NZ Oil & Gas (NZO)

[blackcap]

I see Andrew Jeffries and co are snapping up their options this time round.

Clearly very bullish on Ironbark and the wider future prospects.

I even forgot that NZO has a lot of $US denominated cash so that will be worth a hellova lot more now too. These prices have to be a steal. Seems the price of natural gas is not being affected by crude. NZO would still be (even with their exorbitant overhead) in a profit and cash flow positive situation.

[mistaTea]

I think I mesread the first announcement...Just looked more closely:

"The Options have been issued to the Senior Manager subject to the Scheme Rules. Each Option is an option to acquire one fully paid ordinary share. Option holders will be able to exercise the Options in the period from 30 June 2022 until 30 June 2025. The exercise price for the Options is $0.61 per Option. Shares issued on the exercise of Options will be issued on the same terms and will rank equally in all respects with ordinary shares currently on issue"

So if Ironbark is successful, the the SP lifts dramatically then they can exercise their Options between 30 June 2022 and 30 June 2025 and make a bunch of money.

[Fabs37]

WELL!!

1/ How much will the present shuthdown worldwide possibly delay drilling???
2/Not realy interested in the Paper gains/losses made on the Forign Exchange Jo-Jo.
3/ Yes nice bonus-- IF --??
4/ For that hard working Super mangement team, when 100s of CEO worldwid resign for non performance or getting the booth.
While Millions of $s are sitting around for years providing a lucratieve living, For Doing What?? [ Proverbial Shangarila ]
5/ How about doleing out some to the S/Hs
It,s quite a while since they returned drips and drabs of the underused money S/Hs have put in at the last cash rising years ago.
6/ NZO must just about have the record for longest priod sitting on those MILLIONS for nzx co,s They got that one in the Bag by NOW,
7/ ACTION OVERDUE.

[Sideshow Bob]

Quesntion.....is their cash in USD's? Then this in itself is now worth quite a few more NZ peso's!

[Sideshow Bob]

Quesntion.....is their cash in USD's? Then this in itself is now worth quite a few more NZ peso's!

Just answering my own question. 2019 Annual Report, $45.6m USD, equating to $68m kiwi. Todays spot, that is $80m.

[peat]

and do they have any derivatives that would affect this?

[blackcap]

and do they have any derivatives that would affect this?

From memory negligible as their annual has a profit or loss figure relating to currency conversion. But I am only going off what I think.

[SailorRob]

What am I missing...

Not familiar with this company but at a quick glance here is what I see;

I see a company trading at a market cap significantly less than the value of its CASH minus all liabilities, so the first thing I think is this company must burn cash and the cash sitting there is from an equity raising waiting to be burned.

However this does not seem to be the case, this company has generated 486 million from operations over the last ten years and spent 261 in total investments some of which will exist now as assets to the company. It has had a net debt increase of 46 million over that ten year period. This is not only a company that can support itself - it looks like a cash generating machine.

On top of this it has returned 281 million to shareholders over ten years through buy backs and dividends.

I understand the minority shareholding and the rejection of the buy out offer, is there any way the majority shareholder could fleece the rest of the cash, maybe by spending it on something that benefits them over us? What else could go wrong here?

Cheers

[Independent Observer AUNZ]

SailorRob - all I'd say is that right now there is sufficient uncertainty in terms of when the economy (and the use of fossil-fuel reliant technologies) will emerge from Covid-19 for the shareprice to remain subject to downward pressure.

[blackcap]

SailorRob - all I'd say is that right now there is sufficient uncertainty in terms of when the economy (and the use of fossil-fuel reliant technologies) will emerge from Covid-19 for the shareprice to remain subject to downward pressure.

Its like having the chance to pay $80 for a $100 bill at present that does not happen very often. Effectively that is what the NZO share price is saying right now. The fact that Oil is below $20 a barrel, and NZO pretty much is a cash holding should be great for NZO. Means they will be able to purchase a distressed asset at super low prices. I hope the board are looking at opportunities in the next year should they arise.