NZ Oil & Gas (NZO)

[fish]

Sorry Lion it was a back of envelope calculation a couple of months ago and I am away from home for 10 days even if I still have it.
It was an order of magnitude higher than current sp-likely I have no aptitude for this kind of valuation-or could the market be driven by past negative emotion about NZO ?
In this weeks presentation the asset value per share equates to about 130 cents but It looks to me that the recent enormous increase in gas prices is going to be sustained so would multiple the valuation.

[Joshuatree]

The way energy shortage and pricing is going I want exposure to it.This is the only NZ company I can park some $ (a smallish amount).Im fully aware of management's past records(not good) and consider this as a minimal risk of downside and a high risk of some upside,waay better then sitting on call.Park and Ride,a safe value trap atp with upside IF you believe in the unfolding energy crisis.
Not invest advice ,do your own research..

[Sideshow Bob]

New Zealand Oil & Gas Limited (NZX: NZO, ASX: NZO) announces an equity raising of up to NZ$25 million through a 1-for-2.7625 renounceable rights offer.
Included in this announcement:
- Offer announcement;
- Investor presentation;
- Cleansing Notice; and
- NZX Corporate Action Notice

NEW ZEALAND OIL & GAS ANNOUNCES UP TO NZ$25 MILLION EQUITY - NZX, New Zealand’s Exchange

[mistaTea]

https://www.nbr.co.nz/node/234217?ut...rce=Heads%20Up

Hand over more cash or be diluted.

OGOG won't mind...another opportunity for them to increase their holding %.

"The equity raise is supported by New Zealand Oil & Gas’ largest shareholder – O.G. Oil and Gas Singapore PTE (OGOG) with a 69.86% stake - which has committed to taking up its $17.465m share of the offer and to take up any shortfall, subject to the regulatory restrictions described above."

[Sideshow Bob]

https://www.nbr.co.nz/node/234217?ut...rce=Heads%20Up

Hand over more cash or be diluted.

OGOG won't mind...another opportunity for them to increase their holding %.

"The equity raise is supported by New Zealand Oil & Gas’ largest shareholder – O.G. Oil and Gas Singapore PTE (OGOG) with a 69.86% stake - which has committed to taking up its $17.465m share of the offer and to take up any shortfall, subject to the regulatory restrictions described above."

Have to be cynical about this, and agree, again OG taking the opportunity to increase their holding.

NZO have a history of squandering cash. The next quarterly update should be literally any day now, but at the end of 2022, they had over $33m.

They just came out with their shareholder presentation exactly 1 week ago. 2022-03 NZO New Investor presentation v17f (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)

Page 11, they have for the 6 months to June 22 revenue approaching $50m, net operating cashflow close to $20m, and cash balance pretty close to same as end of 2021, so around $30-33m. Net investing cashflow in the half year of around $20m.

Now a week later they decide to raise cash? For Amadeus, a new well for Kupe (which they own 4% of), and POTENTIAL support for Cue if they decide to further develop assets.

They're making this up on the fly, right??

[fish]

https://www.nbr.co.nz/node/234217?ut...rce=Heads%20Up

Hand over more cash or be diluted.

OGOG won't mind...another opportunity for them to increase their holding %.

"The equity raise is supported by New Zealand Oil & Gas’ largest shareholder – O.G. Oil and Gas Singapore PTE (OGOG) with a 69.86% stake - which has committed to taking up its $17.465m share of the offer and to take up any shortfall, subject to the regulatory restrictions described above."

To me the value of the assets and potential(soon to be realised ) is many times the share price .
The rights issue is not the concern .
It is the move to asx and loss of important nz minority shareholders rights is of great concern .

[mistaTea]

Have to be cynical about this, and agree, again OG taking the opportunity to increase their holding.

NZO have a history of squandering cash. The next quarterly update should be literally any day now, but at the end of 2022, they had over $33m.

They just came out with their shareholder presentation exactly 1 week ago. 2022-03 NZO New Investor presentation v17f (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)

Page 11, they have for the 6 months to June 22 revenue approaching $50m, net operating cashflow close to $20m, and cash balance pretty close to same as end of 2021, so around $30-33m. Net investing cashflow in the half year of around $20m.

Now a week later they decide to raise cash? For Amadeus, a new well for Kupe (which they own 4% of), and POTENTIAL support for Cue if they decide to further develop assets.

They're making this up on the fly, right??

Well, they clearly have a plan for projects they want to exploit. And there will be good reasoning behind why they want $25M for the various initiatives...OGOG would not waste $17.5M+ of their share for nothing.

But everyone just has to understand that NZOG is effectively run like a private company now. Whatever OGOG want to do is what is going to happen.

That is not necessarily a bad thing, as these guys do have a lot experience in O&G, and clearly think there is money to be made in this part of the world.

But due to the illiquidity of the stock, the SP will always languish relative to what it is theoretically worth (based on earnings, equity multiples etc). If these projects come good then long term shareholders might look forward to a decent return in the future by way of dividends...

But that is a gamble, because the dividends will be such piddly sums (by OGOG standards) and subject to tax. They are more likely to do what anyone would do if they were a big conglomerate that owned NZO privately (which is what they effectively do right now as stated above) - and that is reinvest the earnings into bigger projects.

That is the right way to go from an investment perspective (it's what I would do!). But this process can take many years with no guanrantees...and in the meantime minority sharehoders have to sit tight with no dividend and a low SP (so zero return).

NZO might still be a good investment to the right personality type with long investment horizons...but as I have said before, you have to be comfortable going along for the ride with whatever takes OGOG's fancy. If you don't like something they decide on, even if you got every single minority shareholder to vote with you it will come to naught.

[Chippie]

Have to be cynical about this, and agree, again OG taking the opportunity to increase their holding.

They're making this up on the fly, right??

I believe you are correct

[nztx]

Thought NZO already had quite a Cash pile ?

Is this a last "Screw the Kiwi Stakeholders Over" before basically migrating to ASX ?

Hope ASX take careful note of the major Stakeholder's playbook carried out
on NZX

[Joshuatree]

To me the value of the assets and potential(soon to be realised ) is many times the share price .
The rights issue is not the concern .
It is the move to asx and loss of important nz minority shareholders rights is of great concern .

Yeah agree.Its a perfect storm for oil and gas for many years.Fish Aussies love little oilers and the liquidity will improve greatly,especially in this hot,sexy,lubricating sector.