions I like.

[fish]

Dodgy whats your opinion on future oil prices?

We can only speculate but I see them doubling sometime in this decade -cheap oil prices are leading to increased use-more industrial plant using oil,more cars etc.
Sooner or later market forces will drive oil price up.
The survivors in oil production-especially the predators who are eating distressed producers,should do well.

[dodgy]

Dodgy whats your opinion on future oil prices?

We can only speculate but I see them doubling sometime in this decade -cheap oil prices are leading to increased use-more industrial plant using oil,more cars etc.
Sooner or later market forces will drive oil price up.
The survivors in oil production-especially the predators who are eating distressed producers,should do well.

Morning Fish.
Nice answer. Obviously all speculation is no more than a crap shoot at best. I seriously think geopolitical/religious risk within Saudi/Yemen, middle east, Nigeria etc. may well bring the world a major step closer to conflict and this will result in supply restraints of crude and increasing price, even maybe above the previous peak. So I concur with your view. You have left one of my questions hanging - opinion?
Have a happy day.
-d

[fish]

I like what Andrew Knight has done and havnt heard of him planning to move.
He has been a good catch
Tides always turn
Don't know if zeta are poisoning the water
Don't know if an attractive bait is being dangled in front of him

[digger]

I like what Andrew Knight has done and havnt heard of him planning to move.
He has been a good catch
Tides always turn
Don't know if zeta are poisoning the water
Don't know if an attractive bait is being dangled in front of him

Hi Fish, I have not commented much lately. Just dosen't seem much point. The oil price will rebound in about the middle of 2016 for no other reason than that will be about how long it will take to defeat the poor cash flow companies and for world production to drop to meet demand. In the meantime I hope the only drilling we [NZO} do is on wall street so to speak. It is good to hear that the current management is looking in that direction. It could be risky and at the same time maybe profitable to go back into debt to fund more acquistions. Indonesia has yet to prove itself and I certainly will be watching that area.

Any thoughts on that one.


In the meantime I will just wait it out.

[notie]

I like what Andrew Knight has done and havnt heard of him planning to move.
He has been a good catch
Tides always turn
Don't know if zeta are poisoning the water
Don't know if an attractive bait is being dangled in front of him

The unfortunate news is NZOG is living off the spoils of yesterday.
Kupe discovered in 1986
Tui discovered by their JV partner in early 2000's.

They have not discovered anything like this to replace these assets. Sure Kupe will keep chugging along, but those expensive NZOG offices, board and staff need paying in the meantime.

This company has promised a lot over the years but has failed to deliver time and time again. Most recently was after the GFC when they raised 150M on a rights issue off the back of Tui and then blew much of that money on bailing out Pike.

Now their big focus seems to be on SE Asia with their Indo assets, but they are a minority partner in a PSC deal which will see them make about 20c, so no material change to the business.

Now they have purchased 40+% of Cue. Now what? Is that going to be any better than their previous investments in Pike River and PPP?

As for the capital return, that clearly shows they have no idea what so ever what they are doing. If they truly were the explorers from NZ, then 60M would have got them some good drilling action. Generally that is the way you find oil.

Call me a cynic, but the results and continued trash talk from this company speaks volumes

[skid]

Now, why would we call you that Notie?:)

[fish]

[QUOTE=digger;567068]Hi Fish, I have not commented much lately. Just dosen't seem much point. The oil price will rebound in about the middle of 2016 for no other reason than that will be about how long it will take to defeat the poor cash flow companies and for world production to drop to meet demand. In the meantime I hope the only drilling we [NZO} do is on wall street so to speak. It is good to hear that the current management is looking in that direction. It could be risky and at the same time maybe profitable to go back into debt to fund more acquistions. Indonesia has yet to prove itself and I certainly will be watching that area.

Any thoughts on that one.

Good to see you post again digger.
I find it very difficult to take a position on when oil price will rebound.
Cheap oil is fostering increased demand-around 91m bpd a year ago to 93bpd now and the IEA estimating 95bpd in 12 months.
It is cheaper to buy companies who have found oil than it is to drill so I think we will see a big drop in exploration.
The Arab World is in turmoil and this will curtail investment and future production .I don't see iran increasing production by much even if sanctions are lifted.
So the oil price will rebound and in theory the longer we have depressed prices the steeper will be the rebound .

In the meantime I see nzog doing ok from long-term gas contracts and increased pateke production with a 24% share this time.Tapis quality oil that has a premium over Brent.
48% of cue at 10 cents per share looks a bargain-better than drilling

Indonesia I havnt researched-looks as if costs are recouped quickly then the Indonesians get 4/5.
?could this result in delaying tactics until poo rebounds.

[dodgy]

The unfortunate news is NZOG is living off the spoils of yesterday.
Kupe discovered in 1986
Tui discovered by their JV partner in early 2000's.

They have not discovered anything like this to replace these assets. Sure Kupe will keep chugging along, but those expensive NZOG offices, board and staff need paying in the meantime.

This company has promised a lot over the years but has failed to deliver time and time again. Most recently was after the GFC when they raised 150M on a rights issue off the back of Tui and then blew much of that money on bailing out Pike.

Now their big focus seems to be on SE Asia with their Indo assets, but they are a minority partner in a PSC deal which will see them make about 20c, so no material change to the business.

Now they have purchased 40+% of Cue. Now what? Is that going to be any better than their previous investments in Pike River and PPP?

As for the capital return, that clearly shows they have no idea what so ever what they are doing. If they truly were the explorers from NZ, then 60M would have got them some good drilling action. Generally that is the way you find oil.

Call me a cynic, but the results and continued trash talk from this company speaks volumes

Hi Notie (cynical or otherwise - at least not blindly faithful)
Absolutely on the money !! Where did I get the impression the head fish may swim away , asks fish? I think it was on a TV1 or TV3 piece filmed around conference time. Anybody confirm?
Thanks
-d

[swissboy]

Who is making a Take Over bid for PPP right now??????????????????

[swissboy]

It is Zeta Energy

[dodgy]

It is Zeta Energy

Hi Swissboy
And what surprises me about that !!
Have a good weekend.
-dodgy (owner/shareholder)

[digger]

Hi Swissboy
And what surprises me about that !!
Have a good weekend.
-dodgy (owner/shareholder)

What is surprising is that at 5 cents it is just slightly over priced[no] .Also with this spirited offer it quite rightly does not rate a mention on the PPP thread. Did Zeta not pay 9 cents for their 19.9 % so they are saying they made a very poor decision buying in beforehand.
I should think they will get little acceptance at this low offer.

[dodgy]

What is surprising is that at 5 cents it is just slightly over priced[no] .Also with this spirited offer it quite rightly does not rate a mention on the PPP thread. Did Zeta not pay 9 cents for their 19.9 % so they are saying they made a very poor decision buying in beforehand.
I should think they will get little acceptance at this low offer.

Hi Digger
Do you have a holding in PPP . If so we will both have to be pretty careful to time any exit without doing dough.
Discl. CUE, NZO, PPP.
-dodgy (owner/shareholder)

[micket]

probably a shill bid on behalf of nzo. if the cue board have any balls perhaps they could make a slighty better offer. then it really would get interesting. right up TR s street.
I dont think they will find this quite so easy as cue.

[dodgy]

Hi micket
I think TR is a bit past it - don't you think?
Regards
-dodgy (owner/shareholder)

[tim23]

Mega merger on the way? NZO/CUE/PPP = Zeta?

[Corporate]

I'm expecting NZO to sell their PPP shares to Zeta

[digger]

I'm expecting NZO to sell their PPP shares to Zeta

Yes that had occurred to me as well,just as Zeta sold their Cue to NZO. So yes again as tim23 says a mega merger on the way.
I have somewhat over 2 million PPP but they stay in my name until the present spirited offer is at least double. Maybe even more.

[digger]

Hi Digger
Do you have a holding in PPP . If so we will both have to be pretty careful to time any exit without doing dough.
Discl. CUE, NZO, PPP.
-dodgy (owner/shareholder)

I have just over 2 million and while they were worth a lot more years ago they probably owe me nothing. The first lot came way back when NZO gave them to us. I then bought some more but they also gave us two lots of money one being a capital return. I could probably sell to Zeta and be in the black if you do not count capital cost time. My naturally greed wants a lot more than 5 cents but I am sure Zeta will find a few suckers---just be sure you are not one of them.

[Corporate]

I have just over 2 million and while they were worth a lot more years ago they probably owe me nothing. The first lot came way back when NZO gave them to us. I then bought some more but they also gave us two lots of money one being a capital return. I could probably sell to Zeta and be in the black if you do not count capital cost time. My naturally greed wants a lot more than 5 cents but I am sure Zeta will find a few suckers---just be sure you are not one of them.

Digger, unfortunately I doubt they will increase the offer. This will go the same was as CUE has. The question is whether NZO is a buy...there could be a merger on the cards soon.

[fish]

Digger, unfortunately I doubt they will increase the offer. This will go the same was as CUE has. The question is whether NZO is a buy...there could be a merger on the cards soon.
It looks a good strategy-
When the price of oil Is low and cue and ppp are cheap
nzo gets a controlling share of cue-including by buying from Todd energy and ZETA.
Zeta has cash available to make a low offer for PPP
They don't need to buy more than around 20% before nzo and Zeta combined have a controlling share.
A merger then is the most likely next step.
Big savings can then be made in management
Numerous synergies and shared Knowledge.
So far I like this scenario

[fish]

. The question is whether NZO is a buy...there could be a merger on the cards soon.
This really is an interesting question.
Zeta will be in it for themselves .
The Cue sp has fallen as expected now the offer is over.
The same could happen with PPP
At 5 cents a share Zeta investment in ppp will be very small.
Their investment in nzo has been big.
Cue and most likely ppp could be forced into merging with nzo on terms based on a low sp for cue and ppp(with no prospect of dividends or capital return who would want to buy into these companies? )
So my thoughts are it could be very positive for nzo but not ppp.
Disclosure-I hold far too many nzo and PPP so nzo is never again on my buying list

[dingoNZ]

NZO has said that if it is deemed 'appropriate' they may delist CUE in the future, I wouldn't be surprised if a mega-merger is in the works.

[Joshuatree]

Too confusing for this head.Saville imo like Hart tends to leave nothing on the table for anyone else esp us shareholders.Hope I'm wrong here.

[digger]

Is this for real?? :confused:

PPP's assets include a 15 percent interest in the Tui field with NZ Oil & Gas, which has just closed a takeover offer for Melbourne based Cue Energy Resources with the intention of scaling acceptances back to 30 percent.

Source: http://www.sharechat.co.nz/article/9be5ede0/zeta-resources-makes-bid-for-pan-pacific-petroleum-valuing-target-at-a-29-4m.html

If true, and I have seen no other mention of scaling the takeover offer, then the grand merger scheme seems somewhat unlikely.

This sounds like a April Fool stunt. If you make a Takeover you can not then scale it back to 30%. That to my mind would negate the takeover code,as I understand it. Are you sure you did not get mixed up with a comment from NZO during the offer when they said they[nzo] would be happy with 30% if that is what they ended up with.?

[freddagg]

Is this for real?? :confused:

PPP's assets include a 15 percent interest in the Tui field with NZ Oil & Gas, which has just closed a takeover offer for Melbourne based Cue Energy Resources with the intention of scaling acceptances back to 30 percent.

Source: http://www.sharechat.co.nz/article/9be5ede0/zeta-resources-makes-bid-for-pan-pacific-petroleum-valuing-target-at-a-29-4m.html

If true, and I have seen no other mention of scaling the takeover offer, then the grand merger scheme seems somewhat unlikely.

Misreported I would guess.
I have NZOGs money for my Cue shares in my bank and they aren't getting any back.

[sideline]

Misreported I would guess.
I have NZOGs money for my Cue shares in my bank and they aren't getting any back.

This story was also on the NBR website dated Friday and credited to some Jonathan Underhill.
Both sources are word for word identical and quote as the 'ultimate' source businessdesk.co.nz
Seems NBR has replaced its journalistic department with a somewhat unreliable ticker feed.

[BlackPeter]

This story was also on the NBR website dated Friday and credited to some Jonathan Underhill.
Both sources are word for word identical and quote as the 'ultimate' source businessdesk.co.nz
Seems NBR has replaced its journalistic department with a somewhat unreliable ticker feed.

Have to agree with this observation - it must be some time ago that I remember to have read a properly researched article from NBR. I still like some of their opinion pieces (but there are less and less which are worthwhile reading either) and they certainly are not any more worth what they are charging (if they ever have been).

[micket]

thats good, Allan T buying ppp shares. zeta have got a fight on. Reckon I might buy a few more.

Could well be a better bid from nzo before expiry of zeta bid, probably nzo script.

[BlackPeter]

Gosh - deafening silence on this thread since balance got banned - you might even believe there is now some upwards potential in this stock ;)
(note: based on my highly unscientific survey do stocks without a lot of noise on their threads perform in average better than stocks with a high daily post rate)

Quarterlies are out - and nobody so far seemed to have noticed: https://www.nzx.com/files/attachments/212040.pdf and https://www.nzx.com/files/attachments/212041.pdf

and actually - not a too bad quarter:

positive cash flow (plus $8 odd million) - first time this year
successful takeover of CUE (and if I look at the recent oil price trend, than their timing was not too bad, either) and
the oil flows in Pakete-H4 ...
ah yes - and they propose a share buy back program (meeting later in May)

If we add the current oil price trend (this morning we had another 3 month high for Brent crude) to the picture ...

I am feeling cautiously optimistic.

Discl: holding (some) - and as usual, DYOR;

[dodgy]

Gosh - deafening silence on this thread since balance got banned - you might even believe there is now some upwards potential in this stock ;)
(note: based on my highly unscientific survey do stocks without a lot of noise on their threads perform in average better than stocks with a high daily post rate)

Quarterlies are out - and nobody so far seemed to have noticed: https://www.nzx.com/files/attachments/212040.pdf and https://www.nzx.com/files/attachments/212041.pdf

and actually - not a too bad quarter:

positive cash flow (plus $8 odd million) - first time this year
successful takeover of CUE (and if I look at the recent oil price trend, than their timing was not too bad, either) and
the oil flows in Pakete-H4 ...
ah yes - and they propose a share buy back program (meeting later in May)

If we add the current oil price trend (this morning we had another 3 month high for Brent crude) to the picture ...

I am feeling cautiously optimistic.

Discl: holding (some) - and as usual, DYOR;

Hi BlackPeter
Yes things are a bit quiet. The quarter was the same old - loved the oil awaiting dispatch. However, I am more interested in the special meeting - Wellington again, whereas I guess the majority of retail shares are held north of the Bombays. Less owner/shareholders attending means an easier ride , less sausage rolls aside!
The idea that once again the company spend our funds on buying back shares is, as usual, a fools errand. Every time this company buys back the share price stabilizes or advances momentarily then proceeds South. In other words - waiting longer, to date, has opened a cheaper repurchase option - look back at their record. If NZO are awash in cash either return capital or preferably pay a dividend. In this country dividends are highly prized and longer term generally increase share value. Best of all the owners (us) of the dividends get to choose (yes choose) how to spend the payment. Not only for the benefit of the larger players consolidation plans - think Zeta, PPP, and Cue.
Hope that helps liven your days thoughts.
Regards
-dodgy (owner / shareholder - dividend spending wife)

[777]

Already voted against the buy back. Excess funds should be used as dividend payments.

