NZ Oil & Gas (NZO)

[fish]

Expect we could see the quarterly cashflow tomorrow.....

?expecting income to be more than doubled.
Expenses also up due to the -pv 12 drill-still will probably be a valuable asset with all the rock fractures
If successful I doubt if 74 cents will be enough-no point speculating as a takeover offer is not on the cards

[Sideshow Bob]

If Ironbark had been a success and you had taken 74c the tears would still be flowing.

Indeed. But that roll of the dice (like many of NZO's) didn't quite work out.

[JBmurc]

Indeed. But that roll of the dice (like many of NZO's) didn't quite work out.

Didn't it have like a 5% chance ...I sold out of my CUE holding pre Ironbark ...looked far to likely to be duster IMHO.. Hindsight I should have never loaded back up several months later ...

[JBmurc]

?expecting income to be more than doubled.
Expenses also up due to the -pv 12 drill-still will probably be a valuable asset with all the rock fractures
If successful I doubt if 74 cents will be enough-no point speculating as a takeover offer is not on the cards

Well we will only know if PV-12 will be worth all the millions spent if we actually see some commercial gas flows from the new plan with the horizontal lateral into the Pacoota P2/P3 .. hoping so... still would have been much happier had they been able to drill to the large target trap that had the very large prospective Gas resource ... we don't even know what kind of prospective target we are looking at in the P2/P3 could be minor with a very fast decline

[fish]

Well we will only know if PV-12 will be worth all the millions spent if we actually see some commercial gas flows from the new plan with the horizontal lateral into the Pacoota P2/P3 .. hoping so... still would have been much happier had they been able to drill to the large target trap that had the very large prospective Gas resource ... we don't even know what kind of prospective target we are looking at in the P2/P3 could be minor with a very fast decline
You seem to have forgotten about the P1.

[Sideshow Bob]

375600.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com) (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/396152/375600.pdf)

Quarterly Report

[JBmurc]

375600.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com) (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/396152/375600.pdf)

Quarterly Report

Yes and SP wise NZO trades at a intraday record low of 35c on the ASX on the usual pathetic low volumes...

[JBmurc]

Another duster to the list ....how much did PV-12 cost 40mill??? wasted not even getting close to the target depth>>>

[fish]

Another duster to the list ....how much did PV-12 cost 40mill??? wasted not even getting close to the target depth>>>

Misinformation again.

[JBmurc]

Misinformation again.

well not 40mill thats the agreed commitment from NZO/CUE for up to 10 wells many just development/reworks ..but will be interesting to see how much was blown on PV-12 ..

[Sideshow Bob]

Its NZO - failure was probably already expected & priced in.....

[fish]

Its NZO - failure was probably already expected & priced in.....
Ain’t over until the fat lady sings

[kiora]

I remember when this was first listed in 1981 ........

41 years latter .......

Where has it got to now....... ?

[Sideshow Bob]

https://www.nzx.com/announcements/398871

15/9/2022, 9:58 amGENERAL• New Zealand Oil & Gas signs a new Gas Supply Agreement with Shell Energy Australia for supply of gas from the Mereenie field.

• One year term from 1 January 2025 for delivery of 0.64 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions.

New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with Shell Energy Australia (Shell) to supply 0.64 PJ of gas over one year, commencing 1 January 2025. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 3.65 PJs to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.

Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.
For further information please contact the Company on:

email enquiries@nzog.com
phone +64 4 495 2424

[fish]

https://www.nzx.com/announcements/398871

15/9/2022, 9:58 amGENERAL• New Zealand Oil & Gas signs a new Gas Supply Agreement with Shell Energy Australia for supply of gas from the Mereenie field.

• One year term from 1 January 2025 for delivery of 0.64 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions.

New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with Shell Energy Australia (Shell) to supply 0.64 PJ of gas over one year, commencing 1 January 2025. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 3.65 PJs to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.

Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.
For further information please contact the Company on:

email enquiries@nzog.com
phone +64 4 495 2424

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

[Lion]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents
That's an exciting calculation, fish, I sure hope it is correct.
The contract runs for a year starting Jan 2025 - seems a long way away.

NZO got a mention (for this deal) on the RNZ midday business report today.

[blackcap]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

Unfortunately I do not see shareholders getting a cent of this and that is why the SP will continue to drift in the doldrums. No dividend, OGOG will keep using NZO as their exploration vehicle and when the cash comes it will go out as fast again.

That said I might be tempted at these prices but the presence of OGOG is a great impediment.

[JBmurc]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

Nothing all that amazing esp as the PV-12 disaster didn't drill the large DEEP 128PJ target that would have been great for the JV and added much needed reserves ... ..instead they have side tracked P1 resource they are already producer from so are just going drain the reserve much quicker ..fine in the Short term but will pressure the JV to explore sooner than later or see production drop

[fish]

[QUOTE=JBmurc;975289]best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

You need to do better research .
I phoned Andrew a couple of months ago and they were getting over $30 Gj for the 20% gas not contracted .
Current long-term contracts expire soon.
They are probably priced at around$4 Gj
Gas prices look unlikely to fall in 2023 and 2024.
So when current contracts expire what price do you think will be achieved on the spot market-?
My guess is $30 to $40
See we do not have to wait until until 2025-we get the real bonanza starting soon.
In my opinion you have grossly underestimated 2025 futures.
No doubt you want to justify why you sold out of cue-it seemed a daft idea to me when you said you were selling at a time just before profits multiply.

[JBmurc]

[QUOTE=JBmurc;975289]best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

You need to do better research .
I phoned Andrew a couple of months ago and they were getting over $30 Gj for the 20% gas not contracted .
Current long-term contracts expire soon.
They are probably priced at around$4 Gj
Gas prices look unlikely to fall in 2023 and 2024.
So when current contracts expire what price do you think will be achieved on the spot market-?
My guess is $30 to $40
See we do not have to wait until until 2025-we get the real bonanza starting soon.
In my opinion you have grossly underestimated 2025 futures.
No doubt you want to justify why you sold out of cue-it seemed a daft idea to me when you said you were selling at a time just before profits multiply.

No I'm a realist .. maybe you haven't spoken with many Energy-resources companies mgmt. before but I can promise you they all only talk the positive ..the market however does what it does ... $30Gj - $40Gj is completely insane levels .... only last year Aus east coast Nat gas broke a record just over $10Gj

At present in Canada (which has massive Gas resources) they have seen major increase in gas prices YOY JUNE to C$6.53Gj

WA Aussie A$5.56Gj ..https://www.afr.com/companies/energy/paradise-wa-has-cheapest-gas-in-oecd-20220902-p5bete

East coast gas prices in the June quarter ranged from an average of $6.36/GJ to $29.85/GJ, EnergyQuest said, with the bottom of the range marked by the average price received for domestic gas by Origin Energy in the quarter, while the top of the range was the Adelaide wholesale price at $29.85/GJ.

I'd be very surprised if NZO/CUE/CTP can get $30Gj contracted Gas .... yes small amounts on the spot market while the EAST coast has supply issues ... but LNG exporting terminals are getting built ....pipelines installed to fill the high priced markets ...

[fish]

[QUOTE=fish;975302]

No I'm a realist .. maybe you haven't spoken with many Energy-resources companies mgmt. before but I can promise you they all only talk the positive ..the market however does what it does ... $30Gj - $40Gj is completely insane levels .... only last year Aus east coast Nat gas broke a record just over $10Gj

At present in Canada (which has massive Gas resources) they have seen major increase in gas prices YOY JUNE to C$6.53Gj

WA Aussie A$5.56Gj ..https://www.afr.com/companies/energy/paradise-wa-has-cheapest-gas-in-oecd-20220902-p5bete

East coast gas prices in the June quarter ranged from an average of $6.36/GJ to $29.85/GJ, EnergyQuest said, with the bottom of the range marked by the average price received for domestic gas by Origin Energy in the quarter, while the top of the range was the Adelaide wholesale price at $29.85/GJ.

I'd be very surprised if NZO/CUE/CTP can get $30Gj contracted Gas .... yes small amounts on the spot market while the EAST coast has supply issues ... but LNG exporting terminals are getting built ....pipelines installed to fill the high priced markets ...

A realist would know that for the last quarter the price for gas had a cap of $40 imposed as the spot price reached for $80 .You need to look at the relevant market.
There are 3 export lng terminals in Queensland competing for gas

[JBmurc]

[QUOTE=JBmurc;975364]

A realist would know that for the last quarter the price for gas had a cap of $40 imposed as the spot price reached for $80 .You need to look at the relevant market.
There are 3 export lng terminals in Queensland competing for gas

NZO/CUE aren't suppling LNG terminals ... they are micro nobody player in the east coast market .. picking up a few spot price wins for percent of production ...but there is many major players working to fill the Gas demand gap .. thats what happens in the resources sector ....prices rise companies race to fill and make the fat profits in turn leads to oversupply then prices drop ... at present we have massive ramp up in Gas production ..Aussie has so much Gas resources ...

https://www.afr.com/companies/energy/what-is-going-on-in-australia-s-gas-market-explained-20220801-p5b65t
Australia has abundant gas resources
The east coast of Australia is forecast to produce 1981 petajoules (PJ) of natural gas in 2023.

For 2023, the energy market operator forecasts that domestic east coast gas demand will be around 571 PJ – requiring approximately 29 per cent of all the gas expected to be produced for the year.

[fish]

[QUOTE=fish;975447]

NZO/CUE aren't suppling LNG terminals ... they are micro nobody player in the east coast market .. picking up a few spot price wins for percent of production ...but there is many major players working to fill the Gas demand gap .. thats what happens in the resources sector ....prices rise companies race to fill and make the fat profits in turn leads to oversupply then prices drop ... at present we have massive ramp up in Gas production ..Aussie has so much Gas resources ...

https://www.afr.com/companies/energy/what-is-going-on-in-australia-s-gas-market-explained-20220801-p5b65t
Australia has abundant gas resources
The east coast of Australia is forecast to produce 1981 petajoules (PJ) of natural gas in 2023.

For 2023, the energy market operator forecasts that domestic east coast gas demand will be around 571 PJ – requiring approximately 29 per cent of all the gas expected to be produced for the year.
Nor did I say they are suppling lng terminals .
I do not think you understand the gas market.
Central petroleum,NZO and cue work in partnership to market gas together-saves costs and sell for best prices based on Queensland prices .
there are 3 export lng terminals in Queensland alone .
Hence domestic prices are based on export prices
This is where ogog expert directors is helping shape the future for NZO

[JBmurc]

[QUOTE=JBmurc;975453]
Nor did I say they are suppling lng terminals .
I do not think you understand the gas market.
Central petroleum,NZO and cue work in partnership to market gas together-saves costs and sell for best prices based on Queensland prices .
there are 3 export lng terminals in Queensland alone .
Hence domestic prices are based on export prices
This is where ogog expert directors is helping shape the future for NZO

yes and hasn't it been such a great future

[fish]

[QUOTE=fish;975464]

yes and hasn't it been such a great future

Since you sold out of cue oblivious to the future you will not be sharing it .

[JBmurc]

[QUOTE=JBmurc;975514]

Since you sold out of cue oblivious to the future you will not be sharing it .

yes you are correct there ... poor old me I'll just have to hope my other 6x picks pull up the slack of missing out on CUE/NZO massive growth you dream of...

[fish]

[QUOTE=fish;975530]

yes you are correct there ... poor old me I'll just have to hope my other 6x picks pull up the slack of missing out on CUE/NZO massive growth you dream of...

Not dreams .
Have you researched what is reality ?
E.g. 2025 contract just signed with shell.
Why is Shell doing this ?
It is very simple.
Europe is stopping using their main energy source-Russian gas.
Shell has just signed contracts to be the main user of German LPG import LPG terminals .
So they now have to find more LPG than they can produce.
Hence pay a premium price to ensure they have sufficient lpg for the need.

[mike2020]

Right down to the day he sold his last share he was a massive fan on HC. Maybe he has hopes to buy back in before any rerate. It does seem a little untrustworthy.

[JBmurc]

Right down to the day he sold his last share he was a massive fan on HC. Maybe he has hopes to buy back in before any rerate. It does seem a little untrustworthy.

Absolute bollocks .. I stated before I sold one share I wasn't happy about the two deep drills in NT getting shelved.. comments I made during SEPT on HC
so please explain how these posts are showing me to be a MASSIVE CUE FAN ????

most of my posts from early SEPT to later SEPT before I sold 1 share .... over AUG is when I sold ... I did forget to adjust my sentiment which just auto loads even when I changed it to HOLD from BUY it just turned back to BUY ?? not sure why .. I never really look as many posters are lazy

-Yes all round cluster FK! ... not what we need ... so now they are dropping Dingo deep well ...which going off this drilling crews poor operations to date might be a positive as they really are making a meal of the present exploration well ...

-"Yes hindsight I would have had less invested CUE at this point..."

-Yeah just ZERO BUYER interest in CUE .. I haven't see it this bad ...could well trade into the 5's ... you see more interest in a Gold explorer with no Gold resources or drill program planned ..!!!!!!!!!!!!!!!!!!!!!wtf!!!!!

-As a major S/H I'm looking at my holding below what I paid ... I've been here for some time ... I feel downside is very limited but really would like to see some kind of return on my investment or why hold O&G prices booming SP going nowhere...

- I agree CUE should well grow BOEPD + Cashflows going forward and this could be either re-invested like it has been back into replacement of projects natural decline (we had much the same BOEPD 5-6yrs ago) or returned to S/H's or mgmt .. I was really hoping the two Aus deep drills were going to add massively to CUE prospective BOE resource they had the size to be material add-on ..

.but as we have seen plans have changed CTP now wants to spend NZO/CUE agreed funds on prioritise near term production-enhancement activities at Mereenie or Palm Valley as they are piped up ready for gas sales ..so it seems the plan sold to NZO/CUE for major discovery upside is now replaced by many more wells and re-completions on present Gas fields CTP has had a poor record increasing Production levels Vs natural declines to date ..

Paus Biru will double Indo Gas production but is least couple years away from doing that...

Mahato- is a brilliant Project that I wish CUE had a Bigger share of esp. now that the INDO govt take 50% share of CUE production in royalties..
as we have seen pretty steep declines in production so the need to add new wells and injection wells will be interesting to see the peak production volumes hit ...

......certainly upside On higher O&G prices ..but no real knockouts to kick much higher ...

-well because 50.4% of CUE is controlled by NZO .. and NZO is 70% controlled by OG Global Energy ... are only hope is T/O merger for higher value...
As it doesn't look like CUE will do a Buyback or Dividend anytime soon ... so others aren't keen to join the rest of us in this Cray pot...

