PRC Pike River Coal

[Chippie]

JK. How did someone lose a farm if the average price has been 80cents over the last 3 years? (not including the issue of options and PPP shares).

[digger]

Joe King and Chippie,

Yes NZO has been in the doldrums for the best[or worst] part of two and a half years. This is probably a result of trying to do three projects at once with nil income. Really it would have been better to have selved at least one [PIKE] until income is coming in.Because we did not do that the large cash issues and placements are giving a part of the company away far too cheaply to newbes. After the first placement i said that it would be hard to know if the placement price was a floor or a ceiling. I still do not kmnow. My best guess is that we will have on stream Tui in june 07
PIKE june 08 and Kupe june 09.This is digger time not NOG.

The farmer who lost his farm never had shares in NZO. He was just a lousy buisnees man and was going broke from the day dad gave him the farm.It goes on all the time.

[Rabbi]

I heard a whisper that representatives from McDouall Stuart had been flown down to the West Coast, at the invitation of PRCC,to view the development of the mine and partake of some West Coast hospitality.

Apparently they were very impressed, well you would be after three nights at Kings Hotel and guided tours here and there. Sounds like some pre-IPO buttering up of the lead broker to me. If there's a gravy train on this project I hope it gets shared around and the shareholders can get some of it.

Meanwhile the tunnel continues to fall behind schedule.

[airedale]

The recent sale of 50% of the nearby state coal mine to a multi national investment group is a positive signal for west coast coal mining.

http://www.nzherald.co.nz/section/3/...ectid=10428975

[JoeKing]

quote:Originally posted by Chippie

JK. How did someone lose a farm if the average price has been 80cents over the last 3 years? (not including the issue of options and PPP shares).

Hi Chippie
I understand he borrowed heavily to convert NOG 65c oc's, the subsequent interest and lack of cashflow killed him. (remember oc's were bought/sold at up to 73c and still needed another 65c to convert)

Digger
"...He was just a lousy buisnees man".
Maybe so, (actually he was imo a good farmer, just too small), but he was not the only one to borrow to convert NOG options and get caught. I borrowed $120k but was able to dump my NOG shares and repay loan plus interest with little loss. (and like McDunk have done very well on redirected investment $... over 800%) I know there are some regular posters on this thread who borrowed to convert OC options, or take up recent issue, and are paying heaps in interest believing it will all happen "in 2 weeks". The reality is they will probably not recover their investment, no matter how much oil or coal is produced. After expenses and the vultures have fed there will only be more hollow promises left for the hungry faithfull.
Still... good luck all
Cheers
JK

[Mr Tommy]

quote:Originally posted by Rabbi


Meanwhile the tunnel continues to fall behind schedule.

Thats funny, last week they did 43.5m progress, the second best week yet.

[Rabbi]

I must post negative comments about the tunnel more often.

Coal by Christmas then?

Go the Tunnel!

[Happy Camper]

This Happy Camper is wondering whether there is a minimum entitlement provision incorporated into the 1:8 preferential entitlement?

Cheers

[Romer]

Happy Camper
BWR confirmed on the NZO thread that there will be a minimum entitlement.
What do you reckon - - 1000? 5000???
[8)]

[shasta]

NZO announcement re Pike IPO

30 March 2007
NZX Regulation Decision
Pike River Coal Limited / New Zealand Oil and Gas Limited
Application for ruling under NZSX Listing Rule 1.1.5


Background

1. Pike River Coal Limited ("PRC") is planning and working towards Listing on NZSX by offering shares to the public via an initial public offering ("IPO"). Immediately prior to the IPO, 54.2% of PRC's issued shares will be held by NZOG Services Limited, a wholly owned subsidiary of New Zealand Oil and Gas Limited ("NZO"), an NZSX Listed Issuer.

2. NZO and PRC applied for a ruling under NZSX Listing Rule ("Rule") 1.1.5, released on 2 February 2006, ("the 2006 Ruling") which confirmed that PRC would be a Listed entity for the purposes of Rule 1.1.5, would not to be considered a member of the group of companies of which NZO is the holding company and thereby the actions of PRC would not be considered for the purposes of the Rules to be the actions of NZO.

3. The 2006 Ruling was granted on the basis that:

(a) At the time of the IPO, PRC will have executed a Listing Agreement with NZX and therefore ought to be considered a Listed entity;

(b) Rule 7.3.1 would not be frustrated. Rule 7.3.1 sets out to protect shareholders in Listed Issuers (in this case NZO) by preventing Listed Issuers from issuing shares in a manner that would either dilute or diminish the value of their securities;

(c) The PRC IPO would raise sufficient capital to avoid a diminution of value of NZO shareholders as the issue of shares in PRC would be at full market value as established by a book building or market testing process;

(d) PRC was not seeking to issue the shares at a discount and the final offer price was to be set by a book building process or market testing during the course of the offer;

(e) Pursuant to section 47 of the Companies Act 1993, PRC directors were to declare that the offer price is fair and reasonable thereby making the PRC directors accountable to NZO shareholders;

(f) A pool of PRC shares in the IPO were to be set aside for subscription by existing NZO shareholders; and

(g) The purpose of Rule 1.1.5 is to avoid the purpose of the Rules being frustrated by Listed Issuers diverting assets or activities to related entities and thereby falling outside the ambit of the Rules. In the case put before NZX Regulation ("NZXR") for the 2006 Ruling, it was submitted, and accepted by NZXR that in this instance the object of the Rules would not be avoided.

4. PRC has advised NZXR that certain circumstances have changed since NZXR granted the 2006 Ruling. The changes to material facts are as follows:

(a) PRC and McDouall Stuart Securities Limited ("McDouall Stuart"), the Lead Manager for the IPO, have decided that of the two alternatives contemplated by the 2006 Ruling, a market testing process rather than a book build process should be used to establish the IPO share price; and

(b) McDouall Stuart has applied a valuation methodology and undertaken such market testing ("the McDouall Stuart Methodology") that in the opinion of McDouall Stuart has produced a fair share price. Details of the McDouall Stuart Methodology have been provided to NZXR.


Application

5. NZO has requested a revised ruling from NZXR that for the purposes of Rule 1.1.5, PRC will be a Listed entity and therefore by virtue of that rule the actions of PRC will not be construed as those of NZO. The practical purpose of the application is to confirm that NZO is not required to seek shareholder approval for the issue of shares by PRC in the PRC IPO.

6. NZO has also requested that NZXR confirms that the issue of shares by PRC in the IPO will not affect the calculation of the number of shares that may be issued by NZO in the future under Rule 7.3.5.

7. In support of its applications, PRC makes the following submissions:

(a) The objectives of Rule 7.3 will not be frustrated or avoided by reason of the separate legal personality of members of the NZO group;

(b) The issue of shares by PRC in the IPO is not a Ma