NZ Oil & Gas (NZO)

[Nitaa]

MD. you comment is more or less on the mark except for what you think that i am thinking.

The point i am getting is simply for investors to look at possible values, potential, risks etc. the numbers i am giving are pretty much based on todays numbers, not Jan 08 or Dec 08 etc.

What i havent gone into too much detail is what the risks are for Tui, Kupe and PRC. Nor have i gone into detail too much about the huge upside especially with Kupe and also with the potential for exploration in the permits that nzo hold and the permits they may have tendered for.

i hope that nzo sell prc as soon as production starts so it can realise a truer value, especially with unprecedented prices for coking coal.

MD. your comment is logical and yes it will hold back the heads to a certain degree. however from what i have seen, buyers are outstripping sellers in the sense that the bigger players are gobbling up the options from the ones who cant or do not wish to convert them. If you compare it to OC's last time, the selling pressure for the options really dragged down the heads. Now the opposite is happening is quite a unique site. simply put, the big daddies are coming to play and nzo are not just on their radar, they are snapping them up like there is no tommorrow.

Come Monday, expect a very good opening with the heads and options with high oil prices and a lower $NZ

[tim23]

Duncan- you are wrong you are treating an options issue like a bonus issue, theres an extra $1.50 per conversion so do the mathes old flella

[Nitaa]

NITA, what you miss is that if you think the shares are worth more than $1-50 at this moment then converting the options will dilute the shares worth. They are selling bits of the cake at $1-50 making a bigger cake with each slice worth less than todays price. The options must hold back the share price simply because of the nature of the game. I would say the share price would have been higher on june 30th without the options. Macdunk

Its also worth to remember thatmany posters thought that the options would hold back the sp for the few months leading up to the conversion. However i dont mind the sp being held back if i keep getting an increase of 60% in the heads for the last few months.

disc. hold maninly options but sold 70% of them last year. My money is ready for conversion when/if required

[Steve]

NZO has just given an unexpected dividend so i do not expect one at this stage.

The dividend was not unexpected. Why do you think that it was?

[tim23]

I disgaree - it was unexpected; what % of oil cos pay divys, less than 10% I suspect!

[Steve]

I recall it being hinted at when Tui was coming on stream. It would be unexpected if an annual dividend was not paid. This goes for now and for the next few years...

[tim23]

Key word hinted...

[Steve]

I will go back to the announcements for the actual wording...

[duncan macgregor]

Duncan- you are wrong you are treating an options issue like a bonus issue, theres an extra $1.50 per conversion so do the mathes old flella

TIM, you do the maths they are now letting people buy a new share for $1-50 when the market values them at $1-63. The more shares there are the less percentage of the company that they are worth. They are adding $1-50 to the company diluting your $1-65.
Its not in your best interest that the options get converted when the company is cash rich. Macdunk

[sideline]

Slightly off topic maybe, given the normal squabbling on this thread, but there
is an interesting read on FNARENA about the POO at
http://www.fnarena.com/index2.cfm?ty...DA74E8FCCC3750