NZ Oil & Gas (NZO)

[arjay]

from NZOG website:
NZOG has a small team (around 20 employees) based in Wellington, New Zealand. We are not currently operating any projects or facilities, so have no field office or staff.

So how does running a company of 20 justify a $500k salary ?
I might go join the Occupy Wellington movement.

Andrew Knight was 14 years old when I first invested in NZO. Good on him for cashing in on what others established for him, although in return I expect him to very soon indicate his strategy for creating shareholder wealth. Hopefully his thinking goes beyond being Santa to those in his rather small team.

[jonu]

This Tunisia deal looks the goods. At last something to pat management on the back for!

[Corporate]

This Tunisia deal looks the goods. At last something to pat management on the back for!

The purchase is equivalent to $10 per barrel for p50 reserves. My concern is whether 6mmboe offshore is economic to develop..I don't no?

[jonu]

The 6 million barrels PLUS adjacent lobes. They obviously feel its viable or they wouldn't be stumping up. Also gives them a foot in the door for further exploration.

[bung5]

The 6 million barrels PLUS adjacent lobes. They obviously feel its viable or they wouldn't be stumping up. Also gives them a foot in the door for further exploration.

so producing 20,000 barrels a day has a life of under 1 year.

[Queenstfarmer]

Good coin...quick turnover?

[fabs]

NZOs 40% share at present day prices of $USN 100.00 = 240 MIL $US GROSS.
Will probably take quite a bit longer than 1 year but production start not until 2 1/2 -3 years away.
This is the M/EAST.
Good to learn that they still intend to be active in the oil & gas Business, so have to keep our fingers crossed M/T.

[blockhead]

On a quick look, I like what I see.

[Corporate]

NZOs 40% share at present day prices of $USN 100.00 = 240 MIL $US GROSS.
Will probably take quite a bit longer than 1 year but production start not until 2 1/2 -3 years away.
This is the M/EAST.
Good to learn that they still intend to be active in the oil & gas Business, so have to keep our fingers crossed M/T.

I wonder how much it would cost to develop all up $200m, or $80m for NZO? Maybe I'm way off

[upside_umop]

At a quick glance, I don't think the deal offers that much - unless there is leads that can be effectively tied in.
I think they're being too generous with the burden of costs they have taken on.
It's difficult to know for sure without more information - I'm sure they must have looked at it on a risk/reward basis pretty hard...