NZ Oil & Gas (NZO)

[Sideshow Bob]

Cue up 15 % but NZO down 1.9%. Despite NZO owning half of Cue.

The announcement even says "NZO subsidiary"

[Sideshow Bob]

Quarterly cashflow and activities reports - NZX, New Zealand’s Exchange

From the other day but just landed in my email this morning.

Just under $90m in cash, which by my reckoning is about $0.54 per share, not to mention CUE, who are holding $25.6m AUD.

I guess market still has no confidence that they are going to do anything useful with it......but let it dwindle away.

[Davexl]

Quarterly cashflow and activities reports - NZX, New Zealand’s Exchange

From the other day but just landed in my email this morning.

Just under $90m in cash, which by my reckoning is about $0.54 per share, not to mention CUE, who are holding $25.6m AUD.

I guess market still has no confidence that they are going to do anything useful with it......but let it dwindle away.

Seems to me that when Genesis finishes its Kupe review by midyear, that NZO would be a natural holder of remaining Kupe assets,

which would marry up with their small current shareholding and particularly their Kupe compression project...

"One example of meeting that need is the continuing progress of installation of compression at the Kupe wells. Compression has the
effect of pushing gas out of the well at a faster rate. Completion is on schedule for mid-year, when production is expected to return to
plateau levels of around 77TJ per day."

Lots of life in the old dog left methinks...

[SPC]

Yes possibly but don't forget that NZO sold that holding to GNE are year or two back for good money and simultaneously bought a small holding from mitsui who were exiting for a knockdown price...am I correct here?
So it would need to be another knockdown offer to buy a big holding
backk again.....?

[Davexl]

Yes possibly but don't forget that NZO sold that holding to GNE are year or two back for good money and simultaneously bought a small holding from mitsui who were exiting for a knockdown price...am I correct here?
So it would need to be another knockdown offer to buy a big holding
backk again.....?

Good points - but stranger things have happened, NZO has new major shareholder now with deep pockets...

[Waikaka]

Kupe is a great asset if perhaps getting a little long in the tooth and therefore expensive now.

Despite this it would be a good idea for NZOG to try to buy all of Genesis share in Kupe hopefully at rock bottom prices.

NZOG don't have the technical staff, deep pockets or even a proper retailing arm to sell product but riding on the Beach Energy coat tails they should be fine. They would get absolutely hammered as operator so I hope like hell Beach will stay in country now that they have pretty much given up on exploration here. NZ tight gas market means the few producing fields left should get better prices in the future.

I have started accumulating a small position in NZOG in the hope they wind up the business and return the cash to shareholders, probably the best out come as NZOG are clearly too small and under resourced to properly invest in exploration.

[Getty]

Those comments were successful in getting a few greasy hands to let their shares slip way, from 52c down to 48.5c

[Davexl]

Possible full Kupe ownership remains the key to unlocking further activities value...

[nztx]

PEP 52717 Relinquishment

https://www.nzx.com/announcements/367662

"16/2/2021, 1:44 pm MKTUPDTE
New Zealand Oil & Gas and partner Beach Energy have applied to relinquish Petroleum Exploration Permit 52717 (Clipper), which contains the Barque prospect.

“It is with great regret that the Joint Venture relinquish this permit after years of work to mature it and bring in appropriate partners. I expect it will not be the last offshore acreage to suffer the same fate. New Zealand Oil & Gas believes a confluence of events including; adverse regulatory settings for offshore exploration; the dry hole at OMV’s Tawhaki permit; the recent announcement terminating Wherry-1 drilling; and the effects of COVID on drill rig costs and availability have formed a perfect storm, making the task of finding suitable partners in the required timeline impossible” says Chief Executive Andrew Jefferies.

“Both New Zealand Oil & Gas and Beach Energy remain committed to New Zealand through production at the Kupe Gas Field in South Taranaki, which remains a key supplier to the country’s energy needs. At Kupe we are halfway through a major compression project to maintain production from our large offshore production permit that has both development and near field exploration potential.”

[Davexl]

Possible full Kupe ownership remains the key to unlocking further activities value...

https://www.nzx.com/announcements/367662

My apologies...

Excerpt:

“Both New Zealand Oil & Gas and Beach Energy remain committed to New Zealand through production at the Kupe Gas Field in South Taranaki, which remains a key supplier to the country’s energy needs. At Kupe we are halfway through a major compression project to maintain production from our large offshore production permit that has both development and near field exploration potential.”