NZ Oil & Gas (NZO)

[fabs]

Some months ago i pointed out, that it will be 2-3 years before they will drill,
will be surprised if they actually do before then.
You know many years ago, with probably less than a quarter of the present staff numbers nzo given away an oil producing permit [ on land ] by not drilling deep enough, sold out Nagtoro to Greymouth Pet. had Kupe in the bag, Pike /R which properly operated, a potential long term cash cow. Plus Tui in the wings.
Also mentioned on this forum that nzo has turned into a lucrative Treasure Chest for quit a large number of non producers or at best just a well paid ,motley crew bereft of any ability to turn this co.into a winner.
Yes they got very lucky having managed to pull off the capital raising a short few years ago and are resting on those dubious laurels now.
Amen

[digger]

Some months ago i pointed out, that it will be 2-3 years before they will drill,
will be surprised if they actually do before then.
You know many years ago, with probably less than a quarter of the present staff numbers nzo given away an oil producing permit [ on land ] by not drilling deep enough, sold out Nagtoro to Greymouth Pet. had Kupe in the bag, Pike /R which properly operated, a potential long term cash cow. Plus Tui in the wings.
Also mentioned on this forum that nzo has turned into a lucrative Treasure Chest for quit a large number of non producers or at best just a well paid ,motley crew bereft of any ability to turn this co.into a winner.
Yes they got very lucky having managed to pull off the capital raising a short few years ago and are resting on those dubious laurels now.
Amen

Fabs I do not think it is anywhere near that bad. We have had the GFC ,a run of dry wells and lost PIKE. But look at the positive. The excellent cash position and near certain next 5 year income means that NZO will be able to drill and very likely be able to repeat the recent dividend well into the future. We have a new CEO and new directors coming on board,who want to do it differently and that pleases me no end as i did argue unseccesfully with the last CEO. I am sure you remember I never was happy with stopping onshore drilling and wanted the company to focus on NZ. Some CEO get carried away with empire building and neglect what we have here with comparative advantage we have being a NZ company. I now have the very clear intention from Yesterdays Auckland meeting that we are back on the right path.
The biggest problem this company has is market perception,not fundamentals. The recent dividend when the SP was 85 cents beats the past dividend when the SP was 1-50 plus.That is just a crazy market you are looking at.For me at the present situation of the world markets and the current SP of NZO I can not think of any time when the prospects looked better going forward.

I would like to make a comment on PIKE. It appears to me that we made a very small gain by selling Pike exactally when we did . Even a month later we would have not got the last 7 million.And i wonder had Pike not gone the tragedy way it did where would we be now. Probably with very low production and a almost nil hard coal price we would be looking at sinking money into Pike to keep it going. I was wrong with Pike i fully suported it but now we have to move on. The positive is that we are now to stick with what our name says-----oil and gas.

[fabs]

Roger all of that Digger,
I too feel the co. should and can do better and at least with halve my former holding I will hang in there a bit longer.
Have however long ago given up making excuses for them, so results are now Paramount.

[boysy]

a few bob will be entering NZO coffers this friday as a result of PPP capital return to the tune of circa $4.5 million one has to question what is NZO going to do with its 14.87% shareholding in PPP

[Balance]

a few bob will be entering NZO coffers this friday as a result of PPP capital return to the tune of circa $4.5 million one has to question what is NZO going to do with its 14.87% shareholding in PPP

Great investment by NZOG - not as great as PRC but same investment style.

[boysy]

In fairness balance look at most oilers in the past few years most are a fraction of the price of where they were. PPP is and always has been a cash box still with some upside are NZO willing to take a bet or will they offload the PPP stake

[digger]

In fairness balance look at most oilers in the past few years most are a fraction of the price of where they were. PPP is and always has been a cash box still with some upside are NZO willing to take a bet or will they offload the PPP stake

Boysy,did you go to the AGM or one of the meetings in Auckland or Christchurch? I did and along with a few others did try to get some hint about NZO intention on PPP. No luck. With a lot of companies investers like to say the SP is half taken out by cash. I think PPP has the record with somewhere about 120% cash compared to the SP. Cash in todays market does not earn much but it certaintly leaves the company in very good shape.
The next drill for PPPV is coming up and with the company having and being able to keep 15% could set the company up.
Most of my money from the capital return is heading back into PPP.

[Balance]

"Mount referred Whittall to evidence that in September 2010, NZOG was advised that Pike was about to run out of cash, with an expected shortfall of $20-24 million. One reason was that one of its shareholders – an Indian coking coal company – had been sent a shipment of coal from Pike that failed to meet specifications, and was refusing to take any further below-spec coal in the short term. This meant Pike’s next shipment of coal would be delayed until December 2010, contributing to the financial shortfall. Pike was planning a capital raising but expected to run out of cash before that was done."

Feeling confident about NZOG's oversight of its investments and how directors & management use shareholders' funds?

[dsurf]

Balance - we might all be saved by the Canadians. I have been surprised by the strength of the SP lately especially since NZOG did not get into the Souther Basin potential elephant. But this may be the answer:

Toronto Stock Exchange-listed Tag Oil has submitted a non-binding expression of interest to New Zealand-owned Greymouth Petroleum.

There has been no formal due diligence and no definitive agreement had been struck, Tag said in a statement. It disclosed the move after a report in the Wall Street Journal said it had bid $650 million for all of Greymouth.

Tag Oil chief executive Garth Johnson said the non-binding expression of interest was not an offer and it was subject to strict confidentiality "that appears to have been breached

NZherald 1st Nov

Now what is interesting for me is that Tag is a 40% partner in the Kaheru JV:

MINE: NZO: NZOG farms out Kaheru, JV commits to drill

New Zealand Oil & Gas has farmed out a 25 per cent equity interest in its
Kaheru prospect off the South Taranaki coast to Beach Energy.

Subject to the farm-out receiving ministerial consent, NZOG will retain 35
per cent of the permit, Beach Energy will have a 25 per cent interest, and
TAG Oil 40 per cent. NZOG is the operator.

Will be interesting if there actually is anything in this.

[the machine]

cosmos reservers up 40% - WOW!
underpins a positive development decision for Q1 2013
M