NZ Oil & Gas (NZO)

[Bilo]

Reuters today:
"Western oil companies' output has fallen in recent years and oil producing countries now prefer to award their richest fields to their own national oil companies."

I mean Australia are onto it. They started with keeping Shell's involvement in WPL down. Yet NZ back Exxon. Well I suppose Exxon is the NZ super funds largest investment....but that is not the same as developing NZ for NZers.

It seems crazy to me that NZ explorers' are not required to be in on the ground floor with the most prospective territory. The rest of the world has gone that way. The "tender processes" used favours the big guys but there must be a way of structuring the tender so that more investigative work is conducted by NZ in conjunction with Crown Minerals and then get the NZ companies to farm out once the costs become astronomic. There must be a way of the little guys learning and growing bigger in their own patch.

Buy Kiwi I say to the government/Crown Minerals. Perhaps two tier tendering where foreign company dollars only count as 30pc of NZ company dollars in evaluating mineral tendering rounds. That way the resource tender's would have to be channelled through NZ companies. Does this sound way out?

And to NZO the most profitable field development in the world must be Tui - why would you risk off shore when so much is still to be done on your doorstep? So it takes time - we can wait for the right opportunities at home. NZO has some capital now, it needs to be preserved. NZO needs to be preserved and not sold to the highest bidder as Fletcher Challenge Energy disappeared just as they were becoming useful. When it comes to capital purchases NZ'ers have never (in my lifetime) competed because our cost of capital is kept at astronomic levels. Tilt the playing field back towards our companies I say.

[Anubis]

Good news article this morning:

http://www.stuff.co.nz/4638685a13.html

In discussing acquisitions, Mr Salisbury "ruled out coalseam methane gas".

[sideline]

In discussing acquisitions, Mr Salisbury "ruled out coalseam methane gas".

I am glad to hear that. CSG would be very difficult to make a profit of and its financial
metrics are nothing like those of conventional oil and gas.

[bk]

I take it this stands for the Volume Weighted Average Price? On the Direct Broking website I see 2,042,875 shares sold for a total of $3,347,758 - which results in an average of $1.639 and that is what the page says.

However, it also shows a low of $1.60 and a high of $1.63 - how can the average be higher than the highest price? Am I missing something?

[Bob C]

BK,

The average will include the trades before the market opened; 1.2m were crossed at $166 at 9.24am.

Bob C

Still holding and buckled in for the ride north.....

[bk]

Thanks Bob, that explains it. Although the volume traded then is the volume traded after market open, not the volume traded for the day, which has the potential to skew figures.

[777]

Thanks Bob, that explains it. Although the volume traded then is the volume traded after market open, not the volume traded for the day, which has the potential to skew figures.

What I understand is that the total $ divided by the total shares traded gives the VWAP. This does include all those shares traded prior and after the market period but the price used for these is not used in the high/low for the day figures. Therefore the $1-66 is not shown for the high today.

[dsurf]

Can anyone tell me if a liability for capital gains can occur before the shares are sold, ie at the end of a financial year? or will the gain only be taxable when the shares are sold?

Looking at some big paper gains in the 07/08 financial year and am wondering if I will be liable for tax even though I have not yet sold the shares.

Technically I qualify as a trader even though I currently only do 10 to 20 trades a year.

[digger]

Can anyone tell me if a liability for capital gains can occur before the shares are sold, ie at the end of a financial year? or will the gain only be taxable when the shares are sold?

Looking at some big paper gains in the 07/08 financial year and am wondering if I will be liable for tax even though I have not yet sold the shares.

Technically I qualify as a trader even though I currently only do 10 to 20 trades a year.

dsurf are you refering to overseas shares or just nz ones? I have never heard of nz shares being subject to what would be capital gains but there was some govt plan to do that on overseas shares.I am not longer a trader but when i was about 7 years ago i only paid tax on realised profits.Still it will be good to get an update on this for this site from someone with current experience.

[dsurf]

NZ predominantly. I do not suggest this is a course of action for anyone else as borrowing to buy shares is dangerous.

However for a number of years I have used interest deductability from my NZO holdings financed via the mortage to lower my effective tax rate back towards 33%. I am currently thinking if I should continue to do this until I have no income, at which point I could then slowly sell down approx 30K a year and pay no / little tax on the capital gain