-I guess at some point we will have such high net cashflows + Cash balance the SP might head up a few cents

-YES is in a company with such low volumes low buyer interest ...A$50k sell order shouldn't though to a company with $1mill per week in cashflows

then later AUG on if I was still holding ...it I ramp up I'm the man nope told the truth that showed I took a good 30k loss!!!!
yeah might have got a few more pips ... I sold the 3.8mill from low 7s to 6c average exit 6.4c
av price paid 7.2c ... should have wait few more days for the last lot but I just have zero faith CUE will reward S/H more than a few pips

[fish]

[QUOTE=fish;975464]

yes and hasn't it been such a great future

You do not seem to be the best at predictions.
The pv 12 lateral has hit gas which it is now flaring

[JBmurc]

[QUOTE=JBmurc;975514]

You do not seem to be the best at predictions.
The pv 12 lateral has hit gas which it is now flaring

Would have been a massive concern if it didn't as they just re-drilled the productive P1 Zone ... all deeper zones were water/dusters/too hard to drill etc ... this will mean they will just drain the formation faster aka won't increase Gas resource much if at all .. its positive in increasing Gas-flows ..but negative as they spent many more 10's millions to just in the end do an infill drill to the P1 resource..

'It is planned that drilling will continue laterally into the P1 formation for several hundred
metres to maximise opportunities to intersect natural fractures. The P1 formation is the
currently producing formation at Palm Valley.'

Mahato development is doing the same drilling more and more wells to tap the Oil Discovery draining the pool of oil faster .. all great in the short term ..but big picture not increasing the O&G resource base.. at some point all those Millions in earnings will have to be directed back into ever inflating costs of Exploration to replace present production so not likely dividends share buy backs ..this is why CUE now has 7mill on tick with NZO and NZO had to raise more capital

[fish]

[QUOTE=fish;976594]

Would have been a massive concern if it didn't as they just re-drilled the productive P1 Zone ... all deeper zones were water/dusters/too hard to drill etc ... this will mean they will just drain the formation faster aka won't increase Gas resource much if at all .. its positive in increasing Gas-flows ..but negative as they spent many more 10's millions to just in the end do an infill drill to the P1 resource..

'It is planned that drilling will continue laterally into the P1 formation for several hundred
metres to maximise opportunities to intersect natural fractures. The P1 formation is the
currently producing formation at Palm Valley.'

Mahato development is doing the same drilling more and more wells to tap the Oil Discovery draining the pool of oil faster .. all great in the short term ..but big picture not increasing the O&G resource base.. at some point all those Millions in earnings will have to be directed back into ever inflating costs of Exploration to replace present production so not likely dividends share buy backs ..this is why CUE now has 7mill on tick with NZO and NZO had to raise more capital

It actually means they will increase production,pipe it to Queensland and achieve earnings that will be multiples of last year.
This gas is not contracted and Queensland prices are prices in keeping with European gas prices.
More gas will be extracted from the resource and sold at record prices.
Btw extracting gas is not like draining a pond with one pipe..
It moves through fractures.
This zone is highly fractured .
They are flaring gas.
It is under high pressure and will likely have higher flow rates than previous wells

[JBmurc]

[QUOTE=JBmurc;976600]

It actually means they will increase production,pipe it to Queensland and achieve earnings that will be multiples of last year.
This gas is not contracted and Queensland prices are prices in keeping with European gas prices.
More gas will be extracted from the resource and sold at record prices.
Btw extracting gas is not like draining a pond with one pipe..
It moves through fractures.
This zone is highly fractured .
They are flaring gas.
It is under high pressure and will likely have higher flow rates than previous wells

I didn't say pool on the PV-12 Gas production ... but Mahato "OIL project"!...

.. yes they will have great Gas-flows that will be limited by the pipelines capacity of course but a good shorter term hit

... longer term PV-12 resource will see P1 Gas flows reduce faster as muti wells take more from the structure I'm sure CUE/NZO/CTP would have much rather been taking Gas from deeper new zones adding further to the 2p reserves .. its not unlimited gas in the P1 ....CUE 2p mmboe= 600kbbls

In CUE's case they have spent $3mill on the exploration of PV-12 ... more costs to come for the lateral P1 production etc ...

I think CTP made a very smart move selling down the NT Gas Projects to NZO/CUE ...

And as for record high Gas prices I can promise you there is many ASX O&G companies much closer to the east coast market pipelines in VIC-QLD-NSW with far larger Gas resources that are moving projects forward to fill the Gas demand ..so I wouldn't count on East coast Gas prices to stay at these record high spot prices for many more months

[fish]

[QUOTE=fish;976657]

I didn't say pool on the PV-12 Gas production ... but Mahato "OIL project"!...

.. yes they will have great Gas-flows that will be limited by the pipelines capacity of course but a good shorter term hit

... longer term PV-12 resource will see P1 Gas flows reduce faster as muti wells take more from the structure I'm sure CUE/NZO/CTP would have much rather been taking Gas from deeper new zones adding further to the 2p reserves .. its not unlimited gas in the P1 ....CUE 2p mmboe= 600kbbls

In CUE's case they have spent $3mill on the exploration of PV-12 ... more costs to come for the lateral P1 production etc ...

I think CTP made a very smart move selling down the NT Gas Projects to NZO/CUE ...

And as for record high Gas prices I can promise you there is many ASX O&G companies much closer to the east coast market pipelines in VIC-QLD-NSW with far larger Gas resources that are moving projects forward to fill the Gas demand ..so I wouldn't count on East coast Gas prices to stay at these record high spot prices for many more months

Your views never seem to stand up to scrutiny .
The PV 12 drill has been more difficult than expected but the outcome is looking to be a big success.
No doubt you likely will not believe this .
So I will explain this as told to me by Andrew sometime ago.
The deep target was always more likely than not to be unsuccessful .
The extensive fractures made drilling very slow .
The upside to this was the lateral made more sense to develop.
Gas is trapped in the sandstone .
More fractures means more gas will flow and for a lot longer ..

You must be regretting selling out.
Maybe not but I would-in fact I have been buying as you have been selling !.
Annual report due out in a couple of days-first as a primary Asx listing .
will be interesting to see the market response

[JBmurc]

[QUOTE=JBmurc;976685]

Your views never seem to stand up to scrutiny .
The PV 12 drill has been more difficult than expected but the outcome is looking to be a big success.
No doubt you likely will not believe this .
So I will explain this as told to me by Andrew sometime ago.
The deep target was always more likely than not to be unsuccessful .
The extensive fractures made drilling very slow .
The upside to this was the lateral made more sense to develop.
Gas is trapped in the sandstone .
More fractures means more gas will flow and for a lot longer ..

You must be regretting selling out.
Maybe not but I would-in fact I have been buying as you have been selling !.
Annual report due out in a couple of days-first as a primary Asx listing .
will be interesting to see the market response

Nope not regretting it at all .. I see CUE next to no volumes very little in the BUY cue only 700k to 5c!!! ..

I don't think you understand Gas projects very well yes lateral near surface they have GAS The Palm Valley field started production in 1983 are currently 4 gas production wells in the anticlinal structure which is approximately 29 kilometres long and 14 kilometres wide.

PV-12 yes they planned to run yet another lateral into the P1 that was plan B...but .. P2 - P3 - P4 nothing commercial and deeper not able to drill ..so to make use of the equipment on site they run 5x well a lateral in the P1 yes more GAS flow but same structure ...how can't you understand CUE/NZO/CTP hasn't made a new discovery here ???

[fish]

[QUOTE=fish;976693]

Nope not regretting it at all .. I see CUE next to no volumes very little in the BUY cue only 700k to 5c!!! ..

I don't think you understand Gas projects very well yes lateral near surface they have GAS The Palm Valley field started production in 1983 are currently 4 gas production wells in the anticlinal structure which is approximately 29 kilometres long and 14 kilometres wide.

PV-12 yes they planned to run yet another lateral into the P1 that was plan B...but .. P2 - P3 - P4 nothing commercial and deeper not able to drill ..so to make use of the equipment on site they run 5x well a lateral in the P1 yes more GAS flow but same structure ...how can't you understand CUE/NZO/CTP hasn't made a new discovery here ???

It is not a new discovery but it is likely a big success .
Gas flow is likely to be large and the infrastructure is all in place to ship it at World LPG prices for years to come.
NZO have said they will start paying dividends as soon as cash flows are positive which will be in a few months .
Even if they only pay 10% of cash flow as dividend it will be a large and regular dividend.
I might have to retire from my day job to manage this.

[RTM]

[QUOTE=JBmurc;976850]

It is not a new discovery but it is likely a big success .
Gas flow is likely to be large and the infrastructure is all in place to ship it at World LPG prices for years to come.
NZO have said they will start paying dividends as soon as cash flows are positive which will be in a few months .
Even if they only pay 10% of cash flow as dividend it will be a large and regular dividend.
I might have to retire from my day job to manage this.

I hope you are right…but I am not holding my breath !

[Wiremu]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

[fish]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

Yes it is good to learn from each other-and I have a lot to learn .
Hoping for lots of good news in the next few days

[RTM]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

Nice post, agree.

[Sideshow Bob]

[QUOTE=fish;976898]

I hope you are right…but I am not holding my breath !

I think if you'd had been holding your breath with NZO, would have expired a lonnnggggg time ago!!

Some companies are just perennial under-deliverers.....

[fish]

[QUOTE=fish;975302]

No I'm a realist .. maybe you haven't spoken with many Energy-resources companies mgmt. before but I can promise you they all only talk the positive ..the market however does what it does ... $30Gj - $40Gj is completely insane levels .... only last year Aus east coast Nat gas broke a record just over $10Gj

At present in Canada (which has massive Gas resources) they have seen major increase in gas prices YOY JUNE to C$6.53Gj

WA Aussie A$5.56Gj ..https://www.afr.com/companies/energy/paradise-wa-has-cheapest-gas-in-oecd-20220902-p5bete

East coast gas prices in the June quarter ranged from an average of $6.36/GJ to $29.85/GJ, EnergyQuest said, with the bottom of the range marked by the average price received for domestic gas by Origin Energy in the quarter, while the top of the range was the Adelaide wholesale price at $29.85/GJ.

I'd be very surprised if NZO/CUE/CTP can get $30Gj contracted Gas .... yes small amounts on the spot market while the EAST coast has supply issues ... but LNG exporting terminals are getting built ....pipelines installed to fill the high priced markets ...

THe annual report today confirms you have got this wrong.
Average price since they started in may selling in the spot market is $34 for uncontracted gas .
ATM only 20% is uncontracted but will shortly be most until the 2025 Shell contract commences
This has helped increase net profit to 10 cents a share.
EPS next year should be phenomenal .
Are you sure you are not buying ?

[JBmurc]

[QUOTE=JBmurc;976850]

It is not a new discovery but it is likely a big success .
Gas flow is likely to be large and the infrastructure is all in place to ship it at World LPG prices for years to come.
NZO have said they will start paying dividends as soon as cash flows are positive which will be in a few months .
Even if they only pay 10% of cash flow as dividend it will be a large and regular dividend.
I might have to retire from my day job to manage this.

This what NZO/CUE mgmt told you ?? they will be getting on the LNG export train? really ... Dividends yes they have the cash would be a start to give S/H's some hope of decent returns .. You do know that only a small percent of the GAS heads to the higher east coast spot gas market .. they do send much of the gas to Darwin much lower gas prices and to a local power plant also lower contract gas price ...

Some recent Aus Gas news


https://www.theguardian.com/australia-news/2022/sep/29/australian-government-strikes-deal-with-gas-suppliers-to-avoid-winter-shortfall


https://www.afr.com/companies/energy/what-is-going-on-in-australia-s-gas-market-explained-20220801-p5b65t

Much of the gas is in the north when it’s needed south
A contributing factor is that much of the gas is in the wrong location. The “excess” uncontracted Qld gas needs to be transported south to NSW and Victoria, and that runs into problems with storage and pipeline capacity.

The ACCC says that, “over the longer term, changes in the location of gas supply and demand centres will continue to affect the demand of gas transportation and storage services.

>>>>>And where is NZO/CUE Gas coming from NT AUS maybe you don't understand just how far away >>

NT: Amadeus Gas Pipeline

The Amadeus Gas Pipeline (AGP) (previously known as the Amadeus Basin to Darwin Pipeline, ABDP) is a transmission pipeline owned and operated by the APA Group through its wholly owned subsidiary APT Pipelines NT Pty Ltd. In June 2011, APA purchased the AGP from a consortium of financial institutions who had leased the pipeline to the Amadeus Gas Trust. Prior to June 2011, NT Gas managed and operated the pipeline for the trust and APA held a 96 per cent interest in both the Amadeus Gas Trust and NT Gas.

The AGP was commissioned in 1986. It transports gas to Darwin, Katherine and other locations principally to fuel electricity generation in the Northern Territory. The pipeline is 1,658 km in length (including laterals). When built, gas flowed northwards to Darwin from the Palm Valley and Mereenie gas fields in the Amadeus Basin. However, since 2008 natural gas from the Blacktip gas field in the Bonaparte basin also feeds into the AGP from the Bonaparte Gas Pipeline. This gas flows north to Darwin and south towards Alice Springs.

I bet if NZO/CUE start making the mega dollars pushing major volumes through APA's owned pipeline they will be keen to lift rates to get their cut of the mega dollars you dream of !!

[fish]

Thanks for the links to the news about the heads of agreement.
Great news-the big exporters have agreed not to charge the domestic market more than the international market price.
I have been trying to tell you for sometime that the historic prices for gas you quote are no longer valid.
Yes gas prices of 30 to 40 are insane but that is the reality and the best indicator of gas prices to come.
So the current price of gas is 5 times last year.
NZo net profit is 10 cents a share what is your prediction for next year?

[JBmurc]

Thanks for the links to the news about the heads of agreement.
Great news-the big exporters have agreed not to charge the domestic market more than the international market price.
I have been trying to tell you for sometime that the historic prices for gas you quote are no longer valid.
Yes gas prices of 30 to 40 are insane but that is the reality and the best indicator of gas prices to come.
So the current price of gas is 5 times last year.
NZo net profit is 10 cents a share what is your prediction for next year?

