NZ Oil & Gas (NZO)

[Coles Killer]

Yes tax efficient.
Not good as it enables Zeta to proportionally increase their shares.
Another capital return would be fairer and still tax efficient

If Zeta want to increase their influence over the company and decrease the headcount in the office, in this present oil price climate, that's not such a bad thing. Why shouldn't this company scale back to a CEO + the minimum people needed to manage their investments (they are not operators) when it doesn't make sense to do any drilling?

[Bella52]

They are scaling back a bit, Bay gone, Houston gone, + couple of others over the last year from what I hear. Knight does keep saying they add value by having staff on top of Origin and AWE but yet to see big gains.

[trader_jackson]

https://www.nzx.com/companies/NZO/announcements/272402

Fantastic news! This should power the share price higher for sure!

[notie]

https://www.nzx.com/companies/NZO/announcements/272402

Fantastic news! This should power the share price higher for sure!

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

[jonu]

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

At current poo it is worth approx 12 million nzd to them based on the 15% holding according to my calcs. Not to be sneezed at Notie.

[trader_jackson]

A 34% increase in reserves at Kupe! Wow it sounds great news....but NZOG only holds 15% of that field, so the reality is they have added 5.9PJ of gas and 300,000 barrels of condensate.

I think most of this will get burnt up in the high overheads this company has.

The people that will be happy are the operator Origin (50% share) and Genesis (31%)

I guess it is situation normal at NZOG and they will go back to stumbling around in the dark

Yes they probably will go back to stumbling around with more 'great incentives' like share buy backs rather than looking for cheap take overs..

But good news none the less, and for GNE, well even better news (as they have greater shareholding). I'm surprised their announcement wasn't price sensitive to be honest...

[notie]

Yes they probably will go back to stumbling around with more 'great incentives' like share buy backs rather than looking for cheap take overs..

But good news none the less, and for GNE, well even better news (as they have greater shareholding). I'm surprised their announcement wasn't price sensitive to be honest...

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

[digger]

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

Noe notie turn it around and I wonder what you would say. Lets state we had a 34% decrease in reserves--would you then still say it is of little importance???

[fish]

Over the next 15-20 years of the field life.....discount it for production costs and other things that could go wrong in that time, then it really doesn't add up to a whole lot

production costs?
unmanned production platform and no extra drilling.

[notie]

Noe notie turn it around and I wonder what you would say. Lets state we had a 34% decrease in reserves--would you then still say it is of little importance???

That's just my point, it wouldn't manifestly change much for nzog if those reserves went down either.

As for production costs, there is a very large expensive Kupe processing plant which costs money to run, then there are well and pipeline maintenance costs.

NZOG would be much better going out and doing something like drilling wells if they really want to replace reserves, but seem more than happy to crow about a field discovered in 1986, and of which they only own 15% of.

This is all part of the good news story for the upcoming AGM about how active they have been assessing M&A opportunities and lifting their reserve numbers.

I wish you all luck