[notie]

Looks like another failed idea to get the share price up. Clearly this company ran out of ideas a long time ago and time for a large broom to go through there and clear out the board and senior management.
This ranks up with other similar failures in recent years
Brought PPP shares, but now look to be selling them to Zeta for a lot less than they paid for them-great investment
Raised 150M on a rights issue and then pumped a large amount of money into Pike
Ran out of ideas recently so paid some of the money back to shareholder via a capital return

[Sayce]

I too have voted against the share buy back.
My reasons are directly related to the Simmons Corporate Finance report. In this document their treatment of the central issue is so inadequate as to be a joke. The main issue that should have been addressed is the quality of the use of the funds involved. The central question should have been “what alternatives could these funds be used for and how well do they compare with the proposed use?” This is the standard opportunity cost criterion, that should be the keystone of any investment decision.

[dodgy]

Too confusing for this head.Saville imo like Hart tends to leave nothing on the table for anyone else esp us shareholders.Hope I'm wrong here.

Hi Joshuatree
NEVER confuse Harty with Saville. By comparison Saville drives with learner plates and his targets are somewhat lame.
Have a good weekend.
-dodgy ( owner/shareholder - very critical of NZ governance and management - generally help themselves before the owners).

[pietrade]

Already voted against the buy back. Excess funds should be used as dividend payments.

I'm with you there.

[BlackPeter]

Wow - some interest this morning - and up to 62 cents! If it manages to keep this level than today is the day it managed to push back through the MA 100. First indicator for a possible trend change? I guess the healthier oil price certainly helps ...

[Joshuatree]

Hi Joshuatree
NEVER confuse Harty with Saville. By comparison Saville drives with learner plates and his targets are somewhat lame.
Have a good weekend.
-dodgy ( owner/shareholder - very critical of NZ governance and management - generally help themselves before the owners).

The similarity is that neither is good for shareholders; please show me if I'm incorrect here.

[dodgy]

The similarity is that neither is good for shareholders; please show me if I'm incorrect here.

Hi Joshuatree
I agree with you and was just pointing out what I saw as differing objectives and abilities of the two.
Regards
-d

[tim23]

Gee - a reasonable day again on okay volume any theories see average broker valuation 76c (only 2 brokers though), anyway maybe people seeing value.

[fabs]

Gee - a reasonable day again on okay volume any theories see average broker valuation 76c (only 2 brokers though), anyway maybe people seeing value.

76c?

Yes bring it on.
If one forecasts blue sky's every day one might bound to be right one day.
Lets hope that principle works here.
Not much else going for this to happen than big increase in O/Ps
Always a real possibility, question is if & when.

[BlackPeter]

Hi team,
just received my "information pack" asking for shareholders approval to allow the proposed share buy back. I noticed that some people in this thread have quite strong opinions on this subject, however personally I haven't yet made up my mind. So lets list the pro's and con's of the proposal as I see them:

So - what speaks for the proposal?
* Share buybacks can be an effective method to stabilise a lagging the share price. For example NPX is currently running a share buyback schema, and brought the SP onto a nice upwards pointing trajectory ...
* If the share is undervalued at buy back time, than buying it back by the company is obviously a great method to increase value for all remaining shareholders. Question - is it currently undervalued? Analyst consensus view seems to suggest so:
http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=NZO:NZC.
* the market seems to react really positively to the proposed share buyback. SP rising, and just noticed that median SP forecast moved overnight up by a notch from 75cts to 85 cts (see link above).

What speaks against the proposal?
* share buybacks sometimes have a funny way to act out - remember e.g. IFT's big share buyback and the SP dropped afterwards like a stone ...
* ZETA is likely to increase its corner stone position by stealth above 20% without paying a premium (actually - without paying anything);
* an admission that directors might be clueless to find in the current target rich environment no better way to increase the companies value than by buying its own shares (but than - what harm in letting the truth come out ;)).
* less liquidity of NZX shares after completion of the buyback program (and stock liquidity isn't really flash at current)

So, yes - I do see pros and cons, but still can't see a huge tilt towards either side. I would be interested to hear why some of you strongly oppose the proposal.

[Mr Tommy]

Seems this whole waste of money getting shareholder approval is solely due to ZETAs major holding.
Then again it also benefits the huge number of shares in the employee share scheme!

I see in the quarterly report that Kaheru drilling has been quietly dropped as well, better to spend the money on the buyback?
They also make no mention of the other great achievement this quarter, getting dropped from the NZX50

[dodgy]

Hi team,
just received my "information pack" asking for shareholders approval to allow the proposed share buy back. I noticed that some people in this thread have quite strong opinions on this subject, however personally I haven't yet made up my mind. So lets list the pro's and con's of the proposal as I see them:

So - what speaks for the proposal?
* Share buybacks can be an effective method to stabilise a lagging the share price. For example NPX is currently running a share buyback schema, and brought the SP onto a nice upwards pointing trajectory ...
* If the share is undervalued at buy back time, than buying it back by the company is obviously a great method to increase value for all remaining shareholders. Question - is it currently undervalued? Analyst consensus view seems to suggest so:
http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=NZO:NZC.
* the market seems to react really positively to the proposed share buyback. SP rising, and just noticed that median SP forecast moved overnight up by a notch from 75cts to 85 cts (see link above).

What speaks against the proposal?
* share buybacks sometimes have a funny way to act out - remember e.g. IFT's big share buyback and the SP dropped afterwards like a stone ...
* ZETA is likely to increase its corner stone position by stealth above 20% without paying a premium (actually - without paying anything);
* an admission that directors might be clueless to find in the current target rich environment no better way to increase the companies value than by buying its own shares (but than - what harm in letting the truth come out ;)).
* less liquidity of NZX shares after completion of the buyback program (and stock liquidity isn't really flash at current)

So, yes - I do see pros and cons, but still can't see a huge tilt towards either side. I would be interested to hear why some of you strongly oppose the proposal.

Hi BlackPeter
Seen it all before at around 90c/share? with this mob. And result?
Kind regards
-dodgy (owner/shareholder - far prefers to spend using my div buying more shares - in this company? Zeta/AK leveraged buyout possible?)

[Carpenterjoe]

Hi team,
just received my "information pack" asking for shareholders approval to allow the proposed share buy back. I noticed that some people in this thread have quite strong opinions on this subject, however personally I haven't yet made up my mind. So lets list the pro's and con's of the proposal as I see them:

So - what speaks for the proposal?
* Share buybacks can be an effective method to stabilise a lagging the share price. For example NPX is currently running a share buyback schema, and brought the SP onto a nice upwards pointing trajectory ...
* If the share is undervalued at buy back time, than buying it back by the company is obviously a great method to increase value for all remaining shareholders. Question - is it currently undervalued? Analyst consensus view seems to suggest so:
http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=NZO:NZC.
* the market seems to react really positively to the proposed share buyback. SP rising, and just noticed that median SP forecast moved overnight up by a notch from 75cts to 85 cts (see link above).

What speaks against the proposal?
* share buybacks sometimes have a funny way to act out - remember e.g. IFT's big share buyback and the SP dropped afterwards like a stone ...
* ZETA is likely to increase its corner stone position by stealth above 20% without paying a premium (actually - without paying anything);
* an admission that directors might be clueless to find in the current target rich environment no better way to increase the companies value than by buying its own shares (but than - what harm in letting the truth come out ;)).
* less liquidity of NZX shares after completion of the buyback program (and stock liquidity isn't really flash at current)

So, yes - I do see pros and cons, but still can't see a huge tilt towards either side. I would be interested to hear why some of you strongly oppose the proposal.

Mate, I'm for it,

Don't like Dividends, Mr Tax Man likes them far too much. (but each to their own)

I believe it would bad play from any company whom believes their stock is greatly undervalued to pay out a divi compared to a buy back.

I do agree that the Zeta situation could be of concern. Who would know what they have planned.

New to this company, jumped in at 62 and again at 58, Hopefully I've got this one right. but an Mcap of 200m for a company with +100m revenue and plenty of fat to be trimmed if things got tight.

Good Luck For Your Decision Making!

[dodgy]

Hi all
NZO meeting cancelled? Not all above board? Comments.
-dodgy (owner/shareholder)

[fabs]

Hi all
NZO meeting cancelled? Not all above board? Comments.
-dodgy (owner/shareholder)

The World loves triers.

[BlackPeter]

Hi all
NZO meeting cancelled? Not all above board? Comments.
-dodgy (owner/shareholder)

Ah well - comes a bit late - I seconded the decision already to NZSA (as proxy), but as it now looks like, they don't need to step up.

Looking at the bigger picture ... it appears NZO do have some governance issues - a squeaky clean board would not run into problems like that. Still believe that their SP has some growth potential (with the recovering price of oil) - but they might not be one of these shares I hang on for many years to come ...

[dodgy]

Ah well - comes a bit late - I seconded the decision already to NZSA (as proxy), but as it now looks like, they don't need to step up.

Looking at the bigger picture ... it appears NZO do have some governance issues - a squeaky clean board would not run into problems like that. Still believe that their SP has some growth potential (with the recovering price of oil) - but they might not be one of these shares I hang on for many years to come ...

Hi BlackPeter
And on and on and on !!
There are a few that may benefit greatly - and its not us smaller owner/shareholders. No marks for guessing who.
Regards
-dodgy

[fabs]

Hi BlackPeter
And on and on and on !!
There are a few that may benefit greatly - and its not us smaller owner/shareholders. No marks for guessing who.
Regards
-dodgy

Yes dogy,
commented precisely on this about 6-7 months ago with the summary, this co. might not be around in 12 months time.
And yes not to the advantage of S/Hs with possible many losers.
This co. has such a long negative Track-record with Investors hard to see price moving much, even with O/P rising.
Wish & Hope against all odds, this to be not so but there it goes.

[tim23]

The beauty of the share market is to expect the unexpected - if a takeover/mega merger occurs for NZO then there will be a whole heap of posts saying that they saw it coming including the pessimists!

[fabs]

The beauty of the share market is to expect the unexpected - if a takeover/mega merger occurs for NZO then there will be a whole heap of posts saying that they saw it coming including the pessimists!

Nothing wrong with wishful thinking, but hey bring it on.
However Promise, will not saying saw it coming.
Can't say having seen much evidence in the last 10 odd years of that lot trying.
Was all handed to them at the time in spades, by previous management.
Yes still hoping since, how's that for misguided optimism????

[Onthemoney]

Have a look at announcement by PPP today to sell Tui asset.

NZO to buy and spend some of their cash?

Also note change of Chairman.

[Crackity]

Large capital loss on the bargain basement sale of all the PPP shares held......

[digger]

Large capital loss on the bargain basement sale of all the PPP shares held......


I do not know what sort of cosy arrangement Zeta and NZO have and if it is in the best interest of all shareholders. It is not good enought to say [Crackity] that NZO lost on the PPP sale. It is an arrangement as Zeta lost on the CUE sale to NZO.
some sort of merger of these companies is hoped for but what? It was good that the exchange cancelled the buy back as it clearly was to the benifit of ZETA helping them over the 20% bar limit without a takeover.
I clearly will have to keep an eye on this one as now I believe ZETA has too much say in NZO. TAP on the ASX also has a 20% holder that wanted to run the company and the company opposed. They did this by ringing all shareholders and emailing. Maybe we all should talk this one out. ideas

[digger]

Large capital loss on the bargain basement sale of all the PPP shares held......


I do not know what sort of cosy arrangement Zeta and NZO have and if it is in the best interest of all shareholders. It is not good enought to say [Crackity] that NZO lost on the PPP sale. It is an arrangement as Zeta lost on the CUE sale to NZO.
some sort of merger of these companies is hoped for but what? It was good that the exchange cancelled the buy back as it clearly was to the benifit of ZETA helping them over the 20% bar limit without a takeover.
I clearly will have to keep an eye on this one as now I believe ZETA has too much say in NZO. TAP on the ASX also has a 20% holder that wanted to run the company and the company opposed. They did this by ringing all shareholders and emailing. Maybe we all should talk this one out. ideas

[notie]

I do not know what sort of cosy arrangement Zeta and NZO have and if it is in the best interest of all shareholders. It is not good enought to say [Crackity] that NZO lost on the PPP sale. It is an arrangement as Zeta lost on the CUE sale to NZO.
some sort of merger of these companies is hoped for but what? It was good that the exchange cancelled the buy back as it clearly was to the benifit of ZETA helping them over the 20% bar limit without a takeover.
I clearly will have to keep an eye on this one as now I believe ZETA has too much say in NZO. TAP on the ASX also has a 20% holder that wanted to run the company and the company opposed. They did this by ringing all shareholders and emailing. Maybe we all should talk this one out. ideas

Clearly the Zeta tail is wagging.....not much hope for the rest of the shareholders if such sweetheart deals are done between nzo and zeta on ppp. the ppp directors think it is worth more, but whatever the independent directors of nzo think, it is now zeta calling all the shots.

shareholders should be asking why not let ppp sell the tui asset and return the capital to all the shareholder including nzo at 7.5-12c shares, so the cosy and frankly cheap 5c nz that nzo sold them to zeta.
remember that strategic purchase of ppp by nzo several years was at a much higher price, so another savy move by the nzo board....not

these guys appear to be sleep walking into a takeover

[dodgy]

I do not know what sort of cosy arrangement Zeta and NZO have and if it is in the best interest of all shareholders. It is not good enought to say [Crackity] that NZO lost on the PPP sale. It is an arrangement as Zeta lost on the CUE sale to NZO.
some sort of merger of these companies is hoped for but what? It was good that the exchange cancelled the buy back as it clearly was to the benifit of ZETA helping them over the 20% bar limit without a takeover.
I clearly will have to keep an eye on this one as now I believe ZETA has too much say in NZO. TAP on the ASX also has a 20% holder that wanted to run the company and the company opposed. They did this by ringing all shareholders and emailing. Maybe we all should talk this one out. ideas

Digger
It sounds to me that you are finally waking to reality after sleep-walking your large investment. I guess directors and management have added very little or anything to your and my gross worth except for platitudes, hopes , dreams, propaganda and cheap sausage rolls. However I think it is now too late to shut the stable door - all things considered a sad investment in our cases.
Regards
-dodgy (owner/shareholder - dismayed participant.)

[Crackity]

Hi Digger

it does seem to me that there is an undisclosed quid pro quo here - I was surprised zeta accepted the cue on market bid and delivered control of that company to NZOG. Likewise I am surprised NZOG has accepted the Zeta PPP bid. From memory NZOG paid over 30 cents per PPP share - granted since then there has been a 5 cents per share capital return. However there still has been a large capital loss as per my initial statement even before you account for the time value of money and holding costs. In my opinion PPP at 5 cents is a bargain basement price - an orderly sale process of assets should realise more and maybe substantially more.

So far Notie has been on the money with his exceedingly critical posts for the last few years.....