I'll let you dream away .. and wait for the proof ..I hope for your sake and all the long suffering NZO/CUE S/Hs they do well >>

[fish]

I'll let you dream away .. and wait for the proof ..I hope for your sake and all the long suffering NZO/CUE S/Hs they do well >>

Thank you.
You still have it wrong.
I suspect anyone still thinking I am dreaming has not read yesterdays annual report and recent nzx announcements .
So important in investing to find the truth and know what is not a dream .
Hope your dreams with melbana energy turn out better than your other recent investments-but I do not like what I see happening.

[fish]

[QUOTE=RTM;976918]

I think if you'd had been holding your breath with NZO, would have expired a lonnnggggg time ago!!

Some companies are just perennial under-deliverers.....

Just wondering if you have read the annual report-released 2 days ago -makes good reading-I like what they are doing-ogog directors and Andrew Jefferies have transformed the company .
It’s more than facts and figures.

However to refute the claim of being perennial under-deliverers Maybe the perception you have arises from the market and investors like jbmurc are speculators and are unable to calculate perennial value.
Personally when investing I look for value the market has missed.
FOR instance NTA is 96 cents and this understates todays value with high gas prices.
The contract with shell is for 0.6 pj which is 600,000 gj commencing 2025.
Say this is sold in the meantime and returns $30 net back=18 million australian.
you only have to look at the rest of their sales to see that the current share price of 43 cents is likely very soon to be earned in a year

[RTM]

[QUOTE=Sideshow Bob;977087]

Just wondering if you have read the annual report-released 2 days ago -makes good reading-I like what they are doing-ogog directors and Andrew Jefferies have transformed the company .
It’s more than facts and figures.

However to refute the claim of being perennial under-deliverers Maybe the perception you have arises from the market and investors like jbmurc are speculators and are unable to calculate perennial value.
Personally when investing I look for value the market has missed.
FOR instance NTA is 96 cents and this understates todays value with high gas prices.
The contract with shell is for 0.6 pj which is 600,000 go commencing 2025.
Say this is sold in the meantime and returns $30 net back=18 million australian.
you only have to look at the rest of their sales to see that the current share price of 43 cents is likely very soon to be earned in a year

Thanks for the reminder.
And I just see this pop up in the announcements....
"Palm Valley 12 Update – Interim Flow Test Result"
Sounds positive as well.

I guess on a personal basis, irrespective of what I am seeing, I am not quite sure when I will see a benefit, dividend or share price growth.
I don't really care which.

On a side note...the post you have quoted is attributable to RTM.
Should have been Sideshow Bob...seems Share Trader has its nickers in a twist ?

[SPC]

I hope those turkeys the CEO mentions roasting in today's update aren't the shareholders such myself who have been waiting along time at the table for a few crumbs. It's getting awfully hot in here..

[fish]

I hope those turkeys the CEO mentions roasting in today's update aren't the shareholders such myself who have been waiting along time at the table for a few crumbs. It's getting awfully hot in here..
No worries.
The gas is going to the market in time to cook those turkeys.
Likely high returns at todays lpg prices

[fish]

[QUOTE=fish;977493]

Thanks for the reminder.
And I just see this pop up in the announcements....
"Palm Valley 12 Update – Interim Flow Test Result"
Sounds positive as well.

I guess on a personal basis, irrespective of what I am seeing, I am not quite sure when I will see a benefit, dividend or share price growth.
I don't really care which.

On a side note...the post you have quoted is attributable to RTM.
Should have been Sideshow Bob...seems Share Trader has its nickers in a twist ?

Well looks like the gas flow has woken someone up.
weighted average price 44 cents on a reasonable volume.
should keep heading up as more become aware that NZO currents earnings of 10cps multiply.
AGM coming up which may deliver more good news

[BWR]

Oilers, don't overlook voting yes to resolutions 4 & 5 at the Annual Meeting. With OGOG voting NO the resolutions have no show - but that's the whole point of putting the resolutions forward.

[Sideshow Bob]

On a side note...the post you have quoted is attributable to RTM.
Should have been Sideshow Bob...seems Share Trader has its nickers in a twist ?

Correct, that post quoted as mine wasn't mine.

[fish]

Oilers, don't overlook voting yes to resolutions 4 & 5 at the Annual Meeting. With OGOG voting NO the resolutions have no show - but that's the whole point of putting the resolutions forward.

Thanks for doing this BWR .
Minority shareholders are not represented on the Board.
What is your intention after the NO vote ?

[BWR]

Fish, the only further intention is to send a question to be addressed at the annual meeting, asking the Board to explain why it recommends that shareholders vote against resolutions 4 & 5.

They give no reason for their recommendation, despite it being contrary to the interests of every other shareholder in the company.

[digger]

Fish, the only further intention is to send a question to be addressed at the annual meeting, asking the Board to explain why it recommends that shareholders vote against resolutions 4 & 5.

They give no reason for their recommendation, despite it being contrary to the interests of every other shareholder in the company.

Good to see your still around,keeping an eye on things. Will do.

[BWR]

Good to see your still around,keeping an eye on things. Will do.

Likewise Digger.

This is the question sent to NZOG today:

Question :
In the Notice of 2022 Annual Meeting Explanatory Notes, Note 5 relating to Shareholder Proposals Amendments to Constitution states:
THE BOARD DOES NOT SUPPORT THE RESOLUTIONS. THE BOARD RECOMMENDS THAT YOU VOTE AGAINST RESOLUTIONS 4 & 5.
The Board gives no reason or justification for this recommendation which potentially is against the interests of the approximately 4046 other shareholders in the company.
Would the Board please provide shareholders with the reasons why it does not support resolutions 4 & 5, and how it justifies it’s otherwise unsupported recommendation?

[Lion]

Yes, thanks Brian R. for keeping an eye on things. I find the legal jargon a bit dense at times.
I've just voted Yes to resolutions 4 & 5.

With income increasing and a commitment to pay some as dividends, we may just get a divvy sometime. It would give the SP a much-needed boost.

[SPC]

Have voted yes to resolutions 4&5.

[digger]

Have voted yes to resolutions 4&5.

So have I . Not that it will make any difference to outcome,but as said before will make a point.

[fish]

So have I . Not that it will make any difference to outcome,but as said before will make a point.

I am not planning to cast my vote until the AGM.
Please could you check your pm digger

[Sideshow Bob]

OMG - NZO is trading over 45c!! :confused:

Although they are down 1.5c on the ASX....:sleep:

[fish]

OMG - NZO is trading over 45c!! :confused:

Although they are down 1.5c on the ASX....:sleep:

Only 6 days to the AGM .
I have tabled my question-windfall profits being made should enable payment of a dividend sooner .
there is a paucity of both buyers and sellers so little trading.
a dividend promise this financial year would stimulate buying interest with real volumes trading and sp climbing

[RTM]

Only 6 days to the AGM .
I have tabled my question-windfall profits being made should enable payment of a dividend sooner .
there is a paucity of both buyers and sellers so little trading.
a dividend promise this financial year would stimulate buying interest with real volumes trading and sp climbing

Yes.....the turnover is dismal, especially on ASX. Not that I really care except for the question...what is the value of NZO ?
I guess the question is Fish...do they really care at all about us smaller holders ?
Good question you are asking.

[fish]

Yes.....the turnover is dismal, especially on ASX. Not that I really care except for the question...what is the value of NZO ?
I guess the question is Fish...do they really care at all about us smaller holders ?
Good question you are asking.

Hope you are going to be a virtual attendee at the AGM tomorrow.
Important questions for shareholders need to be asked-I have never been to any company AGM before and may need moral support.
how I cast my votes very much depends on the answer to my question.
In the last 2 years NZO paid 11million in company tax.
with windfall profits this year we are likely to paying a lot more tax and hence may have a surplus of imputation credits to attach to a dividend.
does anyone know the value of the imputation credit account?

[JBmurc]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

Think your find FCF will be pretty slim .. NZO/CUE aren't as cheap as you think .....Dividend NZO/CUE never will they don't have the FCF.. they really are DOG stocks the more I look at their operations they make enough to fill the pockets of Mgmt/staff but haven't got the projects to really make serious FCF ... certainly not growth stocks

Vs say a HZN at A$208mill cap Vs CUE/NZO together get to A$133mill

Go have a look at HZN Qty report ...

I shifted all my CUE funds into CE1 .... which is much the same cap as NZO ... yes they don't have the cash but they do have the revenue ....and growth plans for 5000boepd to 50,000boepd

REVENUE>
NZO NZD$21 mill SEPT Qty
CE1 A$30mill(NZD$33mill)
HZN $A66mill(NZD$72mill)

And guess which 2 of 3 of these companies pay FAT dividends

[fish]

Think your find FCF will be pretty slim .. NZO/CUE aren't as cheap as you think .....Dividend NZO/CUE never will they don't have the FCF.. they really are DOG stocks the more I look at their operations they make enough to fill the pockets of Mgmt/staff but haven't got the projects to really make serious FCF ... certainly not growth stocks

Vs say a HZN at A$208mill cap Vs CUE/NZO together get to A$133mill

Go have a look at HZN Qty report ...

I shifted all my CUE funds into CE1 .... which is much the same cap as NZO ... yes they don't have the cash but they do have the revenue ....and growth plans for 5000boepd to 50,000boepd

REVENUE>
NZO NZD$21 mill SEPT Qty
CE1 A$30mill(NZD$33mill)
HZN $A66mill(NZD$72mill)

And guess which 2 of 3 of these companies pay FAT dividends

Have been looking at HZN for sometime-a friend has already invested but still holds NZo .
Not for me but maybe a good investment for others.
You are wrong about Free cash flow-have you even calculated the amount of netback for pv 12 for next year
Only yesterday I looked at the prices that can be achieved for next year-they are extremely strong until December 2023 and only in 2024 do they drop-but still many times last years prices
the future with NZO is hot

[RTM]

Hope you are going to be a virtual attendee at the AGM tomorrow.
Important questions for shareholders need to be asked-I have never been to any company AGM before and may need moral support.
how I cast my votes very much depends on the answer to my question.
In the last 2 years NZO paid 11million in company tax.
with windfall profits this year we are likely to paying a lot more tax and hence may have a surplus of imputation credits to attach to a dividend.
does anyone know the value of the imputation credit account?

Ok, thanks for the reminder, just registered.
Cheers, RTM
PS: Fish seem to be biting nicely. Good day yesterday.

[Sideshow Bob]

https://www.nzx.com/announcements/401568

Interesting to read about the Dunedin Curtain Bank, the Rainbow Tick and Andrew's venison sausages.....

[JBmurc]

Have been looking at HZN for sometime-a friend has already invested but still holds NZo .
Not for me but maybe a good investment for others.
You are wrong about Free cash flow-have you even calculated the amount of netback for pv 12 for next year
Only yesterday I looked at the prices that can be achieved for next year-they are extremely strong until December 2023 and only in 2024 do they drop-but still many times last years prices
the future with NZO is hot

we will see........ I think for the same cap CE1 is a better lower risk play with better upside from muti O&G projects

[blackcap]

Hope you are going to be a virtual attendee at the AGM tomorrow.
Important questions for shareholders need to be asked-I have never been to any company AGM before and may need moral support.
how I cast my votes very much depends on the answer to my question.
In the last 2 years NZO paid 11million in company tax.
with windfall profits this year we are likely to paying a lot more tax and hence may have a surplus of imputation credits to attach to a dividend.
does anyone know the value of the imputation credit account?

Hi Fish, not sure if you attended the meeting but the question was asked how many imputation credits they have. Answer is none. If a dividend was going to be paid, answer an emphatic no.
The company was quite transparent in their answers and it was a pleasant meeting to attend.

[fish]

Hi Fish, not sure if you attended the meeting but the question was asked how many imputation credits they have. Answer is none. If a dividend was going to be paid, answer an emphatic no.
The company was quite transparent in their answers and it was a pleasant meeting to attend.
Thanks for this.
I was late getting into the meeting but in time to hear Alistair answer my question on dividends .
He seemed enthusiastic to keep growing NZO and despite saying OGOG are on the same page as NZ minority shareholders failed to acknowledge the importance of paying a dividend.Despite raising my hand repeatedly to speak in could not follow up with more searching questions (likely my error-first virtual meeting I have attended)
Most impressed with the performance of Andrew Jefferies .Liked his graph on the massive increase in production of hydrocarbons this year and his discussion on the future of gas prices .
so no dividend atm but the board considers this at every meeting .
My plan is now to get in touch with the NZSA .

[Sideshow Bob]

https://www.nzx.com/announcements/404147

NEW ZEALAND OIL & GAS SIGNS NEW EAST COAST GAS SUPPLY AGREE15/12/2022, 12:06 pm GENERAL14 December 2022
NEW ZEALAND OIL & GAS SIGNS NEW EAST COAST GAS SUPPLY AGREEMENT
• New Zealand Oil & Gas signs a new Gas Supply Agreement with South32 Cannington for supply of gas from the Mereenie field
• Two-year term from 1 January 2023 for delivery of 0.38 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions
New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with South32 Cannington Pty. Ltd. (South32) to supply 0.38 PJ of gas over two years, commencing 1 January 2023. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.
Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 2.19 PJs to South32 over the two-year term, commercialising a portion of existing Mereenie uncontracted gas production for the period.

[fish]

https://www.nzx.com/announcements/404147

NEW ZEALAND OIL & GAS SIGNS NEW EAST COAST GAS SUPPLY AGREE15/12/2022, 12:06 pm GENERAL14 December 2022
NEW ZEALAND OIL & GAS SIGNS NEW EAST COAST GAS SUPPLY AGREEMENT
• New Zealand Oil & Gas signs a new Gas Supply Agreement with South32 Cannington for supply of gas from the Mereenie field
• Two-year term from 1 January 2023 for delivery of 0.38 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions
New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with South32 Cannington Pty. Ltd. (South32) to supply 0.38 PJ of gas over two years, commencing 1 January 2023. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.
Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 2.19 PJs to South32 over the two-year term, commercialising a portion of existing Mereenie uncontracted gas production for the period.

Looks like another lucrative contract.
adds certain high cash flow.
Pv 12 should now be producing at 15 tj per day-at current spot prices and subtracting netback according to my calculation another $40 million per year to NZO.
The market continues in its failing to appreciate this.
Seems crazy to me.

[ziggy415]

Looks like another lucrative contract.
adds certain high cash flow.
Pv 12 should now be producing at 15 tj per day-at current spot prices and subtracting netback according to my calculation another $40 million per year to NZO.
The market continues in its failing to appreciate this.
Seems crazy to me.

Fish, how will the gas price cap that the aussie government just put on effect gas producers profits

[fish]

Fish, how will the gas price cap that the aussie government just put on effect gas producers profits

Reports suggest it will only apply to 4% of the total gas production ie new domestic contracts for 12 months.
If this is correct it will make little impact compared to that of the increase in profits derived from legacy contracts expiring and being replaced by much higher prices .
Apparently final details will be announced in feb.

