NZ Oil & Gas (NZO)

[digger]

Would you swap a cash payment in the next few months of 31c per share and a capital return of 20c a year for two years followed by 15c for the next 8 or more years? at least Does anyone else think that this company should no longer managed at all? I believe the best option is for a proposal be put to the AGM that all exploration activities be stopped as the management are useless and the CEO doesn't even want to remain. The company should change structure and become an income paying trust IMO. The revenue from TUI & Kupe could be distributed quartery as distributions. NZO has no management input since they are not the operator. Really all they need is an accountant and a trustee. All the management & staff should be made redundant. This would immediately create value for all shareholders as the cash drain would stop. Net cash should be immediately returned to shareholders. The buyback stopped. PPP investment sold & cash returned. I am not that keen on a departing CEO pocketing an extra 250K either. When PRC is sold the cash should be returned. The table below shows what the cashreturn would be and allows no upside for PRC sale.

Cash equivalents $mill c per share
net cash 31 Dec 49.8
PPP 87.5million shares @ 12c NZ 10.5
immediate payment 60.3 15.38


PRC sale
PRC US 28mill convertible bond @ FX US/NZ .85 33.52
PRC secured funding advanced 12
PRCun- secured funding advanced 13 14.93

Quarterly Cashflow
Net operating Cashflow for Quarter to March 31 17.6
Add back exploration & evaluation expense 1.3
Add back administration of 2mill from 2.2 total 2
Add back net interest paid 0 .5
21.4 5.46

dsurf Hi,
I am still in a state of shock about this large down grade and really have not yet taken it all in.Probably do not want to.I to thought reserves were to us proven and not what it turns out to be expensive guess work,to be changed at a later date.Under such a state i see little point in the models existing or the staff that make them.




Yes dsurf your idea is worth looking into as i see now that far too many of these high income earners on staff really just to not know clearly what they are doing.Little point in just carrying on drilling dry holes and setting up branch offices overseas to eventuall drill someone elses well.
Have to go now as am going out. Cheers and do not disappear with this idea.
Balance you on sharetrader are coming to be the most correct in your vision and mine certainly needs upgrading.

[fabs]

HARD TO BELIEVE, SOME DYED IN THE WOOL DIE HARD,s WAKING UP.
This Mob will shaft the S/Hs long before doing something honorable, this is all about money remember, cynical yes but sadly true.
There may of course be a completely different agenda.
Time will tell.

[Corporate]

Fellas, I agree this isn't great news - but not all together a surprise. I say this because 2P stands for proven and probable reserves and can also be refer to as P50.

P50 means the company is more than 50% confident that the volumes specified can be recovered. In this case they were wrong. Had this been a reduction in P90 reserves (90% confidence level), I'd be shocked.

[neopoleII]

with this news of a downgrade, you can kiss next years divi away as well.
the only bad thing about you idea dsurf........ and i like it a lot..... is that TR and the boys have access to millions of part paid shares. and with this news they will downgrade the strike price yet again (from a dollar or so now) to 60 / 70 cents which make them the winners no matter what the shareholders vote for.

there must only be a small handful of shareholders outside of the boardroom that is still in the black on their investment in NZO. i started buying at 57cent and kept buying up to $1.27...... what with the few divis i have broken even on cash value only over the last 6 or 7 years, therefore im behind bank rates.
and im one of the lucky one......... how many need $1.50 or more?

this has turned out to be a bad investment........ but thats the game in the oil industry.
now its time for the boardroom to feel some pain or cutbacks....... or close up shop.
and the thing that sluzzes me the most is the millions spent on share buybacks.

[Sideshow Bob]

I suppose one aspect is that NZO aren't operators of the well, just part-owners. If we were kind we could say it was more 'bad luck'. But I think the kindness has run out......

Although I don't necessarily disagree with DSurf's idea.

[fish]

HARD TO BELIEVE, SOME DYED IN THE WOOL DIE HARD,s WAKING UP.
This Mob will shaft the S/Hs long before doing something honorable, this is all about money remember, cynical yes but sadly true.
There may of course be a completely different agenda.
Time will tell.

Fabs I met nzo management last november and am convinced they are all well -intentioned people but hindsight has proved bad decisions were made . Digger and myself felt nzo could be better managed . Unfortunately nzo investors didnt give digger the support he needed to become a director.
DS assured me that pw was driving prc to meet revised targets .I invested heavily in prc on the day of the explosion -i had put in a low bid which was taken up at the close of trading .If any investor should feel bitter it should be me -but I didnt lose a son in the explosion so can only feel sorrow for those that did .
Digger and myself felt NZO needed a director with real life experience and aptitude and so I supported diggers attemt to get on the board-sadly not supported by shareholders and some person I think with legal expertise was nominated and elected by the board .
It is telling that when I spoke to digger after the explosion he asked who lit a match ? PRC looks as if it was an explosion waiting to be ignited . DS did tell me he had no coal expertise and nzo wanted to sell when they had a better offer-they had received offers deemed not good enough

[the machine]

NZOG Management may did know, or
had an inkling quite some time ago, when it stopped underpinning S/P with on-market buy back
Does that mean, them having not resumed now at these price levels, that there is more negative info. in the pipe line?
The co. is not that far away from being cheap.
Take-over at 30-40 cents anyone?

fabs, nzo stopping buying in june may have been influenced by pending reserves update - however the directors resolution was only until june 30, so they could not buy any after that date.

M

[shasta]

Fabs I met nzo management last november and am convinced they are all well -intentioned people but hindsight has proved bad decisions were made . Digger and myself felt nzo could be better managed . Unfortunately nzo investors didnt give digger the support he needed to become a director.
DS assured me that pw was driving prc to meet revised targets .I invested heavily in prc on the day of the explosion -i had put in a low bid which was taken up at the close of trading .If any investor should feel bitter it should be me -but I didnt lose a son in the explosion so can only feel sorrow for those that did .
Digger and myself felt NZO needed a director with real life experience and aptitude and so I supported diggers attemt to get on the board-sadly not supported by shareholders and some person I think with legal expertise was nominated and elected by the board .
It is telling that when I spoke to digger after the explosion he asked who lit a match ? PRC looks as if it was an explosion waiting to be ignited . DS did tell me he had no coal expertise and nzo wanted to sell when they had a better offer-they had received offers deemed not good enough

You mention about them employing a treasury accountant?

Surely they wont wait til we have parity with the US before they act (come August 3, that could well happen!)

[arjay]

I'm with DSurf also. This year's AGM should be interesting in that, while management don't appear to have done much over the last year, the shareprice has gone down a third from a string of bad luck. The proudly touted 'Three Columns' underpinning the company now form th elegs of a distinctly wobbly stool, with Pike having fallen off and a big bite taken out of Tui by a Downgrading Beaver. My guess is that given the success of NZO's expensive modelling experts over the last 7 years, the next time they chuck a drill bit into Taranaki waters they will have just as much chance of striking oil in a passing whale than they will of finding anything under the seabed.

[brucey09]

Snrs.
As always is said - two many as you say - the fat cats. When you do little , example why have a PR man - PR for what - to me it seems information is scarcer than oil.