NZ Oil & Gas (NZO)

[fish]

I really liked the quarterly report so ended up buying more nzo yesterday.

Great cash flow despite low oil prices.
Successful cue acquisition
Exciting drilling being planned-if suitable partners to farm out.

I have also been impressed by Zeta-they know how to acquire cheaply-lets use their expertise to acquire another carefully selected oiler.
They don't have the money or the intention to take out NZO.

So what to acquire-maybe using some of our us dollars?

[sideline]

Thanks Digger,
for the detailed report.
Was there any info/discussion of dividend vs buybacks?
At the current low price a buyback could be good value.

Acquisitions of producing assets are preferable to wild drills, but they have to stack up in
the current low price-of-oil environment. And I'd be very wary about taking on debt as HZN has.


sideline

[sideline]

I really liked the quarterly report so ended up buying more nzo yesterday.

Great cash flow despite low oil prices.
Successful cue acquisition
Exciting drilling being planned-if suitable partners to farm out.

I have also been impressed by Zeta-they know how to acquire cheaply-lets use their expertise to acquire another carefully selected oiler.
They don't have the money or the intention to take out NZO.

So what to acquire-maybe using some of our us dollars?

Maybe an acquisition for NZO shares would be best - it would broaden the interest and share base in NZO,
preserve cash reserves and lower ZETAs holding below 20% which means any subsequent buybacks wouldn't
require a special dispensation for ZETA to go over 20%.

[flyingmariner]

Thanks Digger for the debrief. I'm worried about the intentions of ZETA here. Correct me if I'm wrong but I have owned shares in NZ companies before where after a major holder got above a certain percentage they could force the rest of the shareholders to sell at an offered price. Could that happen with NZO.

[fabs]

Appreciate your honest effort Digger and thanks for that.
Not surprised by slack performance by members of management.
No problems with you suggestions either.
As for some posters take, that zeta is good for nzo???
Well test will come at special meeting.
My take is they will get it through and that will open the door just that bit more to do whatever their plan is.
Have my doubts whether S/Hs interests figure much in that.
Get impression the bulk of small S/Hs in this co. already matter less & less with this outfit.
Hope to be proven wrong.

[digger]

Thanks Digger for the debrief. I'm worried about the intentions of ZETA here. Correct me if I'm wrong but I have owned shares in NZ companies before where after a major holder got above a certain percentage they could force the rest of the shareholders to sell at an offered price. Could that happen with NZO.

Under the takeover code the compulsory buy out of your shares only happens once the takeover company get to 90% of the target company.At that point remaining shareholder can ask for an independent valuer to get the true market value of the company. In fact I think they can even get two independent valuers to assess the company so the remaining 10% can be harder for the takeover company. At the meeting in Napier Andre Gaylard did say in reply to a question that that is why NZO will probably not go any further with the CUI investment. As he said the last 16 % tend to be hard to get possession of at a reasonable price.
Do you really think that Zeta have that deep of pockets.Even at 50cents they would need something like 160 million to buy out the remaining 320 million they do not own. Now Fish and me and I am sure a few others want more than 50 cents so the last say 15 % will probable want 90 to a dollar for their shares maybe more,so the price goes up.
In the meantime I will oppose the buyback in favor of more acquistions. I think the NZO management should be looking at not less than 40 companies to take a stake in to lift our reserves.

Another point about why I am against drilling is that new drilling methods are just a few years away which will give us results faster and cheaper. Also as I have said in other posts we can buy back anytime. The golden Acquisition age is now and may not be here in as little as 2 years maybe less.

[fish]

Just a minor correction digger-I opposed the TTP takeover which wasn't that long ago.
It was actually quite an enjoyable process.
Its one arbitrator that determines the valuation on what is fair and reasonable and awards costs.
All participants get to write an essay on what is a fair and reasonable price.
My wife is a very good essay writer.So where all the other essays-10 or so people writing good essays for a high valuation-and one lawyer for ttp writing for their valuation.
Essays are exchanged and then a critique of the other parties essays( if it happened I could get yours proof read Digger)
The arbitrator then makes his decision and awards costs.
TTP were arrogant enough to appeal the arbitrators decision-so ended up losing in court and more costs awarded against them.

No way will zeta attempt a full takeover.

[flyingmariner]

Ok, thanks for that.

[fabs]

Hope Fish & Digger that you both are right.
Ironically T/R also thought that his other Co. at the time { Otter - Gold formerly Mineral Res. } was save from T/O.
At present yes agree no chance of that happening with nzo,
but in a fast changing environment what are condition for it in 6,12 or 18 months time.
As the saying goes, there are many ways to skin a cat.
As ever, Hoping to be proven wrong.

[fabs]

Announcement
MEETING: NZO: Notice of Special Meeting of Shareholders 12:23p.m.
NZO
07/08/2015 12:23
MEETING
NOT PRICE SENSITIVE
REL: 1223 HRS New Zealand Oil and Gas Limited

MEETING: NZO: Notice of Special Meeting of Shareholders

New Zealand Oil & Gas will hold a special meeting of shareholders on Friday,
28 August 2015 to vote on a proposed share buyback.

A copy of the Notice of Meeting is attached, together with the Independent
Adviser's Report and Appraisal Report.

John Pagani
External Relations Manager
+64 21 570 872
End CA:00268090 For:NZO Type:MEETING Time:2015-08-07 12:23:09

They are hell bent on getting this through.
The more i think about this, the more i feel rather than a Buy-back in a climate where O/P's & Share/M's are falling and management clueless in doing what there payed to do.
ZETA looking after themselves, can't blame them really.
Surely it would be better to return as much as possible to the S/H's by paying DIVIDENDS again.
If zeta friendly individuals end up coming into the mix, [ if not in all ready ] the S/H's position not looking good.