Agree be like the good old days!
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Will be interesting to see what the High Court thinks of this:
https://www.stuff.co.nz/business/107...-and-gas-moves
Bluntly put, the oil and gas ban is, politically, very very correct ... though ultimately an absolute scam for New Zealanders.
https://www.ogj.com/articles/2018/09...ety-costs.html
60c close highest in a while volume still pathetic though
Volumes are always going to be pathetic going forward if you consider that O&G have most of the shares tied up. So the free float is not that many... (especially with the buyback of the smaller parcels as well) But there are moves afoot and things looking interesting with the oil price moving higher.
Yes, so true.
In practice, I think it pays to image that you own part of a private company. The current share price, given the small pool of 'tradeable' shares and low trading volumes, is essentially irrelevant to the owner-oriented shareholder.
If you owned a minority stake in a privately owned Pizza Shop for example, you wouldn't give a damn what the minute-by-minute quotation of your business "value" is. You'd be more concerned about how many pizzas you could sell, the cost of your ingredients, opportunities for expansion and/or other partnerships etc...
That's how I look at NZOG today, for what it's worth.
I would be doubtful of dividends. No need for O&G to pay themselves a dividend after pumping $millions into the company with the work they want to do with it. So if you are relying on one I would look elsewhere. But the AGM is around the corner and I am sure someone may ask that question. Heck, I may even have a few questions myself.
Absolutely right. In fact, I would be alarmed if NZOG was paying dividends at the moment.
They have $98M of cash that needs to be deployed first. This is absolutely a potential growth phase for the company, and OGOG would not want to risk a potentially very large upside in the years to come for the sake of squeezing out a few million here and there each year to get some instant gratification (which is then subject to tax anyway).
I'm also happy enough to not receive a dividend from them - as long as the trade off is there - a rising share price. Otherwise, what's the point?
No doubt about it. We all buy assets today with the view that they should be worth more in the future (otherwise, why would we buy it?).
As it stands, all producing assets and prospects are effectively being given away for free since Market Capitalisation is less than the cash held in the bank. By no means does that mean that NZOG is a sure thing, however it does mean that management would need to make some pretty horrendous missteps with their available resources before shareholders (buying at the current price) face a likely prospect of realising a serious loss.
How patient each individual shareholder is in the meantime is a different matter altogether.
I think the Coalition Government particularly the Labour part were surprised by the blow-back they revived from their offshore oil exploration ban and its knock on effects on business confidence. I further guess their focus group results are showing rising public anger at fuel costs and blame being placed on the Government.
It runs the danger of people linking the rise in petrol prices with the Government banning oil exploration.
I reckon the Labour part of the Coalition Government will be hopping the permit extension discussed in the link below is agreed to by the bureaucrats in MBIE to give them the opportunity to deny any link between the exploration policy and petrol prices.
The result of the bureaucrats deliberation will give a pointer to NZO's possible application to extend the drill or drop date for Barque.
There is a possibility of a drilling campaign down south if the following come together;
o The OMV extension is agreed.
o The Barque extension is agreed.
o The price of oil keeps rising.
As one old timer on Sharechat observed "oil is out there, somewhere, maybe".
https://www.nzherald.co.nz/business/...ectid=12139675
Boop boop de do
Marilyn
The extension of the drill of drop deadline for OMV in the Great South Basin discussed in the post above has been agreed to.
https://www.radionz.co.nz/news/busin...ff-otago-coast
Boop boop de do
Marilyn
https://www.nbr.co.nz/story/governme...il-and-gas-ban
It may well be that the Coalition is not LEGALLY required to make any kind of compensation payments. Regardless, there is one hell of a MORAL issue at play here.
They seem arrogant enough not to care though.
Meanwhile our gas reserves are rapidly depleting (I have read some reports that state 6 years or so left...) and a discovery at Barque would be a lifeline to this government in terms of making their energy transition goals achievable. Why they are not bending over backwards to assist NZOG with assurances (and whatever else is needed) to lock in farm-in partners is baffling to say the least.