NZ Oil & Gas (NZO)

[Xerof]

Slap me Balance, I almost pushed the buy button on this today......

[pietrade]

Wow Balance - you really are 'something else' . Apart from the (rare) minor 'gem' , you do spout one heap of super -ve $@#t with your implication that it was somehow the NZOG directors who were responsible for the death of the Pike miners. You've said your piece - again and again - now why don't you go away and play somewhere else?

[Tyro]

Come on 'Balance' you can do better than that. Surely the resumption of dividends is a disaster for shareholders and the SP. -So please explain how. Or are you waiting for an upgrade to Tui reserves and a resumption of the buyback before you
reiterate what "a bunch of dead-beat directors" NZOG has.

(Quote is from your post 20-08-2011 06:39 PM, but its the kind of inside knowledge posing as comment that you have often graced us with)

NZO its faults, but balance is what we all need.

QUOTE=Balance;355259]A few left-over crumbs from the top table to the groveling masses or a just a little more dung for the mushrooms to keep them ready for the next (rights issue) harvest?

The directors must wake up each morning and marvel at how easy it is to manage the groveling masses - throw them a few bones and they are happy! So easy to lord over them even after the board has presided over the destruction of hundreds of millions of dollars of shareholders' wealth through gross mismanagement of all that lovely cash of $285m 2 years ago - Pike, PPP, dry wells and above all, missed opportunities when assets were dirt cheap.[/QUOTE]

[Corporate]

I've been pretty busy at work recently and finally had a chance to see what has been going on with NZO lately.

The thing that stands out the most for me is why this company has stopped paying dividends. For the June quarter the company had operating cash flow of $25m. Lets say it was a very good quarter and the annualised operating cash flow is actually $80m. Very conservatively that represents 33% of the current market capitalisation ($80m/$247m).

They could start off with 4 cents per share. On 392m shares that represents $15.7m per annum and a yield of 6.3% net of tax.

I'd seriously consider becoming a shareholder again if the Board and management could show how they were going to provide a return on my investment.

Alas, I can see all the cash being blown on wild cat exploration wells in areas outside our expertise.

Well I posted this on the 14th and purchased 30,000 NZO this morning. Cheap producer and now paying dividends again.

[Corporate]

p.s. my view is that 80c is achievable in the short term...20% from here

[blockhead]

04c rise in a day, unseen for a fair while, some (other than (un) balanced) obviously like the mystery of spending $100mil somewhere !

[the machine]

Notice in PPP annual report they aspire to a merger - now I wonder how that sits with NZO?
Perhaps merge with NZO and as a bonus PPP provide DS's replacement with Tom Prudence.

M

[bung5]

Well it was reported that NZO are going to announce an investment around 100 million very shortly
PPP has a market cap of about 100mil so is quite possible considering they already have a stake

[Corporate]

hmmmm and PPP directors buying more stock recently.

[iceman]

FInally an Energy Minister and Government that proudly wants to responsibly maximise the economic benefit of our vast resources !

The New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy released today by the Acting Minister of Energy and Resources, Hekia Parata, show an energy future that delivers for all New Zealanders.

“New Zealand is blessed with an abundance of energy resources,” says Ms Parata.

“Our Government’s goal is to make the most of all the assets we have – hydro, wind, geothermal, oil, gas and minerals.

“We want to use those resources responsibly to secure our energy future and to lift our standard of living. That is why the Government is taking a balanced approach to building a sustainable energy and resources future."

On the renewables side of the energy and resources portfolio, New Zealand’s renewable energy levels are the second highest in the OECD, behind Iceland.

“Renewables and energy efficiency are a big part of our energy picture,’’ says Ms Parata.

”Renewables made up 79 per cent of our total electricity generation in the March 2011 quarter. New Zealand has a target of 90 per cent of electricity generation to be from renewable sources by 2025, and we are well on our way to achieving that.’’

Like the rest of the world, New Zealand needs a range of renewable and non-renewable energy sources to meet its energy needs in the immediate future.

“Fossil fuels will continue to play an important role in the global economy. Around half of the energy we currently consume is from petroleum,’’ says Ms Parata.

“We can’t just turn off the tap in our journey to a lower carbon economy. We also can’t ignore the major economic opportunity that continuing global oil demand could provide New Zealand. Petroleum was our fourth biggest export earner in 2010.’’

In addition to the energy strategies, the Minister today released an independent report assessing New Zealand’s oil and gas potential.

The Woodward report shows that New Zealand is set to earn more than $3 billion in royalties from oil and gas fields already in production.

That could increase to $12.7 billion with future discoveries, which would help pay for schools, hospitals, broadband and roads.

“People want to be sure that the environment is protected and they also want jobs and growth,’’ says Ms Parata.

“We have seen the difference the oil and gas industry has made in Taranaki, employing over 5,000 people (in 2009) and contributing $2 billion to our country’s GDP.’’

Environment Minister Nick Smith last week introduced legislation to manage the environmental effects of activities in New Zealand's Exclusive Economic Zone and Extended Continental Shelf and announced interim measures to manage the environmental effects of activities before the new law is passed.

Labour Minister, Kate Wilkinson, has also announced the establishment of a High Hazards Unit of eight inspectors specifically dedicated to the petroleum and mining industry.

The Minister of Transport is also reviewing the liability insurance requirements for the industry and is looking to raise it above the current level of NZ$30 million.

“Together these measures provide assurances that the industry operates within a sound regulatory and operational framework.’’

Ms Parata also announced today proposed changes to the way permits are issued for oil and gas exploration. Currently companies can apply to explore any area in New Zealand, the proposed approach would see the Government open up a limited range of specific areas for tender.

“The proposed approach would allow us to focus on areas of greatest potential, and will be more transparent for the public, who would know which areas are available for permitting and which are not. Communities and iwi would have an opportunity to comment on the proposed areas to be opened up,” says Ms Parata.

There is a 40-day working period for which people can make submissions on the proposed change to the permitting system.

Ms Parata also announced the Government is reviewing the Crown Minerals Act (1991) and that a Discussion Document will be put out for consultation before the end of the year, with revised legislation in 2012. This follows on from the earlier round of consultation in August 2010.

“The Act is 20 years old and the review will focus on updating and aligning it with the Government's economic agenda,’’ says Ms Parata.