NZ Oil & Gas (NZO)

[Balance]

Balance - Do you have active shorts via CFD's or similar currently? I think you are making a lot of money by downramping and causing this company to fail!

Nope.

Just pointing out the obvious that appears so hard for Noggers to see.

Just stopping Noggers from upramping non-stop, and yes, providing a balance.

And yes, who has been proven to be right on Pike?

[BigBob]

Return the money back to shareholders.

The directors and management have not been good custodians of the money put into the company by shareholders, and of the money generated from Tui and Kupe (discoveries made a while ago).

The millions in salaries and benefits paid to directors and management - isn't the money better returned to shareholders?

Isn't that somewhat simplistic and naive, Balance, and exactly how would you do that....? Sell the producing assets, permits and overseas interests...? and then wind up the company... what would, for example, be the tax implications of doing that... Don't you think it actually makes some sense for the company to try and maintain a decent dividend while pursuing a growth strategy from stable, relatively long term income streams and at the same time try to augment and extend those income streams...?

If you try and put the Pike tragedy in the past (and please let's not argue about who may or may not be responsible), do you really think that the company has no prospects...? NZO is not the only NZ company that has disappointed over the last 5 years (or destroyed shareholder value to use your words) - all these companies have management and directors who are being paid. Should they all just close up shop, and if not why do you think NZO is any different....? In fact if you want to look at true destruction of shareholder wealth look at RAK (about $660m in lost market cap since May 2007) - and the directors there have just awarded themselves for non-performance - but I don't see you desperately trying to save rakkers...

For what it is worth, I believe that most people invested in NZO are aware that it is a high risk sector and that most holes inevitably are dry - of course it is disappointing when this happens - but if investors do not want the company spending money on drilling, they would not invest in an oil exploration company.

Anyway, I don't expect a meaningful response and I think we should just agree to disagree and good luck with whatever investements you may have....

[pietrade]

..................
Anyway, I don't expect a meaningful response and I think we should just agree to disagree and good luck with whatever investements you may have....

Heh Balance, aren't you due for another post? You've only posted SIX times today. Funny how you don't post much when the price is up. Hmmmmmmmmmmmmmmmmmm.
You really must watch out for those withdrawal symptoms.............

[Balance]

Isn't that somewhat simplistic and naive, Balance, and exactly how would you do that....? Sell the producing assets, permits and overseas interests...? and then wind up the company... what would, for example, be the tax implications of doing that... Don't you think it actually makes some sense for the company to try and maintain a decent dividend while pursuing a growth strategy from stable, relatively long term income streams and at the same time try to augment and extend those income streams...?

If you try and put the Pike tragedy in the past (and please let's not argue about who may or may not be responsible), do you really think that the company has no prospects...? NZO is not the only NZ company that has disappointed over the last 5 years (or destroyed shareholder value to use your words) - all these companies have management and directors who are being paid. Should they all just close up shop, and if not why do you think NZO is any different....? In fact if you want to look at true destruction of shareholder wealth look at RAK (about $660m in lost market cap since May 2007) - and the directors there have just awarded themselves for non-performance - but I don't see you desperately trying to save rakkers...

For what it is worth, I believe that most people invested in NZO are aware that it is a high risk sector and that most holes inevitably are dry - of course it is disappointing when this happens - but if investors do not want the company spending money on drilling, they would not invest in an oil exploration company.

Anyway, I don't expect a meaningful response and I think we should just agree to disagree and good luck with whatever investements you may have....

Two wrongs do not make a right, me ole mate. No point comparing Rakon or Yahoo with NZO and then, justify NZO's wealth destruction that way.

Let's look at NZO as of now. Does this company look like it knows what to do? Pike is pertinent because it is the biggest investment made by NZO and showed that the company did not have a clue!

Companies, directors and management have their used-by dates.

Problem is that most do not recognized that they are past their used-by dates until it is too late and most (if not all) of the wealth have been destroyed.

Examples? GPG and Brierley Investments are prime examples. The directors and management were forced out - screaming and kicking but only after they had gouged themselves on perks and benefits and bonuses and everything they could cream out of the companies - even while the companies went downhill.

Fletcher Challenge is the opposite - where the directors decided it was time to break up the company and returned funds back to shareholders.

Instead of NZO (based upon its track record in recent years) squandering the cash sitting on its balance sheet and the cash-flow still to come from Tui and Kupe, what's wrong with returning that to shareholders?

There are plenty of other oil and gas companies out there to invest the cash in.

Suggestion? One example - Oil Search in Australia.

[BigBob]

Two wrongs do not make a right, me ole mate. No point comparing Rakon or Yahoo with NZO and then, justify NZO's wealth destruction that way.