[ziggy415]

Reports suggest it will only apply to 4% of the total gas production ie new domestic contracts for 12 months.
If this is correct it will make little impact compared to that of the increase in profits derived from legacy contracts expiring and being replaced by much higher prices .
Apparently final details will be announced in feb.
I struggle to understand price caps and if it works why not apply it to fruit and vegetables or power prices or wages..oh c**p hope jacinda doesn't read this thread :eek2:

[fish]

I struggle to understand price caps and if it works why not apply it to fruit and vegetables or power prices or wages..oh c**p hope jacinda doesn't read this thread :eek2:
They come back to bite and hinder new investment .
suspect Jacinda and the greens have already thought about it but the consequence would be burning Indonesian coal long past 2030

[Sideshow Bob]

https://www.nzx.com/announcements/404355

If Cue own 12.5% and then NZO own 50% of Cue, that's about 50 barrels of oil/day to NZO - so gross revenue at say $120/barrel would be $6k/day......:sleep::huh:

[Sideshow Bob]

NEW ZEALAND OIL & GAS EXECUTES PERTH BASIN FARM IN AGREEMENT WITH
TRIANGLE ENERGY
• New Zealand Oil & Gas executes binding Term Sheet with Triangle Energy
• Acquiring a 25% interest in Triangle’s L7 and EP 437 northern Perth Basin permits
• Low upfront entry cost, with 3 exploration wells aimed to be drilled in 2024
• Recently acquired 3D seismic survey covers highly prospective Early Permian gas trend
• Agreement subject to conditions, including final due diligence and regulatory approvals

https://www.nzx.com/announcements/405396

[fish]

NEW ZEALAND OIL & GAS EXECUTES PERTH BASIN FARM IN AGREEMENT WITH
TRIANGLE ENERGY
• New Zealand Oil & Gas executes binding Term Sheet with Triangle Energy
• Acquiring a 25% interest in Triangle’s L7 and EP 437 northern Perth Basin permits
• Low upfront entry cost, with 3 exploration wells aimed to be drilled in 2024
• Recently acquired 3D seismic survey covers highly prospective Early Permian gas trend
• Agreement subject to conditions, including final due diligence and regulatory approvals

https://www.nzx.com/announcements/405396

Further good news in the quarterly report just released

[mike2020]

Is this really sitting at 50% of NTAs? The last time it was like this they came out with the SOA.

[Sideshow Bob]

Is this really sitting at 50% of NTAs? The last time it was like this they came out with the SOA.

As of the last AR, net asset backing per share was 97c, net tangible asset backing per share was 92c - so yes at todays price of 46c, exactly 50% of NTA. Even if looked at just the cash NZO hold (excluding any cash that Cue holds), it is roughly 28.5cps and growing.

In respect of the NTA, it is how those oil & gas assets are valued.

BUT, what is the plan for generating wealth for (minor) shareholders?? No divvies, and shareprice going nowhere (even during an oil & gas boom) because it appears to be run for the benefit of major shareholder, who don't have much/any regard for minorities. Now primary listing on the ASX, but little/no interest.

Half year report comes out in about 3-4 weeks.

[Wiremu]

Minorities, what minorities?

Interesting that a retiring officer of the company has recently made a statement that includes his being proud "of what we have achieved" including planning and executing M&A country entries including U.S. deepwater Gulf of Mexico.

Further, NZOG states that it has a full portfolio of exploration and production interests in including the United States.

Why is it that minority shareholders have been told nothing of this development?

[Sideshow Bob]

Minorities, what minorities?

Interesting that a retiring officer of the company has recently made a statement that includes his being proud "of what we have achieved" including planning and executing M&A country entries including U.S. deepwater Gulf of Mexico.

Further, NZOG states that it has a full portfolio of exploration and production interests in including the United States.

Why is it that minority shareholders have been told nothing of this development?

What....??

Not heard of this either. Using the cash piggyback/generation for exploration for Ofer......

Although probably should change their name to NNZOG (Not New Zealand Oil & Gas).

[fish]

Is this really sitting at 50% of NTAs? The last time it was like this they came out with the SOA.
It is sitting as you say-but the nta is from last year .
The sp is roughly four times last years net profit per share.
80% of gas is sold on fixed long-term contracts at around$5 Gj.
As these roll off they are being replaced by $20 plus contracts .
Hence I expect net profit pa will be close to the sp soon-unless the sp shoots up.

My view is the low sp is partly due to little insight when dividends will restart -or another method of returning cash
AJ is determined to make good use of cash reserves and cash flow-he tells me it will not sit in bank accounts but be used for good value investments and surplus returned

[SPC]

Hopefully us minority holders will one day get something, gosh even if its just enough to buy one of these oft- mentioned Perth lobsters AJ and the others seems to like feasting on. And to pay for the gas to cook it with..too much to ask?
Or should I open another tin of tuna and forget the whole thing..

[nztx]

Been burnt on this one before .. once burnt very shy :)

A tin of tuna might have more bounce based on past playbooks

it's surprising this outfit haven't packed up shop & disappeared off to some obscure
corner of ASX

[fish]

Been burnt on this one before .. once burnt very shy :)

A tin of tuna might have more bounce based on past playbooks

it's surprising this outfit haven't packed up shop & disappeared off to some obscure
corner of ASX

Yes a lot of us have been burnt .
If they should move overseas I suspect some will invoke minority shareholder rights and with arbitration obtain a fair and reasonable value for their shareholding.

[blackcap]

Yes a lot of us have been burnt .
If they should move overseas I suspect some will invoke minority shareholder rights and with arbitration obtain a fair and reasonable value for their shareholding.

You can only invoke minority shareholder rights if the major shareholder gets over 90% of the shares and are at the compulsory acquisition stage. If they decide to move the company to the ASX or wherever, minority shareholders are still just minority shareholders and have the same rights as now.

But as NZO is a NZ company registered with the NZ companies office, they cannot actually go anywhere and must have a NZ based director and NZ based address.

[fish]

You can only invoke minority shareholder rights if the major shareholder gets over 90% of the shares and are at the compulsory acquisition stage. If they decide to move the company to the ASX or wherever, minority shareholders are still just minority shareholders and have the same rights as now.

But as NZO is a NZ company registered with the NZ companies office, they cannot actually go anywhere and must have a NZ based director and NZ based address.

Thanks blackcap-many years since I was involved in a successful action.
So are you saying if they want to move overseas they have to acquire 90% of shares ?
I am away from home but will check what we did with SEA/TTP

[blackcap]

No worries. I guess the question that I need clarification of is what do you mean by moving overseas?

If they remain a NZ company they remain a NZ company.

I think section 110 and 111 apply to section 106. So yes if they did try to "leave" NZ then minority buyout provisions do apply. BUt if they remain a NZ company but just move offshore and conduct business there (which they pretty much do so currently anyway) then these provisions will not apply,

Section 110
110 Shareholder may require company to purchase shares
Where—
(a)
a shareholder is entitled to vote on the exercise of 1 or more of the powers set out in—
(i)
section 106(1)(a), and the proposed alteration imposes or removes a restriction on the activities of the company; or
(ii)
section 106(1)(b) or (c); and
(b)
the shareholders resolved, pursuant to section 106, to exercise the power; and
(c)
the shareholder cast all the votes attached to shares registered in the shareholder’s name and having the same beneficial owner against the exercise of the power; or
(d)
where the resolution to exercise the power was passed under section 122, the shareholder did not sign the resolution,—


Section 106
106 Powers exercised by special resolution
(1)
Notwithstanding the constitution of a company, when shareholders exercise a power to—
(a)
adopt a constitution or, if it has one, alter or revoke the company’s constitution:
(b)
approve a major transaction:
(c)
approve an amalgamation of the company under section 221:
(d)
put the company into liquidation,—
the power must be exercised by special resolution.

(2)
A special resolution pursuant to paragraph (a) or paragraph (b) or paragraph (c) of subsection (1) can be rescinded only by a special resolution.
(3)
A special resolution pursuant to paragraph (d) of subsection (1) cannot be rescinded in any circumstances.

[fish]

Thanks again
So if they need approval for a major transaction or to alter the constitution now when they only hold 70% shares they need a special resolution and those voting against can invoke minority shareholder rights ?

[Wiremu]

Section 350 of the Companies Act provides for a company to change its registration to another country. Nothing complicated.

Section 352 states that to do so shareholders must approve the change by special resolution. The majority shareholder has full voting rights and as everyone's shares are affected the same there are no shareholder classes such as was the case in the scheme of arrangement.

However this is not a "major transaction" as defined in the Companies Act and shareholders have no minority shareholder rights.

Major Transaction, in relation to a company, means:
(a) the acquisition of, or an agreement to acquire, whether contingent or not, assets the value of which is more than half the value of the company’s assets before the acquisition; or
(b) the disposition of, or an agreement to dispose of, whether contingent or not, assets of the company the value of which is more than half the value of the company’s assets before the disposition; or
(c) a transaction that has or is likely to have the effect of the company acquiring rights or interests or incurring obligations or liabilities, including contingent liabilities, the value of which is more than half the value of the company’s assets before the transaction.

[fish]

Thanks wiremu
This got me thinking as it seems unfair that a company could move to say the Bahamas and prejudice minority shareholders .
I guess the safeguard is the special resolution but even that is negated if the company holds 75% of shares .
I cannot clearly recollect how minority shareholder rights were exercised with TTP/SEA

[ValueNZ]

Yes a lot of us have been burnt .
If they should move overseas I suspect some will invoke minority shareholder rights and with arbitration obtain a fair and reasonable value for their shareholding.

What is deemed "fair and reasonable" in these situations? Current market value? NTA? or somewhere in-between

[fish]

What is deemed "fair and reasonable" in these situations? Current market value? NTA? or somewhere in-between

It is unlikely with NZo .I did find a nz article on prejudice as grounds but do not believe the company choosing the independent directors would meet the threshold for grounds
With ttp/sea it went to arbitration and ended up being in-between

[blackcap]

What is deemed "fair and reasonable" in these situations? Current market value? NTA? or somewhere in-between

I think you would get close to NTA. I was involved with SEA and TTP and the Kerr one recently. Going to get close to NTA normally. I think from memory and it was a long time ago SEA got about 92 cents and that was a good outcome. Not sure with TTP and with the George Kerr one I think substantially more than the SP and close to NTA.

Minority protections in NZ companies Act are pretty robust but unfortunately not many shareholders are aware of them. Tis all about education.

[Sideshow Bob]

https://www.rnz.co.nz/news/business/485074/omv-puts-asia-pacific-assets-up-for-sale?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+2+ March+2023

The country's biggest oil and gas producer is looking to sell its New Zealand assets.
Austrian-based OMV is looking for buyers for its exploration and production operations in the Asia-Pacific region, including all of its New Zealand operations.

[Wiremu]

https://www.rnz.co.nz/news/business/485074/omv-puts-asia-pacific-assets-up-for-sale?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+2+ March+2023

The country's biggest oil and gas producer is looking to sell its New Zealand assets.
Austrian-based OMV is looking for buyers for its exploration and production operations in the Asia-Pacific region, including all of its New Zealand operations.

It will be interesting to see who ends up with the OMV assets. It is doubtful that NZOG and/or Cue have enough uncommitted cash to do so, that being the case do we see OGOG go it on their own?

[fish]

It will be interesting to see who ends up with the OMV assets. It is doubtful that NZOG and/or Cue have enough uncommitted cash to do so, that being the case do we see OGOG go it on their own?

how much do you think omv will settle for-?several hundred millions
Out of NZo league as you suggest .
OGOG might be interested in which case will they be making another takeover offer for NZO?

[blackcap]

how much do you think omv will settle for-?several hundred millions
Out of NZo league as you suggest .
OGOG might be interested in which case will they be making another takeover offer for NZO?

If NZO are interested, could they not do a large rights issue? That is what I would be doing if I were OGOG. That will enable them to increase their stake in NZO by stealth.

[fish]

If NZO are interested, could they not do a large rights issue? That is what I would be doing if I were OGOG. That will enable them to increase their stake in NZO by stealth.

Possibly-but they have just done one-and another one in the same financial year seems very unlikely-and surely this would be such a major transaction that minority rights would apply ?
Another take over offer at say 62 cents would probably succeed this time-Ironbark potential was so huge that I believe was why ogog last offer failed
Look forward to your further expertise on this.

[blackcap]

Possibly-but they have just done one-and another one in the same financial year seems very unlikely.
Another take over offer at say 62 cents would probably succeed this time-Ironbark potential was so huge that I believe was why ogog last offer failed

Ironbark was the biggie and a takeover at 56 would probably succeed. I don't think they need to be so generous. Take about 20 cents off for Ironbark and 56 seems fine to me. I would accept at that level.
OGOG could also loan the money to NZO?

[fish]

Ironbark was the biggie and a takeover at 56 would probably succeed. I don't think they need to be so generous. Take about 20 cents off for Ironbark and 56 seems fine to me. I would accept at that level.
OGOG could also loan the money to NZO?

Thanks
With nta likely to be closer to $1 on an independent valuation I feel anything less than 60 cents would be unacceptable to most.
You may be under-estimating the value of Amadeus-it is earning possibly millions every month-I have not estimated the amount but they should be getting $20 Gj and more for the spot price and the contracts should be heading there.
Would be interested in wiremu opinion and calculation as the earning power of amadeus

[blackcap]

Thanks
With nta likely to be closer to $1 on an independent valuation I feel anything less than 60 cents would be unacceptable to most.
You may be under-estimating the value of Amadeus-it is earning possibly millions every month-I have not estimated the amount but they should be getting $20 Gj and more for the spot price and the contracts should be heading there.
Would be interested in wiremu opinion and calculation as the earning power of amadeus

I don't think NTA is close to $1. Remember the accounts are consolidated so you have to take out the CUE cash position to get a fair cash value of NZO..... (and the Cue Assets as well). But NTA definitely higher than 41 cents where it is trading today.

[fish]

I don't think NTA is close to $1. Remember the accounts are consolidated so you have to take out the CUE cash position to get a fair cash value of NZO..... (and the Cue Assets as well). But NTA definitely higher than 41 cents where it is trading today.

Trading is paltry
My belief is that no holders want to sell at so far below the real value but it is puzzling to me why the sp remained so depressed after falling with the rights issue .
I do not believe another rights issue is likely but you have suggested it and maybe that is one of the reasons there are no buyers .
NZO should have around $30 m in the bank deflating and large cash flows coming in .Netback lng price is strong .
Spending a small amount of this surplus on a share back would make sense for OGOG to increase their shareholding percentage-it would be good for all shareholders .

