NZ Oil & Gas (NZO)

[Sideshow Bob]

Can someone please remind me approx how much per barrel it costs to produce out of Tui - I have a figure of about $10 USD per barrel??

Thanks
SSB

[upside_umop]

Good post unicorn.

Fish, would you not consider NZO expanding overseas is just a not a little different to WHS and TEL?

Geology changes, yes..but not so much that NZO's experienced team couldnt exploit other areas overseas. There is no brand challenge (WHS had to try convince australians to convert to them...so did TEL). NZO will always be able to sell oil, because it is a common good at the market place. It doesnt have to convince people to buy it.

[Sumnerned]

Well said, Unicorn.

I'd just add that many NZ investors also seem to have a fixation with dividends.

[friedegg]

Well said, Unicorn.

I'd just add that many NZ investors also seem to have a fixation with dividends.

probably because it makes them feel like its a bit like putting money in a bank

[fish]

Good post unicorn.

Fish, would you not consider NZO expanding overseas is just a not a little different to WHS and TEL?

Geology changes, yes..but not so much that NZO's experienced team couldnt exploit other areas overseas. There is no brand challenge (WHS had to try convince australians to convert to them...so did TEL). NZO will always be able to sell oil, because it is a common good at the market place. It doesnt have to convince people to buy it.

Absolutely-everycase is different . I have only recently sold out of air nz but you will recall it was the purchase of ANSETT that resulted in the loss of shareholder value and eventual near government buyout to prevent it going down . You have to admit nz companies buying overseas assets seldom preserves shareholders funds-so why do it ?-you need very good reason in my opinion

Have we really exhausted Staying in this country and trying to maximise shareholder value eg-by further drills in taranaki plus maybe taking a big stake in ppp plus other local oppurtunities -?csg etc.-this would allow dividends to be paid with imputation credits not forgetting lower royalties .?

If NZO ventures overseas it will likely need shareholder approval . I wonder how many shareholders would vote against it and seek minority buy-out rights .
This board needs to realise they should try and keep all shareholders happy . Rather than putting 280 million in bank accounts I think 200 million would have done and a 20 cent dividend with full imputation credits could have been paid

If this had been the case today I believe the sp would have been close to 2 dollars and we all would be very happy .

[digger]

Good post unicorn.

Fish, would you not consider NZO expanding overseas is just a not a little different to WHS and TEL?

Geology changes, yes..but not so much that NZO's experienced team couldnt exploit other areas overseas. There is no brand challenge (WHS had to try convince australians to convert to them...so did TEL). NZO will always be able to sell oil, because it is a common good at the market place. It doesnt have to convince people to buy it.

True oil is international sold and you sure do not have to convince people to buy it. If that was the only problem with this sudden desire to expand overseas i would be all for it .The problem is much greater.Here is my gut feelings against it.
Firstly i started in NZ in 1962 with nothing and as i finanically grew found i had to constantly leave behind former friends or go down the road they took. In nearly all cases this road was that at some stage most people get money and blow it.I would have to have many more fingures and toes to count them.So the problem is after a long time having no money then getting some and suddenly haveing to do a big spendup just because you can. That policy leads to the complete cycle where you soon have no money and are back to square one. Seen it too often .NZO could easily lose vast amounts by rushing overseas,and rushing overseas is any time in the interval of 5 years after you first find yourself no longer broke.
Changing laws and resource nationalisation is the first order of the day with oil development these days.Super oil companies are being pushed around all over the globe.What chance does little NZO have it this enviroment with the very small pot of gold we now have.Remember we just began to get money in the last year and i say are biggest threat is the way new money almost always burns a hole in the newbe wealth pocket.
NZ or AUS is where we should stay for the forseeable future.I love NZO too much to see us risk this just because we have two bob to rub together,and by international standards that is all we have.

[digger]

Fish good call on suggesting that sellers consider holding off until after the quartely. Anyone taken that advise will be well rewarded from tomorrow.

[Corporate]

True oil is international sold and you sure do not have to convince people to buy it. If that was the only problem with this sudden desire to expand overseas i would be all for it .The problem is much greater.Here is my gut feelings against it.
Firstly i started in NZ in 1962 with nothing and as i finanically grew found i had to constantly leave behind former friends or go down the road they took. In nearly all cases this road was that at some stage most people get money and blow it.I would have to have many more fingures and toes to count them.So the problem is after a long time having no money then getting some and suddenly haveing to do a big spendup just because you can. That policy leads to the complete cycle where you soon have no money and are back to square one. Seen it too often .NZO could easily lose vast amounts by rushing overseas,and rushing overseas is any time in the interval of 5 years after you first find yourself no longer broke.
Changing laws and resource nationalisation is the first order of the day with oil development these days.Super oil companies are being pushed around all over the globe.What chance does little NZO have it this enviroment with the very small pot of gold we now have.Remember we just began to get money in the last year and i say are biggest threat is the way new money almost always burns a hole in the newbe wealth pocket.
NZ or AUS is where we should stay for the forseeable future.I love NZO too much to see us risk this just because we have two bob to rub together,and by international standards that is all we have.

Digger - this is why you should be on the board!

I wonder what will happen tomorrow?

[zorba]

........ This board needs to realise they should try and keep all shareholders happy . Rather than putting 280 million in bank accounts I think 200 million would have done and a 20 cent dividend with full imputation credits could have been paid

If this had been the case today I believe the sp would have been close to 2 dollars and we all would be very happy .

Fish, steady on, If I read the announcements correctly, NZO currently has approx NZ$64m of debt on its books ...... perhaps the company should first neutralise the debt before contemplating more dividends.

And IMHO there's no point in raising big bucks and then immediately given a whole heap back to shareholders.

I'm picking that as PRC achieves the milestones to significant coal production we will see PRC further uprated.

Given robust coking coal and oil prices, seems to me that NZO's shareprice will continue to be uprated as well .... $2 per share is achievable provided the US doesn't hit the skids.

Overall I agree with Unicorn, I think NZO management are doing a good job -- the next three months leading up to the Annual Report and the Sept Quarterly Report plus the AGM will all be very interesting.

No doubt we should get some steerage on where NZO is heading.

Also agree with Digger and others that NZO has to be careful with overseas projects .... I wonder how much attention has been given to joining some of the big AWE permits to the north-west of Tui ?

Z

.

[Anubis]

I've been thininking about that extraordinary finish on the market today (a buyer coming in and buying the large number of shares they wanted in the closing auction, with seemingly little regard for what price they had to pay compared with what prices were available earlier in the day). It is typical behaviour of institutional funds making adjustments to their portfolios on the last day of the month - unlike smaller individual investors they're not too worried about a few cents here and there in the price they pay - they need to buy a certain amount and they do it in the closing auction, and often on the last day of the month. Likewise all the crossings after market close. I assume that some of the funds will want or need to have increased their holdings in NZO due to increases in market cap weighting this month.