NZ Oil & Gas (NZO)

[Balance]

No Blackcap it does not help at all. You have set out only the negative of the next 10 years. Maybe just maybe something positive will happen in the next 10 years and that should be factored in not just the corporate costs as if nothing ever will take place.The future has to be seen in balance though BALANCE will rightly now step forward and point out that the past 10 years have had more negatives than positives.

Haha - you read me right Digger me ole matey.

9 years after taking in $200m from shareholders via the exercise of the $1.50 options, NOG (No Oil or Gas) is back to square 1 - less Kupe, Tui and Pike River. Quite an achievement, wouldn't you say?

[Marilyn Munroe]

The game changer is a frontier gas play in what the industry considers the far side of the world. It would need to be exported at great development costs. Selling it to Otagoians to cook their morning porridge won't work. An oil major such as Exxon or Shell with expertise and deep pockets would be needed to develop the field and they would probably only interested if Putin does the European strongman territorial expansion thing or the Middle East erupts.

What would be the relationship between NOG and the majors? Think of a heyena killing an antelope near a pride of lions.

Boop boop de do
Marilyn

[fabs]

Supposed to Drill in 2017 according to CO.
Subject to getting a rig, lets hope not a lame duck like last time.
Concluding as stated with positve and promising supposed farmout negotiations underway for some 6 months now.
With 20% left would it be not more sensible to hold on to every $ plus retain present S/H Base of 320mill plus, to raise money for much more $ needed than they have in the kitty now.
Should they strike the much lauded riches, all of us would benefit substantial with our present holdings.
Big windfall for all the ones holding millions of shares on the 1 cent DEPOSIT.
A well deserved reward for the hard work they have put in over the years creating wealth for S/Hs.
{ grin]

[t.rexjr]

The independent directors can hardly recommend an offer of less cash for cash!

That's exactly waht this CR offer is to shareholders...

No answers to the 'exactly how much cash is there?' question yet as the market gets bored and ponders where their cash is disappearing to...

[peat]

That's exactly waht this CR offer is to shareholders...

No answers to the 'exactly how much cash is there?' question yet as the market gets bored and ponders where their cash is disappearing to...

um I thought this had been answered, I worked out 82 cps in cash on current structure.
the company also provided a pro forma balance sheet based on the CR and the share cancellation impacts

https://www.nzx.com/files/attachments/254684.pdf

[Rabbi]

um I thought this had been answered, I worked out 82 cps in cash on current structure.
the company also provided a pro forma balance sheet based on the CR and the share cancellation impacts

https://www.nzx.com/files/attachments/254684.pdf

Any reason why we are trading at such a big discount if the cash value of the Company is 82 cents a share. Is it fair to say the market is discounting how the Company will use the cash.
There seems to be some cynicism as to the ability of management to buy into oil and gas assets or farm in to other prospects.
In that presentation they give a figure of 91 cents attributable to each shareholder post the capital return but I can't quite see what that represents in cash and assets and am now hopelessly muddled.
The cash is easy enough but how do you value the share on Cue?

[blackcap]

Any reason why we are trading at such a big discount if the cash value of the Company is 82 cents a share. Is it fair to say the market is discounting how the Company will use the cash.
There seems to be some cynicism as to the ability of management to buy into oil and gas assets or farm in to other prospects.
In that presentation they give a figure of 91 cents attributable to each shareholder post the capital return but I can't quite see what that represents in cash and assets and am now hopelessly muddled.
The cash is easy enough but how do you value the share on Cue?

Some analysts are saying corporate costs are about $8 million per annum and thus discounted back on a NPV basis that is worth about -8 cps.

[peat]

Any reason why we are trading at such a big discount if the cash value of the Company is 82 cents a share. Is it fair to say the market is discounting how the Company will use the cash.
There seems to be some cynicism as to the ability of management to buy into oil and gas assets or farm in to other prospects.
In that presentation they give a figure of 91 cents attributable to each shareholder post the capital return but I can't quite see what that represents in cash and assets and am now hopelessly muddled.
The cash is easy enough but how do you value the share on Cue?

Indeed, cynicism and confusion are becoming major factors in the valuation of this stock.
Cue should be pretty easy to value as its listed. And then theres Barque and Clipper !

Overall though I personally don't concern myself with those assets.If i can buy 82 cents cash for 59 cents and then get 31 cents back I will allocate some funds to this.

[blackcap]

Indeed, cynicism and confusion are becoming major factors in the valuation of this stock.
Cue should be pretty easy to value as its listed. And then theres Barque and Clipper !

Overall though I personally don't concern myself with those assets.If i can buy 82 cents cash for 59 cents and then get 31 cents back I will allocate some funds to this.

Be a bit careful.. the cash on the books includes cash that is in CUE. So you have to take that $22 million or whatever it is off the cash figure. (accounts are consolidated) So the Cash backing is closer to 70 cents per share...

[peat]

A number of points from the latest shareholder update

• 62.9 per cent of shares in the company have already been voted, and more than 98 per cent of votes cast so far are in favour of the resolution (to return 100M to shareholders)

• our ongoing drive to bring about cost efficiencies, and a cost base that is appropriate to a smaller-cap business.

• One area of focus is the duplication of costs with our Australian subsidiary, where we have been paying for two corporate head offices.

• an international consultancy presenting on the world's top oil and gas targets put our Barque prospect number 9 globally

• The number one on that list: the Ironbark prospect off West Australia that is held in our Cue Energy subsidiary, and which BP has just farmed into.

• We have more than a handful of potential partners studying the data (of Barque).So they are allocating resources and time to looking at our work and seeing if an entry to New Zealand is right for them.

• We will look to get through a well without requiring substantial new investment,
  

• We will be leaner as a company following the capital return and our costs are considerably reduced.

• For example, next month we are moving into new premises, we have cut the size of our head office, Cue is much leaner and both companies have reigned in exploration spending to meet the new economics. Therefore our rate of cash burn will be a lot lower than it has been in past years.

• we have a preference for gas because we see the price of gas assets has come down alongside oil assets - yet gas prices have not declined as much and look relatively more stable
  

• We can advance this work programme adequately with the funds we will have available after the return of $100 million of your capital.