NZ Oil & Gas (NZO)

[Vaygor1]

What worries me is that they make no mention of returning all cash to share holders asap, rather returning some (maybe)

I probably shouldn't have included the maybe, the rest of the statement remains true.
ie they have not said they will wind up the company, and they have not hinted any details on how they plan to move forward, other than "looking for opportunities to deploy our cash by acquiring new producing assets with a preference for gas in markets we understand"... huge uncertainty, with both finalized/total cents per share return and how/if they will continue - at least, this is how I see/saw it, and hence promptly sold

Maybe they will issue a new load of shares to take on an "opportunity" (unlikely, I know, but you'd think if it was too good to pass, and they still wanted to give $100m back, then a new issue of capital could be a possibility)

It could well be a possibility TJ. Stranger things have happened at sea.

I noted in December 2016, the language the NZO was using in their NZX announcements was that they intended to give back the $100M.
Then in January 2017, the language changed to them stating they will give back the $100M.

So from here on in, depending on how things pan out for NZO and how much money the Directors will want or need to put into a new venture, they may well lay out to all shareholders a (soon to be finanlised and rubber stamped) deal regarding new developments and partners, and ask by way of a special resolution to keep all or some of the money. If the shareholders can see the benefits (assuming they are compelling and clear) of leaving the money in the company then the special resolution will pass.

If the above scenario is not possible (due to my naivety on this front), please let me know.

[tim23]

Theres still $168 million available once shareholders have been paid out so cash of about 60c per share. I'm picking they will go xd and recover quite a bit of the dividend quite quickly.

[fabs]

Well Digger,
i was also against it, but even if they gave out such info to S/Hs in general dont,t for a moment think the outcome would have been different, percentage wise a little may be but not overall.
I am sure the major S/Hs [ Institutions etc. ] got far more details plus future plans, to make their call.
Hope i am wrong but that's my take.
NZOs management for years now only in it for keeping money flowing into their pockets for doing little, also to stay on good terms with big investors. believe the term staying on the GRAVY TRAIN applies here.

[Vaygor1]

Gee.. dead silence on the thread despite a price-sensitive announcement today.

I think the announcement is of major significance.

https://www.nzx.com/companies/NZO/announcements/297094

[tim23]

I agree - but it doesn't suit the knockers to acknowledge this. They would rather bag the company for the process they have to work through for paying out the 100 million instead of accepting that is probably does require time.

Gee.. dead silence on the thread despite a price-sensitive announcement today.

I think the announcement is of major significance.

https://www.nzx.com/companies/NZO/announcements/297094

[Marilyn Munroe]

From the announcement;

"If all three horizons were developed simultaneously, a gas-to-shore LNG project is considered the most likely model. It could yield 8.2 tcf of raw gas, of which 4.8 tcf could be available for conversion to LNG"

Tell'm he's dreaming. Given the lead time on such projects our children will be wealthy. That's if the gas is actually there.

Boop boop de do
Marilyn

[fish]

Gee.. dead silence on the thread despite a price-sensitive announcement today.

I think the announcement is of major significance.

https://www.nzx.com/companies/NZO/announcements/297094

Potentially bigger than I ever hoped-a massive gas field with large amounts valuable condensate.
The thrill will be in the drill.
Around $20 million us per drill to this depth.
Potential returns in billions
sounds like if drill is successful unmanned platform and pipes to shore processing including lpg.
SP only moved about 2% so far

[Vaygor1]

I agree - but it doesn't suit the knockers to acknowledge this. They would rather bag the company for the process they have to work through for paying out the 100 million instead of accepting that is probably does require time.

Potentially bigger than I ever hoped-a massive gas field with large amounts valuable condensate.
The thrill will be in the drill.
Around $20 million us per drill to this depth.
Potential returns in billions
sounds like if drill is successful unmanned platform and pipes to shore processing including lpg.
SP only moved about 2% so far

I think $20 million is light.... but any-which-way, NZO have a 50% share in the Basque field with Australian Beach Energy owning the other half.
NZO Market Cap at NZ$0.65 is NZ$207 million.
Just counting the risk-free low hanging fruit in 1 only of the 3 layers, NZO is sitting on 375 million barrels of oil (forget the gas for now, which is huge).
At US$60 per barrel, however one wants to break it up, perhaps with farm-in partners/risk sharing/diluting their holding etc etc, if NZO's can make US$0.50 per barrel on their current holding of 375 million barrels, that equals NZ$255 million profit ... more than today's market cap.

This has been a long time coming and in NZO's words the negotiations are in an advanced stage.

16 Dec 2016 NZO announcement on the NZX re new CEO Andrew Jeffries.
(Ref https://www.nzx.com/companies/NZO/announcements/294485 )
"Talks are advanced with potential partners in our major deep water exploration interests off Canterbury".

17-May-2013 article about NZOG and Barque field in the Canterbury basin:
http://www.offshore-mag.com/articles...in-permit.html

30-July-2015 article about NZOG and the Barque field:
http://www.stuff.co.nz/business/indu...d-gas-prospect

14-Oct-2016 NBR article re Barque and a brief mention of a prospect off Western Australia that BP and Cue energy bought 80% of. NZOG now owns the controlling interest in Cue.
https://www.nbr.co.nz/article/nzog-g...spect-b-195489


Beach Energy Website. Brief info on NZ interests incl Barque field
Beach Energy owns Beach Petroleum (NZ) Pty Limited from whom NZOG bought their 50% of the Clipper prospect (containing Barque). Other 50% is owned directly by Beach Energy:
http://www.beachenergy.com.au/irm/co...d.aspx?RID=273

Regarding part of my cryptic post last weekend:

I think I have figured out their next moves... a four (actually five or six) step plan:
- Divorce Cristina.
- Get their blood pressure sorted.
- Get into apparel... a label with vanity.
- Purchase 2 x sailing ships and run them ashore with spirit.

... add in a trip from Sierra Morena to Huelva possibly?

- Get into apparel... a label Canterbury with vanity. Basin
- Purchase 2 x sailing ships Clipper and Barsque and run them ashore Beach with spirit. Energy

... just having a bit of fun. I like crosswords.

Marilyn Monroe's post below makes a point that is definitely worth thinking about, however in this case I believe the timing to get this moving is a lot closer given:
- the very long lead-up time till now (over 4 years)
- NZO's very definite and recent change in focus
- the scale of this undertaking together with the fact it's election year.
- a farm-in partner (Woodside, Shell, etc) would bring in the expertise, and the cashflow.

[fish]

$ 20million US dollars per drill and maybe 5 drills equals $100 million us.
If a farm in partner buys 50%-1/2 from beach and 1/2 from nzo maybe little cost to nzo in the drilling stages
This is potentially a big field in world terms.
Profit could be in billions in best case scenario

[digger]

Well here is my thoughts on what might be going to happen. Remember it is just a figment of my imagination and maybe should be just read for light intertainment .
We know there was some thoughts about getting 100 million back to shareholders.There has never been in my mind a dog show of that all being capital return. The tax man will want their cut. After all even the NZO team said it was too good a profit to go past. profit means tax.this is the first and a given to what I think might happen.
So up to now we know that NZO has been chasing gas rather than oil and in a call I made to the company some months ago they confirmed this as well as in some of their new releases.
If the 100 million is to be taxed my thinking is that NZO might offer shareholders the choice of taking their money or reinvesting with the company at a good premium over taking the cash. Did anyone quickly see that a reinvestment under this scheme would be very advantage to Zeta who would then be able to slip past the takeover code and again lift their % shareholding
Note this is just my idle brain talking and not a recomendation to buy or sell the company.