NZ Oil & Gas (NZO)

[Balance]

Yes that was a very perceptive post made by Notie, I didn't believe it would happen at the time but after taking a fair old bath on NZO it is now time to look forward and see what the next 12 months brings

Notie has been very accurate with his predictions - pays to take note of his postings.

[Mr Tommy]

Wonder why they have just released this statement. Was there something said at the AGM yesterday raising expectations?


GENERAL: NZO: Update on PRCL debt recovery

NZOG (New Zealand Oil & Gas Ltd) advises that at this time there is no change
in its assumptions regarding the possible further recovery of its investment
in Pike River Coal Ltd (PRCL).
The Receivers for PRCL have publicly commented that they have received
multiple bids for the mine assets. Further discussions with the bidders will
be entered into and the Receivers have indicated that concluding a sale could
take until the end of the year, or longer.
From the settlement reached with PRCL's insurers, NZOG has received $38.3m in
part-payment of its total secured debt. Next week NZOG will receive $3m in
part-payment of its unsecured debt. NZOG has also advanced $4.3m back to the
Receivers under a $5m short term loan agreement to meet the Receivers'
working capital requirements.
It is NZOG's expectation that the loan advance to the Receivers and the
remaining secured debt and interest of approximately $18m will be recovered
through the sales process.
The remaining unsecured debt and interest of approximately $12m, along with
the $77m book value of NZOG's 29% shareholding in PRCL, remains fully
impaired, as there is insufficient certainty at this time that this will be
recovered.

[Balance]

Wonder why they have just released this statement. Was there something said at the AGM yesterday raising expectations?


GENERAL: NZO: Update on PRCL debt recovery

NZOG (New Zealand Oil & Gas Ltd) advises that at this time there is no change
in its assumptions regarding the possible further recovery of its investment
in Pike River Coal Ltd (PRCL).
The Receivers for PRCL have publicly commented that they have received
multiple bids for the mine assets. Further discussions with the bidders will
be entered into and the Receivers have indicated that concluding a sale could
take until the end of the year, or longer.
From the settlement reached with PRCL's insurers, NZOG has received $38.3m in
part-payment of its total secured debt. Next week NZOG will receive $3m in
part-payment of its unsecured debt. NZOG has also advanced $4.3m back to the
Receivers under a $5m short term loan agreement to meet the Receivers'
working capital requirements.
It is NZOG's expectation that the loan advance to the Receivers and the
remaining secured debt and interest of approximately $18m will be recovered
through the sales process.
The remaining unsecured debt and interest of approximately $12m, along with
the $77m book value of NZOG's 29% shareholding in PRCL, remains fully
impaired, as there is insufficient certainty at this time that this will be
recovered.

See page 14 of the NZO AGM presentation.

[blockhead]

I suspect it is to allay ideas shareholders may have of full repayment forthcoming after the receivers stated , "The Receivers for PRCL have publicly commented that they have received multiple bids for the mine assets"

[Mr Tommy]

See page 14 of the NZO AGM presentation.

Found that document on the NZOG website, you think the "debts paid off" implies all the secured and unsecured money recovered?
•
Outlook: Sale concluded, debts paid off, mine handed over to new owners, receivership over

David Salisburys speech notes give no indication of how much of the debt will be recovered:
The sales process is well advanced, with the Receivers having advised us that final bids were received last week and are being assessed.
Looking forward, we would expect the Receivers to conclude the sales process and the proceeds would go towards PRCL’s remaining debts, including those owed to NZOG – which currently amount to around $35m.

[bung5]

"NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing
Rule 7.6.2, the intention to buy-back up to 10 million of its fully paid
ordinary shares.

The NZOG Board is of the view that the current share price is significantly
below fair value and does not reflect a reasonable current valuation of the
company or its prospects for further growth.

A buy-back of shares at this time is an opportunity to provide a return to
shareholders in excess of NZOG's cost of capital. NZOG will continue to
maintain a strong balance sheet to fund capital expenditure for on-going
growth initiatives."



Would of liked to see something more like 40,000,000 shares bought back at these current prices. But is better than nothing

[Balance]

"NZOG (New Zealand Oil & Gas Ltd) today announces, pursuant to NZSX Listing
Rule 7.6.2, the intention to buy-back up to 10 million of its fully paid
ordinary shares.

The NZOG Board is of the view that the current share price is significantly
below fair value and does not reflect a reasonable current valuation of the
company or its prospects for further growth.

A buy-back of shares at this time is an opportunity to provide a return to
shareholders in excess of NZOG's cost of capital. NZOG will continue to
maintain a strong balance sheet to fund capital expenditure for on-going
growth initiatives."



Would of liked to see something more like 40,000,000 shares bought back at these current prices. But is better than nothing

10m shares to be bought back over 1 year! So that's less than 200,000 shares per week.

The directors of the company aren't exactly committing much of the cash of the company to supporting the sp and their assertion that the shares are undervalued, are they?

Anyone think it's a bit coincidental that the sp starting going up from a week before this announcement?

And the selling which is coming out now?

[bung5]

Yes you are right balance.. but its normaly strange when you don't see that these days

[neopoleII]

groan........
a 4cent divi instead of 2cents would of put a real floor under the sp.
so the next step after cancelling 10mil shares is to alocate several mil of part paid shares to themslves.

[bung5]

how many shares were issued under the SPP few weeks ago?