NZ Oil & Gas (NZO)

[Mick100]

Without the support of the brokers and institutions NZO sp will continue to struggle.

Who needs the support of brokers when your producing 5000 bpd @ over $100 per bbl. - you can't argue with production - it's as good as money in the bank - I think the brokers and instos will wake up when oil is in excess of USD 100 per bbl - not long to wait for that to happen.
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[Unicorn]

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.

The CEO should be running the company, and should have significant input into the AGM. This year's AGM should have been focussed on the celebration of a tremendously successful Tui project. It should also have been used to clarify the "growth strategy". Instead we saw a pretty average meeting, still no clear direction - just enough information to generate unease among investors but nothing specific. It was an event that appeared to focus on management at the expense of shareholders.

The growth strategy has been very poorly promoted. It was approved by the board, but no details were given to shareholders at the time. Now the CEO has had his major annual opportunity to communicate with shareholders, and has still not made his intentions at all clear. This gives rise to suggestions that the new strategy will be as well managed as the last major project - "$86M and 18 months and Pike will be up and running"! I know of some people who have gained the impression that the company is in trouble, and hence has abandoned it's previous strategy for this new direction. That means communication has been very poor.

Tui has been an extremely successful project by any measure. While NZO management do not really merit much of the kudos, there is no reason why they should not claim a great success on behalf of the company. Instead shareholders have been presented with an announcement that US $7.5M had been received from Tui shipments. Production started in "July" and by the end of September only $7.5M was received! True if you are a beancounter, but hopeless presentation from a marketing perspective. There are few ways of making the figures look worse. Surely something more should have been made of the value (in $NZ, because the figures are bigger) of the oil extracted to date - a vastly larger figure. Instead all the shareholders received was some apologetic waffle that indicated that initial shipments may have been at a substantial discount.

The CEO has had an armchair ride, with the price of oil being where it is. There is plenty there to generate enthusiasm from. But he has clearly failed to generate buying interest in his company's shares - a good CEO of a public company should have that ability. Our new CEO clearly has not, at this stage.

Pike does not have any distance to go, as an investment. It is now listed and the market has set a value that takes into account any uncertainty regarding its operations. The value to NZO should now be pretty clear - and the CEO should have pointed that out, along with the possibilities for an increase in the value of that investment.

[boysy]

i think once financial statements come out clarifying how much they are raking in through TUI support wont be needed . Though in saying that it would be a heck of alot easier if management worked a bit more for shareholders.

[Mick100]

Unicorn - has it occurred to you that the low key nature of the AGM may have been quite deliberate on the part of board and mangment
- that's the impression that I left with
After "over promising and under delivering" for yrs, maybe they have decided to change tactics and "under promise and over deliver" which, in my opinion, is a far better way of managing an oil exploration/production company over the long term

The shareprice will equate to the intrinsic value of the company at some stage in the future - I don't know when, but it will happen
As warren buffett says "the sharemarket is a mechanism that transfers wealth from the impatient to the patient"
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[Nitaa]

Could be the case Mick. As a new commer to a company I would want to see someone who is confident in their own and company's ability to create value for its shareholder. As i have said, it was a golden opportunity for DS to to come in as the white knight.

Its worth to note, its not who the company or ceo is but how they are perceived. Clealry that perception isnt a good one from the shareholders perspective. When david came on board, things were falling into his lap and the sp increased. Now with the failures of the lates drilling, subprime etc, doing nothing or appear to do nothing will have a detrimental effect.

All aside, maybe too early to judge after just 1 agm (even thoough i wasnt there) but for the ones who were there, did he give you confidence? My overall take is he performed very mediocre..4 of out 10?

[Mick100]

Nothing that DS said impressed me much - you would have thought that he had just joined the company the day before the meeting the way he was talking, ie , I didn't learned anything that I wasn't already aware of apart from this talk of aquisitions - and he's way behind the 8 ball there, imo - you would have to pay an arm and a leg to aquire another oiler today.

The point is this;
Does it matter that we havn't got the best chairman or CEO in the business - NZO is producing 5000 bpd - that's what matters to me
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[Unicorn]

Unicorn - has it occurred to you that the low key nature of the AGM may have been quite deliberate on the part of board and mangment
- that's the impression that I left with
After "over promising and under delivering" for yrs, maybe they have decided to change tactics and "under promise and over deliver" which, in my opinion, is a far better way of managing an oil exploration/production company over the long term

The shareprice will equate to the intrinsic value of the company at some stage in the future - I don't know when, but it will happen
As warren buffett says "the sharemarket is a mechanism that transfers wealth from the impatient to the patient"
/

I have thought for a while that there has been a deliberate move to keep the good news to a minimum until the runup to NZOD conversion. A major PR offensive at just the right time might get the price moving so that it breaks 150c at option expiry. There is not a lot of liquidity, so when the share price starts climbing it could run quite well.

This is not a strategy I agree with - I would rather see a steady return to loyal shareholders rather than an environment that encouraged short term trading.

[shane_m]

give TR a break guys, he is having a good time in sydney. its ok to have a good time...oil is flowing, it will eventually get a re-rating. only Yogi can predict when.

few other oilers one should have a look at : AMU/PSA/OEL

[Awamoa]

Congratulations to those that bought at 97cents today.I sense you got a bargain.I tried and missed.

[Chippie]

It has got me stuffed what the answer is, but I do not think the current price is directly related to NZO management.

What is really strange is that NZO (-23%), PPP (-39%) and AWE (-21%) are all significantly off their recent 6 months highs. So either the market heavily priced in an expected discovery at Hector or the market does not believe that Tui is actually producing.

My guess is that the price will change pretty quickly after the next quarterly result.