Agreed Blackcap, just worried about the $100 bill getting given to the majority shareholders somehow over the minority, any ideas of the risk there? Like could they buy an asset they own through another company at an inflated price or something?
Printable View
Hate to say it but NZOG is probably at a discount to cash because of their long inability to find any oil. Pretty key part of exploration.
Last successful NZ wells that they where involved with was Tui-1 in ~2003. So in 17 years and a huge amount of effort, many exploration permits, farm-ins and farm-outs they have had an exploration success case of....... 0% since then.
The main reason they trade at a discount is they will continue to spend the cash on dry holes. Only worth investing if they see the writing on the wall and wind up the business and give back all the cash. With their snouts in the trough unlikely to see them make them selves redundant if they can help it. Always be some new prospect to roll the dice on.
I have excluded ventures overseas as they have never returned any meaningful cash flow.
Have to admire their tenacity though. Great battlers.
Yeah that was my fear but looking at the numbers they have only generated cash over the last ten years, the only cash they have spent is what has been generated from operations and they have paid out a hell of a lot of that too.
It hasn't come from shareholders or debt holders, so as long as they continue to fund whatever the are doing with cash generated from the business then the cash should be safe?
So Iron Bark is the next {and could be} the last roll of the dice.
That is true in a normal business. Unfortunately in E&P you are producing out finite reserves. As reserves drop cash-flow drop. Hence having to find or buy new reserves and then at the end you normally have to pay for abandonment and rehabilitation. Yes Tui produced lots of cash, some was returned to shareholder but lots has been wasted and now they have no Tui.
Perhaps Kupe which has a long life ahead and should put out cash will be used more effectively. Fingers crossed.
Bit annoying too that NZOG did the bait and switch and paid a shady outfit like Tamarind to take Tui field abandonment obligations. If NZOG had taken responsibility for their mess as 'socially responsible' company then they would have properly abandoned Tui rather than leaving it to the tax payers.
Tui abandoment is like ~$200 million? Perhaps the companies that profited should have also done the right thing and paid for the clean up. Avoiding this has 'artificially' made Tui more 'profitable'.
Still lots options-their cash will go a lot further.
NZO is not the same company now OGOG have majority shareholding.
Brings international expertise and a change in direction-now direted to the cleanest fossil fuel-natural gas
We can only go one step at a time.
Holders of NZO shares like the prospects(Ironbark and Barque)
Buyers of NZO at current prices get in effect a free shot at Ironbark and cash.
Sailor Rob;
Means they will be able to purchase a distressed asset at super low prices. I hope the board is looking at opportunities in the next year should they arise.
Yes, my Sentiments for the last 18 months plus.
The extended Ofer Business Empire Worldwide big and complex enough to engineer a T/O never better than now.
This present period will find their real intentions out what they plan for NZO,s Future.
https://www.rnz.co.nz/news/business/...ltation-report
That 15 - 38 Billion dollars worth could come in bloody handy over the next few decades now!
First sentence says it all....
A new report has found that atwo-year-old a banby the government on new oil and gas exploration would be costly, would do little for the environment and was done without proper consultation.