NZ Oil & Gas (NZO)

[bung5]

Well beyond yours it would appear! I have already given you the numbers and was speculating on effect on NTA not SP. Already large holder thanks. My guess is that the mining license is actually worth something if up to 12 people may bid! I will predict the return of all money "lent to PRC" as a worst case scenario when the sale is settled and happy to predict a SP of $1.20 at that time as I think that there will a small return to shareholders as well.

Do you think that the sale will not happen and that is why PRC & the coal is worth nothing to NZO? Am interested in finding out why you would think that?

Agree with the opinion that NZO are likely to get the money lent back when the mine is sold but wouldn't of thought that they will return money to shareholders. The snouts in the trough want to invest in ventures overseas and do some overseas trips business class

Cheap share price at the moment if factoring in the money from PRC. Market has written that off completely. Just hoping the management don't loose anymore money to change this.

[fish]

Agree with the opinion that NZO are likely to get the money lent back when the mine is sold but wouldn't of thought that they will return money to shareholders. The snouts in the trough want to invest in ventures overseas and do some overseas trips business class

Cheap share price at the moment if factoring in the money from PRC. Market has written that off completely. Just hoping the management don't loose anymore money to change this.

market hasnt factored in the increase oil and gas prices also .
NZO share of kupe is approx 2000000 litres lpg per month-have a look at the current price of lpg !

[notie]

market hasnt factored in the increase oil and gas prices also .
NZO share of kupe is approx 2000000 litres lpg per month-have a look at the current price of lpg !

these guys are going places. Just wait until they get into Africa. They'll be going places

[arjay]

If you carefeully place a mirror on Phaedrus's graph you will see a major uptrend approaching.

[Phaedrus]

If you carefeully place a mirror on Phaedrus's graph you will see a major uptrend approaching.

Arjay, do you mean that without a mirror you see a major downtrend approaching?

If that is what you are really trying to say, I would have to disagree. While NZO is in a short-term downtrend, this is only on average volume and well within the current trading range, so nothing major there.

This minor downtrend should come as no surprise, of course - Sell signals began triggering 2 weeks ago (as marked by red arrows) with most firing at 92 cents.

[Sideshow Bob]

3c rise today and no comment?

Share price pushes through the resistance level on the graph above.

[digger]

3c rise today and no comment?

Share price pushes through the resistance level on the graph above.

Lets not spook it with a sudden surge of over confidence. It is heading in the right direction with a long way back to recovery.It must be some link back to PIKE looking a little better than the nil value the market has put on it. Sure can not be anything to do with PPP as it has gone nowhere.

[blockhead]

For whatever its worth

Daily ShareChat: New Zealand Oil & Gas
By Jenny Ruth

Tuesday 5th April 2011

Upgrades to oil price forecasts by his firm's sister company Credit Suisse has led him to upgrade his forecasts for New Zealand Oil & Gas, says Jason Familton, an analyst at First NZ Capital.

He has raised his forecast net profit for the year ending June by 17.7% to $34.9 million and his 2012 forecast by 33.8% to $46.8 million.

Credit Suisse is now assuming the long-term price of crude oil will be $US90 a barrel (NZ$117.31), up from $US80 a barrel previously.

He has also raised his sum-of-the-parts valuation of the stock to $1.19 from $1.06 previously.

"Without the prospect of an immediate upside catalyst to our valuation for NZO from exploration, the investment case for NZO comes back to the operational performance of Tui and Kupe and the price of crude in New Zealand dollars which has continued to be stronger than expected," Familton says.

"The focus from the market will also continue to be on NZO utilising its cash balance successfully with the prospect of some new exploration acreage outside New Zealand being announced shortly," he says. The market is also likely to focus on progress by Pike River Coal's receiver.

Without progress on the Kaupokonui prospect or confirmation of new exploration acreage being acquired, "we struggle to find a near-term calayst for the stock."

[BigBob]

Maybe the SP move over the last two days is because news of the company's foray into the northern hemisphere is leaking out...? According to the latest company presentation, the deal was done and just needed to be "inked" and maybe it isn't in Libya or Romania after all (or whereever it was that notie claimed they were going)...

or maybe it's a realisation that the value wiped out by the Pike tragedy far exceeded anything reasonable & and that management actually dealt with that very difficult situation in a dignified and sensible manner...?

or maybe it's simply a rerating based on the seemingly ever increasing POO...?

[oldowl]

Pike River Coal's biggest shareholder, New Zealand Oil & Gas, will not hand over any cash to help the coal company's receivers cover legal fees for the mine disaster inquiry.

NZOG also hopes to see the return of some of its $72 million in secured and unsecured loans to Pike after an expected sale of the mine by receivers later this year. A preferred buyer is likely to be identified by the end of June.

The sale may include the rights to the mine company's insurance claim, which at most could be $100m, though the payout is unlikely to reach that level.

It remains unclear whether the sale of the mine and any insurance payout following the mine explosion last year would result in any return to Pike shareholders. That would require the cash from both the sale and insurance to top $110m.

NZOG's 29 per cent shareholding in Pike was worth $82m before the explosion.

At the mine disaster inquiry, Pike lawyer Stacey Shortall said the company could not afford to participate fully in the inquiry, and the Government had ruled out taxpayers covering its legal fees.

NZOG corporate affairs manager Chris Roberts said there was no reason why Pike's 6000 shareholders should contribute to the legal costs of the officers and directors of Pike. But as a secured creditor, NZOG supported the receiver providing the inquiry with "what assistance they are able to".

The receiver still has about $7m left from the $12m NZOG put into the company after the mine explosion. The $12m is included in the $72m total owed to NZOG.

"We never anticipated getting any of that [$12m] cash back. We presumed most of it will be used through the receivership process," Mr Roberts said.

But NZOG still hoped to see a return from the sale of the mine for both secured and unsecured creditors and potentially even shareholders, who stand at the end of the line.

NZOG's share price slumped from about $1.25 to a low of almost 80c after the explosion, but has recovered some ground since then to 94c yesterday.

NZOG will make a submission to the inquiry on the history of the Pike mine. Pike was an NZOG subsidiary till 2007.

Former Pike directors and executives should get some help in their legal costs from professional indemnity insurance, although there is debate about whether that applies because they have been asked to appear voluntarily.

BNZ is owed $23m as a secured Pike creditor.