NZ Oil & Gas (NZO)

[Awamoa]

With all this extra income from Tui surely it reduces the need for the options to be exercised?

[shasta]

With all this extra income from Tui surely it reduces the need for the options to be exercised?

If NZO wants to achieve its stated intention of producing 2mmbo per year (with reserves) it will need the funds to make an aquistion.

Cheap funding for NZO.

[manxman]

Really, its screamingly effing obvious. I bailed out of the ODs when I could get 7 heads for every two OD buying on 50% margin. As shown on the old site, it was better to buy heads on 50% margin, than options, unless the heads went above $1.90 Check back and see who first used the expression "pass the parcel" that McDunk has adopted. Even if you do think that the heads are going to pass $1.50 buying heads on margin is still a lot safer than the ODs, and higher yield unless the heads get up to $1.90 by June

Mx

[Unicorn]

With all this extra income from Tui surely it reduces the need for the options to be exercised?

There has never been a need for the ODs to be exercised. They appear to have been created to deter a takeover, rather than to raise equity. Their timing was really odd, because it was expected that both Tui and Pike would be in full production by June 2008 - Pike has been much delayed since then.

At the time the ODs were first dished out, more funding would have been very helpful - yet they were given away free. This kind of strange and unexplained capital management is probably one of the reasons why the market at large lacks confidence in NZO management.

[Onthemoney]

Well said Unicorn. Watch for another lot of options to be given around time of expiry of current.

[bermuda]

Well said Unicorn. Watch for another lot of options to be given around time of expiry of current.

I dunno,
My thoughts at the time of these options were

Well, if Tui can deliver on time,
If Hector can deliver as 'predicted'
If Tieke came in
If Taranui came in
If Kupe doubles its volume

and we establish a Taranaki Fairway......well we are going to need some money.

I mean this is what happened. I wish more people could understand.

[boysy]

to be honest for the options taken up it will take some effort by management. Hence so far apart from saying its their goal to have them excised they have taken little action to date. Why would they need more money with TUI money flowing in im sure banks would raise their credit line on new projected cashflows. The market needs a sign from management that they not only want them to be excised, but that they are willing to step in to help make them exciseable.

[Bilo]

Bermuda, yes we are down to the LAST if,

Awamoa, the NZO Board has never identified a specific need for the $240M.

Shasta, I think DS has set for himself the classic "stretch target" that is no stretch at all. Like keeping the share price low so that your option exercise price is not a stretch. The chances of NZO failing to produce 2Mbo pa are slim. Upgrades to Tui, prospects near Kupe, and the new PEP near Maui ensure that it will be a doddle. DS has a legal mind - "never pose a question that you don't already know the answer too...."
Need acquisition moneys, need to double exisiting shareholder capital, B...S....
Unicorn, I agree with you, again...a takeover foil, up until first half 2008.

From the released material, the AWE guys showed themselves up again by saying nothing, disclosing nothing new, playing the AGM tight to their chests, wasting the opportunity to inform their shareholders of the really good work that is being done, but still asking permission to saunter up to the trough for a top up of share options for management - after buying peace with the surprisingly timely (but early) announcement of the Tui reserve upgrade. What a farce these AGMs are becoming - or have they always been like this? Some put this behaviour down to operator privilege - I put it down to communication failure. How long will it be before the new AWE CEO moves out?

[Nitaa]

NITA surely you mean he can paint the gloomiest picture. Be realistic take the emotion out of it, look at this in a calculated way.
In Jan 2005 the share price peaked at about $1-27 then dropped back to about 78c at its low point. In july 2007 the share price peaked at about $1-35 then dropped back to under a dollar. The share price has jumpted up to $1-12 which gives some hope to people who bought to high to get out when in profit. Over the last three years the share price has averaged about a dollar so for many its been a waste of time. The hype was just as great if not greater three years ago. Thats not the point, the point is will the herd continue playing catch up to a new high, or even get it into the $1-50 plus region to make the options worth something by july. The options were 30c at one stage making conversion for those poor mugs at $1-80 just to break even. It will be interesting to see how it all pans out, will the company get with it or not?, thats all that holds the sp back. Macdunk

I cant believe that i am going to say this. You post for most aprt of it is true. well done macdunk.

some points. Im not too concerned on what nzo has done in the past as although it can be a guide but should not be used to determine the future. The last years years an nzo investors has made stuff all. that is easy in hindsight. The last 4 or 5 (from a low of 25 or 26 cps) years has given the holder a return of over 40% pa every year. Those figures are nothing short of sensational.

Yes the hype was bigger back 3 years ago hence the incredible run that nzo and option holders experienced. Ina all fairness that was acurately played out as Tui exploration, Pike getting the go ahead etc were significant news. The hype this time round was fairly subdued and the results reflected in most investors sentiments on the likelyhood of success.

Will NZO reach a new high? In the next 5 months i rate it a 90% chance and i guess that is the reason why i still hold some nzo. But that is only my opinion.

$1.20 on the cards within a week (25% chance)

[bermuda]

I tell you what

This is NZ's most undervalued share

And a lot of you guys think I am joking.

Well; show me another.