NZ Oil & Gas (NZO)

[Corporate]

I don't see this as a bad thing. The new CEO was an independent director of NZOG not what I would call the "family".

[digger]

Bizarre alright! Hire some HR firm to search the world then settle on someone from the existing BOD. Talk about keep it in the family. Expect nothing really to change at nzog.

My first impression with this appointment was suprise as Andrew is young and has been with NZO only three years.On the flip side that means that if he comes very committed to NZO he has the potential for a very long future with the company.Have only had the opportunity to talk with him on short occasions but he did seem quick and sharp.
DS has to be the unluckly CEO of all times. He has been with the company when the four drills were all negative,PIKE was clearly never his brain favorate child and managed to blow up before he could flog it off,and probably the worst is that DS has been at the helm during the GFC the worst since the 1920's.
So now we move on with AK.
Here is a few things i would like to see in the coming future under new leadership.
Firstly we need to get back to some drilling mainly near TUI and KUPE. For now i am not that much in favor of raceing off around the globe competing in areas where it is hard to see a comparative advantage to NZO.I still believe more oil is to be discovered here.
Secondly we should look again at lifting or taking over PPP when it is still at a market value less than monies in the bank
Thirdly we are entering a new era where the 99% are likely in coming years to have a serious go at super high CEO incomes. Therefor i suggest that we face that and have some or a good part of that income as share instead of cash. That would certainly show confidence in the company and some acceptance that events can happen where we all must take up the loss.
Good luck AK you my well find that luck is sometimes as important as knowledge or experience.

[Corporate]

Digger, some good thoughts on NZO going forward.

I'd like to see:

PPP and NZO merger at maybe 1 NZO share for 4.5 PPP. This would leave NZO with 22.5% of Tui and almost $250m in cash. This would really give them some leverage to look at acquisition.

My preference would be for NZO to increase its share in Kupe. A now well understood but relatively young asset. A dividend policy would be set based on a percentage of the Kupe's free cash flow.

Leftover funds would be used as you say for drilling close to home.

[Paint it Black]

Digger, some good thoughts on NZO going forward.

I'd like to see:

PPP and NZO merger at maybe 1 NZO share for 4.5 PPP. This would leave NZO with 22.5% of Tui and almost $250m in cash. This would really give them some leverage to look at acquisition.

My preference would be for NZO to increase its share in Kupe. A now well understood but relatively young asset. A dividend policy would be set based on a percentage of the Kupe's free cash flow.

Leftover funds would be used as you say for drilling close to home.

I don't see PPP selling at a 4.5 multiple Corporate - 3.0 maybe - there are sub large PPP substantial holder buys happening at present with a 5c dividend in the offing and a development drilling decision in Vietnam to be made by Premier in early December.

[the machine]

after payment of the 5c per share then ppp directors might be interested in progressing their desire to merge with another company.

if it's nzo then that would make sense to me, however a premium would be needed if ppp are to be just absorbed.

M

[Mr Tommy]

The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.

[jonu]

Trouble is if they raise their own sp they just spend more shareholder funds in doing so

[bung5]

I can't agree with you Mr Tommy. They should be buying back shares as cheap as possible .. the upside for us is when they distrubute the funds there is more to go around becauase there are less shares.
With agressibe buybacks all that happens is the shareprice rises while it is happening then quickly returns to its orginal levels ( unless of course there is some good news that keeps it going)

The only grudge I have is that it should of been 40 million shares bought back.

[bung5]

At the current buying they will complete the buyback within the year timeframe

[digger]

The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.

Yes and no to that one Mr Tommy. I do not agree with you in saying it is not working as it is just too early to say. Somewhere in the back of my mind another share i held many years ago did the same buy back with zero results in the short term then suddenly it all hit home and the reduced shares on issued finally took effect.
I do agree that if the company is sure the SP will be bigger in the future then they should step it up to buy more shares while they are still cheap
On another topic,what has happened to this 100 million deal nog was supposted to have been in. It seems in the last few years the company was into deals about to be completed in a few weeks to vanish without trace.