[fish]

Andrew Jefferies is really propelling these high income streams with long term contracts,infill drills and new exploration in Australia .
New kupe agreement with Genesis .

Probably take more than this for the market to wake up.
Andrew please get the sp moving again-perhaps spend 10% of the cash already in the bank on a share buy back or a small dividend ?

[fish]

Ironbark was the biggie and a takeover at 56 would probably succeed. I don't think they need to be so generous. Take about 20 cents off for Ironbark and 56 seems fine to me. I would accept at that level.
OGOG could also loan the money to NZO?

If the sp rises in the next year or two as the old contracts expire and replaced by ones reflecting current gas prices in nz and au would you be likely to sell NZo at 56 cents.?
Would be interested also on opinions of others .
My own feeling is that I might sell around 10% of my holdings only as I believe gas is the transition fuel we need for at least another decade and by then gas will be in even greater demand for all its other uses.

[mistaTea]

If the sp rises in the next year or two as the old contracts expire and replaced by ones reflecting current gas prices in nz and au would you be likely to sell NZo at 56 cents.?
Would be interested also on opinions of others .
My own feeling is that I might sell around 10% of my holdings only as I believe gas is the transition fuel we need for at least another decade and by then gas will be in even greater demand for all its other uses.

Interesting seeing the comments from the perspective of an ex shareholder.

On one hand I have to hand it to you fish, you have really stuck with it. On the other hand, you probably don't have a choice given the low SP, trading volumes and the size of your holding.

Having met Alistair McGregor on two occasions, I can absolutely assure you that he does not give a flying f*ck about minority shareholders. The prevailing share price is absolutely irrelevant to him. NZO could drop to 1c/share and it would have zero impact on the decisions they make.

Why? Because for all practical purposes, NZO is a wholly owned subsidiary of OGOG. They view it in the same way you would if you owned 100% of any business (and would not get quotes given to you every 15 minutes in terms of what the business is 'worth').

So hoping that OGOG will agree to some sort of a dividend or buy back in order to push up the SP is pie in the sky to be frank. They will not waste a cent of available cash for a short term move to try push up the SP so that minority shareholders can get out.

Same logic applies for anyone hoping for a new takeover offer. Why would OGOG spend money on that now? Tney provided that opportunity years back, we said no at the time because we were keen to participate in Ironbark. Ironbark was dry, and that was the risk we took.

They already effectively own all of NZO as they control everything. Having to do two financial reports a year for the markets is not much of an inconvenience as they have to report most of that info up to Group anyway. Also, at this junction - maintaining a listing is probably not such a bad idea as, in years to come, if they have managed to turn things around for NZO there could be opportunities to sell equity to other keen investots.

But for those hanging in there, if you hold onto your shares - you need to do so accepting the above points. You do not have any say in the future direction of the business. Andrew is a nice enough guy and may well "listen" from time to time if you give him a ring, but your hopes and desires will get zero traction at the Board meetings.

And I would run NZO in exactly the same way if I was OGOG by the way. So if you are going to stick with it, you have to view NZO as a privately owned business of which you are a very small minority SILENT partner. You go where OGOG steer you. Maybe one day you get a dividend, maybe you don't. But any dividend paid will only ever happen when surplus cash produced can no longer be used intelligently for new investments.

[Wiremu]

Have to agree 100% with mistTea.

[fish]

Good analysis mista tea and I fully agree .
Ogog are shrewd and rich.
They do not need a high sp or a dividend-nor do I need one but I would really like one or the other !
Tagging along with OGOG feels good to me.
I will be expressing my views at every AGM and suspect I will be attending the next one in person

[fish]

Have to agree 100% with mistTea.

if NZO decided their best investment they can make is actually to buy back their own shares -say 5 million-a paltry spend for what is in the bank-on the market at what price would you sell some shares ?
Would you sell all your shares at say 55 cents ?

[SPC]

It isn't hard to argue that we were warned at the time...hand it over or you'll be left with a tanking share price.
So given that why would executive management bother holding any stock in there own name given the absence of any gain. How much do the execs own .?
Anybody know?

[fish]

It isn't hard to argue that we were warned at the time...hand it over or you'll be left with a tanking share price.
So given that why would executive management bother holding any stock in there own name given the absence of any gain. How much do the execs own .?
Anybody know?
Yes we all knew the risk /reward of Ironbark-that’s what attracted many .
Andrew Jefferies owns a lot and bought into the rights offer which should be reassuring to all holders
I have no doubt he is looking at ways to improve the sp. and equally he will be finding it difficult-good news does not work -fund managers will not be wanting to buy shares of any kind atm.
Several staff/ex staff have shares and rights to buy at a higher price .
I am enthusiastic and optimistic the sp will have to increase substantially in the next couple of years

[SPC]

Ok thanks Fish. I guess that's some reassurance. Skin in the game is a good sign.

[Wiremu]

if NZO decided their best investment they can make is actually to buy back their own shares -say 5 million-a paltry spend for what is in the bank-on the market at what price would you sell some shares ?
Would you sell all your shares at say 55 cents ?

Fish, I'm out of NZOG altogether, and won't be buying back in at any price.

[nztx]

Fish, I'm out of NZOG altogether, and won't be buying back in at any price.


I'm with you there too

[Toddy]

NZO looks like it is in pretty good shape. Decent cashflows coming in the door to fund future drilling schedules.

I've bought back in for the thrill of hitting the pay dirt. Black gold.

It's at a good entry price for newbies. However, I can understand the frustration of longer term shareholders.

[nztx]

Fairly good shape for whom ?

Most wont have forgotten Ironbark a while back

Pay dirt may be a look in but no touch for long suffering minorities
where the majority control the pot and little incentive exists to spill
a little over to minorities who denied them full control earlier :)

[JBmurc]

You only BUY NZO or CUE if you have nil interest in seeing any return for many many years and invest for the pure hope to be T/O for a few more peanuts that present price ... worse investment in the sector Vs assets and potential .. they simply don't seem to care for the SP or happy S/H's ,,, Mgmt just working for a wage to their master OGOG.. many of the board OGOG staff don't even take a wage at the likes of CUE...

And I think when you look at the great assets OGOG holds .. NZO/CUE is purely a minor forgotten asset ...You could say bit like a US billionaire with Queenstown property they sometimes use .. is just an asset stays empty 99% of time .. they could Airbnb out etc but its just such a minor interests they can't be bothered...

[SPC]

To be honest I wonder what the remaining staff at NZO do all day at work?.
What could they be working on .. maybe a bid on OMVs cast offs might require some desk time soon ?.
Maybe they're actually doing work on other OGOG projects off shore with the overheads covered by NZO?. Can't really be much happening on the ground locally now ?.
I would think it's more or less lights out at the office?. Am I wrong?. I hope I am.

[fish]

To be honest I wonder what the remaining staff at NZO do all day at work?.
What could they be working on .. maybe a bid on OMVs cast offs might require some desk time soon ?.
Maybe they're actually doing work on other OGOG projects off shore with the overheads covered by NZO?. Can't really be much happening on the ground locally now ?.
I would think it's more or less lights out at the office?. Am I wrong?. I hope I am.

Lol
You need to read the 28th feb 1/2 yearly report and recent annoucements.
Revenue increased 14%_full year should be around $100 million .
Strong market,new contracts signed-both in nz and au .
New well for kupe
NZo are not working for ogog and the ogog directors have chosen not to receive directors fees.
I do know NZo are doing work for CUE and have even lent CUE $7 million after raising the money for them

[SPC]

Ok well you're definitely more connected to what's going on than me fish so I'll take it as read that it's a busy office. Cheers.

[JBmurc]

Lol
You need to read the 28th feb 1/2 yearly report and recent annoucements.
Revenue increased 14%_full year should be around $100 million .
Strong market,new contracts signed-both in nz and au .
New well for kupe
NZo are not working for ogog and the ogog directors have chosen not to receive directors fees.
I do know NZo are doing work for CUE and have even lent CUE $7 million after raising the money for them

NZO so very successive they had to do a CR some of which went to CUE ... and S/H's think these companies will pay Dividends LOL>>> need to understand reserves replacements + decommissioning costs of O&G projects ..

[Toddy]

Well I'm in now. 100,000 shares at what I think is a reasonable entry point.
I will report back in 12 months time with a mark to market.

I'm not investing in NZO as a dividend stock. I'm investing because I like the build up of free cashflows which allows management have a punt.

[Sideshow Bob]

https://www.nzx.com/announcements/408582

• New Zealand Oil & Gas and Triangle sign binding farm out agreement for L7 and EP437.
• All confirmatory due diligence complete.
• New Zealand Oil & Gas to pay A$1.9 million in back costs.
• Regulatory approval process to commence.
• Planning underway to secure drilling slots in 1H 2024.

New Zealand Oil & Gas Limited (NZO or the Company) is pleased to announce that it has executed a binding Farm Out Agreement (FOA) with Triangle Energy (Global) Ltd (Triangle) (ASX: TEG), to acquire a 25% participating interest in the L7 Production License (L7) and the EP 437 Exploration Permit (EP 437) (together, the Permits).

[nztx]

All of a sudden not much love out there for NZO @ 38.5c

what's going on ?

[Sideshow Bob]

All of a sudden not much love out there for NZO @ 38.5c

what's going on ?

Was there love for NZO previously??

[Sideshow Bob]

https://www.nzx.com/announcements/408780

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/408780/391189.pdf

[nztx]

Was there love for NZO previously??


a pile of it probably disappeared after Ironbark turned duster :)

[RTM]

All of a sudden not much love out there for NZO @ 38.5c

what's going on ?

You're a friggen classic nzxt.....maybe open your eyes a just a wee bit wider and you'll see that, at the moment, quite a few stocks have dropped a bit.
Not just NZO.
Ridiculous.

[fish]

https://www.nzx.com/announcements/408780

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/408780/391189.pdf

A 5 minute read.
Nice to see growth in many parameters-not least the 107% increase in operating cashflow year ending dec31. 2022 .
Set to grow-I bought more a few days ago

[Lion]

A 5 minute read.
Nice to see growth in many parameters-not least the 107% increase in operating cashflow year ending dec31. 2022 .
Set to grow-I bought more a few days ago

You may have bought mine fish! I sold out completely in the last week at 39.5c, at a loss. Been holding for over 20 years.
I'll try not to get all negative about the stock, as some do after selling out (Mentioning no names)
I'm still holding CUE.
Good luck.

[Toddy]

Lion, I also had them 20 years ago and rode the hype associated with digging holes in the Pike. Then bailed as one of the posters who knew about the geology of the area would not stop going on about rock overhangs and cost over runs etc.

I've only bought back in over the last 2 months as its time to roll the dice again.

[Sideshow Bob]

52 week lows this morning, trading at 37c.

Actually, it maybe the lowest its traded this century...:mellow:

[Bobdn]

How many barrels of oil/oil equivalent does NZO produce each year?

[Sideshow Bob]

How many barrels of oil/oil equivalent does NZO produce each year?

Last year 1,248,600 equivalents, including their proportion of Cue.

Up from 593,400 year prior.

41% of their review from oil - remaining 59% from gas.

[Bobdn]

Thanks, that's a fair swag for sure.

Natural gas prices are in the toilet at the moment, who knows why.

I was investigating Invesco's equal weight energy ETF this morning after that lady Bryn mentioned it on CNBC, I like it a lot but it has a 0.40 per cent fee where as VDE is just 0.1 per cent. So I'm sticking with VDE.

[Sideshow Bob]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/410610/393388.pdf

Quarterly. An uptick in receipts but nothing too exciting......;)

[Toddy]

The scheduled drilling program looks exciting.....

[Toddy]

Share price tanked today on low volumes.

[JBmurc]

I see Dr Chris Mckeown and moved on from NZO after 10yrs-10months .. last position held with NZO - VP Business Development ..

https://www.linkedin.com/in/chrismckeown/

Smart guy has join one of my long term holds 'MELBANA ENERGY' MAY-ASX

[Toddy]

Quarterly due out today. Also news on the latest drill.

CUE released Quarterly 2 days ago. Solid results and a bit of positive interest in their share price.

[Sideshow Bob]

https://www.nzx.com/announcements/415367

Highlights
- 2P Total Reserves increase of 14% at Palm Valley to 2.1 million barrels of oil equivalent (mmboe), associated with the successful drilling and flow performance of the PV-12 well.
- 2P Total Reserves increase of 13% at Dingo to 3.5mmboe, owing to ongoing strong performance from the wells and additional modelling work.

[Sideshow Bob]

Quarterly Report....

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/415518/399405.pdf

[Toddy]

Good consistent cashflows. And even better going forward as alot of hard work has been put into recent and future drills.
At some stage in the not to distant future the value of these cashflows will start to be reflected in the shareprice one way or another.

[Toddy]

BA 01 drill results are not far away.

NZ investors have priced in a zero percent chance of success.

[Sideshow Bob]

BA 01 drill results are not far away.

NZ investors have priced in a zero percent chance of success.

Or at least a zero percent chance of anything meaningful flowing through to NZO minority shareholders.....;)

[Toddy]

Reinvesting cashflows into the next drill is the most efficient use of minority shareholders capital at this stage.

If shareholders are chasing a dividend stock then there are plenty of options elsewhere in the markets.

[Sideshow Bob]

https://www.nzx.com/announcements/417387

NEW ZEALAND OIL & GAS YEAR END RESULT– REVENUE UP 18%

• Revenue of NZ$98.8 million up 18%, strong gas prices realised for contracted and uncontracted gas
• Production up 7% year-on-year
• Increase in Mahato oil production from development drilling
• Palm Valley gas production up 49% for the year after successful tie-in of PV-12 well
• Operating cashflows of NZ$32.5 million, up NZ$1.0 million year-on-year
• Continued growth expected from Mahato, Kupe and Amadeus developments
New Zealand Oil & Gas is delivering on its growth strategy, with revenue of NZ$98.8 million for the year ended 30 June 2023, up 18% compared to the year before of NZ$83.8 million.

The result is the second consecutive year of increasing revenue since the acquisition of Amadeus Basin assets in Australia’s Northern Territory. Revenue from onshore Australian assets was up 47% compared to a year ago, which only included 9 months of Amadeus. Revenue from Indonesia is up 15%.

Operating cashflows were up by 3% on the prior year to NZ$32.5 million. Increased operating cashflows were driven by the Amadeus assets and development of the Cue portfolio in Indonesia.

