NZ Oil & Gas (NZO)

[tim23]

Hopefully we get a good Xmas present with some positive test results!

Agree be like the good old days!

[mistaTea]

Will be interesting to see what the High Court thinks of this:

https://www.stuff.co.nz/business/107...-and-gas-moves

[mistaTea]

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

[tim23]

60c close highest in a while volume still pathetic though

[blackcap]

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.

[mistaTea]

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.

[RTM]

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.

Thanks. Good perspective. I’d also be wondering if there would be dividends for the shareholders.

[blackcap]

Thanks. Good perspective. I’d also be wondering if there would be dividends for the shareholders.

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.

[mistaTea]

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).

[Grimy]

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?