[the machine]

Hi Digger

it does seem to me that there is an undisclosed quid pro quo here - I was surprised zeta accepted the cue on market bid and delivered control of that company to NZOG. Likewise I am surprised NZOG has accepted the Zeta PPP bid. From memory NZOG paid over 30 cents per PPP share - granted since then there has been a 5 cents per share capital return. However there still has been a large capital loss as per my initial statement even before you account for the time value of money and holding costs. In my opinion PPP at 5 cents is a bargain basement price - an orderly sale process of assets should realise more and maybe substantially more.

So far Notie has been on the money with his exceedingly critical posts for the last few years.....

In AU the 5c capital return came with substantial tax credits - hard to put a value on the tax credits as each shareholder has there're own taxation position. For me it was worth say 2c au per share.
What tax credits applied to NZ shareholders I do not know - but if similar to AU then it was worth more than the 5c face value

The value of PPP took a bit hit when the holes around Tui were uncommercial, with the loss only now being realised with the sale of the PPP 14.9999%
[I no longer hold ppp]

M

[Bella52]

Hi Digger

it does seem to me that there is an undisclosed quid pro quo here - I was surprised zeta accepted the cue on market bid and delivered control of that company to NZOG. Likewise I am surprised NZOG has accepted the Zeta PPP bid. From memory NZOG paid over 30 cents per PPP share - granted since then there has been a 5 cents per share capital return. However there still has been a large capital loss as per my initial statement even before you account for the time value of money and holding costs. In my opinion PPP at 5 cents is a bargain basement price - an orderly sale process of assets should realise more and maybe substantially more.

So far Notie has been on the money with his exceedingly critical posts for the last few years.....



The 30 c price is irrelevant, the only relevant pricing is forward looking, Knight said it in the paper last week, how much do you think you will get back by holding your shares. less than 5c then sell, if you think you're going to get more than 5c hold.

the value destruction by these guys is the game of why you all invest, if Oi had come in you would have thought they were hero's. it's exploration people, get over it and stop the bleating. if you don't like it sell and put your money in the bank.

[fabs]

Always thought S/H stood for Shareholder, Turns out to be === SAND HEAD.

[digger]

The 30 c price is irrelevant, the only relevant pricing is forward looking, Knight said it in the paper last week, how much do you think you will get back by holding your shares. less than 5c then sell, if you think you're going to get more than 5c hold.

the value destruction by these guys is the game of why you all invest, if Oi had come in you would have thought they were hero's. it's exploration people, get over it and stop the bleating. if you don't like it sell and put your money in the bank.

Your on to it Bellla52. It is only in hindsight that we can make the statement that such and such is a good or otherwise investment.Unfortunately for us in oil exploration it has not gone well this last decade.

[Bella52]

Always thought S/H stood for Shareholder, Turns out to be === SAND HEAD.


if you're going to put your head in the sand make sure someone is turning your legs, with a bit of luck you might get deep enough to find some oil

[Bella52]

Looks like Allan Tattersfield reads this thread, he is now a seller.

[pietrade]

Rather than recouping at least some benefit from the sell-down of the PPP assets, NOG's pathetic bunch of incompetent directors sold out Nog's PPP stake at a giveaway price. This betrayal causes other dominoes to fall - Alan Tattersfield sells.................

Any talk of collusion, for Zeta to gain the lot at bargain prices really hits the nail on the head, and describes a disgusting betrayal of both NZO and PPP shareholders.

Truth is Treason in the Empire of Lies.

[dodgy]

Rather than recouping at least some benefit from the sell-down of the PPP assets, NOG's pathetic bunch of incompetent directors sold out Nog's PPP stake at a giveaway price. This betrayal causes other dominoes to fall - Alan Tattersfield sells.................

Any talk of collusion, for Zeta to gain the lot at bargain prices really hits the nail on the head, and describes a disgusting betrayal of both NZO and PPP shareholders.

Truth is Treason in the Empire of Lies.

Hi Pietrade
I think we all agree with you. Bella52 suggests that exploration is risky and get over it. Maybe the methods he/she has for investing are bomb proof. I invested based on trust, assumed integrity, and a degree of expertise by the manager and governance at that time. PPP has demonstrated none , the best example of over risking was the all or nothing Oi watering hole and subsequent demise of that company. I warned months ago of Zetas agenda and are now of the belief that they will wrap up NZO for a song - not even sung well.
Where to from here.
Regards
-dodgy (owner/shareholder/mug.)

[fabs]

In short its called Shafting the S/Hs.

[Crackity]

Hear hear Dodgy - I sold all my PPP the day the Oi craziness was announced - it seemed like a fools bet to me and was such a huge gamble compared to the size of the company and cash reserves at the time....

[dodgy]

Hear hear Dodgy - I sold all my PPP the day the Oi craziness was announced - it seemed like a fools bet to me and was such a huge gamble compared to the size of the company and cash reserves at the time....

UNDERSTATEMENT !!!

-d

[Crackity]

I don't understand how come fabs and pie trade have thumbs down for their comments - please point me in the right direction to give them a thumbs up!

[Options]

Trying to find some information on Zeta Resources Limited, the major shareholder. The Companies office only has a struck of company under that name. Can anyone shed some light on Zeta?

Thanks

[winner69]

Trying to find some information on Zeta Resources Limited, the major shareholder. The Companies office only has a struck of company under that name. Can anyone shed some light on Zeta?

Thanks

http://zetaresources.co/

There is comment on them through this thread as well

[Onthemoney]

http://zetaresources.co/

There is comment on them through this thread as well

This from their Web page - PPP is under valued....

Strategy

Zeta’s aim is to maximise total returns for shareholders by identifying and investing in assets and companies where the underlying value is not reflected in the market price. The company invests in a range of resources entities, including those focused on oil and gas, gold and base metals exploration and production.

[winner69]

I don't understand how come fabs and pie trade have thumbs down for their comments - please point me in the right direction to give them a thumbs up!

Good question .... never ever noticed the yhumbs down ..... wonder how you do that as well

A few pietrade posts have an ANGRY symbol as well

[fabs]

Interesting Take.

Corporate CEOs are tired of the drudgery of actually running a business, and have grown cocky after years of rising share prices. Combine these two attitudes with the aforementioned easy money and you get empire building. In other words, today’s buyers are thinking mainly about future cocktail parties and industry conventions where they’ll be treated like royalty. Shareholder value is taken for granted. The inevitable result is a string of deals done at prices that will look insanely inflated a few years from now.

[pietrade]

Cue acquires US conventional onshore oil production.

Current production from the field is approximately 90 barrels of oil per day and the acquisition
is expected to add approximately 300,000 barrels of 2P reserves net to Cue. This is an
increase of 7-10% to Cue’s daily oil production and more than 10% to Cue’s 2P liquids
reserves.
The Pine Mills field includes 14 currently producing, conventional, vertical wells, two water
injection wells and a further 13 currently inactive wells. Cue believes that there is significant
opportunity to quickly increase production from the Pine Mills field through the low cost
workover of producing and inactive wells.
The Pine Mills field taps the prolific Woodbine trend, which includes the East Texas oil field,
150km to the east of Pine Mills, which has produced more than 5.4 billion barrels of oil since
its discovery in 1930

http://www.asx.com.au/asxpdf/20150605/pdf/42z10fgkwpk0pd.pdf

Might help the NZO shareprice.

[fabs]

YES, while any oil is good for the co. it is only so for the S/H if the net profit margin is large enough, IN TIME.

[fabs]

Are we observing a gradual ratcheting down of the S/P price, regardless of where the O/P goes???

[trader_jackson]

Yes seems a bit odd, management need to do another capital return because that worked wonders for shareholders! (I'm kidding if anyone couldn't pick up the sarcasm)

[neopoleII]

in my case the capital return was enough to pay for a barn conversion into a fully decked out workshop that is just about a profitable home business that will allow me to
be self employed in the not too distant future. of course i could have done this years ago without investing in shares..... but back then i thought listed company directors
knew more about creating wealth than little ol' me..... which is why i invested in those i thought were better than me..... now i only invest in myself, and the capital return
was a positive thing for me....... more psychologically than financially ....... with the former being more important in wealth creation than the later..... so i have learnt.

[Crackity]

without sounding too touchy frely new age Greeny supporter that is a cool post Neopole!

[notie]

In keeping with the title "the Explorers from NZ", NZOG have surrendered another piece of dirt in the Taranaki Basin, 54857, before they did some 3D seismics or drilled a well. Clearly this is a great way to explore, by not exploring.

[Bella52]

In keeping with the title "the Explorers from NZ", NZOG have surrendered another piece of dirt in the Taranaki Basin, 54857, before they did some 3D seismics or drilled a well. Clearly this is a great way to explore, by not exploring.

maybe they shot some seismic (like the did) did some work on it and decided it wasn't worth additional investment. It's that what they are meant to do?

[Bella52]

In keeping with the title "the Explorers from NZ", NZOG have surrendered another piece of dirt in the Taranaki Basin, 54857, before they did some 3D seismics or drilled a well. Clearly this is a great way to explore, by not exploring.

maybe they shot some seismic (like the did) did some work on it and decided it wasn't worth additional investment. Isn't that what they are meant to do?

[sideline]

They did 2D seismic.
To keep the permit they would have needed to do 3D seismic but apparently nothing worth following up was discovered during the 2D exploration.
This permit is also one of the few where NZOG has 100% of the risk, so a farmout of some risk would have been desirable.
That could be difficult in the current climate.

Frankly I prefer if they buy up reserves and production cheaply on the sharemarket as with CUE.
The Explorer thing is more a bit of nostalgia.

[digger]

They did 2D seismic.
To keep the permit they would have needed to do 3D seismic but apparently nothing worth following up was discovered during the 2D exploration.
This permit is also one of the few where NZOG has 100% of the risk, so a farmout of some risk would have been desirable.
That could be difficult in the current climate.

Frankly I prefer if they buy up reserves and production cheaply on the sharemarket as with CUE.
The Explorer thing is more a bit of nostalgia.

Quite right sideline. The oil world has changed with the hugh and unexpected crude price drop last year. There are quite a number of cash stressed oil companies that need taken out of their misery that just might not make it through this downturn. That is where we should be doing our exploring. In other words change with the changing world.
So on 29th of July a special cUE meeting is being called by a greater than 5% holder. That must be NZO calling the meeting. Anyone know if CUE currently has any other holder with more than 5% ? Is this meeting being called to merge with NZO,which is my take? If so probably a script swap.But remember just my thoughts.

[dodgy]

Quite right sideline. The oil world has changed with the hugh and unexpected crude price drop last year. There are quite a number of cash stressed oil companies that need taken out of their misery that just might not make it through this downturn. That is where we should be doing our exploring. In other words change with the changing world.
So on 29th of July a special cUE meeting is being called by a greater than 5% holder. That must be NZO calling the meeting. Anyone know if CUE currently has any other holder with more than 5% ? Is this meeting being called to merge with NZO,which is my take? If so probably a script swap.But remember just my thoughts.

Good evening Digger,
Yes you are right, NZO called the CUE meeting. I strongly suggest that all the machinations at NZO, PPP, and CUE will result in absolutely no benefit for minority owners of these companies, but a very cheap acquisition/consolidation for Zeta Resources - the common thread. Your take?
Regards

-dodgy (owner/shareholder - increasingly dismayed with the outlook.)

[sideline]

Quite right sideline. The oil world has changed with the hugh and unexpected crude price drop last year. There are quite a number of cash stressed oil companies that need taken out of their misery that just might not make it through this downturn. That is where we should be doing our exploring. In other words change with the changing world.
So on 29th of July a special cUE meeting is being called by a greater than 5% holder. That must be NZO calling the meeting. Anyone know if CUE currently has any other holder with more than 5% ? Is this meeting being called to merge with NZO,which is my take? If so probably a script swap.But remember just my thoughts.

Hi digger,
yes, NZOG have called for the meeting.
The motion put to vote is to remove two of the independent directors, which would leave four directors,
three of which have been appointed by NZOG. So it is just to shore up NZOG's control over CUE to better line
up the synergies and cooperation between the companies, I suppose.

[Crackity]

Those synergies being 1 + 1 = 1 and a half?

[fabs]

[QUOTE=dodgy;576890]Good evening Digger,
Yes you are right, NZO called the CUE meeting. I strongly suggest that all the machinations at NZO, PPP, and CUE will result in absolutely no benefit for minority owners of these companies, but a very cheap acquisition/consolidation for Zeta Resources - the common thread. Your take?
Regards

Are you suggesting dodgy,
that the rest of the board is that useless that ZETA can have its wicked way with the co. where it will end up.
Or the rest of management "has a cunning plan" to be acquiescent and compliant, for reasons best known only to them.
The S/Hs should be shuddering at the thought,either way.
I personally would not be surprised.

[dodgy]

[QUOTE=dodgy;576890]Good evening Digger,
Yes you are right, NZO called the CUE meeting. I strongly suggest that all the machinations at NZO, PPP, and CUE will result in absolutely no benefit for minority owners of these companies, but a very cheap acquisition/consolidation for Zeta Resources - the common thread. Your take?
Regards

Are you suggesting dodgy,
that the rest of the board is that useless that ZETA can have its wicked way with the co. where it will end up.
Or the rest of management "has a cunning plan" to be acquiescent and compliant, for reasons best known only to them.
The S/Hs should be shuddering at the thought,either way.
I personally would not be surprised.

Good morning Fabs
Research what has happened to date - you could be led to draw this conclusion. Time will be the judge but it may be too late for most of us by then.
-d

[fish]

[QUOTE=fabs;576933]

Good morning Fabs
Research what has happened to date - you could be led to draw this conclusion. Time will be the judge but it may be too late for most of us by then.
-d

There is an alternative point of view.
Mine is based on 28 years of investing large sums in shares but I am still learning and consider all points of view.
I am one of the few shareholders that took TPP to court and won-and upheld on appeal.
They had tried to take out minority shareholders at an unfair price

[fish]

[QUOTE=dodgy;576890]Good evening Digger,
Yes you are right, NZO called the CUE meeting. I strongly suggest that all the machinations at NZO, PPP, and CUE will result in absolutely no benefit for minority owners of these companies, but a very cheap acquisition/consolidation for Zeta Resources - the common thread. Your take?
Regards

Are you suggesting dodgy,
that the rest of the board is that useless that ZETA can have its wicked way with the co. where it will end up.
Or the rest of management "has a cunning plan" to be acquiescent and compliant, for reasons best known only to them.
The S/Hs should be shuddering at the thought,either way.
I personally would not be surprised.

Fabs could you explain why nzo shareholders will be disadvantaged by the machinations of Zeta.
So far they seem to have lost a lot of money by their investment in NZO and enabled a capital return much to my advantage.

[dodgy]

[QUOTE=fabs;576933]

Fabs could you explain why nzo shareholders will be disadvantaged by the machinations of Zeta.
So far they seem to have lost a lot of money by their investment in NZO and enabled a capital return much to my advantage.

Good morning Fish
My original comment encompassed NZO, CUE, PPP. It seems to me that all three will end rolled up into ZETA. Trying to stop this is impossible in my opinion and I don't have the prerequesite strength for battles.
Regards
-dodgy

[notie]

[QUOTE=fish;576964]

Good morning Fish
My original comment encompassed NZO, CUE, PPP. It seems to me that all three will end rolled up into ZETA. Trying to stop this is impossible in my opinion and I don't have the prerequesite strength for battles.
Regards
-dodgy

Dodgy is right, Zeta will take over all of them in due course and while it might loose some money in the short term, it will make a lot more in the future. NZOG production revenue from Kupe is pretty attractive, but the company's overheads aren't, so most of the staff and offices would go.