Operating costs were up NZ$10.9 million to NZ$35.1 million from NZ$24.2 million a year ago. This year the Amadeus Basin includes 12 months of costs compared to 9 months in the prior year. In addition, increased activity included NZ$2.0 million of workovers at Mereenie and investment in new Perth Basin permits.

Exploration expense of NZ$9.1 million primarily relates to the previously announced drilling at Palm Valley.
Strong production with higher commodity prices, offset by higher costs contributed to the net profit after tax (NPAT) of NZ$19.1 million, down from the previous year of NZ$25.7 million; however net profit before income tax and royalties was up 2.4% to NZ$27.2 million.

NPAT attributable to New Zealand Oil & Gas shareholders was NZ$10.8 million, or NZ$4.7 cents per share.
The Group had NZ$36.4 million of cash at 30 June 2023, down NZ$28.2 million from a year ago. During the year, NZ$22.2 million of deferred consideration was paid relating to the Amadeus acquisition, with only NZ$0.8 million remaining at 30 June 2023.
Chief executive Andrew Jefferies says the cash balance and ongoing operating cashflows will fund the Group through its busy program of development and exploration activity.

“Revenues are growing quickly due to acquisition and development successes. The performance of our production assets is especially pleasing. The cash generated from operations is being put to work, with the pace picking up further in the new financial year (see planned activities chart below).

“We are witnessing unprecedented opportunities in the east coast of Australia gas market, where increasing prices have improved the profitability of additional activity. New Zealand Oil & Gas is positioned to harness this momentum with great acreage that will drive growth, create value, and ensure we deliver: warm homes for families; reliable energy for industry; and eggs over easy for breakfast. Gas is a three-letter word for transition.”

SUCCESSFUL DRILLING

"Activity throughout the year paid off in announcements of reserves upgrades," Andrew Jefferies says.

"A reserves upgrade of 0.7 mmboe net to the Group was announced on 27 July 2023.

"The year has been exceptionally busy, featuring a new well at Palm Valley, workovers at Mereenie, and drilling success at Mahato.
"The Palm Valley drilling program was completed in November 2022, providing success from a second sidetrack into the Pacoota (P1) sandstone, which is the current producing zone. The well has now been tied in and gas production is up 49% on the prior year.

"At Mahato PSC (Production Sharing Contract), development drilling continued with seven wells completed as part of the field development optimisation announced in June 2022. Sixteen wells were in production at year end. Additionally, there was one well drilled and suspended and one water injection well drilled.

"Oil production from the Maari field, offshore Taranaki, New Zealand, continued strongly. Gross production from the Maari fields was 4,700 barrels of oil per day (bopd) at the end of the year, a 16% increase from the start of the year."

PLANNED ACTIVITIES IN FY2024

• A new well to be drilled at Kupe
• Infill wells at Mereenie
• Exploration drilling in the Perth basin
• On-going development wells in the Mahato PSC

CUE ENERGY

Cue Energy Resources (ASX:CUE), contributed NZ$56.4 million to Group revenue . In the Mahato PSC in Sumatra, Indonesia, increased production from ongoing drilling delivered the largest share of Group's revenue, NZ$20.4 million. Gross oil production from the field increased to 6,300 bopd at year end, up from 4,700 from last year. More development wells are planned for the PB field in this calendar year.

Also in Indonesia, the Oyong and Wortel gas fields in East Java contributed revenue of NZ$12.5 million.
Andrew Jefferies says Cue continues to contribute.

“Cue reported its highest annual revenue since 2010, demonstrating success from the company’s growth strategy boosted by our collaboration in the Amadeus Basin. The leveraging of New Zealand Oil & Gas's technical capability across the assets minimises costs and enhances profitability. It’s a win win.”

For further information please contact the Group on: enquiries@nzog.com or +64 4 495 2424

[Toddy]

It's all set up for the busy drilling period ahead.

[Waiuta]

So it's 'eggs over easy' for consumers but nothing for the supporting shareholders....

[Toddy]

I'm prepared to wait for them to bring home the bacon.

But then again, I'm not one of those long suffering shareholders that posters elude too.

[fish]

So it's 'eggs over easy' for consumers but nothing for the supporting shareholders....

Yes the sp will stay low for another year .
20 million depreciating in the bank and enough cash flow to fund most projects and a buyback (when the sp is so low it makes good sense and would improve liquidity-current liquidity is atrocious -a slow buyback over the next 2 years would cost a small fraction of future cash flow )

[JBmurc]

Reinvesting cashflows into the next drill is the most efficient use of minority shareholders capital at this stage.

If shareholders are chasing a dividend stock then there are plenty of options elsewhere in the markets.

yep CE1.asx SP 9c paying 1.2c dividend next month ex date ..

[Toddy]

Acts policy is to, 'unban the ban'.

Seymore has probably just won a few Naki votes.

There is no reason this won't happen under an Act National government.

[Sideshow Bob]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/418651/403478.pdf

New Zealand Oil & Gas has agreed to extend the Gas Supply Agreement with South32 Canningtonfor supply of gas from the Mereenie field, for an additional 12 months.Gas supplied under the agreement will be aggregated with existing Mereenie gas supply owned byMacquarie Mereenie Pty Ltd (50%), Central Petroleum Ltd (25%), NZOG Mereenie Pty Ltd (17.5%)and Cue Mereenie Pty Ltd (7.5%), collectively the “Mereenie JV”, to supply a total of 1.46 PJ toSouth32 in 2025.

The GSA is for firm gas supply, with take-or-pay provisions and a fixed price. Pricing has beenrenegotiated and reflects strong market conditions. The GSA extension is conditional ontransportation agreements being finalised by 30 June 2024.

For more information, please see Central Petroleum Ltd’s release, which is attached.

[Toddy]

Not long to wait until the next update.
Let's see what the consistent higher oil prices and under pressure nzd translate into cash flow wise.

[Sideshow Bob]

Newsdesk article: paywalled. Needless to say they were quite happy to see a National/Act/even NZF govt.

Still keen on Kupe, and drilling new wells.


NZ Oil and Gas: 'We're not going anywhere'Thu, 19 Oct 2023
There hasn’t been much business to do in New Zealand, NZ Oil and Gas's managing director, Andrew Jefferies, says.

[Toddy]

I can't get the article. Hopefully the Herald publishes it.

[Toddy]

I coughed up and subscribed to NZ Business desk.
Good article.
Very much back in Business with a change in Government.

[Toddy]

I expect the quarter cash flow update due tomorrow to be very positive. Low Nzd, high oil prices, solid production and consumer demand.

[Sideshow Bob]

Here you go Toddy.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZO/420801/406164.pdf

Quarter Highlights
• Production up on previous quarter by 2%
• Production receipts up 25% on previous quarter
• Cash balance of NZ$42.4 million up 16% quarteron quarter
• KS-9 rig moving to site• Study on helium recovery unit at Mereenie
• Inwell production data gathering at Mereenie
• South32 Gas Sales Agreement extended

No cashflow report as yet.

[Toddy]

Have a read of the CUE Chair address from today's AGM.

[fish]

Have a read of the CUE Chair address from today's AGM.

Thanks .
Same Chair for CUE as NZO.
Similar large cash surplus and minority shareholder pressure to improve the share price .
A slow share buyback over the next couple of years would do this and cost only a small percentage of future income without impairing investment.
The low sp and lack of liquidity in my opinion is due to potential buyers uncertainty as to future returns/fear of another rights issue etc .

[Marilyn Munroe]

The installation of a new government friendlier to oil exploration may give some optimism about drilling resuming.

However the greenies will be strident in their opposition.

One argument they are likely to raise is NZOG's sale of their interest in Tui to Tamarind who subsequently went bust. This left the taxpayer holding the baby for the cost($NZ394m) of well cleanup and plugging.

This makes it hard to argue the oil and gas industry are good corporate citizens.

Boop boop de do
Marilyn

[fish]

Good article in the Herald today about the need for more exploration for natural gas .
Trans power support-and they know more than anyone .
thank goodness the greenies have lost power

[Toddy]

Yes, good article.

It's outright sad how the previous left wing Government did not take into account the cost of living when making it's ban decisions.

NZO has a solid balance sheet and decent earnings. Has some good plays in the gas exploration in Australia and in Indonesia.

There is not any real need for them to splash cash around NZ exploration.

Maybe the article should have mentioned Winston desire for the Govt to invest in NZ oil and gas exploration.

All positive for the Industry going forward.

[fish]

Yes, good article.

It's outright sad how the previous left wing Government did not take into account the cost of living when making it's ban decisions.

NZO has a solid balance sheet and decent earnings. Has some good plays in the gas exploration in Australia and in Indonesia.

There is not any real need for them to splash cash around NZ exploration.

Maybe the article should have mentioned Winston desire for the Govt to invest in NZ oil and gas exploration.

All positive for the Industry going forward.

Current gas reserves only enough for 10 years at current usage.
Increased immigration,banning coal.drought etc could shorten this imho

[Sideshow Bob]

https://www.nzx.com/announcements/422259

New Zealand Oil & Gas Limited (ASX:NZX: NZO, NZO or the Company) is pleased to announce that,having received the required regulatory approvals, NZO has completed its farm into a 25% participationinterest in Western Australian onshore Production License L7 and Exploration Permit EP 437 (thePermits).The Permits’ Joint Ventures continue to plan for drilling of the exploration wells in 2024.The Permits’ joint ventures both comprise Triangle (ASX: TEG: 50% and Operator); NZO (25%) andTalon Energy Ltd (ASX: TPD: 25%).

[Sideshow Bob]

Tui.

https://www.rnz.co.nz/news/business/503080/tui-oil-field-decommissioning-hits-bump-in-the-road?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Friday+24+N ovember+2023

[Toddy]

The AGM is not too far away. The balance sheet is getting stronger by the day.

[Sideshow Bob]

Cash is a fraction under $0.19cps.

Market value of Cue stake is $24.1m AUD, so another $0.117 cps. (And they were sitting on $17m AUD in cash).

Means the rest of the company (reserves, forward production) the market is valuing at $0.063 per share.

The joys of having a majority shareholder......

[Toddy]

Shane Jones is going to have a big spend up being in charge of reopening oil and gas in NZ.

I'm a fan of him. He will get things across the line.

[Lion]

Shane Jones is going to have a big spend up being in charge of reopening oil and gas in NZ.

I'm a fan of him. He will get things across the line.

I wonder if NZOG might re-think drilling Barque, with this change of government?? Do they still have the licence, I wonder? It had vast potential, around the same as the lamented, dry Ironbark.

Sideshow Bob - interesting analysis there, thanks, but it shows what a sad situation minor shareholders have been forced into.

I'm no longer a shareholder here, was for a long time, but have some CUE still.

[Marilyn Munroe]

One of the blow backs from the current tribal war in the Eastern Mediterranean is series of actions, such as ship seizures, against the economic interests of substantial beneficial owner shareholder of NZ Oil & Gas, Eyal Ofer.

It would be prudent for any premises of NZ Oil & Gas to increase security against the risk of becoming the focus of pro Palestinian protests.

Boop boop de do
Marilyn

[Toddy]

One of the blow backs from the current tribal war in the Eastern Mediterranean is series of actions, such as ship seizures, against the economic interests of substantial beneficial owner shareholder of NZ Oil & Gas, Eyal Ofer.

It would be prudent for any premises of NZ Oil & Gas to increase security against the risk of becoming the focus of pro Palestinian protests.

Boop boop de do
Marilyn

If you have valid concerns about the Security of NZ Companies then maybe contact the appropriate Government agencies.

[Marilyn Munroe]

If you have valid concerns about the Security of NZ Companies then maybe contact the appropriate Government agencies.

They already know. I used the keywords Palestinian and protests in a post on a public forum.

Boop boop de do
Marilyn

[Toddy]

It's looking very much like NZO will be going into the AGM around record low share prices after having a successful year.

[Sideshow Bob]

It's looking very much like NZO will be going into the AGM around record low share prices after having a successful year.

Been going since 1981, can't see if a record low, but definitely a record low this century.....!! :t_down:

[Sideshow Bob]

Been going since 1981, can't see if a record low, but definitely a record low this century.....!! :t_down:

Then down another 4.3% this morning......

[Toddy]

Setting the tone for the AGM.

The Sausage rolls have just been down graded to Saveloys with Pams tomato sauce.

[fish]

It's looking very much like NZO will be going into the AGM around record low share prices after having a successful year.

I suspect many minority shareholders feel that neither ogog or management want the current sp to reflect the real value.
Management have just been given another 2.8 million options expiring in 2029 at much less than nta enabled by the low sp

[Sideshow Bob]

I suspect many minority shareholders feel that neither ogog or management want the current sp to reflect the real value.
Management have just been given another 2.8 million options expiring in 2029 at much less than nta enabled by the low sp

What about the board though?

They would have a greater impact on SP than management.

[fish]

What about the board though?

They would have a greater impact on SP than management.

Absolutely
The board is all OGOG except the 2 independents (who were elected by ogog ) .
Andrew does listen to minority shareholders and puts forward to the board our views and at the Cue AGM Alistair did give some hope to minority shareholders that action may be taken .
The sp was adversely impacted by the rights issue .
With the net back lng price going from 5 to 20 it turned out that less cash was needed from the rights issue.
The obvious why to remedy this is to start a buyback using a small portion of the cash surplus .
Having so much cash depreciating will not add value and is frustrating for minority shareholders .

[JBmurc]

Been going since 1981, can't see if a record low, but definitely a record low this century.....!! :t_down:

Yes certainly last 5yrs .... woeful company with mgmt/Board that really don't give a rats ass about S/H wealth ..but what OG wants and demands ..I wouldn't be surprised to see NZO still sub 50c in another 5yrs

[Toddy]

Lets see if NZO is going to spread the love today.

[Sideshow Bob]

Lets see if NZO is going to spread the love today.

Sure there will be thousands turned away.....

Are you going Toddy?

Looking forward to a sausage roll report.... :mellow:

[Toddy]

Another day on the orchard today in the Bay of Plenty.

I will get to pass through Wellers on Friday though as I'm taking my boys to Queenstown for a pre xmas mountain biking trip.

[Sideshow Bob]

Another day on the orchard today in the Bay of Plenty.

I will get to pass through Wellers on Friday though as I'm taking my boys to Queenstown for a pre xmas mountain biking trip.

Niccceeeeee!! Ever so slightly marginally more exciting & enticing than a NZO AGM........:mellow:

So much to ride......Skyline, 7 Mile, Coronet Peak & Rude Rock and the Cardies and Glendhu not too far away.

