NZX is A Paper Tiger

[Balance]

This price sensitive announcement was made by Octanex at 12.20 pm (NZ time) today :

http://www.asx.com.au/asxpdf/20140116/pdf/42m4q41nhj0spf.pdf

NZOG did not release the same information to the market until 1.32 pm - a full hour and 12 minutes later.

https://www.nzx.com/companies/NZO/announcements/246123

Whatever happened to the Continuous Disclosure regime?

One rule for some, and another rule for others?

[J R Ewing]

The two announcements are at odds with each other. The first OXX announcement declares that the well is to be abandoned. The later one (that NZO released as well as OXX) says that information is not yet known (still drilling ahead).
I know where I would place my money if we were betting on the official outcome of the well.

[peat]

The two announcements are at odds with each other. The first OXX announcement declares that the well is to be abandoned. The later one (that NZO released as well as OXX) says that information is not yet known (still drilling ahead).
I know where I would place my money if we were betting on the official outcome of the well.

The two announcements are at odds with each other. No, not at all
The first OXX announcement declares that the well is to be abandoned (after drilling to 4750m).

The later one (that NZO released as well as OXX) says that information is not yet known (still drilling ahead). It says it hasn't formed a complete view but there are no significant shows.

Sure they have a different 'way of putting things' but no conflicts as I see it.

With the liquidity in NZO is 72 minutes a big deal especially given there was not really any significant change to the information yesterday.

Should the information in an announcement be massively price affecting (and there was an unacceptable delay) then there would be a review of the trades in that time.

Maybe NZX has examined the situation and found nothing to be concerned with?

[Banksie]

Paper Tiger bares it's teeth.

https://www.nzx.com/companies/XRO/announcements/246133

[Balance]

OXX and ASX deemed the announcement to be sensitive so stock was placed on trading halt for 10 minutes for the market to digest the news.

Sp of OXX falling by over 20% upon resumption of trading says announcement was price sensitive as far as market was concerned.

NZOG had the benefit of that fall to know that the announcement was price sensitive. But NZOG also must deduce they had screwed up as cat was out of the bag, and NZOG had not made an announcement.

So it looks like to me that NZOG spent the next hour with their PR and legal people to frame a statement that there is nothing new, rather than acknowledge this is the second time they have screwed up!

Well, NZOG and NZX, the market humbly disagrees - as evidenced by the price reaction.

NZOG also implicitly acknowledges the price sensitivity by placing the stock on trading halt.

*************************************************

Here's what the NZX states about Continuous Disclosure :

Material Information

This is the “what” question and is the most important component of decision making concerning
continuous disclosure. The term “Material Information” is defined in the Rules to mean
information in relation to the Issuer that a reasonable person would expect, if it were generally
available to the market, to have a material effect on the price of the Issuer’s Listed Securities.

https://www.nzx.com/files/static/GN_contin_disclosure.pdf

[Schrodinger]

Is this really a surprise from a company who has terrible safety practices and governance?

Seems consistent with their management style.

[Balance]

Is this really a surprise from a company who has terrible safety practices and governance?

Seems consistent with their management style.

Not a surprise with NZOG - they have trained their shareholders to expect bugger all.

But what about the NZX and its enforcement regime?

Or the FMA which gives NZX a big tick every audit?

[Wolf]

Should the information in an announcement be massively price affecting

Well NZOG seem's to think so
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11187597&ref=rss

[peat]

Well NZOG seem's to think so
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11187597&ref=rss

but they told you that yesterday. /<EOD>

[Schrodinger]

Any of you holding?

In terms of regulation it is fair to say the NZX is adequate at best. There are obvious adv/dis for this.....

We may see the NZX head in the direction of the ASX however there is still significant insider activity on the ASX after they decided to split out regulation duties.

[Wolf]

but they told you that yesterday. /<EOD>
They are putting the share price drop down to the bad well results so they should understand that news concerning it is price sensitive

[Balance]

They are putting the share price drop down to the bad well results so they should understand that news concerning it is price sensitive

NZOG knew and knows it is price sensitive - their announcement (1 hour plus late) was substantially redrafted from the usual copy-cat information from OXX tells us that.

Where OXX stated 'plug and abandon', NZOG attempted to dance around that fact.

If hitting a dry well is not price sensitive, what is?

Well, let's wait to see if NZX takes any action or live up to its reputation of being selective with its enforcement policies.

And FMA must be polishing its dentures to bite when it comes to the NZX as an entity.

[Casino]

Surely some one has to lay a complaint about this?

About what? There was nothing unexpected today after yesterday's release. I think it lowers the prospects of finding a source kitchen in PEP 53537, which NZO has no stake in. You could make the case that there is some oil north of Tui, which is good news for NZO...

One of the many things where NZX fails is to reveal short interest ratio of stocks.

[Balance]

About what? There was nothing unexpected today after yesterday's release. I think it lowers the prospects of finding a source kitchen in PEP 53537, which NZO has no stake in. You could make the case that there is some oil north of Tui, which is good news for NZO...

One of the many things where NZX fails is to reveal short interest ratio of stocks.

Breach of Continuous Disclosure as serious as it gets - goes to the heart of keeping the market informed at all times to price sensitive information.

Otherwise, might as well condone insider information by directors.

Refer Post #5

[Casino]

You're right that yesterday's and today's announcements should have been released simultaneously on ASX and NZX.

1. Matuku is pivotal for OXX, not for NZO
2. Yesterday, it was clear that the well was dry and would be abandoned.
3. NZO is right that it's the geologists' turn to work out whether the kitchen west of Matuku is still in play.

[Snow Leopard]

Ah, a Paper Tiger, not The Paper Tiger.

You would have thought that there was some procedure in place that all listed parties involved in digging a well would all publish the same announcement at the same time.

Still gives Balance chance to air a few of his favourite grievances, pity that NZO did not launch as a compliance listing.

Best Wishes
Paper Tiger

[Balance]

Ah, a Paper Tiger, not The Paper Tiger.

You would have thought that there was some procedure in place that all listed parties involved in digging a well would all publish the same announcement at the same time.

Still gives Balance chance to air a few of his favourite grievances, pity that NZO did not launch as a compliance listing.

Best Wishes
Paper Tiger

NZOG treats its shareholders with barely disguised contempt. You may choose to ignore it, I don't.

It cannot however treat the rest of the market with the same contempt - as most fund mangers clearly steer well aware from the stock.

The NZX has always treated the investing public with the same contempt imo - as we saw when their system broke down and only selective players can see market depth and announcements.

I am placing for the record here, a glaring example of a company totally ignoring its continuous disclosure obligation.

Let's see what the NZX (and FMA) will do.

[Balance]

Lead article in NBR online :

"FMA withholds draft NZX report over 'chilling effect' fears".

The sooner NZX loses its self-regulating status, the better.

Let's see NZX get fined for not adequately protecting the interests of investors - a monopoly which extracts exorbitant fees and charges from the market, but pays lip-service to educating and protecting investors.

More finance companies listing, anyone?

Have a court case but keep the market in the dark while the CEO sells down shares?

Allow selective disclosures and selective access to information and data.

Wonder what company would be allowed to do that!