[fabs]

While the beginning of the year payout may very well have been a reaction to what may now gradually unfolds.
Namely similar concerns by the then existing management echoed by dodgy's last post.
S/Hs wealth has been steadily eroded in spite of oil having steadied for quite some time now nearly10% above its low, so still on a downward path.
But management still happily raking it inhaving very little to do.
Buying out COs. with profitable production income will hardly be in trouble and cheap and its doubtful whether nzo has anything worthwhile to explore at the moment.
Nor seemingly have the expertise to find anything to make this co.go anywhere.
Rather if the S/P get down to a certain level it could become very exiting.

[ziggy415]

While the beginning of the year payout may very well have been a reaction to what may now gradually unfolds.
Namely similar concerns by the then existing management echoed by dodgy's last post.
S/Hs wealth has been steadily eroded in spite of oil having steadied for quite some time now nearly10% above its low, so still on a downward path.
But management still happily raking it inhaving very little to do.
Buying out COs. with profitable production income will hardly be in trouble and cheap and its doubtful whether nzo has anything worthwhile to explore at the moment.
Nor seemingly have the expertise to find anything to make this co.go anywhere.
Rather if the S/P get down to a certain level it could become very exiting.
they stop drilling they get crusified....they buy producing assets they get crucified....me thinks nzog just cant win.....but my Fabsometer tells me its time to buy back in......again...one thing that concerns me is the cost to disestablish the Tui rig....Matuku being dry was a blow to the longevity of tui...but hey i have faith in nzo management to do the right thing

[ziggy415]

they stop drilling they get crusified....they buy producing assets they get crucified....me thinks nzog just cant win.....but my Fabsometer tells me its time to buy back in......again...one thing that concerns me is the cost to disestablish the Tui rig....Matuku being dry was a blow to the longevity of tui...but hey i have faith in nzo management to do the right thing
maybe if we just cut the ropes on the rig it will float away one stormy night

[dodgy]

[QUOTE=dodgy;576966]

Dodgy is right, Zeta will take over all of them in due course and while it might loose some money in the short term, it will make a lot more in the future. NZOG production revenue from Kupe is pretty attractive, but the company's overheads aren't, so most of the staff and offices would go.

Good morning notie and all,
What I was getting at is probably ZETA will force the price down (as has happened with PPP) , gain sufficient holding to force a compulsory take over. Result, the minorities continue to see capital erosion and the oil industry of NZ goes the way of the banks - Aussie.
Regards and have a happy weekend.
-dodgy (owner/shareholder all three)

[sideline]

maybe if we just cut the ropes on the rig it will float away one stormy night

There is no Tui rig! Its just a few subsea wellheads which need to be shut off securely and permanently.
Then the risers can be disconnected and reeled in and the FPSO Umuroa towed away.

BTW, since the new well has been established the Tui production should have increased markedly this quarter.
With the NZ$ falling the oil price in NZD-terms is somewhere in the 90s NZ$/barrel.
Anybody want to hazard a guess how this half-year results are shaping up??

[ziggy415]

they stop drilling they get crusified....they buy producing assets they get crucified....me thinks nzog just cant win.....but my Fabsometer tells me its time to buy back in......again...one thing that concerns me is the cost to disestablish the Tui rig....Matuku being dry was a blow to the longevity of tui...but hey i have faith in nzo management to do the right thing
i seem to remember that it was still in the high millions to plug and abandon Tui.....maybe wrong tho

[fish]

i seem to remember that it was still in the high millions to plug and abandon Tui.....maybe wrong tho

They still havnt plugged maui
Maybe good tax reasons to understate reserves and overstate cost of closure

[fabs]

Am glad my post encourages DREAMERS, lots of what this Co. badly needs to boost the S/P.
Hard to see this happen, had nearly 10 years to attract them, but here is hoping.

[ziggy415]

Am glad my post encourages DREAMERS, lots of what this Co. badly needs to boost the S/P.
Hard to see this happen, had nearly 10 years to attract them, but here is hoping.
Fair enough fabs....but was a bit tongue in cheek.....nzo are building some nice income producing assets and kisaran has the go ahead from the idonesian government.so things will come right but the Zeta factor is the unknown....they do own only 20% and the buyback where they wanted an exemption to go over that level was stymied....Zeta will do whats best for Zeta ....but luckily my average price is not bad..but that 55 price is starting to look enticing

[trader_jackson]

https://www.nzx.com/files/attachments/215461.pdf

Is this more than usual? Haven't seen such a 'direct' and short announcement from NZO like this in a while...

Will hopefully provide a much needed boost to the share price...

And its in a trading halt? (is this usual for an announcement like this?)

[sideline]

https://www.nzx.com/files/attachments/215461.pdf

Is this more than usual? Haven't seen such a 'direct' and short announcement from NZO like this in a while...

Will hopefully provide a much needed boost to the share price...

And its in a trading halt? (is this usual for an announcement like this?)

No trading halt I can see.

This shipping/production is vastly more - in the previous quarter there were no shipments due to timing.

The new well should greatly improve earnings from Tui.

[fabs]

Will have to wait & see in the corresponding 1/4 yearly report, what the net taxable profit is on a shipment like that,given the present O/P.
May or may not affect the S/P. either way===???

[the machine]

@ least the shipment has been made when the oil price is higher

M

[sideline]

@ least the shipment has been made when the oil price is higher

M


And with the NZ$ down as well that should translate to reasonably good numbers.

[Chippie]

This news look significant for the profit and loss

166K barrels of oil is worth somewhere north of NZ$15M to NZO. So this on top of the stock they had on hand in March + Kupe + any other shipments must mean the next quarterly will be excellent news.

It will be interesting to see what the production levels out at for Tui going forward.

[fabs]

This news look significant for the profit and loss

166K barrels of oil is worth somewhere north of NZ$15M to NZO. So this on top of the stock they had on hand in March + Kupe + any other shipments must mean the next quarterly will be excellent news.

It will be interesting to see what the production levels out at for Tui going forward.



Market appears to be not very impressed since the announcement.
With AWE 3 cents down, no surprise there and NZO still direction less as usual.

[ziggy415]

any one get the feeling that Pateke reserves are going to be upgraded...less water content as the well has settled down

[Sideshow Bob]

Needs something as share price continues to drift downwards.

[ziggy415]

Needs something as share price continues to drift downwards.
drifts down or driven down......as soon as it gets some (tiny ) momentum it goes back down.....zeta will not be happy with 20%........chippie above says 166000 barrels from Tui is worth some $15 million to nzo so what is 27% of the remaining Tui reserves plus Pateke worth ) ( 4 million barrel total and if you and add in Kupe and kisaran and a few barrels from Cue and if Zeta get hold of the remaining 47% of PPP ( who have $25 million in cash on the books ) plus 15% of Tui .....Heck I might buy Zeta instead

[Sideshow Bob]

Good point. Zeta trading at 36% below net asset value (May Fact Sheet).

[fish]

I havnt done any in depth research on Zeta-has anyone?
Is it worth considering buying in?

[fabs]

Is the Sun slowly setting on NZO, as a Public/co????

[notie]

Is the Sun slowly setting on NZO, as a Public/co????

I think so....sleep walking into a takeover

[neopoleII]

would it be far to say that the directors and management who were/are on hefty salaries and share options etc......
and own large quantities of shares would be happy for a takeover?
they get bought out and bank their share money.... which was mostly gained for very little money from their very heavy salaries.
TR comes into my mind and several other members of management/directors...... past and present.
it seems that shareholders were nothing but a cheap financial cash source.
just my opinion.

[fish]

would it be far to say that the directors and management who were/are on hefty salaries and share options etc......
and own large quantities of shares would be happy for a takeover?
they get bought out and bank their share money.... which was mostly gained for very little money from their very heavy salaries.
TR comes into my mind and several other members of management/directors...... past and present.
it seems that shareholders were nothing but a cheap financial cash source.
just my opinion.

I don't belive you can make such assumptions.
Times have changed.
The current management may have lost money on 1 cent options and buying/gifts of shares.
Rather than make ourselves miserable going over the past why not look how things can be improved .
I have the impression than Andrew Knight is good and capable and may be able to resist Zeta .
We have increasing supplies of oil that should be fetching close to nz $100.
Probably an increase in reserves with kupe.
Indonesia producing soon
CUE.
I bought a small quantity of shares recently-and will probably keep doing so.
There is no way zeta will get my shares cheaply-having been there before with TTP I am confident that arbitration would ensure I get a fair and reasonable price for my shares-as well as interest and costs.

[digger]

I don't belive you can make such assumptions.
Times have changed.
The current management may have lost money on 1 cent options and buying/gifts of shares.
Rather than make ourselves miserable going over the past why not look how things can be improved .
I have the impression than Andrew Knight is good and capable and may be able to resist Zeta .
We have increasing supplies of oil that should be fetching close to nz $100.
Probably an increase in reserves with kupe.
Indonesia producing soon
CUE.
I bought a small quantity of shares recently-and will probably keep doing so.
There is no way zeta will get my shares cheaply-having been there before with TTP I am confident that arbitration would ensure I get a fair and reasonable price for my shares-as well as interest and costs.

Hi Fish ,we need to keep contact on the final takeover. The takeover I see coming with PPP,cue and then NZO. I sold all my CUE to NZO but have just bought back more than I first had. Sold no PPP and have also topped up with them. My guess is that NZO will offer a scrip exchange for CUE and PPP and ZETA will certainly want its pound of flesh for PPP. This is why I see NZO being pushed down now so that Zeta will get a good deal with PPP.
However once this is all finished and these three companies become one we then might see one of two actions take place. The first will be a return of the buy back where Zeta does not have to take part and can thereby increase its NZO holding in excess of 20%. If this does take place it implies that zeta does not immediately intend to takeover NZO by will mark its time. The second coarse of action is that there is no buyback and Zeta will take advantage of the low NZO price[which they probably engineered by an associated company selling] to launch a full take out of NZO.
Now when and if there is a takeout of NZO it is when we have to stick together. I note you have had some experience with being part of the last 10% where compulsory takeout can occure. So have I with Montana many years ago. However as you know before they take our shares we can get them indepently valued and the company wanting to take over another company has to pay.
Anyways when and if this comes I will be getting my A into G and taking action.
Also check with the NZO investor presentation coming up at the end of this month in Naiper. I want to attend and speak with AK. Hope you can come,but do check on time and place as I have not done so for some time but it is due about the 27th of this month.

[ziggy415]

morning Digger,....i think PPP had $22million aussie on there books as of dec 2014 and Zeta had 53% of PPP....with income etc it must be close to $30 million nz....even at 10 cents a share the cash would just about fund the buying of the rest of PPP and Zeta ends up with 15% of tui for bugger all

[fabs]

[QUOTE=fish;579504]
We have increasing supplies of oil that should be fetching close to nz $100.

Have you any reliable evidence that they get, {close to that amount } Fish
Also for how long and at what is there nett profit before tax on oil revenue??
They have apparently long set price contracts for gas,but not so sure about oil.

[digger]

That investor briefing is according to the web site as follows:

Wed 29th July at Napier War Memorial Conference Center
48 Marine Parade
Bluff Hill
Napier starting at 12 noon.
But check yourself just in case I made any slip up.

[fish]

unfortunately cant make it digger.
Too busy working including this week-end and am fully booked for weeks ahead.
When I get time will pm you.

[fabs]

At the rate price of oil descending, NZO S/P still looks quite high, but will probably in time
follow the continuing descend of the O/P.
Zeata can bid its time and match its offer price within reasonable range of any independent valuers.
In that possible scenario compulsory T/O===== LIKE TAKING CANDY OF A BABY=====
Don't like it, but things happen that way.

BTW Musos; Good Lyrics for a song here. [ grin ]

[BlackPeter]

At the rate price of oil descending, NZO S/P still looks quite high, but will probably in time
follow the continuing descend of the O/P.
Zeata can bid its time and match its offer price within reasonable range of any independent valuers.
In that possible scenario compulsory T/O===== LIKE TAKING CANDY OF A BABY=====
Don't like it, but things happen that way.

BTW Musos; Good Lyrics for a song here. [ grin ]

I guess there is nothing stopping the "baby" to buy some more - and push the price up. However - have to agree: looking at all fundamentals this company looks at the moment undervalued ... probably due to a mixture of a history of breaking promises, questionable governance, some bad luck combined with suboptimal decisions ... and the falling oil price does not help either. Quite funny mixture between an income and a highly speculative stock.

Discl: hold a (small) parcel and wondering whether buying it was one of my better investment decisions.

[dodgy]

I guess there is nothing stopping the "baby" to buy some more - and push the price up. However - have to agree: looking at all fundamentals this company looks at the moment undervalued ... probably due to a mixture of a history of breaking promises, questionable governance, some bad luck combined with suboptimal decisions ... and the falling oil price does not help either. Quite funny mixture between an income and a highly speculative stock.

Discl: hold a (small) parcel and wondering whether buying it was one of my better investment decisions.

Morning BlackPeter and all,
Unfortunately for NZO and also TWR at this moment, the fly in the ointment was overpriced buybacks. I can't remember any buybacks doing anything for the long term share price in New Zealand. The inference of course, is that management prefers to spend our money (on buybacks) more wisely than the owners/shareholders. Would you be as happy if the buyback kings were government departments instead? I guess not. Now a 75c bought back share is worth 53c today - great result. Comments?
Kind regards and have an exceptional day - making money elsewhere.
-dodgy

[BlackPeter]

Morning BlackPeter and all,
Unfortunately for NZO and also TWR at this moment, the fly in the ointment was overpriced buybacks. I can't remember any buybacks doing anything for the long term share price in New Zealand. The inference of course, is that management prefers to spend our money (on buybacks) more wisely than the owners/shareholders. Would you be as happy if the buyback kings were government departments instead? I guess not. Now a 75c bought back share is worth 53c today - great result. Comments?
Kind regards and have an exceptional day - making money elsewhere.
-dodgy

Hi dodgy, I agree with your assessment of the appropriateness of the NZO capital return (or buy back) at a too high price. However not quite sure, whether I agree as well with your general view on recent buybacks in NZ. Look at NPX - they managed to lift their SP by more than 1/3rd that way (obviously as well supported by some good news). Buybacks in general can be an appropriate way to reward shareholders, it just depends on the circumstances.

[dodgy]

Good morning BlackPeter
I was generalizing but over time I believe this to be the case. Its very early days when you consider NPX last buy back was about 3 weeks ago at a shade over $4.28/share and closed yesterday at $4.12. Please check in 6-12 months - will this s/p still hold up?
Kind regards
-dodgy (NPX - currently not an owner/shareholder)

[BlackPeter]

Good morning BlackPeter
I was generalizing but over time I believe this to be the case. Its very early days when you consider NPX last buy back was about 3 weeks ago at a shade over $4.28/share and closed yesterday at $4.12. Please check in 6-12 months - will this s/p still hold up?
Kind regards
-dodgy (NPX - currently not an owner/shareholder)

fair enough ... I probably looked at that too much from my own little selfish perspective ... sold out of NPX with a nice gain during the early stages of their buy back phase ... a nice correction of their share price now would be only a bonus for me. Ah yes - and before anybody complains - I shall shut up talking NPX on this thread ... promise & apologies ...

