NZ Oil & Gas (NZO)

[trackers]

Still no drilling at Momoho!! wtf?

[whirly]

okay - here I come.

10k capital

I want to invest 30% of my capital in NZO please in very simple terms explain should I buy options or heads?

I plan to also invest 20% into PRC and will hold 50% cash.

Sorry for such a basic question but for all my reading I still cant work it out for myself.

[Sehnsucht888]

Kupe Info

NZO
05/06/2008
MINE

REL: 0944 HRS New Zealand Oil and Gas Limited

MINE: NZO: Kupe Development Wells Drilling and Testing Summary

New Zealand Oil & Gas Ltd (NZOG) advises that the drilling and testing of the
three Kupe Development Wells in permit PML 38146 has been successfully
completed.

The three wells have been safely suspended pending the start-up of the Kupe
Gas Project by the middle of 2009.

Preliminary analysis of the well results, and in particular the well testing,
confirms that the wells and the reservoir have met expectations.

A composite summary of the well test results is as follows. Please note that
there is a change to the data previously released for Kupe South 6 (KS-6) as
not all correction factors had been applied to the condensate flow rate at
that time:

Key:
Well
Top Depth (m)
Bottom Depth (m)
Sustained Gas Rate(MMSCF/D)
Sustained Condensate Rate (STB/D)
Choke Size (1/64")
Surface Flowing pressure (psig)
Fluids Recovered
KS-8 3,513 3,575 33 3,840 64 2,100 Gas & Condensate
KS-6 3,014 3,106 41 5,130 56 3,030 Gas & Condensate
KS-7 3,188 3,280 42 6,393 56 3,051 Gas & Condensate
*Depths are MDRT (measured depth below rotary table).

Drilling of the three development wells began on 19 December 2007. All three
wells reached their target depths.

Well 22 inch 17 inch 12-1/4 inch 8-1/2 inch 6-1/8 inch
KS-6 560m 2,000m 2,895m 3,385m
KS-7 566m 2,000m 3,116m 3,454m
KS-7 ST1 3,503m
KS-8 568m 2,184m 3,429m 3,834m
*Depths are cumulative and show total well depth.

The ENSCO 107 drilling rig has now been secured for moving to the Momoho
exploration well location and will do so as soon as a weather window is
available. Momoho is approximately 6km southeast of the Kupe central field.

The Kupe Project is located within permit PML38146 in the offshore Taranaki
Basin, New Zealand, approximately 30km off the coast. The development
comprises production wells tied into an unmanned offshore platform, a 30 km
pipeline to shore, and an onshore processing station.

Participants in the Kupe Gas Project are:
Origin Energy Limited (through its subsidiary Origin
Energy Resources (Kupe) Limited)
50% (Operator)
Genesis Energy (through wholly owned subsidiaries)
31%
New Zealand Oil & Gas Limited (through wholly owned subsidiaries)
15%
Mitsui E&P Australia Pty Ltd
4%
End CA:00165635 For:NZO Type:MINE Time:2008-06-05:09:44:53

[Sehnsucht888]

Surely thats got to help the cause...

[bermuda]

okay - here I come.

10k capital

I want to invest 30% of my capital in NZO please in very simple terms explain should I buy options or heads?

I plan to also invest 20% into PRC and will hold 50% cash.

Sorry for such a basic question but for all my reading I still cant work it out for myself.

Whirly,
Go and buy some Heads and then relax.
Cheers.

Sorry, I reread your post and saw that you were going to hold 50% cash when both NZO and PRC are screaming to be bought??

Come on Whirly. Put it all on....and then sit back and relax.

[COLIN]

Just look at the lineup of large buyers for the options this morning!

[Nitaa]

okay - here I come.

10k capital

I want to invest 30% of my capital in NZO please in very simple terms explain should I buy options or heads?

I plan to also invest 20% into PRC and will hold 50% cash.

Sorry for such a basic question but for all my reading I still cant work it out for myself.

You have left out pertenant info but going by what you are saying then you have no choice but to buy heads. Since you are looking at the term "investing" this means you should be looking at something not so risky. If you want to gamble then thats something else. In short, if you buy the options you have not enough left of you 5k to convert.

[whirly]

Thanks Nita and Bermuda

Nita - what did I leave out?

But agreed looks simpler just to buy the heads. Im going in - hope I dont have the cujo effect

W

[COLIN]

"Wells and reservoirs have met expectations".
Surely that should help to reinforce confidence. It does for me anyhow, and I will convert even more of my options.
And look at the PRC price - should power through $2 very soon now.

[The Great Gold Guru]

Have procrastinated about buying a few NZO for a couple of weeks now. This sell-off in oil the last few days has given me a "get out of jail card" so to speak as I thought NZO sub 160 days might have been over. Anyway just jumped in and bought 50,000 NZOOD at 5c. Will convert in a few weeks and sit back and enjoy the ride.