[Toddy]

I watched the AGM online.

I think that they are on the right track. And was super excited about them concentrating on the Australian and Indo gas markets. A big tick for the strategic plan going forward.

The appetite for ongoing investment in the high risk NZ market was almost zero.

A busy drilling schedule coming up.

Maybe the CEO needs to replace his examples of a Wellington gas BBQ with an indoor gas fire. That would come across as more realistic.

[Waiuta]

My email to Andrew Jefferies

FROM NZ OIL AND GAS
CEO ADDRESS TO ANNUAL MEETING OF SHAREHOLDERS

'I look at this drone photo of our majestic Palm Valley gas field and look forward to our future, with
confidence and optimism. I hope you now understand why. The focus is delivering sustainable value
to our shareholders, providing reliable and environmentally responsible energy solutions, and
contributing positively to the global energy landscape.
I want to express my deepest gratitude to our shareholders for your ongoing support, to our team
for their relentless dedication, our Board for their wisdom, and to our partners for their
collaboration. Together, we are not just navigating the present; we are shaping a promising future
for New Zealand Oil & Gas.'

I would be extremely grateful if I received a dividend instead of a platitudinous narrative. Surely it's time to reward shareholders for their patience?

[Sideshow Bob]

I would be extremely grateful if I received a dividend instead of a platitudinous narrative. Surely it's time to reward shareholders for their patience?

Hear, hear!

They go on about share price but a modest, regular, sustainable dividend would be a good driver.

Platitudinous is going to be my word of the day!! :)

[Toddy]

Agree. I fully believe in it the Australian strategy.

Why hang around NZ, why not move the entire business away from the risky NZ political environment.

Re dividends. Maybe the Board is right and pile every available dollar into drilling. But you need to be able to sell the vision to the market.

We want to become a billion dollar sustainable Company and this is how we are going to do it.

[fish]

Agree. I fully believe in it the Australian strategy.

Why hang around NZ, why not move the entire business away from the risky NZ political environment.

Re dividends. Maybe the Board is right and pile every available dollar into drilling. But you need to be able to sell the vision to the market.

We want to become a billion dollar sustainable Company and this is how we are going to do it.

Undoubtedly they are heading the right way with no debt and large ever increasing cash flow that will fund exploration and development
It looks as if we,as minority shareholders who have stuck with the company for decades,financial supported the rights issue enabling amadeus are being neglected .
Many millions in the bank depreceating .
Increased value for all would cost little with a buyback-which is probably the most cost-efficient way of using a little of this unused cash .

[Sideshow Bob]

Increased value for all would cost little with a buyback-which is probably the most cost-efficient way of using a little of this unused cash .

Ordinarily that would be the best use of funds given current shareprice, but would end up just increasing Ofer's proportion of the company.

[fish]

Ordinarily that would be the best use of funds given current shareprice, but would end up just increasing Ofer's proportion of the company.

Agree but it would do a lot more than just increase ogog shareholding by a small percentage .
I had no doubt it would improve liquidity .
If the buyback was announced to be ongoing according to spare cash we would get willing sellers and buyers back into the market.
At the moment there are no buyers at a sp less than half the Nta.
Knowing the sp is likely to substantially increase in the next year would bring investors back into the market .
If the sp increased I know many holders would start selling/trading

[Sideshow Bob]

Agree but it would do a lot more than just increase ogog shareholding by a small percentage .
I had no doubt it would improve liquidity .
If the buyback was announced to be ongoing according to spare cash we would get willing sellers and buyers back into the market.
At the moment there are no buyers at a sp less than half the Nta.
Knowing the sp is likely to substantially increase in the next year would bring investors back into the market .
If the sp increased I know many holders would start selling/trading

Buying back when so well under NTA makes sense as the best use of funds and boosting the pathetic SP. Although the market doesn't recognise NZO currently now, so likely make little difference but would at least add to trading volumes.

Just not sure of the Ofer 'creep' with takeover rules etc?? They've had one go so buyback may not be looked on favourably??

For example, a modest buyback with the equivalent of $0.01 per share into a buyback (so $2.24m), at say an average of $0.40 buyback price, would take Ofer from 71.7% to 73.5%. Even at $0.50 per share, they'd go to 73.2%.

Ever so closer to 90% where they can take everyone else out......

[mistaTea]

Buying back when so well under NTA makes sense as the best use of funds and boosting the pathetic SP. Although the market doesn't recognise NZO currently now, so likely make little difference but would at least add to trading volumes.

Just not sure of the Ofer 'creep' with takeover rules etc?? They've had one go so buyback may not be looked on favourably??

For example, a modest buyback with the equivalent of $0.01 per share into a buyback (so $2.24m), at say an average of $0.40 buyback price, would take Ofer from 71.7% to 73.5%. Even at $0.50 per share, they'd go to 73.2%.

Ever so closer to 90% where they can take everyone else out......

The only flaw in the thinking is the assumption that OGOG care about the market value and/or give a damn about minority holders.

As far as they are concerned they made a takeover offer some time back, we gave them the middle finger because we thought Ironbark was undervalued in their calcs.

Ironbark didn’t work out and now things are as they are. They are operating NZO as if they owned it 100% privately. The SP could crash to 1c/share and it would make absolutely no difference to them.

So why would they use any available funds for a buyback that would only benefit the minority holders that they don’t care about anyway?

That would be irrational. All FCF will be used towards projects.

And even if the projects are successful I would not expect a corresponding leap in SP due to the liquidity issues. If you buy NZO shares there is no guarantee you can get out easily in the future.

My two cents.

[Toddy]

The only flaw in the thinking is the assumption that OGOG care about the market value and/or give a damn about minority holders.

As far as they are concerned they made a takeover offer some time back, we gave them the middle finger because we thought Ironbark was undervalued in their calcs.

Ironbark didn’t work out and now things are as they are. They are operating NZO as if they owned it 100% privately. The SP could crash to 1c/share and it would make absolutely no difference to them.

So why would they use any available funds for a buyback that would only benefit the minority holders that they don’t care about anyway?

That would be irrational. All FCF will be used towards projects.

And even if the projects are successful I would not expect a corresponding leap in SP due to the liquidity issues. If you buy NZO shares there is no guarantee you can get out easily in the future.

My two cents.

Have you been involved in Management before where the objective is to hurt the minority shareholders?

I certainly haven't.

Im sure that they focus on ROI as much as any other management. Hence, a comprehensive drilling program over the next 12 months and a focus on their Australian assets.

[mistaTea]

Have you been involved in Management before where the objective is to hurt the minority shareholders?

I certainly haven't.

Im sure that they focus on ROI as much as any other management. Hence, a comprehensive drilling program over the next 12 months and a focus on their Australian assets.

Just look at the evidence.

I am not suggesting that Andrew or any of the board leap out of bed every morning, excited to find new ways to HURT the minority shareholders.

I am just saying that your hopes and desires (to have a higher SP and more liquid stock) is so far down their priority list it’s not funny.

All they care about is using as much FCF as they can for projects. Which is exactly what they should be doing to maximise the prospects of the business.

Whether or not that ever materialises in a big shift in sentiment by the market (and therefore SP) is of minor consequence to them. It is of major consequence for the long suffering minority shareholders, but as I mention before - they couldn’t really give a tinkers toss about that.

And I wouldn’t either if I were them.

It would be completely irrational to deploy capital in a buyback which will ONLY benefit minority shareholders who want to get our whole receiving available capital for the projects they are keen to pursue.

The truth hurts, I know it. It took me a little while to get my head around it to. I was lucky enough to get out when there was still a bit of liquidity in the stock.

Probably the best trade I have ever done.

[Toddy]

I've only invested in this stock over the period of this year. Averaging 38.5 cents per share.
To me, this investment makes sense as its a cheap way to have exposure to prospects in Western Australia.
The NZ Government did NZO a favour by discouraging them. Leading to a reset Australian strategy.

I've been invested in plenty of coops over the years. Which are always run by the majority shareholders. One thing I have learned is that at some point in time they want to unlock capital and receive the benefits. Greed always wins.

I see the NZO ownership structure no different. It's just a waiting game.

[mistaTea]

I've only invested in this stock over the period of this year. Averaging 38.5 cents per share.
To me, this investment makes sense as its a cheap way to have exposure to prospects in Western Australia.
The NZ Government did NZO a favour by discouraging them. Leading to a reset Australian strategy.

I've been invested in plenty of coops over the years. Which are always run by the majority shareholders. One thing I have learned is that at some point in time they want to unlock capital and receive the benefits. Greed always wins.

I see the NZO ownership structure no different. It's just a waiting game.

Statistically cheap, but ultimately a value trap.

[RTM]

Jeeze Toddy, I’ve been in right from the start, I’m still there, and have long since given up hope.
Good luck, really hope you are right.

[Toddy]

Jeeze Toddy, I’ve been in right from the start, I’m still there, and have long since given up hope.
Good luck, really hope you are right.

I was an investor way back but sold out because of the capital over runs with digging a hole at Pike River.

Don't give up. Let others do that and snap up cheap shares.

[Toddy]

Statistically cheap, but ultimately a value trap.

Time will tell. Give the current Western Australian strategy a fair time to prove itself.
Indo and CUE, always difficult to trust rule makers in that part of the world.

[fish]

The only flaw in the thinking is the assumption that OGOG care about the market value and/or give a damn about minority holders.

As far as they are concerned they made a takeover offer some time back, we gave them the middle finger because we thought Ironbark was undervalued in their calcs.

Ironbark didn’t work out and now things are as they are. They are operating NZO as if they owned it 100% privately. The SP could crash to 1c/share and it would make absolutely no difference to them.

So why would they use any available funds for a buyback that would only benefit the minority holders that they don’t care about anyway?

That would be irrational. All FCF will be used towards projects.

And even if the projects are successful I would not expect a corresponding leap in SP due to the liquidity issues. If you buy NZO shares there is no guarantee you can get out easily in the future.

My two cents.

Having met some of the OGOG board,as I know you have,but also kept in touch since you sold out,I do feel you are letting your emotions cloud judgement .
A buyback would add value to ogog,management,and minority shareholders and use only a small percentage of spare cash.
Most likely they will seek expert opinion on this matter but in no rush to implement.
Having said they are concerned that sp does not reflect value I take the board at face value.
Something is going to happen before the next AGM .
I had to miss the AGM on Tuesday but will be at next years and I speculate that it will be enjoyable for all .

[Sideshow Bob]

Jeeze Toddy, I’ve been in right from the start, I’m still there, and have long since given up hope.
Good luck, really hope you are right.

1981......:scared:

More patience than most.....

[RTM]

1981......:scared:

More patience than most.....

I think I probably still have the share certificate. Along with Brierly, Equitycorp, UEB…. etc etc.

[mistaTea]

Having met some of the OGOG board,as I know you have,but also kept in touch since you sold out,I do feel you are letting your emotions cloud judgement .
A buyback would add value to ogog,management,and minority shareholders and use only a small percentage of spare cash.
Most likely they will seek expert opinion on this matter but in no rush to implement.
Having said they are concerned that sp does not reflect value I take the board at face value.
Something is going to happen before the next AGM .
I had to miss the AGM on Tuesday but will be at next years and I speculate that it will be enjoyable for all .

No emotions - just stating it as I see it. And I think my view is supported by the observed behaviour.

In what way would a buyback benefit OGOG more than using the FCF for projects?

They don’t need a high market value for NZO to raise capital because they are owned by a rich daddy that can secure attractive borrowing terms if needed.

I suspect you are in far too deep, can’t get out without losing your pants and are trying to talk yourself into the investment still being good with all these wonderful things OGOG could do for the minority holders.

NZO is a really good company…for OGOG.

If you are really lucky they will make another offer to buy minority shareholders out. 40c a share ought to do it.

[nztx]

No emotions - just stating it as I see it. And I think my view is supported by the observed behaviour.

In what way would a buyback benefit OGOG more than using the FCF for projects?

They don’t need a high market value for NZO to raise capital because they are owned by a rich daddy that can secure attractive borrowing terms if needed.

I suspect you are in far too deep, can’t get out without losing your pants and are trying to talk yourself into the investment still being good with all these wonderful things OGOG could do for the minority holders.

NZO is a really good company…for OGOG.

If you are really lucky they will make another offer to buy minority shareholders out. 40c a share ought to do it.


Haven't they tried that trick before ? What was offered back then ?

[nztx]

I think I probably still have the share certificate. Along with Brierly, Equitycorp, UEB…. etc etc.

If you include Chase, Omnicorp, Goldcorp and some of the now well deceased property mogul outfits, you could have
a valuable exhibition collection .. these things are no longer being minted off the press :)

[mistaTea]

Haven't they tried that trick before ? What was offered back then ?

Well yes we all went rabid and rejected a 74c offer because we were so damn sure Ironbark was going to make us billionaires.

Turns out their offer was more than fair - they valued Ironbark at $5M from memory. Far from ripping us off, they were being very generous as it turns out!

No way would they need to offer anything like that now. They could probably pick up the rest of the shares for $20M - $25M.

But then why do that? Minority holders had their chance, and OGOG are able to effectively run NZO as a private business now anyway.

[fish]

lol
It certainly feels as if we were rabid to reject the 74 cent offer .
that was a big gamble and we all knew it
we have moved on.
Ogog said no more takeover offers.
NZO are another trajectory .
Bought more yesterday and I intend to keep buying at this price whenever I have spare funds

[mistaTea]

lol
It certainly feels as if we were rabid to reject the 74 cent offer .
that was a big gamble and we all knew it
we have moved on.
Ogog said no more takeover offers.
NZO are another trajectory .
Bought more yesterday and I intend to keep buying at this price whenever I have spare funds

You, Wiremu and I all but dressed up like Braveheart as we rallied the troops.

[JBmurc]

lol
It certainly feels as if we were rabid to reject the 74 cent offer .
that was a big gamble and we all knew it
we have moved on.
Ogog said no more takeover offers.
NZO are another trajectory .
Bought more yesterday and I intend to keep buying at this price whenever I have spare funds

You need to BUY hundreds of thousands of shares to get the SP moving north ..

[Toddy]

You need to BUY hundreds of thousands of shares to get the SP moving north ..

Hit the nail on the head.

Hundreds of thousands of shares cost an immaterial amount.


So it won't take too bigger of an event to get this share moving in the right direction.

[JBmurc]

Hit the nail on the head.

Hundreds of thousands of shares cost an immaterial amount.


So it won't take too bigger of an event to get this share moving in the right direction.

