Good day for NZO too, up 4c (NZX) & PRC up 5c
The O&G Weekly still bullish on NZO
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Oil smashes $86 for the first time
Crude prices reach record high on worries about declining oil inventories, OPEC says production by non-member countries may fall; Turkey-Iraq tension.
October 15 2007: 3:28 PM EDT
NEW YORK (AP) -- Oil prices surged higher than $86 a barrel Monday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising.
The price for light sweet crude settled at a record $86.13 a barrel, up $2.44 from Friday's $83.69.
Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.
Monday's intra-day high was $86.20 a barrel, breaking Friday's peak of $84.05.
Oil prices at these level makes NZO look cheap. :)
soon it cant get any better for nzo...in oil terms.
the call option comes in at $86.25 wti.
NZO up 6 in Aus yesterday, Tapis over $87, $NZ down a little ;)
Though not much depth on buyers side even with all this news on ASB securities
Call options should long be gone.
If the upcoming quarterly report does not clarify the status (quantity,strike price,expiry date) of
the call options before the AGM, could please somebody at the AGM ask the relevant question for those details and feed the answers back here for the rest of us who can't make it.
as ive said before, and stated in the may presentation, the call options were from june 2007 - 2010. we are within that period, so should be within the restrictions of the call options.
but yes, somebody check up at the agm.
Almost a year ago at the AGM Mr Radford advised that based on his expectations the price of oil would rise to approx $US90 per barrel by the 2007 AGM.
He also advised that ABN AMRO valued NZO at $NZ1.60 and that was back in October 2006.
Since then there have been 3 drill disappointments but I would put money on Kupe
Delivering substantially increased reserves through additional adjacent fields.Add on a Tui reserve upgrade plus further reserve potential and you have the ingredients for a big shareprice leap particularly with Pike which is well under the radar.
Pike will benefit enormously through the lift in coking coal prices which are forecast to rise by at least 25% in the next round of negotiations betwen the aussies and the Japanese/china.The current spot price is $US150 per tonne, well above the $US96 used in Pike's model.
Oil supply is getting tighter everyday and Parker's decision to disincentivise gas exploration will be overturned by the next National party.
I checked on the NYMEX some time after NZO announced the hedging which call options where in
existence at the time (=open interest).
The furthest out existing call options in the US$86, US$87 bracket were then for August 2007. Anything
further in the future was either $85 or $90 at that time. Long term (=several years ahead) options are only
traded in 5$ steps anyway.
I also remember that initially there were calls for 228000 (from memory) barrels, and a later announcement
reduced that to 186000 barrels. The drop coincided nicely with a bunch of June 2007 call options which
expired on the NYMEX. So that was the status as at 30 June 2007.
According to what I saw on the NYMEX the remaining 186000 barrel calls should have been July and
August ones.
Only the $50 puts should extend to 2010.