[fabs]

[QUOTE=BlackPeter;580110] looking at all fundamentals this company looks at the moment undervalued;

Don't think NZO is undervalued at all, really if you take everything into consideration at this point of time.
Investors long ago have had enough for quite a number of reasons, that has now been made worse by no foreseeable returns to S/H.
This Management demonstrated over a long period of having any clues nor expertise in generating worthwhile wealth for the co. [ lots of funds available for a long,long time ]
It is no good to talk about POTENTIAL here anymore, as it would need the discovery of a gusher to bring any interest back to it. [ how likely is that ??? ]
How far the P/O will fall let alone when it will recover to a real profitable level is any ones guess, in the meantime same no. of staff enjoy sitting at the Through.
Lots of S/H want out depressing the price further any body having paid over 90 cents really hurting.
T/O for this co. should have taken place years ago as i stated to A/K
THE LATER IT WILL HAPPEN NOW THE MORE HURTFUL IT WILL BE.
This co.had such golden prospects badly squandered over the last 7 or more years.
Hope against all odds to have this horribly wrong.
But hey lets break out the Booze and keep on Dancing.

[Queenstfarmer]

You'll be able to get these shares for free soon.

[fabs]

You'll be able to get these shares for free soon.

Not as long there is slop in the Through, for the chaps around it to have there fill.
It would take a brave unbiased Valuer to pitch the S/P above 40 cents.

[BlackPeter]

Not as long there is slop in the Through, for the chaps around it to have there fill.
It would take a brave unbiased Valuer to pitch the S/P above 40 cents.

Lots of brave people here:

http://www.4-traders.com/NEW-ZEALAND-OIL--GAS-LIM-20757237/consensus/

BTW - it would take a foolish analyst to rate a share which paid so far 6 cents dividends per year plus (plus imputation credits) and this year a capital return at less than 40 cents. Wouldn't it?

[fabs]

Lots of brave people here:

http://www.4-traders.com/NEW-ZEALAND-OIL--GAS-LIM-20757237/consensus/

BTW - it would take a foolish analyst to rate a share which paid so far 6 cents dividends per year plus (plus imputation credits) and this year a capital return at less than 40 cents. Wouldn't it?

Oh yes being selective, a year ago was a good move to get out at 80cents despite what happened since.
My comments relate to the PRESENT.

Going by the current trend i stick my neck out with perhaps the added rider, hoping to be wrong.
One would wonder how many of those lots of brave ones are now busy buying up, or just playing around with graphs?
Meanwhile for the ones around it, THE THROUGH OVERFLOWED!
CHEERS

[trader_jackson]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

[BlackPeter]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

Certainly looks good at face value. $120m revenue this year (analyst consensus was just $100m) and $84m in cash. And you can buy this beauty for a market cap of only $169m ...

However - not quite clear what impact the "sort of" CUE takeover had on the numbers. If they added the CUE sales to their numbers, than the financials would not look that flash (but I suppose they didn't - does anybody know?)

[BlackPeter]

Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)

Ah yes - if you are referring to the cash paid for equity investments ($34.9m) -

this is what the footnote says:


2(a) (b) & 2(e). New Zealand Oil & Gas obtained control of Cue Energy Resources Limited (Cue) with an effective date of 31 March 2015.
In previous cash flow reports the acquisition was treated as an equity investment under 2(a)(b) with an outflow of $34.9 million. Cue is
being consolidated into the Group from 1 April 2015, the equity investment under 2(a)(b) being reversed and the net impact of the Cue
cash added on acquisition ($30.7 million inflow) and the cost of the acquisition ($34.9 million outflow) shown under 2(e).

I guess this answers probably as well the question in my previous post (CUE consolidated into the books). Still a respectable result, given that this was just for one quarter.

[trader_jackson]

Thoughts on Clipper? If it was a winner surely this could be worth many millions to NZO... activities report seems to imply there has been some 'major' new development/news... how material is this?

[dodgy]

Certainly looks good at face value. $120m revenue this year (analyst consensus was just $100m) and $84m in cash. And you can buy this beauty for a market cap of only $169m ...

However - not quite clear what impact the "sort of" CUE takeover had on the numbers. If they added the CUE sales to their numbers, than the financials would not look that flash (but I suppose they didn't - does anybody know?)

Hi BlackPeter and all
I think this result and spurious reference to Clipper (they have been on and off in this permit over the years if I remember correctly) but I guess a possible drill 2017 will get a bit of excitment. The conservative application of funds doesn't wash when you look at administration expenses year to date. Pretty expensive lunches in my opinion. Comments.
Regards
-dodgy (owner/shareholder - somewhat disenchanted).

[digger]

Did anyone else go to the Investor meeting at Napier on Wednesday .?
The meeting was a very [toooo relaxed] affair. Firstly about two months ago I had to ring John Pagani to point out that the meeting was on 29th july and not the 29th April as was on the nZO websight for some weeks. This got corrected smartly.
My wife and I were the first to arrive and by 12 oo noon start time there were about 25 others but no NZO personal. By 12-05 JohnPagani our External Affairs Manager turned up. Another 5 mins and the Chief Finanical Officer Andre Gaylard made an appearance . The tables were situated such that the two NZO staff would be talking to us so that the sun was behing them and in our eyes. I asked that the curtains be pulled so that we could all see who was speaking. This got an acceptance from the room and from the two at the head table. Later on I had the same acceptance from other shareholders when the chairman of the meeting charged into the company details with out introducing himself and Jonh Pagani.
So it was off to a poor start. There were no directors present. Note that AK was at the CUE meeting in AUS at the same time.

Finally we got started. The chairman then did a good job of outlining what the company was up to in the last quarter and plans for the future.An excellent map was presented of all the basins around NZ that I have not seen before. There was talk about a drill in about 2017 CLIPPER from memory. Also talk about the drills in the 80ies in the great South Basin that all showed hydrocarbons. We then went over the CUE acquistion. Andre replied to a comment from the floor that it was unlikely that NZO would move further with a takover of CUE for two reasons. The first being that the CUE tax losses would then vanish and that it is very hard to get the last 16 % of shareholders to sell.[I agree with that]
What I did not like the sound of and now want others to comment on is that at the end of August we are to have another special meeting to bring up again the buy back of NZO shares. This time special permission will be sought from holders to allow Zeta to not take part and thereby allow there holding in NZO to rise above the 20% limit. I do not like this one bit as I feel the money would be far better spent on acquistions. I did suggest Horizon Oil[HZN] as they have debt and could be talked into a placement on very favourable terms to NZO. HZN also has on the negative side debt but on the positive side a good lot of reserves that NZO should and needs to take a stake in. At the lunch afterwards both speakers agreed with me that they to liked acquistions. In fact I went away from the meeting feeling that maybe the directors just do not have the proper handle on the unique time we are now in in History. Maybe never again in our life time will the OIL market be so up side down as it is now. To Hell with drilling and buybacks get on with studying the acquistion market.
Comments

[Carpenterjoe]

Did anyone else go to the Investor meeting at Napier on Wednesday .?
The meeting was a very [toooo relaxed] affair. Firstly about two months ago I had to ring John Pagani to point out that the meeting was on 29th july and not the 29th April as was on the nZO websight for some weeks. This got corrected smartly.
My wife and I were the first to arrive and by 12 oo noon start time there were about 25 others but no NZO personal. By 12-05 JohnPagani our External Affairs Manager turned up. Another 5 mins and the Chief Finanical Officer Andre Gaylard made an appearance . The tables were situated such that the two NZO staff would be talking to us so that the sun was behing them and in our eyes. I asked that the curtains be pulled so that we could all see who was speaking. This got an acceptance from the room and from the two at the head table. Later on I had the same acceptance from other shareholders when the chairman of the meeting charged into the company details with out introducing himself and Jonh Pagani.
So it was off to a poor start. There were no directors present. Note that AK was at the CUE meeting in AUS at the same time.

Finally we got started. The chairman then did a good job of outlining what the company was up to in the last quarter and plans for the future.An excellent map was presented of all the basins around NZ that I have not seen before. There was talk about a drill in about 2017 CLIPPER from memory. Also talk about the drills in the 80ies in the great South Basin that all showed hydrocarbons. We then went over the CUE acquistion. Andre replied to a comment from the floor that it was unlikely that NZO would move further with a takover of CUE for two reasons. The first being that the CUE tax losses would then vanish and that it is very hard to get the last 16 % of shareholders to sell.[I agree with that]
What I did not like the sound of and now want others to comment on is that at the end of August we are to have another special meeting to bring up again the buy back of NZO shares. This time special permission will be sought from holders to allow Zeta to not take part and thereby allow there holding in NZO to rise above the 20% limit. I do not like this one bit as I feel the money would be far better spent on acquistions. I did suggest Horizon Oil[HZN] as they have debt and could be talked into a placement on very favourable terms to NZO. HZN also has on the negative side debt but on the positive side a good lot of reserves that NZO should and needs to take a stake in. At the lunch afterwards both speakers agreed with me that they to liked acquistions. In fact I went away from the meeting feeling that maybe the directors just do not have the proper handle on the unique time we are now in in History. Maybe never again in our life time will the OIL market be so up side down as it is now. To Hell with drilling and buybacks get on with studying the acquistion market.
Comments

Thanks mate, appreciate the post.


I've always been for buy backs instead of dividends, but you raise a great point. This is the time to improve oil assets.

The Cue investment seems to be paying off, tho I still need to crunch the digits from Cues last quarter.

I wouldn't mind further oil/gas asset investment, but id prefer assets that are already generating revenue.

[trader_jackson]

Interesting what you say... bit disappointed at managements conduct if this is accurate... and although they did mention share buy backs, they also did mention acquisitions... but yes I don't know why they are so focused on share buy backs... it should be solely focused on acquisitions, especially with the cash that is now mounting up...

(note how I saw acquisitions, not wildly drilling in any random place around nz or the rest of the globe)

[the machine]

Digger, thanks for the post - acquisitions at the right price seems like a good idea

I wonder how many Cue shares ZETA now own - if any

I was in Napier in 1974 - might get back there one day

M

[the machine]

Digger, thanks for the post - acquisitions at the right price seems like a good idea

I wonder how many Cue shares ZETA now own - if any

I was in Napier in 1974 - might get back there one day

M

[fish]

I really liked the quarterly report so ended up buying more nzo yesterday.

Great cash flow despite low oil prices.
Successful cue acquisition
Exciting drilling being planned-if suitable partners to farm out.

I have also been impressed by Zeta-they know how to acquire cheaply-lets use their expertise to acquire another carefully selected oiler.
They don't have the money or the intention to take out NZO.

So what to acquire-maybe using some of our us dollars?

[sideline]

Thanks Digger,
for the detailed report.
Was there any info/discussion of dividend vs buybacks?
At the current low price a buyback could be good value.

Acquisitions of producing assets are preferable to wild drills, but they have to stack up in
the current low price-of-oil environment. And I'd be very wary about taking on debt as HZN has.


sideline

[sideline]

I really liked the quarterly report so ended up buying more nzo yesterday.

Great cash flow despite low oil prices.
Successful cue acquisition
Exciting drilling being planned-if suitable partners to farm out.

I have also been impressed by Zeta-they know how to acquire cheaply-lets use their expertise to acquire another carefully selected oiler.
They don't have the money or the intention to take out NZO.

So what to acquire-maybe using some of our us dollars?

Maybe an acquisition for NZO shares would be best - it would broaden the interest and share base in NZO,
preserve cash reserves and lower ZETAs holding below 20% which means any subsequent buybacks wouldn't
require a special dispensation for ZETA to go over 20%.

[flyingmariner]

Thanks Digger for the debrief. I'm worried about the intentions of ZETA here. Correct me if I'm wrong but I have owned shares in NZ companies before where after a major holder got above a certain percentage they could force the rest of the shareholders to sell at an offered price. Could that happen with NZO.

[fabs]

Appreciate your honest effort Digger and thanks for that.
Not surprised by slack performance by members of management.
No problems with you suggestions either.
As for some posters take, that zeta is good for nzo???
Well test will come at special meeting.
My take is they will get it through and that will open the door just that bit more to do whatever their plan is.
Have my doubts whether S/Hs interests figure much in that.
Get impression the bulk of small S/Hs in this co. already matter less & less with this outfit.
Hope to be proven wrong.

[digger]

Thanks Digger for the debrief. I'm worried about the intentions of ZETA here. Correct me if I'm wrong but I have owned shares in NZ companies before where after a major holder got above a certain percentage they could force the rest of the shareholders to sell at an offered price. Could that happen with NZO.

Under the takeover code the compulsory buy out of your shares only happens once the takeover company get to 90% of the target company.At that point remaining shareholder can ask for an independent valuer to get the true market value of the company. In fact I think they can even get two independent valuers to assess the company so the remaining 10% can be harder for the takeover company. At the meeting in Napier Andre Gaylard did say in reply to a question that that is why NZO will probably not go any further with the CUI investment. As he said the last 16 % tend to be hard to get possession of at a reasonable price.
Do you really think that Zeta have that deep of pockets.Even at 50cents they would need something like 160 million to buy out the remaining 320 million they do not own. Now Fish and me and I am sure a few others want more than 50 cents so the last say 15 % will probable want 90 to a dollar for their shares maybe more,so the price goes up.
In the meantime I will oppose the buyback in favor of more acquistions. I think the NZO management should be looking at not less than 40 companies to take a stake in to lift our reserves.

Another point about why I am against drilling is that new drilling methods are just a few years away which will give us results faster and cheaper. Also as I have said in other posts we can buy back anytime. The golden Acquisition age is now and may not be here in as little as 2 years maybe less.

[fish]

Just a minor correction digger-I opposed the TTP takeover which wasn't that long ago.
It was actually quite an enjoyable process.
Its one arbitrator that determines the valuation on what is fair and reasonable and awards costs.
All participants get to write an essay on what is a fair and reasonable price.
My wife is a very good essay writer.So where all the other essays-10 or so people writing good essays for a high valuation-and one lawyer for ttp writing for their valuation.
Essays are exchanged and then a critique of the other parties essays( if it happened I could get yours proof read Digger)
The arbitrator then makes his decision and awards costs.
TTP were arrogant enough to appeal the arbitrators decision-so ended up losing in court and more costs awarded against them.

No way will zeta attempt a full takeover.

[flyingmariner]

Ok, thanks for that.

[fabs]

Hope Fish & Digger that you both are right.
Ironically T/R also thought that his other Co. at the time { Otter - Gold formerly Mineral Res. } was save from T/O.
At present yes agree no chance of that happening with nzo,
but in a fast changing environment what are condition for it in 6,12 or 18 months time.
As the saying goes, there are many ways to skin a cat.
As ever, Hoping to be proven wrong.

[fabs]

Announcement
MEETING: NZO: Notice of Special Meeting of Shareholders 12:23p.m.
NZO
07/08/2015 12:23
MEETING
NOT PRICE SENSITIVE
REL: 1223 HRS New Zealand Oil and Gas Limited

MEETING: NZO: Notice of Special Meeting of Shareholders

New Zealand Oil & Gas will hold a special meeting of shareholders on Friday,
28 August 2015 to vote on a proposed share buyback.

