NZ Oil & Gas (NZO)

**Lion** · 11-03-2021, 09:26 PM

Ironbark, the potential company maker, may have become the company breaker. (No one’s fault - who knows when that gas escaped, thousands or millions of years ago.)

Chairman Andrew’s ‘North Sea of the South’ dream for New Zealand has now fizzled (not his fault either, and kudos to him for dreaming big.)
With the recent surrender of permits, there are now no exciting explorations left in New Zealand or abroad for NZOG.

Kupe looks okay, yes, but it only just pays the overheads.

CUE looks okay, yes.

But overall, NZOG is in a sunset industry and has failed to spend its substantial war-chest on anything useful while oil prices were low and opportunities looked good. Oil seems to be rising and those opportunities are fast receding.

The embarrassing scheme of arrangement attempt showed that the board do not care about the interests of minority shareholders, despite their obligation to look after all shareholders.

Who knows what strategy the majority shareholder, OGOG, has for the company, or if they even have one.

The share price seems to just keep falling. It is now well below Net Tangible Assets and perhaps even below cash held in the bank.

In this dismal situation, what is left for we minority shareholders?

I think only one thing – LIQUIDATION.

Sell Kupe, share out the substantial cash in the bank, share out the valuable CUE shares (they belong to every shareholder after all), pack up the expensive tent of NZOG and its directors and let’s call it a day and all get a good night’s sleep again.

Any thoughts, anyone? Digger??
There’s been no comment since the announcement of the recent permit surrenders on ShareTrader – nothing at all.
Wouldn’t liquidation be a good option for the majority shareholder as well? Or do they have another cunning plan? Any comment from the board?

**Sideshow Bob** · 02-05-2021, 07:44 PM

Quarterly came out Friday.

Quarterly cashflow and activities report - NZX, New Zealand’s Exchange

Still trading at exactly the amount of cash in the bank.

Otherwise, it looks like auto-pilot is still fully engaged and sailing along like the Marie Celeste........

**mike2020** · 03-05-2021, 07:57 AM

So trading at more or less its cash value not including any assets, like CUE, which seems to have very positive cash flow.

**Sideshow Bob** · 03-05-2021, 10:56 AM

Originally Posted by mike2020

So trading at more or less its cash value not including any assets, like CUE, which seems to have very positive cash flow.

Correct - trading at the value of cash that NZO has in the bank. Still some more costs to pay for the Ironbark exploration, but CUE has $17m in the bank themselves.

However NZO are continuing "to screen growth opportunities that are suitable for its balance sheet. It is seeking non-operated production assets, with a preference for gas into good markets in our own region."

But how long have they been saying something similar?? A year ago they had $115m in the bank, much of the decrease for Ironbark.

Just don't seem to have a clue, drift along, spending cash on admin, board, overheads etc.

I think Lion summed it up well above.

**fish** · 03-05-2021, 11:14 AM

Originally Posted by Sideshow Bob

Correct - trading at the value of cash that NZO has in the bank. Still some more costs to pay for the Ironbark exploration, but CUE has $17m in the bank themselves.

However NZO are continuing "to screen growth opportunities that are suitable for its balance sheet. It is seeking non-operated production assets, with a preference for gas into good markets in our own region."

But how long have they been saying something similar?? A year ago they had $115m in the bank, much of the decrease for Ironbark.

Just don't seem to have a clue, drift along, spending cash on admin, board, overheads etc.

I think Lion summed it up well above.

OGOG are directing the show .
They are shrewd and I just wonder if a low share price created by the above impression suits them .
Will wait it out no matter how long it takes .

**Sideshow Bob** · 03-05-2021, 11:21 AM

Originally Posted by fish

OGOG are directing the show .
They are shrewd and I just wonder if a low share price created by the above impression suits them .
Will wait it out no matter how long it takes .

Absolutely. Everyone else is mere passengers.....

**JBmurc** · 12-05-2021, 03:42 PM

Originally Posted by Lion

Ironbark, the potential company maker, may have become the company breaker. (No one’s fault - who knows when that gas escaped, thousands or millions of years ago.)

Chairman Andrew’s ‘North Sea of the South’ dream for New Zealand has now fizzled (not his fault either, and kudos to him for dreaming big.)
With the recent surrender of permits, there are now no exciting explorations left in New Zealand or abroad for NZOG.

Kupe looks okay, yes, but it only just pays the overheads.

CUE looks okay, yes.

But overall, NZOG is in a sunset industry and has failed to spend its substantial war-chest on anything useful while oil prices were low and opportunities looked good. Oil seems to be rising and those opportunities are fast receding.

The embarrassing scheme of arrangement attempt showed that the board do not care about the interests of minority shareholders, despite their obligation to look after all shareholders.

Who knows what strategy the majority shareholder, OGOG, has for the company, or if they even have one.

The share price seems to just keep falling. It is now well below Net Tangible Assets and perhaps even below cash held in the bank.

In this dismal situation, what is left for we minority shareholders?

I think only one thing – LIQUIDATION.

Sell Kupe, share out the substantial cash in the bank, share out the valuable CUE shares (they belong to every shareholder after all), pack up the expensive tent of NZOG and its directors and let’s call it a day and all get a good night’s sleep again.

Any thoughts, anyone? Digger??
There’s been no comment since the announcement of the recent permit surrenders on ShareTrader – nothing at all.
Wouldn’t liquidation be a good option for the majority shareholder as well? Or do they have another cunning plan? Any comment from the board?

I think you make perfect sense ... made a purchase into CUE ASX 6.4c other day looks so very undervalued to peers with EVs 10x higher!!!! that only have a few exploration permits + dusters to date nil production profile only hopes of production....

CUE has the cash + cashflows they should be looking for more growth assets maybe even outside O&G ....sitting on cash at zero return doesn't make any sense esp in NZO case ..

**Lion** · 24-05-2021, 11:16 AM

Trading Halt. An acquisition, they say? I do so hope it's something to give the SP a kick in the guts. I suppose taking out CUE would be too much to hope for. There's been no comment here about any acquisition yet. I note they have put a TH on the ASX too - didn't they get pinged for not doing that a while back?
Here's hoping, guys and gals.