Yes if enough Buyers turn up the SP will move but just how far before it runs out of steam ..very hard to drive SP higher if the dominant 70% holder OG which controls the board doesn't want to return Capital to S/Hs but keep NZO cashed up ..IMHO very hard to attract Aussie investors with the name New Zealand O&G just look at the volumes traded on the ASX last Govt would have put a sour taste on the whole sector in NZ .. and NZX is a joke

The total value traded today $1850 !!! on both the ASX NZX ..no sane value investor will want to get on board such a low volume traded stock..

[Toddy]

New lot can open the door all they like.

The horse has already bolted.

NZO is gearing up to join the gravey train exporting and shipping gas from Australia to NZ in the future.

The strategy is all about offshore production.

[JBmurc]

New lot can open the door all they like.

The horse has already bolted.

NZO is gearing up to join the gravey train exporting and shipping gas from Australia to NZ in the future.

The strategy is all about offshore production.

But the SP is stuck .. maybe NZO does do very well with their JVP deals but will the market give a stuff .. no Insto/soph money will head into NZO with such a controlling interest in OG ... they can just dilute present S/Hs via placements 15% pa ..once they get to 90.1% then can push T/O and nothing any NZO S/H can do about it and price paid if Mgmt/Board agree is final and you will get a payment and middle finger..

IMHO NZO is just a OG Zombie company..

[Toddy]

As I've stated before. I've been invested in coops over the years and still am.

Everyone goes bla bla bla, and the ones that hold their investment always end up winning,. Greed rules this world and capital always finds its way to the shareholders.

There is no such thing as stuck value.

[JBmurc]

As I've stated before. I've been invested in coops over the years and still am.

Everyone goes bla bla bla, and the ones that hold their investment always end up winning,. Greed rules this world and capital always finds its way to the shareholders.

There is no such thing as stuck value.

Going off the 10yr NZO.nzx chart there has been one bright year 2016 pre results of the IRONBARK 1yr of 10

had you invested end of 2013 early 2014 today 10yrs later believing in GREED capitalism HOLD always wins ... you would have 18% of your capital left ..now of course NZO has paid dividends for two of those years so that's another 10.4c so say 23-24% of your money left 10yrs later

Forgot NZ cancelled one out of every two ordinary shares for a payment of NZ$0.62724388 per cancelled share. Part-paid shares that have been issued as part of the company's Employee Share Ownership Plan will not participate in the return of capital.

..so that would add 31c per share say ...

so much better LONG term NZO have only lost just over 60% of you're capital invested 10yrs ago ....

[Toddy]

It's an oil Company, drilling is what it's all about.
Sorry if Ironbank wasn't successful, and sorry that the Minority shareholders turned down a take over offer. But that's history where you draw your perspective from.

From my prospective, NZO has a bunch load of cash and drills coming up. All for a cheap entry price.

In the meantime the cash keeps coming in. And as a shareholder I own a portion of the value.

It's easy to go through the history of Companies and tear them apart. Take Ift for example, they destroyed value over and over with their bus, airport, oil and gas businesses. But now look at them.

[fish]

It's an oil Company, drilling is what it's all about.
Sorry if Ironbank wasn't successful, and sorry that the Minority shareholders turned down a take over offer. But that's history where you draw your perspective from.

From my prospective, NZO has a bunch load of cash and drills coming up. All for a cheap entry price.

In the meantime the cash keeps coming in. And as a shareholder I own a portion of the value.

It's easy to go through the history of Companies and tear them apart. Take Ift for example, they destroyed value over and over with their bus, airport, oil and gas businesses. But now look at them.

ASX announcement from triangle energy looking very promising with prospective 36m barrels oil(9m being NZo share ) and lots gas in L7-drilling starting once a rig can be contracted-should be soon as onshore .
Adjacent fields also promising
Cost for triangle only 4 million -I am not sure if it means only 2 million for NZo ?

[Toddy]

Can't wait. 2024 should be an exciting year for NZO.

[RTM]

Can't wait. 2024 should be an exciting year for NZO.

Let’s hope it’s exciting for shareholders as well. All of them.

[JBmurc]

ASX announcement from triangle energy looking very promising with prospective 36m barrels oil(9m being seismic share ) and lots gas in L7-drilling starting once a rig can be contracted-should be soon as onshore .
Adjacent fields also promising
Cost for triangle only 4 million -I am not sure if it means only 2 million for NZo ?

I understood NZO paid just under 2mill just for back payment for seismic work done ..

In total NZO to pay A$9.96mill + any extra costs on a per share basis

[Toddy]

Lots of exciting insight into the testing on Triangle thread on Hot chopper.

Pretty hard to get New Zealanders to dream big on this chat sight.

[Sideshow Bob]

ASX:TEG finished up 7.7% yesterday.

NZO unchanged.....

[mistaTea]

ASX:TEG finished up 7.7% yesterday.

NZO unchanged.....

Just can't imagine why investors won't flock to an illiquid stock :D

I have found much more joy with Occodental Petroleum. We are even going to suck carbon out of the sky and save the planet! :t_up:

[Toddy]

Just can't imagine why investors won't flock to an illiquid stock :D

I have found much more joy with Occodental Petroleum. We are even going to suck carbon out of the sky and save the planet! :t_up:

Point taken. The sooner NZO delist from the NZX, sell the NZ assets and management move closer to the production asset base the better.

However, where there is value in investing then why not invest. The liquidity you talk about is for people who should not be investing in such assets anyway.

[Joshuatree]

Can't wait. 2024 should be an exciting year for NZO.
Great to see enthusiasm Todd,but there are plenty of stale holders on here including me for the facts pointed out by JB etc.

[mistaTea]

Point taken. The sooner NZO delist from the NZX, sell the NZ assets and management move closer to the production asset base the better.

However, where there is value in investing then why not invest. The liquidity you talk about is for people who should not be investing in such assets anyway.

Investors will only pay up for a listed company where they know they can get their money out relatively quickly.

This is not the case for NZO and so it will always trade at a discount to what it is theoretically worth.

If you go along for the ride, you just have to assume there is no stock market and you are going along for the ride as a minority parner of OGOG (and have absolutely no say in the direction or strategy).

This is not to say that the SP of NZO could never increase at all - but just to say that it will always trade well below the theoretical intrinsic value calculation due to the lack of liquidity and the fact that OGOG hold 70% of the shares (and therefore you would need to be really comfortable with them running the show).

[Toddy]

Because I was an accountant for 25 years i based investment in NZO over the last 12 months on the accounts and licensed drill areas.

As I have said previously, the shareholder set up is like a Co op. The value is always unlocked when you least expect it because greed always wins.

In the mean time I think it's a super cheap entry price.

[Toddy]

And another thing I don't understand is why the disgruntled shareholders don't just dump and run.

Unless they do actually do have faith in the strategy.

[mistaTea]

And another thing I don't understand is why the disgruntled shareholders don't just dump and run.

Unless they do actually do have faith in the strategy.


Depending on how many shares some of the guys have, it can be hard to get out without crashing the price significantly due to the low volumes.

Some of the big minority holders (like fish) are big believers in the strategy though for sure.

[mistaTea]

In the mean time I think it's a super cheap entry price.

Yeah, either the deal of the decade or a value trap.

Let's see.

[Toddy]

If nothing exciting was happening then I would concur with the frustration of some of the shareholders.

But 'everything' is happening. Drilling more holes than a Fletchers leaky pipe.

[fish]

If nothing exciting was happening then I would concur with the frustration of some of the shareholders.

But 'everything' is happening. Drilling more holes than a Fletchers leaky pipe.

To really appreciate how exciting this is I worked out the potential gas value of the first drill expected in the second quarter of this year .
my calculation is so massive I do not want to post in case it misleads

[mike2020]

To really appreciate how exciting this is I worked out the potential gas value of the first drill expected in the second quarter of this year .
my calculation is so massive I do not want to post in case it misleads

I used to hold NZO prior to and during the SOA before Ironbark, there was some liquidity at that point and I switched to CUE. My thinking was Ironbark had so much upside if the SOA was a success I would still be in for Ironbark. It's looking like a similar situation now, so a few trapped holders might get out in the build up. I still hold CUE so I am probably no different to an NZO holder in respect to capital and liquidity. I have been in STX a long time, now more so via a small holding in TPD, and it is getting so big that a great result has little impact on the share price, at this point at least. TPD was my exposure to TEGs drill. I'm only a small CUE holder, I have been thinking of moving that money back to NZO.

All the talk of cash on hand, divs and buybacks from trapped holders in CUE, liquidity in NZO, why won't they just bite the bullet and bring the two together? It can't be that hard can it?

[fish]

I used to hold NZO prior to and during the SOA before Ironbark, there was some liquidity at that point and I switched to CUE. My thinking was Ironbark had so much upside if the SOA was a success I would still be in for Ironbark. It's looking like a similar situation now, so a few trapped holders might get out in the build up. I still hold CUE so I am probably no different to an NZO holder in respect to capital and liquidity. I have been in STX a long time, now more so via a small holding in TPD, and it is getting so big that a great result has little impact on the share price, at this point at least. TPD was my exposure to TEGs drill. I'm only a small CUE holder, I have been thinking of moving that money back to NZO.

All the talk of cash on hand, divs and buybacks from trapped holders in CUE, liquidity in NZO, why won't they just bite the bullet and bring the two together? It can't be that hard can it?

I have never seen the point of investing in cue when you can invest in NZo which controls cue .
However if already invested I would be optimistic about the sp rising since a point was made at the recent AGM that the directors were looking at ways of encouraging the sp to better represent the Nta/value

[Wiremu]

I used to hold NZO prior to and during the SOA before Ironbark, there was some liquidity at that point and I switched to CUE. My thinking was Ironbark had so much upside if the SOA was a success I would still be in for Ironbark. It's looking like a similar situation now, so a few trapped holders might get out in the build up. I still hold CUE so I am probably no different to an NZO holder in respect to capital and liquidity. I have been in STX a long time, now more so via a small holding in TPD, and it is getting so big that a great result has little impact on the share price, at this point at least. TPD was my exposure to TEGs drill. I'm only a small CUE holder, I have been thinking of moving that money back to NZO.

All the talk of cash on hand, divs and buybacks from trapped holders in CUE, liquidity in NZO, why won't they just bite the bullet and bring the two together? It can't be that hard can it?

mike 2020, on the matter of "can't be that hard can it?" in fact it's almost impossible without one or other sets of shareholders believing they are being robbed and not voting to approve the scheme/deal. Run some figures yourself and you will see just how difficult it becomes.

[JBmurc]

Investors will only pay up for a listed company where they know they can get their money out relatively quickly.

This is not the case for NZO, so it will always trade at a discount to what it is theoretically worth.

If you go along for the ride, you have to assume there is no stock market and you are going along as a minority partner of OGOG (and have no say in the direction or strategy).

This is not to say that the SP of NZO could never increase at all - but just to say that it will always trade well below the theoretical intrinsic value calculation due to the lack of liquidity and the fact that OGOG holds 70% of the shares (and therefore you would need to be comfortable with them running the show).

Exact....Now if NZO had a history of returning capital to S/H /DRP etc then one would be more comfortable taking the position even if Liquidity was poor .. I've seen many stocks with very tight share registers command high valuations to peers as S/H believe in mgmt to look out for all S/Hs

In NZO's case it's a mgmt that does what OG wants.. stuff the rest of S/Hs ... and if NZO is part of a major Discovery


the 70% S/H OG group could force their way to 90.1%(It's only 20% more you can raise 15% pa)

Then have a T/O price that all other S/H have to accept

[fish]

Exact....Now if NZO had a history of returning capital to S/H /DRP etc then one would be more comfortable taking the position even if Liquidity was poor .. I've seen many stocks with very tight share registers command high valuations to peers as S/H believe in mgmt to look out for all S/Hs

In NZO's case it's a mgmt that does what OG wants.. stuff the rest of S/Hs ... and if NZO is part of a major Discovery


the 70% S/H OG group could force their way to 90.1%(It's only 20% more you can raise 15% pa)

Then have a T/O price that all other S/H have to accept

If you read the chairs brief address on 12 December you will see an important paragraph that recognizes the low sp and states the board is committed to increasing the value .
They have the funds and cash flow to enable this .
I was one of the minority shareholders in TTP/SEA when they achieved the 90%and made an offer for the remaining shares.A group of us from share trader did not accept this which enabled us to go to arbitration achieving a fair and reasonable price plus costs.After saying this I do not believe this is a path og will take .

[mistaTea]

mike 2020, on the matter of "can't be that hard can it?" in fact it's almost impossible without one or other sets of shareholders believing they are being robbed and not voting to approve the scheme/deal. Run some figures yourself and you will see just how difficult it becomes.

Yes very true - I remember working through a couple of scenarios with you and it was hard to get to a point where both parties would feel ok.

And why would OGOG go through the hassle anyway.

They already control NZO and CUE.

So they don’t need to fork out $25-$30M to buy the rest of NZO.

And they don’t need to spend the money/effort/time merging CUE and NZO for no real benefit to them. They already call the shots for both companies.

Also, leaving the companies as they are means there is the possibility in the future to more readily tap the capital markets if they find a juicy acquisition target or something.

[Sideshow Bob]

If you read the chairs brief address on 12 December you will see an important paragraph that recognizes the low sp and states the board is committed to increasing the value .
They have the funds and cash flow to enable this .
I was one of the minority shareholders in TTP/SEA when they achieved the 90%and made an offer for the remaining shares.A group of us from share trader did not accept this which enabled us to go to arbitration achieving a fair and reasonable price plus costs.After saying this I do not believe this is a path og will take .

Saying something and doing something are two different things.

[fish]

Saying something and doing something are two different things.

It is more than this in my opinion .
I trust Andrew and ogog .
Stating it in the chairman’s report last month to me means it is likely to happen before the AGM at the end of this year.

[Toddy]

It is more than this in my opinion .
I trust Andrew and ogog .
Stating it in the chairman’s report last month to me means it is likely to happen before the AGM at the end of this year.

Since I have been invested in the last 12 month period the management have made so many good moves. The TEG buy in happened a year ago.
There has been alot of positive news with more to come.
I think that the stressed shareholders should take a long breath and be positive.

[Sideshow Bob]

It is more than this in my opinion .
I trust Andrew and ogog .
Stating it in the chairman’s report last month to me means it is likely to happen before the AGM at the end of this year.

Well, Andrew has over 500k options exercisable at 47c, so no doubt he is motivated.

But given their track record/history, then hope to be surprised, but won't be holding my breath too much.