A copy of the Notice of Meeting is attached, together with the Independent
Adviser's Report and Appraisal Report.

John Pagani
External Relations Manager
+64 21 570 872
End CA:00268090 For:NZO Type:MEETING Time:2015-08-07 12:23:09

They are hell bent on getting this through.
The more i think about this, the more i feel rather than a Buy-back in a climate where O/P's & Share/M's are falling and management clueless in doing what there payed to do.
ZETA looking after themselves, can't blame them really.
Surely it would be better to return as much as possible to the S/H's by paying DIVIDENDS again.
If zeta friendly individuals end up coming into the mix, [ if not in all ready ] the S/H's position not looking good.

[dodgy]

Good afternoon Fish, Digger and all
Its time for you guys to wake up to this and start try to influence your security's value. In my somewhat unqualified opinion ( shareholder since the 80's), Zeta and or AK (research "watchman capital") maybe trying to secure oil assets at a very low entry price. Think NZO, CUE, PPP - all common or joint, through direct or cross holdings, nominees etc? Maybe I am wrong with this but to me all the signs are there. Please do some independant research and tell me where I am going wrong.
Have a nice investing day.
-dodgy (owner/shareholder - dismayed watcher as all three shareprices head south)

[digger]

Good afternoon Fish, Digger and all
Its time for you guys to wake up to this and start try to influence your security's value. In my somewhat unqualified opinion ( shareholder since the 80's), Zeta and or AK (research "watchman capital") maybe trying to secure oil assets at a very low entry price. Think NZO, CUE, PPP - all common or joint, through direct or cross holdings, nominees etc? Maybe I am wrong with this but to me all the signs are there. Please do some independant research and tell me where I am going wrong.
Have a nice investing day.
-dodgy (owner/shareholder - dismayed watcher as all three shareprices head south)

Thanks Dodgy,
So you think we need a stir up.
First dodgy it is not just NZO,ppp and cue that are heading south. All oil companies that I know of are heading south--the big ones and the little ones. Canada is heading into a recession with the two last quarters being negative. There oil sands need about 80 to 90 to break even and in the near term that is just not going to happen.Not much salvation but thank god I am in NZO and not the tar sands of Canada.
So why this sudden turn around in the last 14 months. Well to me it is all about Russia entering Ukraine. We are sharing the same fall off in demand that the Dairy Industry is and again because of Putin in Ukraine.
Where to from here??? Saw the other day a German saying that renewals are getting so good that oil will have to fall to 7 dollars to be competative.The next speaker agreed but thought the time frame for that would be about the year 2100. Hence if you think oil is a gonner in next 10 or 20 years then NZO is way overvalued at 49 cents.However if your like me at 74 years old you have seen many up turns and downturns. But still it does mean that before we vote on any buyback we should get some idea of what oil life still may or may not exist in the coming decades. I live near Morrinsville and dispite all the carry on have not yet seen a electric car that I know of in this town.In fact I own the only self power system around these parts with solar wind and back up diesel generator. So from what I can see on the ground here in my patch it looks like oil will be around slightly longer than this German Scientist suggests.

Now next question. Why a buyback? Why not a dividend or a buy into another company? No drilling please-not at this stage anyways.To answer my own question I am against dividends as we have had our share of that for a year or so . So it sort of comes down to a buyback or a buy into another distressed oil company.
We have 338 million shares on issue and 83 in the bank . At 50 cents we could eliminate 160 million shares or just under half of those currently in the market,leaving about 178 million. Now with this quick cals I made a few assumptions. firstly that sellers would line up to meet the supply and god forbid the next two months we find that the shares could have been bought at a much lower price.Always something to keep in mind as the world is in unchartered territory. Also note that ZETA would then owned about 40% of the company. Currently the NZO thinking with CUE is that if you owned 40% of a company you in effect have full control.
I still prefer buying into another company,but can see that buybacks should be looked into.
Others thoughts
Cheers all

[fish]

Fully agree Digger.
A buy back is fine by me-as long as the shares are so cheap-maybe a maximum of 30 million shares.
I want to keep cash in our treasure chest until the excess supply over demand is reversed.

[digger]

I think we all who are interested in this company should priortize what NZO should do with the 83 million available.
Here is mine

1/ Acquisition

2/Buyback where Zeta has to sell the equivalent to remain under 20%

3/ Dividend

4/ Do nothing for now

.
.
.
.

x/ drill

x+1/ Buyback where Zeta is allowed to get control of the company without buying in directly. In other words using NZO money to give away control of the company to Zeta.

[BlackPeter]

I think we all who are interested in this company should priortize what NZO should do with the 83 million available.
Here is mine

1/ Acquisition

2/Buyback where Zeta has to sell the equivalent to remain under 20%

3/ Dividend

4/ Do nothing for now

.
.
.
.

x/ drill

x+1/ Buyback where Zeta is allowed to get control of the company without buying in directly. In other words using NZO money to give away control of the company to Zeta.

I second that order .... obviously assuming they do proper due diligence on any acquisition.

[fabs]

Buy-back without Zeta having to sell down will go through.
Co. policy before zeta came on the scene, return part of annual profit to S/H's in Div. etc;
Management clueless in taking adv.of past opportunity's, so doubtful if anything has improved there.
DOING NOTHING NOW, say for at least 3-6 months most prudent and best in the present Climate
BTW:
Not wishing to turn this Forum into a political one, but blaming Putin for mayor things going wrong in the world, way over the top.
Regarding Crimea, the proper term is REUNITING not ANNEXATION. btw:[ poles apart ]
As for Russians in Ukraine takes some explaining,
Just for the record Kiev was the capital of Russia long before ST Peterborough or Moscow for that matter.
So what does that tell you?

[dodgy]

Good afternoon Digger, Fish and all.
My question applies to NZO or any NZ listed security. Simply - can someone explain to me which NZ companies that have executed forced buy backs, and capital returns, have long term benefited by an upward re-rating of their share price? I say "forced" because all voted resolutions in NZ appear to be pre-empted by the larger corporate shareholders , generally in theirs and managements/governors best interests, and voting is only paying lip service to the smaller owner/shareholders . The specifics of moving currency and moving oil price is not as important day be day, as the preparation and forethought that management/govenance should implement prior to any event actually occuring.
Regards and happy investing
-dodgy (owner/shareholder)

[BlackPeter]

Good afternoon Digger, Fish and all.
My question applies to NZO or any NZ listed security. Simply - can someone explain to me which NZ companies that have executed forced buy backs, and capital returns, have long term benefited by an upward re-rating of their share price? I say "forced" because all voted resolutions in NZ appear to be pre-empted by the larger corporate shareholders , generally in theirs and managements/governors best interests, and voting is only paying lip service to the smaller owner/shareholders . The specifics of moving currency and moving oil price is not as important day be day, as the preparation and forethought that management/govenance should implement prior to any event actually occuring.
Regards and happy investing
-dodgy (owner/shareholder)

Hi dodgy,

I have no comprehensive overview of which companies are doing share buybacks and what happens with the company afterwards, but here are some examples from recent memory where the method seemed to have had good consequences for share holders:

IFT - actually, an interesting one - the SP even dropped short term, but look where they are now!
NPX - buying back for a long time ... and so far it certainly brought the SP up
CVT - admittedly still fresh, but shareholders for sure must like where the SP is going ...
TEM - maybe not quite comparable (its an investment fund), but overall do I think that the ongoing buyback there is as well in the best interest of the share holders.

So - I don't think that there is anything wrong with share buybacks in itself ... it certainly increases the EPS - and if the company does not know a better way to invest their funds, than it might be better for the directors to admit that and buy back, than just splashing the money into less profitable ventures. Sure - they can as well declare a dividend, given however that NZO has at current no imputation credits to distribute would this be from a tax perspective suboptimal.

What annoys me with the proposed NZO buyback is just that ZETA would creep towards control without paying a premium for that, and I certainly don't see how they would have the best interest of other shareholders at their mind.

Discl: holding (a wee parcel) and intend to vote against the buyback unless they offer an option which does not increases Zetas voting power.

[dodgy]

Hi dodgy,

I have no comprehensive overview of which companies are doing share buybacks and what happens with the company afterwards, but here are some examples from recent memory where the method seemed to have had good consequences for share holders:

IFT - actually, an interesting one - the SP even dropped short term, but look where they are now!
NPX - buying back for a long time ... and so far it certainly brought the SP up
CVT - admittedly still fresh, but shareholders for sure must like where the SP is going ...
TEM - maybe not quite comparable (its an investment fund), but overall do I think that the ongoing buyback there is as well in the best interest of the share holders.

So - I don't think that there is anything wrong with share buybacks in itself ... it certainly increases the EPS - and if the company does not know a better way to invest their funds, than it might be better for the directors to admit that and buy back, than just splashing the money into less profitable ventures. Sure - they can as well declare a dividend, given however that NZO has at current no imputation credits to distribute would this be from a tax perspective suboptimal.

What annoys me with the proposed NZO buyback is just that ZETA would creep towards control without paying a premium for that, and I certainly don't see how they would have the best interest of other shareholders at their mind.

Discl: holding (a wee parcel) and intend to vote against the buyback unless they offer an option which does not increases Zetas voting power.

Hi BlackPeter
Can you qualify your reply with pre buyback and after buyback share prices with quantity bought back. Obviously any asset disposals etc would make the result more volitile . I agree with you regarding Zeta/managements motivation.
Regards
-dodgy

[BlackPeter]

Hi BlackPeter
Can you qualify your reply with pre buyback and after buyback share prices with quantity bought back. Obviously any asset disposals etc would make the result more volitile . I agree with you regarding Zeta/managements motivation.
Regards
-dodgy

Hi dodgy,

just wanted to be helpful. If you need the exact numbers - just go through the relevant announcements - and time the share price. All on NZX ... or (if older than 6 months) on the relevant company websites.

cheers ...

[fabs]

"Prediction is very difficult, especially about the future" (Niels Bohr)
Certainly endorse above statement

There are a few possible important flaws in some of the comments.

1 ZETA does not necessary need a t/o of nzo. for full control of board.
2 Lots of negatives have accumulated over the years re: Management, probably contributing in large part for depressed S/P.
3 Economic climate may not have been as uncertain when other Co's launched a B/B.
4 O/P tracking steady lower, So short medium & quite likely long term outlook bleak. [ SO DOUBLE HIT ]
5 A major war, striking a gusher or miraculous world economic recovery short term needed to change that. Have another TUI!
6 Lots of SH's trying to get out, some maybe because no more Dividends in foreseeable future.
7 Hard to see the B/B having a lasting benefit
How the S/H's will fare if ZETA gains control of the board, Well any-bodys guess really.

[BlackPeter]

"Prediction is very difficult, especially about the future" (Niels Bohr)
Certainly endorse above statement

There are a few possible important flaws in some of the comments.

1 ZETA does not necessary need a t/o of nzo. for full control of board.
2 Lots of negatives have accumulated over the years re: Management, probably contributing in large part for depressed S/P.
3 Economic climate may not have been as uncertain when other Co's launched a B/B.
4 O/P tracking steady lower, So short medium & quite likely long term outlook bleak. [ SO DOUBLE HIT ]
5 A major war, striking a gusher or miraculous world economic recovery short term needed to change that. Have another TUI!
6 Lots of SH's trying to get out, some maybe because no more Dividends in foreseeable future.
7 Hard to see the B/B having a lasting benefit
How the S/H's will fare if ZETA gains control of the board, Well any-bodys guess really.

Just received & processed my voting pack from NZO. The independent report is a joke - and is not even able to highlight any convincing benefit for existing minority share holders in approving this share buy back together with an increase of ZETA's control.

The report nevertheless recommends this share buyback. I guess its easy to see who paid the authors: the board, though using our (share holders) money for this wasteful action.

Anybody proposing a board spill? If yes - this would be a resolution I could support ;)

[dodgy]

"Prediction is very difficult, especially about the future" (Niels Bohr)
Certainly endorse above statement

There are a few possible important flaws in some of the comments.

1 ZETA does not necessary need a t/o of nzo. for full control of board.
2 Lots of negatives have accumulated over the years re: Management, probably contributing in large part for depressed S/P.
3 Economic climate may not have been as uncertain when other Co's launched a B/B.
4 O/P tracking steady lower, So short medium & quite likely long term outlook bleak. [ SO DOUBLE HIT ]
5 A major war, striking a gusher or miraculous world economic recovery short term needed to change that. Have another TUI!
6 Lots of SH's trying to get out, some maybe because no more Dividends in foreseeable future.
7 Hard to see the B/B having a lasting benefit
How the S/H's will fare if ZETA gains control of the board, Well any-bodys guess really.


Hi Fabs
Agree entirely. Why does NZO have their pre-empted owner/shareholder meetings in Wellington? Geographic lack of spine and resistance in the seat of government yes men. If I lived there I would pass a vote of "no confidence" in management and governance. In reply to BlackPeter, the buy/backs you quoted - without any substance from yourself it may take me a while to provide factual endorsement or otherwise. Wish me luck.
Regards
-dodgy Owner/shareholder - despondantly watching the price ratchet downward from the capial repayment. The only upside to the impending result, will be the gains from the unhedged $US reserves, the cause of substantial historic losses!)

[fabs]

YES,
anything to spoil this farce, the question is WHAT???
May-be far to late, should have acted long ago but theme's the breaks.
Open to any suggestions.

[digger]

Just received & processed my voting pack from NZO. The independent report is a joke - and is not even able to highlight any convincing benefit for existing minority share holders in approving this share buy back together with an increase of ZETA's control.

The report nevertheless recommends this share buyback. I guess its easy to see who paid the authors: the board, though using our (share holders) money for this wasteful action.

Anybody proposing a board spill? If yes - this would be a resolution I could support ;)

I have also read most of the dribble and now more than ever will vote against it. When you read it keep it clearly in mine that this special meeting is only about having a share buy back where Zeta does not have to sell shares and thereby allow its percentage holding to rise above the 20% limit. As the document says up to 24.5 % if all the 64 million shares are purchased.
What I like most is 2.9 where they deal with the implications of it not being approved. Note this could lead to a buy back where shareholder approval is not required and ZETA then have to stay below 20%. Also note that all the benefits of a buy back we are supposed to enjoy if ZETA is allowed to get around the takeover code also apply apply if this resolution does not succeed and we still have a buy back. I am for a buy back but definitely not for letting control slip away from all shareholders . This resolution is just an attempt to get around the takeover code.
I have listed in a post above what I think the company should do with its money. NZOG is certainly not the only oil company under pressure with a depressed share price.

[RTM]

Hard to fight this....
"The global oil glut will last through next year as surging demand and faltering supply growth fail to clear the surplus, the International Energy Agency warned in its widely followed monthly report. "While a rebalancing has clearly begun, the process is likely to be prolonged," the agency declared, stating that stockpiles won't be diminished until Q4 of 2016 or later if sanctions on Iranian crude are lifted. After plunging to six-year lows on Tuesday, crude prices are now up 1% to $43.49/bbl."

