NZ Oil & Gas (NZO)

[digger]

[QUOTE=Sayce;354873]As a long time share holder in NZO I can only agree that the market is correct in its current appraisal of the company. The list of negatives is long. For example in the last two years there has been a succession of dry wells, the share buy back was never likely to be a substitute for value adding activity, the company is associated with a tragic coal mining venture, there has been a reserve’s downgrade for Tui and on top of all this, the Board has declared that there will be no dividend in the immediate future. No wonder the share price is low.

There are some immediate things that the company can do to alleviate this market rating. The most obvious of these is an announcement that the payment of dividends will be restored. End Quote

Hi Sayce,
Your list of negatives for NZO is correct. You are not correct in saying that the board has declared there will be no dividend. After the PIKE tragedy and a 99 million capital right off the board said it had no intension to pay a dividend.That is different from the way you put it. At the end of each August the board sits and decideds what it will do . That should be this coming week if past years are any indication.

I like the way you general put things but i would add as i have many time before that if the board does decide to not have a dividend its absance will hide the true value of the companys assets. Kupe in itself should support a dividend.In fact if i owned all the company i would not only give a div but declare an intension to put aside some of Kupes future income to be funded back to shareholders. This i have said many times before,but it is exactally what the market is looking for in these very uncertain times.NZO has had the negatives but we should not now hide the positives.
We will know what the board thinks by end of this month.
Cheers

[sideline]

..................... Kupe in itself should support a dividend.In fact if i owned all the company i would not only give a div but declare an intension to put aside some of Kupes future income to be funded back to shareholders. This i have said many times before,but it is exactally what the market is looking for in these very uncertain times.NZO has had the negatives but we should not now hide the positives.
We will know what the board thinks by end of this month.
Cheers

Agree entirely, digger. With net operating cash flows of 60.7m out of Tui and Kupe alone a dividend could easily be paid - Kupe is now 2/3 of NZO's cash flow with Tui only 1/3. Last year the dividend amounted to 13.5m.
When the secured money from PRC is recovered that should be distributed as well, as a special divi.
Think there should be enough imputation credits left over from previous years (not much income tax was paid this year because of PRC).
Edit: Just checked: 2008+2009 NZO paid 72m in income tax, plenty of imputation credits left.

[arjay]

I also agree: 5c per annum underpins a $1 shareprice (ie, compared to bank return). The company can afford it and this is where it should be. I would like to see at least half of any Pike recoveries distributed to the company owners (ie, us).

[Balance]

We will know what the board thinks by end of this month.
Cheers

Digger, you have been talking about NZOG since time immemorial like it is a company run by a competent board.

Do you honestly believe that?

A company with good assets can be destroyed through bad management. Just ask Fletcher Challenge.

A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

[percy]

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A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.[/QUOTE]

Difficult thing to do Balance,as he has been dead for awhile.

[Balance]

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A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

Difficult thing to do Balance,as he has been dead for awhile.[/QUOTE]

Good one, Percy.

Let's just ask John Key and Winston Peters then.

[sideline]

I also agree: 5c per annum underpins a $1 shareprice (ie, compared to bank return). The company can afford it and this is where it should be. I would like to see at least half of any Pike recoveries distributed to the company owners (ie, us).

Maybe a rule that the Kupe net profit gets paid out and the Tui net profit can be plowed back into more exploration would give some clearer visibility and certainty.

[percy]

Difficult thing to do Balance,as he has been dead for awhile.

Good one, Percy.

Let's just ask John Key and Winston Peters then.[/QUOTE]
Glad you enjoyed it.Couldn't help myself.!! lol.

[digger]

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A country with great industries and wealth but bad government can become a basket case. Ask Muldoon.

Difficult thing to do Balance,as he has been dead for awhile.[/QUOTE]

From time to time i have wondered if Balance does in fact speak to the long dead.Often his comments keep coming back to basket cases and lost causes.

[percy]

Difficult thing to do Balance,as he has been dead for awhile.

From time to time i have wondered if Balance does in fact speak to the long dead.Often his comments keep coming back to basket cases and lost causes.[/QUOTE]
digger,Well done,must be the post of the year. lol.