Let's look at NZO as of now. Does this company look like it knows what to do? Pike is pertinent because it is the biggest investment made by NZO and showed that the company did not have a clue!

Companies, directors and management have their used-by dates.

Problem is that most do not recognized that they are past their used-by dates until it is too late and most (if not all) of the wealth have been destroyed.

Examples? GPG and Brierley Investments are prime examples. The directors and management were forced out - screaming and kicking but only after they had gouged themselves on perks and benefits and bonuses and everything they could cream out of the companies - even while the companies went downhill.

Fletcher Challenge is the opposite - where the directors decided it was time to break up the company and returned funds back to shareholders.

Instead of NZO (based upon its track record in recent years) squandering the cash sitting on its balance sheet and the cash-flow still to come from Tui and Kupe, what's wrong with returning that to shareholders?

There are plenty of other oil and gas companies out there to invest the cash in.

Suggestion? One example - Oil Search in Australia.

Thanks for those insights Balance - as usual you didn't answer any questions though....

[Tyro]

Why don't you guys stop replying to Balance. I can blacklist his emotive ravings, but I want to hear what the rest of you have to say.

[Tyro]

Please let me rephrase that. Don't reply to unBalanced, you'll just encourage him.

I too was sick of Balance taking up half the bandwidth with his dissembling emotive rants. I respectfully suggest that you all try my solution. -Click on his name, view his profile, and add him to your ignore list.

[Balance]

Isn't that somewhat simplistic and naive, Balance, and exactly how would you do that....? Sell the producing assets, permits and overseas interests...? and then wind up the company... what would, for example, be the tax implications of doing that... Don't you think it actually makes some sense for the company to try and maintain a decent dividend while pursuing a growth strategy from stable, relatively long term income streams and at the same time try to augment and extend those income streams...?

If you try and put the Pike tragedy in the past (and please let's not argue about who may or may not be responsible), do you really think that the company has no prospects...? NZO is not the only NZ company that has disappointed over the last 5 years (or destroyed shareholder value to use your words) - all these companies have management and directors who are being paid. Should they all just close up shop, and if not why do you think NZO is any different....? In fact if you want to look at true destruction of shareholder wealth look at RAK (about $660m in lost market cap since May 2007) - and the directors there have just awarded themselves for non-performance - but I don't see you desperately trying to save rakkers...

For what it is worth, I believe that most people invested in NZO are aware that it is a high risk sector and that most holes inevitably are dry - of course it is disappointing when this happens - but if investors do not want the company spending money on drilling, they would not invest in an oil exploration company.

Anyway, I don't expect a meaningful response and I think we should just agree to disagree and good luck with whatever investements you may have....

No need to sell producing assets, me ole mate.

Start by paying the cash out to the long suffering shareholders - least NZO can do given how much wealth destruction there have been and shareholders are due for a decent return. That's 30 cps immediately.

Then, as the cash-flow from Tui and Kupe flows in, pay out fully as capital returns or fully imputed dividends - that's at least another 10cps a year.

Let the directors and management come to shareholders with cash issues to fund investments if indeed they can convince shareholders that they can be trusted to make good investments. Let them present properly what the investments are - instead of the "trust us, we know what we are doing while we stick our noses in the trough" all care, no responsibility and maximum benefits for directors and CEO attitude now.

Tax implications? NZOG has enough paid-up capital to return capital for a while. Remember the $250m put in by shareholders in the last 5 years.

Fair enough?

[BigBob]

No need to sell producing assets, me ole mate.

Start by paying the cash out to the long suffering shareholders - least NZO can do given how much wealth destruction there have been and shareholders are due for a decent return. That's 30 cps immediately.

Then, as the cash-flow from Tui and Kupe flows in, pay out fully as capital returns or fully imputed dividends - that's at least another 10cps a year.

Let the directors and management come to shareholders with cash issues to fund investments if indeed they can convince shareholders that they can be trusted to make good investments. Let them present properly what the investments are - instead of the "trust us, we know what we are doing while we stick our noses in the trough" all care, no responsibility and maximum benefits for directors and CEO attitude now.

Tax implications? NZOG has enough paid-up capital to return capital for a while. Remember the $250m put in by shareholders in the last 5 years.

Fair enough?

Yup - that's fair enough...

I personally prefer them to fund new investments from cash flow, while still maintaining a decent dividend.... and I don't disagree that they should perhaps return some of the cash on hand as a special dividend immediately.

[upside_umop]

Interesting to see they're wanting to drill a few more wells into Tui. I thought this may happen, given they had good shows at Tieke etc. I'd say they will appraise these and get a few more mmbls. NZO should hit a $1 in the coming year with the dividend stream and steady news flow...