[dodgy]

Hard to fight this....
"The global oil glut will last through next year as surging demand and faltering supply growth fail to clear the surplus, the International Energy Agency warned in its widely followed monthly report. "While a rebalancing has clearly begun, the process is likely to be prolonged," the agency declared, stating that stockpiles won't be diminished until Q4 of 2016 or later if sanctions on Iranian crude are lifted. After plunging to six-year lows on Tuesday, crude prices are now up 1% to $43.49/bbl."

Good morning RTM and all,
Obviously no one can defeat rising or falling oil prices - when they rise the company spouts self effacing documentation and propoganda, when they fall it blames them for the share performance. Remember however that currencies also rise and fall (ask John Key) and ours has been southbound for some time. Except for very clever negotiating/hedging neither influences can be fully combated. So what should prudent management do? Not capital returns which favour large corporate holders, or buybacks , preserve capital for low cost/efficient aquisitions and REDUCE, REDUCE, REDUCE the corporate overhead, backroom boffins, pr spin doctors, etc. pull their heads in for a while, and keep their powder dry. A lower corporate overhead, through the use of readily and maybe (from the record to date) actually good at number crunching, analyzing , exploring , along with carefully considered imputed or unimputed dividends - we all still pay tax either way - will place this company on a "war" footing to survival - not take over and the feathering of a few employee nests.
Kind regards and good investing
-dodgy OWNER/shareholder (feeling like spring is coming hence the references to things ornithological).

[fish]

low prices =surging demand and the published IEA figures show this clearly.
What they cant predict is how much supply will be available to meet this demand.
Oil supply doesn't always follow the normal rules of supply and demand.
There are many reasons for this.
Its very political and this can change prices over-night.
Falling nz dollar is a big bonus for NZO.

[flyingmariner]

Can anyone tell me if it's possible to vote online? I have done this with other companies but after checking the NZO website and logging into Computershare it doesn't look like a share holder can? Thanks.

[BlackPeter]

Can anyone tell me if it's possible to vote online? I have done this with other companies but after checking the NZO website and logging into Computershare it doesn't look like a share holder can? Thanks.

sure as ... just go to www.investorvote.co.nz and use the controlnumber which is on the voting pack you received per mail.

Just make sure you put the tick into the right place ....;)

[BWR]

I'm with Black Peter and Digger on the abysmal and biased so-called Independent Advisers Report and Appraisal Report. In many places it states that "Zetas shareholding increasing from 19.8% to 24.42% (doesn't mention this is at no cost to Zeta) will not significantly increase Zeta's ability to exert shareholder control over NZOG." He goes on to state "At most, their voting rights will increase by 4.62% to 24.42%."

Anyone can calculate that the extra 4.62% actually represents a 22% increase in their voting power.

It appears to me that this report does not reasonably state the advantages and disadvantages of a share buy-back scheme, and is facile and biased towards the 22% increase of voting power that Zeta will gain without having to spend one more cent of their own money.

I will be joining Digger in voting against this proposal. With Zeta's interests not being allowed to vote I encourage everyone of similar mind to also vote against the proposal, we could well stop the resolution from succeeding.

By the way Digger, I see from page 10 of the Simmons Report that your company now holds 32,000,000 shares!

[digger]

I'm with Black Peter and Digger on the abysmal and biased so-called Independent Advisers Report and Appraisal Report. In many places it states that "Zetas shareholding increasing from 19.8% to 24.42% (doesn't mention this is at no cost to Zeta) will not significantly increase Zeta's ability to exert shareholder control over NZOG." He goes on to state "At most, their voting rights will increase by 4.62% to 24.42%."

Anyone can calculate that the extra 4.62% actually represents a 22% increase in their voting power.

It appears to me that this report does not reasonably state the advantages and disadvantages of a share buy-back scheme, and is facile and biased towards the 22% increase of voting power that Zeta will gain without having to spend one more cent of their own money.

I will be joining Digger in voting against this proposal. With Zeta's interests not being allowed to vote I encourage everyone of similar mind to also vote against the proposal, we could well stop the resolution from succeeding.

By the way Digger, I see from page 10 of the Simmons Report that your company now holds 32,000,000 shares!

Hi BWR, For those of you who do not have along past with this company BWR was external relations officer [Correct me BWR not correct] He was for some years part of the management so has a working knowledge of the company and company matters.
Firstly I am pleased to say BWR that a extra zero was mistakenly put on my holding. Even at 3.2 million it is a hugh paper loss without making it 32 million.

Yesterday I tried to ring AK but ended up on hold in Australia . Today I did speak with Mike Dunn trying again to speak with AK. AK was to ring me back and as I have been out all day could have missed him. But I see nothing on my answer phone. Told Mike that the Simmons report was just buying the assesment you wanted in the first place and a waist of our money.You could just as easily put forward an arguement for why the resolution should be turned down and in that case I am sure Simmons would do so if the money was right. The Simmons case about Zeta holding rising to 24.5 % making not real difference is hollow and goes against the take over code. It was the take over panel that after considering many case and company working decided on 20% as the limit. Anytime any limit is placed on anything there is always someone who wants to rewrite it to better suit their interest.
When I do get to talk with AK I will be telling him straight my feelings. Either Zeta already controls NZO or the other non Zeta directors are cowed by them. For NZO to put forward this resolution shows weakness on the part of the company and I am sure the market will see it that way. It is an insult to shareholder integrity and shows a greater insult to the integrity of the non ZETA directors buy sending it to shareholders.
I did get back a comment from Mike Dunn that if Zeta had to sell to stay below the 20% limit it would put downward pressure on the SP. So what, someone or some company is already putting downward pressure on the SP. His arguement does not hold as ZETA has to sell within 6 months and as a buyback can be arranged to last 4 years the company could buy them.


I would like to invite anyone who wants vote against this resolution to do .

[fabs]

We could trash this to & fro till voting day, will make no difference to end result. [ it will pass ]
Explaining why, if it is not crystal clear how things are run by now, then that's the way its going to be. World is full of shills NZ no exception.
Predicted about 9 months ago on this forum that nzo will be gone in about 12 see no reasons to change my mind.
Lets wait and see.
HIW.

[Sideshow Bob]

Voted tonight against - for what it's worth.

[neopoleII]

Here's a link....
https://waterpressure.wordpress.com/2011/04/16/murder-at-pike-river-mine-timeline/
I didn't think much of it as it read conspiracy all over.....
but the more i read the background and relevant links were provided and it made me wonder.
The reason i am posting this link now is because in the article it mentions the silent majority shareholders that are hidden.....
I have no idea what this means...... but it does explain the things that the board does which alot of smaller shareholders find strange.
If you have upwards of an hour spare you might find the above link interesting...... it is however very complex and over my head.
But my nose still works and I smell something..... just dont know what it is...... but it has stopped me from investing in anything but
myself for a very long time.
Hope someone here can make an informed critique of the link.

an extract

55)October 15, 2010: Then, a day later, none other than L1 Capital Pty Ltd of Level 5, 101 Collins Street, Melbourne, commences aggressively buying up shares in Bathurst Resources Ltd as well on behalf of National Nominees Ltd, (who just happen to be major shareholders in New Zealand Oil & Gas Ltd [5.76%] and BNZ/ National Australia Bank [11.98%]) State Street Australia Ltd, Cogent Nominees Ltd and JP Morgan Nominees Australia Ltd (also major shareholders in New Zealand Oil & Gas Ltd [0.65%] and BNZ/National Australia Bank [10.32%]) between October 5
– 13 October 2010 – increase its voting power to 7.09%. [Bathurst website PDF File: Oct 15, 2010, Becoming a Substantial Holder] – we remember, New Zealand Oil & Gas Ltd is the controlling shareholder of Pike River Coal Ltd as well.

[neopoleII]

double posted sorry.

[Bella52]

I have also read most of the dribble and now more than ever will vote against it. When you read it keep it clearly in mine that this special meeting is only about having a share buy back where Zeta does not have to sell shares and thereby allow its percentage holding to rise above the 20% limit. As the document says up to 24.5 % if all the 64 million shares are purchased.
What I like most is 2.9 where they deal with the implications of it not being approved. Note this could lead to a buy back where shareholder approval is not required and ZETA then have to stay below 20%. Also note that all the benefits of a buy back we are supposed to enjoy if ZETA is allowed to get around the takeover code also apply apply if this resolution does not succeed and we still have a buy back. I am for a buy back but definitely not for letting control slip away from all shareholders . This resolution is just an attempt to get around the takeover code.
I have listed in a post above what I think the company should do with its money. NZOG is certainly not the only oil company under pressure with a depressed share price.

so vote then, Zeta are not allowed to vote so it only gets through based on small shareholders.

[flyingmariner]

Thanks BP that worked and yes, checked the right box!

[digger]

Well I have done my bit to get this thing voted down. Spoke to all I know that have shares and the indication is that they will vote NO.


Have spoke to TR and AK,that is the past CEO and the present one. They know my thoughts and from what I got back AK he did agree with me that acquistions are a good way to go and they are studying a number of companies. I do not buy into the reasoning that if we have a buy back where ZETA has to sell that it would defeat the purpose of the buy back. You can believe anything if the money is right.

Anyone wanting to vote please note that time is running out.

[dodgy]

Well I have done my bit to get this thing voted down. Spoke to all I know that have shares and the indication is that they will vote NO.


Have spoke to TR and AK,that is the past CEO and the present one. They know my thoughts and from what I got back AK he did agree with me that acquistions are a good way to go and they are studying a number of companies. I do not buy into the reasoning that if we have a buy back where ZETA has to sell that it would defeat the purpose of the buy back. You can believe anything if the money is right.

Anyone wanting to vote please note that time is running out.

Hi Digger
Voted NO! Its about time all who can attended briefings and AGM/Special (for whom) meetings, to show the controllers of our futures, what us (the owners) really think. A vote of no confidence would go a long way - net assets about 77c (according to ANZ securities) I say sell the whole thing, stop the bleeding and give the owners our futures and hard earned cash back.
Comments.
Regards
-dodgy (owner/shareholder/mug?)

[Lion]

Well I have done my bit to get this thing voted down. Spoke to all I know that have shares and the indication is that they will vote NO. Have spoke to TR and AK,that is the past CEO and the present one. They know my thoughts and from what I got back AK he did agree with me that acquistions are a good way to go and they are studying a number of companies. I do not buy into the reasoning that if we have a buy back where ZETA has to sell that it would defeat the purpose of the buy back. You can believe anything if the money is right. Anyone wanting to vote please note that time is running out. Hi Digger, I intend to attend and vote no

[sideline]

Hi everyone,
voted no too.
What does anyone make of the bot-selling today? Saville acting through associates to influence voting???

[blackcap]

Hi everyone,
voted no too.
What does anyone make of the bot-selling today? Saville acting through associates to influence voting???

Is Zeta's influence on NZO good or bad for other holders I wonder. I know they play hardball and will extract what they can for themselves (as they should). However they are not going to waste the cash that is there are they? Ie there may be more value for NZO shareholders with Zeta on board? Not sure what to make of this.

[digger]

Hi everyone,
voted no too.
What does anyone make of the bot-selling today? Saville acting through associates to influence voting???

That is what I would say. The implication is that IF we agree to this vote all will be well. We just have to stay stupid enough to not realize that it will be a controlling 22.5% increase to ZETA at no cost to themselves.
Now of coarse it is true that to anyone who does not sell into this or any other buy back it means a % increase in holding,but the important part is it is not a controlling increase. IF Zeta gets away with this they will immediately want another seat on the board.

It will be too hard for me to attend the meeting so I am doing my bit here and with direct contact,

Again get on and VOTE. Together we can stop this madness.
Cheers.

[Monkey Poms]

Here's a link....
https://waterpressure.wordpress.com/2011/04/16/murder-at-pike-river-mine-timeline/
I didn't think much of it as it read conspiracy all over.....
but the more i read the background and relevant links were provided and it made me wonder.
The reason i am posting this link now is because in the article it mentions the silent majority shareholders that are hidden.....
I have no idea what this means...... but it does explain the things that the board does which alot of smaller shareholders find strange.


If you have upwards of an hour spare you might find the above link interesting...... it is however very complex and over my head.
But my nose still works and I smell something..... just dont know what it is...... but it has stopped me from investing in anything but
myself for a very long time.
Hope someone here can make an informed critique of the link.

an extract

55)October 15, 2010: Then, a day later, none other than L1 Capital Pty Ltd of Level 5, 101 Collins Street, Melbourne, commences aggressively buying up shares in Bathurst Resources Ltd as well on behalf of National Nominees Ltd, (who just happen to be major shareholders in New Zealand Oil & Gas Ltd [5.76%] and BNZ/ National Australia Bank [11.98%]) State Street Australia Ltd, Cogent Nominees Ltd and JP Morgan Nominees Australia Ltd (also major shareholders in New Zealand Oil & Gas Ltd [0.65%] and BNZ/National Australia Bank [10.32%]) between October 5
– 13 October 2010 – increase its voting power to 7.09%. [Bathurst website PDF File: Oct 15, 2010, Becoming a Substantial Holder] – we remember, New Zealand Oil & Gas Ltd is the controlling shareholder of Pike River Coal Ltd as well.

Hi Neopole, I have voted against NZO proposal not because of the Zeta situation. Better to put spare funds into buying into a basket of oil shares - say five companies who have an abundance of reserves with low cost of production and quality oil (low sulphur). Think we are getting close to the bottom price of quality companies shares. NZO may never have the opportunity again.

Wouldn't worry too much about the nominee Banks.
Bought my shares through a UK broker who in turn used Bank of New York to appoint BNZ/National Australia Bank to hold the shares. (nominee)
Advised broker to vote against the motion (3,994,244 total shares).

Directors of NZO with inside knowledge of their industry should be able to chose the right shares to invest ????????.

Forum members; which oil shares would you propose NZO to invest in and hold on to until the oil price rises?
5 to 10% cut in oil production would probably send oil above $100

Monkey Poms.

[digger]

Hi Neopole, I have voted against NZO proposal not because of the Zeta situation. Better to put spare funds into buying into a basket of oil shares - say five companies who have an abundance of reserves with low cost of production and quality oil (low sulphur). Think we are getting close to the bottom price of quality companies shares. NZO may never have the opportunity again.

Wouldn't worry too much about the nominee Banks.
Bought my shares through a UK broker who in turn used Bank of New York to appoint BNZ/National Australia Bank to hold the shares. (nominee)
Advised broker to vote against the motion (3,994,244 total shares).

Directors of NZO with inside knowledge of their industry should be able to chose the right shares to invest ????????.

Forum members; which oil shares would you propose NZO to invest in and hold on to until the oil price rises?
5 to 10% cut in oil production would probably send oil above $100

Monkey Poms.

Yes fully agree Monkey Poms,acquisition is the best way to go. Did speak with AK the other day and he did say they were studying a number of companies,so once this remit is turned down I think that is what will happen. Again this is a very unique time in history when oil is probably at about half the long term cost of true production. Of coarse established or pipeline production is less than 90 dollars but true new production costs are higher. At current value all Canada's tar sands will lose money.
Your point about voting against' not to defeat Zeta' does miss a valuable consideration. The 20% limit imposed by the takeover code needs to be strengthened so that there is no way a dominate holder can impose its will on the rest of the company . Get that sorted out then on to acquisitions.
Cheers

[fish]

voting on line is so easy-and confirmation of the no vote via e-mail immediately.

