NZ Oil & Gas (NZO)

[shasta]

Unicorn,

Remember that the Chairman controlls and "manages" the AGM .......

In what sense was the AGM a poor reflection of the CEO abilities ?

What sort of rabbit were you hoping he would pull out of the hat ?

My reading of the NZOG shareprice is that its discounted primarily because both Pike and Kupe still have quite a distance to go, and because of the inate constrictions that Kiwi investors bring to the NZX, particularly w.r.t. a resource company, just not comftable with the risks still attendant, and then also following the sub-prime fiasco, risk discounts have been increased world wide.

I think people are simply forgetting the $NZ5m per week Tui is bringing in!

We need more broker coverage, & given institutional investors are meant to hold approx 17%* of NZO, why arent we doing more presentations?

* - source NZO website

[Nitaa]

some very good posts fellas. Interesting post from Unicorn with regards to the AGM. It is the first real time that anyone his given their opinion on the agm. As Unicorn points out, it is a fantastic opportunity for the company to show case tui and the upcoming projects, talk about where the company is going (with clear direction) etc.

I for one was very enthusiastic with the new boss coming on board. Unfortunately enthusiasm alone doesnt make the company money. The biggest opportunity was lost for investors to see a white knight from DS as a first impression is a lasting impression. Moving on...my confidence in this company, more specifically the management has twindled somewhat. even if the sp sinks to mid 80's or whatever, that is about as far south i can see it going but the upside is extremely large. A very good risk v reward scenario at the mo.

[zorba]

Nita,

Did you attend the AGM ?

[Nitaa]

No I didnt attend, however i have asked on feedback in the past. Any of the responses was pretty much ho hum and the impression i got was the company lacked direction on how it planned to achieve their target forecast.

Do you have a different view on the agm?

[zorba]

Nita,

I thought it got a pass mark, not a scintillating ra-ra-ra occasion, but a report on solid progress .... sure it didnt set the crowd on fire, but it came across as an honest attempt at communicating with shareholders.

TR was OK if a bit staid as he always is, DS was suitably lively, but thank god he is not a Rob Jones type drama boy ...... Question time was long enough, and people generally got reasonable replies ..... there was only one challenging shareholder that questioned TR's remuneration package ..... Ray Meyer (chairs the remuneration sub committee of the Board, TR not on this sub committee) answered I thought ok, but maybe overall on the subject of payments etc the Board and TR got off a bit lightly.

All AGM's are seem to involve upping the director's fees and this was no exception. Sure it gives a snouts in trough impression, and extra upping TR's perks didnt help either, but then on a comparative Australasian basis the director's and TR's rewards, after getting the company to its present position, were probably not excessive.

Its a pity that the three exploration holes didnt hit the big time, sure if they had then the board and management would be smelling of roses .....

But they didn't and thats the nature of the drilling game, the odds are not that good, but when you do get a hit then your into billions with even a modest strike such as the Tui discovery .....

Also note that they did hit oil columns in both Tieke and Tauranui, they just werent commercial, see AWE's last Quarterly Report. So you got to give the geological exploration effort some positive credit.

And good exploration geology is pretty important for an oil company !!
.

[Nitaa]

hanks for the feebback Zorba

[Mingeathinaikos]

Hey if you are really selfish as you say you are ,you sure would want the options exercised. It would mean your one dollars investment made today will be worth about at least $1-60 by end of june 08. I would say you can not really be that selfish if that has not struck you hard already.

Digger, you miss the point i think....
I agree that if the options are exercised, this will obviously mean a 60% return on my investment today, BUT would a 49% return and no dilution be better for me ie. shareprice at $1.49 June 08, and hence no options exercised.
I'm thinking no conversion would be better for all of us head holders, as I don't expect cash flow to be as tight as the last time options were floating around.

[arjay]

Nita,


All AGM's are seem to involve upping the director's fees and this was no exception. Sure it gives a snouts in trough impression, and extra upping TR's perks didnt help either, but then on a comparative Australasian basis the director's and TR's rewards, after getting the company to its present position, were probably not excessive.


.

This is a bit like saying that the slaughter at Treblenka was OK because compared to other Nazi concentration camps it was not excessive. No snouts should not be in the troff until the bills are paid. Then shareholders/directors can get some cash.

[dsurf]

There is risk around PRC & KUPE - but what I am struggling with is that PRC was 80c oddd & generating -ve sentiment for NZO - It is now above listing & attracting buying support on good volumes - Why is there no +ve sentiment? I think it has a lot to do with the negativity of NZers which is probaly at an all time time given the rugby, league, cricket, netball debacles. McDunk is right - fundamentals have F all to do with the current SP

[ritchie]

crikey the options would have to be a good play at the price...any comments