NZ Oil & Gas (NZO)

[Wiremu]

Another informative and relevant artlcle - how oil & gas companies can decarbonise.

https://www.mckinsey.com/industries/...6-67cf27b2375a

[airedale]

Perhaps someone with a legal mind can explain yesterday's decision from the NZX to grant NZO a waiver from Rule 5.2.1.

[blackcap]

Perhaps someone with a legal mind can explain yesterday's decision from the NZX to grant NZO a waiver from Rule 5.2.1.

Its set out in the annoucement:
Reasons

6. In coming to the decision to redocument the waiver set out in paragraph 1
above, NZXR has taken into consideration the following:

(a) The policy underlying Rule 5.2.1 is to ensure that Related Parties do not
exercise undue influence on an Issuer's decision to enter into a Material
Transaction, or in order to reach a favourable outcome or a transfer of value
to the Related Party in respect of a transaction;

(b) In this instance, the status of NZO and Beach as Related Parties arises
by virtue of NZO being party to unincorporated joint venture arrangements to
which Beach is also a party, or potential party. In this regard, the
exercise of the Call Option and entry into JOA II does not offend the policy
behind Rule 5.2.1;

(c) NZXR is satisfied that the relationship between NZO and Beach has not
influenced the decision to enter into the 2018 Transactions (which includes
the Call Option and JOA II) as:

(i) the involvement of an independent party who holds or will hold a
significant stake in the Ironbark permits, and who has or will have
operatorship of those permits, means there is a commercial check on any
behaviour by NZO which may offend the policy behind Rule 5.2.1;

(ii) NZO has not changed, and has no ability to change, the terms of the JOAs
to favour Beach ahead of the other joint venture participants; and

(iii) the directors of NZO, who are not also directors of Beach, have
previously certified that they believe the terms of the 2018 Transactions
represent fair value and are fair and reasonable to NZO and its shareholders;

(d) NZXR accepts that the existing relationships between NZO and Beach
(through the joint ventures) are unlikely to influence the decision of the
board of NZO to exercise the Call Option and enter into JOA II;

(e) NZXR takes comfort from the certification granted by the NZO directors
who are not also directors of Beach, dated 7 November 2018, that:

(i) they believe the terms of the 2018 Transactions were negotiated, agreed
and were to be entered into on an arm's length and commercial basis;

(ii) they believe the terms of the 2018 Transactions represented fair value
and were fair and reasonable to NZO and its shareholders; and

(iii) Beach did not influence the final decision of NZO's board to enter into
the 2018 Transactions;

(f) This provides adequate assurance and protection to shareholders of NZO;
and

(g) There is precedent for this decision.

[mistaTea]

Beach Energy HY results out: https://www.beachenergy.com.au/asx/

Looks like they are anticipating Ironbark drilling to begin in December 2020 now.
Ironbark – Carnarvon Basin (Beach 21% interest)
• Preparations for drilling continuing with operator, BP
• Ocean Apex rig contracted and long lead items ordered
• Drilling scheduled to commence in December 2020 quarter
• Ironbark is a large gas prospect within tie-back distance to NWS project. Targeting deeper Mungaroo reservoirs; the primary reservoirs at Gorgon
• Beach share of drilling cost ~$35 million

They have an infographic which seems to show Ironbark drilling beginning at some point in December and going through to March/April.

Damn, I was hoping they would start in September so that Santa might bring us an extra special Xmas pressie!

[airedale]

Thanks Blackcap.

[fish]

Beach Energy HY results out: https://www.beachenergy.com.au/asx/

Looks like they are anticipating Ironbark drilling to begin in December 2020 now.
Ironbark – Carnarvon Basin (Beach 21% interest)
• Preparations for drilling continuing with operator, BP
• Ocean Apex rig contracted and long lead items ordered
• Drilling scheduled to commence in December 2020 quarter
• Ironbark is a large gas prospect within tie-back distance to NWS project. Targeting deeper Mungaroo reservoirs; the primary reservoirs at Gorgon
• Beach share of drilling cost ~$35 million

They have an infographic which seems to show Ironbark drilling beginning at some point in December and going through to March/April.

Damn, I was hoping they would start in September so that Santa might bring us an extra special Xmas pressie!

Still might be an Xmas pressie.Price normally rises when drilling starts.
I am pretty sure Andrew Jefferies said at the AGM that success at Ironbark was so big that it was worth drilling if there was only a 3% chance success.
With beach suggesting 33% and Cue 25% and srk suggesting a preferred value around 100 times that of Northington( a paltry 5% if anyone could possibly believe-and their maths is faulty as using their invalid formula it is over 7%) the sp could rise significantly.
Did anyone else hear that giveaway clue to the undervaluation of Ironbark by Andrew ?

[Wiremu]

Still might be an Xmas pressie.Price normally rises when drilling starts.
I am pretty sure Andrew Jefferies said at the AGM that success at Ironbark was so big that it was worth drilling if there was only a 3% chance success.
With beach suggesting 33% and Cue 25% and srk suggesting a preferred value around 100 times that of Northington( a paltry 5% if anyone could possibly believe-and their maths is faulty as using their invalid formula it is over 7%) the sp could rise significantly.
Did anyone else hear that giveaway clue to the undervaluation of Ironbark by Andrew ?

Fish, unfortunately "Ironbark drilling commencing in the December 2020 quarter" means any time before the end of February 2021.

[Waikaka]

Fish, unfortunately "Ironbark drilling commencing in the December 2020 quarter" means any time before the end of February 2021.

You never know with drilling schedules but the Diamond offshore Feb 10 fleet status indicates that the Ocean Apex is with Woodside Jan - Oct 2020 and then it goes to BP Oct 2020 to Jan 2021 .

http://www.diamondoffshore.com/Docum...leetStatus.pdf

Just about always delays but I would guess front end of the quarter.

[Waikaka]

and a submission to NOPSEMA on 10 Dec 2019, BP say:

"Drilling activities are planned to commence in Q3 of 2020, although depending on MODU availability, may commence between Q2 of 2020 and Q2 2021. Drilling activities are expected to take approximately 90-100 days (excluding weather and operational delays)."

https://info.nopsema.gov.au/environm...82/show_public

Definitely covering all the bases with the regulator there.

[mistaTea]

May well see some 'price action' towards the end of the year as drilling becomes imminent.

Largely meaningless to me as I am only interested in the drillin results.

Although, if the SP were to increase meaningfully from where it is now I suppose it does provide the opportunity to liquidate a small % of my shares, further reducing my already small downside should Ironbark fail.