[blackcap]

voting on line is so easy-and confirmation of the no vote via e-mail immediately.

Yes it is isn't it. i have noticed I am voting a lot more the previously even for some of my smaller holdings. But it may hopefully send a message to directors if they stray outside shareholders parameters.

[dolor]

I haven't posted here in years but as a hugely disappointed long-term investor(27 years) it amazes me that our directors are unable to make better use of company funds. To have spare cash at this time and not use it to advance productive assets and future income is bordering on incompetence. The opportunities for quality investment have not been better for years with very little risk. It must be that having such bad experience in Tunisia(cost us $8m) has made the board risk averse to absurdity. Hopefully Digger's efforts will prevail and the board will reconsider this desperate default proposal and move us into something with serious long term benefit.

[arjay]

I've also voted NO online. Dunno how much good it will do though, all us minnows can be cancelled out easily by a yes from bigger fish.

[Sideshow Bob]

Results out.

https://www.nzx.com/companies/NZO/announcements/269157

Loss of $6.2m with a write down of $36.3m on Tui. No divvy.

$83.7m in cash, about 20cps.

[trader_jackson]

What does everyone think?

In my view, can someone ask them this afternoon to look at acquisitions more closely and stop focusing on pushing through a share buy back? I won't be able to attend unfortunately

[fish]

In the circumstances of low oil prices I am very happy with income-significantly up!
Kupe still looking good for a reserve upgrade.
Tui may stop production earlier if oil prices remain low.
25 cents per share in Cash reserves and ongoing income could allow another return of capital and share cancellation or buy a distressed oiler with good reserves.
Would be wasted on a share buy back which would enable zeta to increase their holdings.
Important to vote tomorrow-it is easy to do this electronically tonight-wouldn't it be great if nzo and zeta were made aware of the power of the average shareholder.

[fish]

In the circumstances of low oil prices I am very happy with income-significantly up!
Kupe still looking good for a reserve upgrade.
Tui may stop production earlier if oil prices remain low.
25 cents per share in Cash reserves and ongoing income could allow another return of capital and share cancellation or buy a distressed oiler with good reserves.
Would be wasted on a share buy back which would enable zeta to increase their holdings.
Important to vote tomorrow-it is easy to do this electronically tonight-wouldn't it be great if nzo and zeta were made aware of the power of the average shareholder.

[digger]

Ok this meeting was at 10 this morning,so what is the big holdup giving out the results.?????

[fish]

we lost-not even close
The motion was carried about 3 to 1

[digger]

we lost-not even close
The motion was carried about 3 to 1

Great shame. We lost all right if the sums are true,not only here but we could have better used the money to grow by acquisition. Shows a pathetic lack of direction and courage on the part of the company.In two years time this low oil price will be history and this once in a life time opportunity may never surface again. Buy backs may be acceptable in normal times but what we have now is not normal so instead of being acceptable it is a failure direction to take the company in at this time in our history. Great shame and a sad day for the company,opportunity lost.

[jumbo]

there could have been drug testing before letting out the results jumbo

[Sideshow Bob]

Agree Digger. Lack of 'intestinal fortitude'. Also known as not having the balls.

[neopoleII]

well this result says it all regarding the link i posted last week about someone doing a very indepth study on those who control (behind the scenes) nzo.
this co will be swallowed up for a song and the private shareholder will be shafted.
im just happy that i followed my nose and stopped investing many years ago.
just wish i followed my gut and sold out many years ago.... instead i stayed believing that the co has its shareholders in its best interest.
what i have learnt know is....... there are shareholders..... and there are "other" shareholders.
at least i havent lost the shirt of my back...... just my undies.

[BWR]

The interesting figure from the vote on the buy-back resolution was the very large ABSTAIN figure. The only reason a shareholder would bother going through the process of voting, and then register Abstain, must surely be to send the directors a message. Abstain votes represented 35% of votes cast, with votes against 17.16% of votes cast. Together these outweigh the votes in favour which are 48% of votes cast.

[arjay]

The interesting figure from the vote on the buy-back resolution was the very large ABSTAIN figure. The only reason a shareholder would bother going through the process of voting, and then register Abstain, must surely be to send the directors a message. Abstain votes represented 35% of votes cast, with votes against 17.16% of votes cast. Together these outweigh the votes in favour which are 48% of votes cast.

I find it very odd that anyone would go to the trouble of voting and then abstain. It's the same thing as not bothering to vote at all - when it comes to getting a majority for the motion. The message the directors get is 'we got enough support to get it through'.

[Crackity]

I find it very odd that anyone would go to the trouble of voting and then abstain. It's the same thing as not bothering to vote at all - when it comes to getting a majority for the motion. The message the directors get is 'we got enough support to get it through'.

The shareholding figure seems to match the Zeta holding - they are not allowed to vote on this resolution so maybe this was their way of proving it?

Maybe Notie can tell us more...

[notie]

The shareholding figure seems to match the Zeta holding - they are not allowed to vote on this resolution so maybe this was their way of proving it?

Maybe Notie can tell us more...

I can tell you one thing, NZOG is sleep walking into a take over and the shareholders will be royally screwed over by Zeta

[Crackity]

I can tell you one thing, NZOG is sleep walking into a take over and the shareholders will be royally screwed over by Zeta

No argument here Notie - I agree

[digger]

The interesting figure from the vote on the buy-back resolution was the very large ABSTAIN figure. The only reason a shareholder would bother going through the process of voting, and then register Abstain, must surely be to send the directors a message. Abstain votes represented 35% of votes cast, with votes against 17.16% of votes cast. Together these outweigh the votes in favour which are 48% of votes cast.

What does the take over code say? To get past 20% is a requirement that a simple majority must agree,or is it in this case that more voted for it than against. Clearly ZETA did not get authority from 50% of the shareholders or even 50% of those that voted.
Anyone know or prepared to find out?

[digger]

The interesting figure from the vote on the buy-back resolution was the very large ABSTAIN figure. The only reason a shareholder would bother going through the process of voting, and then register Abstain, must surely be to send the directors a message. Abstain votes represented 35% of votes cast, with votes against 17.16% of votes cast. Together these outweigh the votes in favour which are 48% of votes cast.

What does the take over code say? To get past 20% is a requirement that a simple majority must agree,or is it in this case that more voted for it than against. Clearly ZETA did not get authority from 50% of the shareholders or even 50% of those that voted.
Anyone know or prepared to find out?

[Balance]

I can tell you one thing, NZOG is sleep walking into a take over and the shareholders will be royally screwed over by Zeta

Nothing has changed obviously at NZOG.

I would say it is more like shareholders getting screwed while sleepwalking for years under the previous regime, and now waking up (too late) to be further screwed.

Karma.

Note : Pleased to be the one who posted and initiated page 1000.

[digger]

I see PPP is following in NZO footsteps and having a buy back. Zeta has learned a small lesson from the NZO buyback and this time not asking the shareholders what they want. PPP [that is ZETA] at this stage will not say what they will do with the bought back shares.
This will be used by ZETA to take over PPP when the time comes,then later on merge with NZO. That to me is obvious but are there any other outcomes anyone else see happening.???

[ziggy415]

I see PPP is following in NZO footsteps and having a buy back. Zeta has learned a small lesson from the NZO buyback and this time not asking the shareholders what they want. PPP [that is ZETA] at this stage will not say what they will do with the bought back shares.
This will be used by ZETA to take over PPP when the time comes,then later on merge with NZO. That to me is obvious but are there any other outcomes anyone else see happening.???
with nzo they required a special meeting to allow them to go over 20% yet with ppp there already at 46%....whats the difference.....not sure why nzo would sell their 15% ppp to Zeta then roll the whole lot under Zeta umbrella.....ppp have $20 mill cash so would have thought Zeta would offer 5 cents a share to get 54% of ppp they dont own with the cash component funding half the purchase

Thanks to Balance pointing out the onset of an oil glut enabling me to see the bigger picture and exiting nzo at the right time and price.....

[Balance]

Thanks to Balance pointing out the onset of an oil glut enabling me to see the bigger picture and exiting nzo at the right time and price.....

Aw Shucks, Ziggy415 .... glad you took notice. :)

[fabs]

W/P
Looks now beyond reasonable doubt who calls the shots in NZO but also no surprise various well payed characters playing along and why not.
May never score another easy & over payed job for that many years, anywhere in the industry or anywhere else.
WHAT A SHAM.

[Sideshow Bob]

Plumbing new depths.

zeta price following suit - down to 32c, from 70c a year ago.

[Carpenterjoe]

How long till NZO start buying back? Hopefully it gives this disappointing SP a boost. Kinda Strange knowing over the next four years NZO will sink roughly half the current MCap back in.

[BlackPeter]

How long till NZO start buying back? Hopefully it gives this disappointing SP a boost. Kinda Strange knowing over the next four years NZO will sink roughly half the current MCap back in.

I was wondering, why they didn't start the buy back yet, but I suppose the board probably thinks that the share is still ways to dear ... better wait until they can buy themselves much cheaper :D

[neopoleII]

a 2 or 3 cent divi to "investor" shareholders instead of a buyback to "in and out" traders would send a better message to those looking at this stock.
nzo is still an income earner with at least one quality income stream...... why buy back shares (from non loyal traders) to prop the sp....
but we know what the vote was so its a waiting games to how many share certificates will be bought and burnt...... whoops that was the old days of paper certs.

[BlackPeter]

Gosh - why does one need to be a cryptology specialist to understand certain SSH notices?

https://www.nzx.com/files/attachments/220556.pdf

I think it says that Ralph Noldan (director) sold 3200 ordinary shares from his family trust (down to NIL), 13367 ordinary shares he owned directly (down to NIL) - and he somehow "lost interest" in 100000 partly paid shares (down to 367000).

I guess I am not sure what's the story behind the partly paid shares (might be related to performance bonus or similar?), and the family trust might be directed by somebody else ... but why is he selling his directly owned shares? If the director thinks that NZO shares are at current price too dear - where is the bottom?

Am I missing something?

[digger]

Gosh - why does one need to be a cryptology specialist to understand certain SSH notices?

https://www.nzx.com/files/attachments/220556.pdf

I think it says that Ralph Noldan (director) sold 3200 ordinary shares from his family trust (down to NIL), 13367 ordinary shares he owned directly (down to NIL) - and he somehow "lost interest" in 100000 partly paid shares (down to 367000).

I guess I am not sure what's the story behind the partly paid shares (might be related to performance bonus or similar?), and the family trust might be directed by somebody else ... but why is he selling his directly owned shares? If the director thinks that NZO shares are at current price too dear - where is the bottom?

Am I missing something?

Who really does now know what is going on. The 100 thousand partly paid shares is the easiest to understand as the settlement may be at some lofty height of a dollar or more as in the earlier days that did happen.
For the rest you would have to be a fly on the wall at the family trust meeting to know what did happen and why. Maybe some one just wanted a settlement. It is not a lots of shares so either way it means little.

[trader_jackson]

https://www.nzx.com/files/attachments/222332.pdf

I assume this is meant to boost the share price... Thoughts?

[notie]

https://www.nzx.com/files/attachments/222332.pdf

I assume this is meant to boost the share price... Thoughts?

Nzog ran out of ideas long ago and they now think the best thing to do with their cash reserve is to buy employees shares via the buy back.

While Nzog currently has a good revenue stream via kupe and tui, they aren't replacing their reserves and I don't see they drilling with Kaheru or Barque. The zeta board members don't want them spending cash.

Who knows, maybe infratil has their eyes on nzog as a takeover target?

[digger]

https://www.nzx.com/files/attachments/222332.pdf

I assume this is meant to boost the share price... Thoughts?

I read it that when the share buy back gets started the board will include these specific targeted ESOP shares. In fact I suspect they will come first on the buy back list up to 2 million in the next year.
We could have worked that out for ourselves but NZOG must for nzx rules tell us anyways.
To me it is just a straight forward legal requirment.
Chers

[ziggy415]

I read it that when the share buy back gets started the board will include these specific targeted ESOP shares. In fact I suspect they will come first on the buy back list up to 2 million in the next year.
We could have worked that out for ourselves but NZOG must for nzx rules tell us anyways.
To me it is just a straight forward legal requirment.
Chers
are you sure its not so the directors can get some value out of the share options that are out out of the money but are partly paid.....im slowly losing faith.....maybe Kisaran will pique my appetite again

[notie]

.....im slowly losing faith.....maybe Kisaran will pique my appetite again

nzog as non-operated partner will never make any money out of Kisaran, not with the Indonesian PSC terms and rampant corruption in that country

[Crackity]

nzog as non-operated partner will never make any money out of Kisaran, not with the Indonesian PSC terms and rampant corruption in that country

Hey Notie - as you have been correct with almost everything you have posted about NZOG in the past I'm sure you are right.....I see the MD is leaving the Board to stay as Chief Executive only - any thoughts on this:)

[ziggy415]

nzog as non-operated partner will never make any money out of Kisaran, not with the Indonesian PSC terms and rampant corruption in that country

must admit...the terms of the psc with the indo govt do seem a bit harsh...they pay back all drill costs etc but then own 80% of the well so your probably right about not a lot left over

[arjay]

are you sure its not so the directors can get some value out of the share options that are out out of the money but are partly paid.....im slowly losing faith.....maybe Kisaran will pique my appetite again


I must be reading the announcement all wrong (or have caught Balance's 3/4 glass empty disease), but my take is that in the past, employees 1c part-paid $1 shares would lapse if the sp failed to reach $1 by Exercise time. Now it appears that if the current sp is 40c then the Co. could buy back those 1c shares from employees for 39c? Wonderful news for Directors and employees if it were true.

[fish]

must admit...the terms of the psc with the indo govt do seem a bit harsh...they pay back all drill costs etc but then own 80% of the well so your probably right about not a lot left over
at least they recover costs and then 20% -might amount to a lot over time-who knows what the future will bring.

[digger]

I must be reading the announcement all wrong (or have caught Balance's 3/4 glass empty disease), but my take is that in the past, employees 1c part-paid $1 shares would lapse if the sp failed to reach $1 by Exercise time. Now it appears that if the current sp is 40c then the Co. could buy back those 1c shares from employees for 39c? Wonderful news for Directors and employees if it were true.

Hi Arjay,

I do not see it the way you do. Line two says the targeted shares are ordinary shares.
i still believe that the 1 cent that AK paid for 3 million partly paid for his 1 dollar shares still stands. If it could be twisted the way you read it then surely AK would have upped the targeted volume to more than two million to include himself. Note the volume is only two million.

[Coles Killer]

a 2 or 3 cent divi to "investor" shareholders instead of a buyback to "in and out" traders would send a better message to those looking at this stock.
nzo is still an income earner with at least one quality income stream...... why buy back shares (from non loyal traders) to prop the sp....
but we know what the vote was so its a waiting games to how many share certificates will be bought and burnt...... whoops that was the old days of paper certs.

I thought the logic behind this was reasonable - while they are not creating imputation credits, they're returning capital in other ways. Tax efficient yes?

[fish]

I thought the logic behind this was reasonable - while they are not creating imputation credits, they're returning capital in other ways. Tax efficient yes?
Yes tax efficient.
Not good as it enables Zeta to proportionally increase their shares.
Another capital return would be fairer and still tax efficient