NZ Oil & Gas (NZO)

[skid]

I dont get it, how could the asks start at 80 and the bids start at 103?

[skid]

seems to have sorted itself out now

[skid]

Regarding todays anouncement---In todays cuthroat corporate world its refreshing to see a bit of morality-Good on ya NZO!

[fungus pudding]

Regarding todays anouncement---In todays cuthroat corporate world its refreshing to see a bit of morality-Good on ya NZO!

Morality? Interesting.

[Beagle]

The market has dealt its inevitable blow to NZO writing off the full value of both the investment in PRC and money advanced to it, as predicted, BUT maybe PRC will get sufficient money back from its insurance policy to repay some or all its secured creditors, worth up to 16 cents per share to NZO ?

Perhaps NZO had allready been written down a bit at $1.20 due to the PRC factor before the sad event as lets face it PRC has been far from a stellar performer and the market allready knew that.

Perhaps the market has been a little too harsh on NZO. Disclosure, bought some more NZO this morning.

[Penfold]

I had a look through its financials the other day and thought surely worth 95c to $1.05. I bought shortly after it reopened. Feel like I got a bargain... time will tell.

The way I see it insurance and the mine can only surprise on the upside from here... and also NZOG may also look a little more appealing as a takeover target now.

[Beagle]

I had a look through its financials the other day and thought surely worth 95c to $1.05. I bought shortly after it reopened. Feel like I got a bargain... time will tell.

The way I see it insurance and the mine can only surprise on the upside from here... and also NZOG may also look a little more appealing as a takeover target now.

Good point about the company being a takeover target at these levels and no further downside.

I also think as the market becomes more aware of how the Kupe development is delivering the goods the realisation will sink in that this is a very strong operation even excluding any value from PRC.

I havn't noticed any stock buy-back activity lately, maybe the company sees it as appropriate for the market to find its own level before re-commencing buy-back's ?

[fish]

agreed it is a bargain at these levels . NZO is worth lots more . Price tui oil is close to nz $130 . NZO has the income and financial muscle to get PRC going again-no matter how long it takes to get the mine safe . Possibly a debt for equity swap or it could force liquidation-an option i feel less likely .

I feel prc is far more likely to have a takeover offer-maybe from an australian mining company with expertise in making safe gassy mines .I should stop speculating

[fabs]

Quite a few issues arise now, almost all dependent on the time and conclusions of various investigations, when they can start and when they finish and what they trow up, so not only months, lets say a long time.
If anybody knows of an Ins.co. that pays out anything without waiting for results of above, let me know.
Loss of earnings is probably based on current F/Y s which is the net of the last shipment say 3 mil., not projected future earnings, question is for how long? probably not for a long time IMHO, so that wont go far. As for the $100 mil. if there is proven negligence or other mitigating issues again long wait and very lucky to get the full amount. In the meantime i do not have to go into the details of the quite substantial ongoing costs ,before they can safely enter the mine if ever plus restoration Like wise the $12mil that NZO under contractual or for altruistic reasons has pumped into a now virtually bankrupt and indebted co. will soon be gobbled up.
As a NZO S/H i feel the management has to make some very important decisions based on commercial realism, free of wishful thinking and sentimentality. PRC sadly as co. has reached the end of its original format and concept.
And yes both co.s are takeover candidates, i would value PRC. as virtually zero at best. NZO future now depends which way the management jumps, more money into the bottomless pit and consequent more losses to its S/H or cut your losses and concentrate on its core activity where it should have been in the first place.

[Beagle]

Quite a few issues arise now, almost all dependent on the time and conclusions of various investigations, when they can start and when they finish and what they trow up, so not only months, lets say a long time.
If anybody knows of an Ins.co. that pays out anything without waiting for results of above, let me know.
Loss of earnings is probably based on current F/Y s which is the net of the last shipment say 3 mil., not projected future earnings, question is for how long? probably not for a long time IMHO, so that wont go far. As for the $100 mil. if there is proven negligence or other mitigating issues again long wait and very lucky to get the full amount. In the meantime i do not have to go into the details of the quite substantial ongoing costs ,before they can safely enter the mine if ever plus restoration Like wise the $12mil that NZO under contractual or for altruistic reasons has pumped into a now virtually bankrupt and indebted co. will soon be gobbled up.
As a NZO S/H i feel the management has to make some very important decisions based on commercial realism, free of wishful thinking and sentimentality. PRC sadly as co. has reached the end of its original format and concept.
And yes both co.s are takeover candidates, i would value PRC. as virtually zero at best. NZO future now depends which way the management jumps, more money into the bottomless pit and consequent more losses to its S/H or cut your losses and concentrate on its core activity where it should have been in the first place.

Good post Fabs, I think its fair that the market wants to see that the board of NZO can make cold hard independent and solely commercial decisions, before it'll get re-rated up.

The board need to realise that $12m won't last very long at all before the desperatly needy problem child clinging to life by a mere thread comes crawling at the door yet again, for goodness sake, how many times is it now ? at which point if PRC's future is still in limbo NZO directors need to demonstate they have the stomach to refuse further funding and put it back on ALL shareholders in PRC to either stump up with their share, e.g. cash issue 2 for 1 at say 20 cents or just walk away and wind it up.

Have the Directors at NZO got the stomach for it, or will we see more alturistic so called "secured" funding ?