NZ Oil & Gas (NZO)

[fabs]

Wish it otherwise,
but chances are very slim give it about 10-20% to go ahead, Mang. will milk it for as long as possible of course, anything to support an increasingly shaky S/P.
Lets not forget the specter of the Warrior Princess and her merry companions, disrupting anything and all adding cost and delays.

[neopoleII]

in the last few day the volume of trades has increased, could this be someone adding up the potential payout to nzo from the ppp 5cent distribution and the expected small divi from nzo and added up that the return is worth the investment at current prices?
im sure nzo will give the ppp payout to shareholders as a gift. hopefully the sale of prc isnt too far away and that cash..... what ever it is may be going to shareholders as well. and then a little divi from nzo's core business of oil and gas production from their 2 jewels should give us ...... more than 1 cent and less than 7cents divi this year.
my guess 5cents.
anything less would show the new ceo as being TRs lacky.

[peterfindlay]

in the last few day the volume of trades has increased, could this be someone adding up the potential payout to nzo from the ppp 5cent distribution and the expected small divi from nzo and added up that the return is worth the investment at current prices?
im sure nzo will give the ppp payout to shareholders as a gift. hopefully the sale of prc isnt too far away and that cash..... what ever it is may be going to shareholders as well. and then a little divi from nzo's core business of oil and gas production from their 2 jewels should give us ...... more than 1 cent and less than 7cents divi this year.
my guess 5cents.
anything less would show the new ceo as being TRs lacky.

I agree that someone is buying into NZO. Good for them. Who knows the motive. I agree that a solid dividend should be forthcoming. In my view, an interim dividend, or a special dividend should have been paid. I disagree with views expressed in earlier posts that suggest the contrary. An infrequent dividend does not help maintain the interest in a stock, particularly when there is little else happening to get investors excited and motivated to buy in. With this stock the loyalty of shareholders ought to be rewarded more frequently than currently occurs.

To retain profits a company needs to demonstrate that it can earn better than the cost of capital, and that it can generate additional profits of a magnitude that warrants the retention of profits, all of which need to be recognised by the market. I do not consider that NZO's track record demonstates that it can consistently earn the cost of capital or that it warrants the faith of shareholders for all profits earned to be reinvested in growth or acquisition. Shareholders have not seen enough acquistions or growth opportunities run the gauntlet of time to wholeheartedly back the Directors of NZO to retain a significant proportion of profits. The SP malaise reflects the markets belief in NZO, in spite of its net tangible assets or future earning ability.

For PRC, you seem to be ignoring the known facts:

• NZOG has written off all its remaining Pike debt and its Pike shareholding.
• You can’t do write-offs on a whim – there has to be information that satisfies the auditors.
• NZOG appointed the receivers and will be getting regular updates on the sales process.
• In its announcement about the write-off (26 Jan) NZOG said there were three possible outcomes – a sale of the mine, a sale with payments made when the mine is reopened, and disposal of the moveable assets. That third option means no buyer for the mine – sell what you can, lock the gate and walk away.
• The Receivers have been trying to find a buyer for over a year. Clearly there is little enthusiasm in the market to take on Pike.
• The access tunnel has still not been recovered. There is the unknown – and potentially unlimited - cost of recovering the men’s remains.
• Solid Energy control the rail transport network so how do you get the coal to market. A purchaser needs that assurance. Access to the rail network/infrastructure is not currently regulated like other infrastructural assets.
• Solid Energy has publicly stated that it is not a bidder, and in the past has acted in a way that seem to have hindered attempts to maximise the value of PRC's coal assets.
• The production targets set by Pike were probably never achievable. The geology is much more complex than thought and dozens of bore holes will have to be drilled. A second exit will have to be constructed.
• The Royal Commission won’t report until September and may impose all sorts of restrictions – it could even suggest that there be no mining at Pike.
• A workforce will have to be built from scratch.
• Given all that, it is not surprising that a buyer hasn’t been found.

It appears that the Receivers must think they can still achieve a sale, but anything they get is going to be small.

[jonu]

Pike River sold to solid energy-Herald report

[dsurf]

Well that answers the question as to why the volume picked up in the last week or so. Pity there is no sale price mentioned, conditional or not.

[Mr Tommy]

Thought NZOG should jump a bit on this news, as they had written off the remaining debit.
Maybe Solid E has got it for nothing after scaring off all the competition.

[jonu]

You'd expect a trading halt surely-at least until it's confirmed and a price given

[Xerof]

only if it was to have a material impact on NZOG - clearly not....

[iceman]

Going unconditional not expected until May so a trading halt is not an option. This is not good news for those of us still (until now) holding out some hope of a small recovery of our investment. Don Elder certainly succeeded in scaring all other potential bidders of and probably got this valuable asset for nothing ! Why on earth does this sorry saga need to be dragged out until May !

[jonu]

only if it was to have a material impact on NZOG - clearly not....

O Xerof,ye of the large member, don't you know nothing is clear when looking into oil?