NZ Oil & Gas (NZO)

[the machine]

see nzo now have weekly average tapis price on website under tui section

thisis good

M

[Casa del Energia]

see nzo now have weekly average tapis price on website under tui section

thisis good

M

Yes. And the web site revamp has generally produced a far more informative site. It is now very good - - wonder if the groaning about the lack of detail info had anything to do with it. (or probably not - I'd imagine a six month lead time to produce it.) (Nice colouring too. Pity about the java script)

[fish]

[QUOTE=shasta;216343]

Fish

I too had NZO on margin loan, but that was during the "bull market".

I don't use margin lending during a "bear market", way too risky!

ASB Sec had NZO on 50% loan prior to production!

Shasta

For a trader I agree margin trading would be ill-advised during a bear market .
For a long-term investor the success or otherwise of margin lending depends on whether interest rate charged is less than dividend received plus capital appreciation .
About 30% of my holding is loaned by margin trading so I feel secure that i will not recieve a margin call
A simple alternative way of looking at whether it pays to borrow to buy this share is that the earnings per share look like being around 50 cents pa -the cost of borrowing to buy a share is 17 cents(10% interest ) which for me is tax deductable at 39% so net cost is 10 cents a share per annum .Therefore total profit is 40cents per share per year .

[fabs]

Nearly 300mil. in term deposits?
Makes me a bit uneasy in the present climate!
Invested in AA or better rated Inst. now have we not heard that somwhere before?
FABS.

[zorba]

.

Fabs,

Welcome to the thread .....

Yes, it also had me worried, AA rating, wot a w.ank on the part of our esteemed rating agencies, they should all be the subject of class actions for fraudulently misleading the global investment industry with there totally false and completely self serving AA and AAA ratings for those CDOs that where riddled with sub-prime c.rap. [And locally, Hanover goes from BB+, before collapse, to D for default, they day after default, thanks to Fitch for supplying us with that wonderous example of local ratings rubbish]

Just so long as the smart alec bankers sitting on top of there 210th floor super high rise downtown Manhatten sky-scraper, can put together a totally bull.sh.ite package and then get a huge bonus at the end of year, well I am not surprised that these "fast money" mendacious bankers got bombed !!!!

I hope some republican redneck is reading this, then we can hear some more reasons why they launched such an immoral invasion and splurging trillions of dollars on a corrupt military gung-ho errol flyn kind of "dont mess with us, or else we will show you" kind of yanki-doodle we will save the world and grab the oil at the same time.

Anyway I gues NZOG'ers should thank the republican rednecks, and there democrat lackeys, for driving up the price of oil with there completely stupid foreign policy military defecations. To say nothing of the 50,000 plus Iraq civilian deaths due to "colateral" damage. Frankly Bush and all his "PNAC" (google it) sidekicks need a colonoscopy to find more about how to purge them of their colateral cr.ap.

Yes, wot a rant, but its all true, if badly spelt !!!!!!!!!!!!!!!!!!

Z

[fish]

Nearly 300mil. in term deposits?
Makes me a bit uneasy in the present climate!
Invested in AA or better rated Inst. now have we not heard that somwhere before?
FABS.

Probably over $300 million by now fabs--Tui is still producing around $900,000 a day .
If you are planning buying overseas it would have paid to have some of it in overseas currency when the Kiwi was strong .
In fact by xmas there should be around a dollar a share in the bank -not counting what pike does .
I really think they should diversify the risk-eg return 1/2 to shareholders !

[the machine]

mon/tues looks like a good weather window tol ose the rig after momoho


one wonders how much the the cost is to keep rig on station waiting to move and who pays for it


m

[digger]

mon/tues looks like a good weather window tol ose the rig after momoho


one wonders how much the the cost is to keep rig on station waiting to move and who pays for it


m

We do ,so it looks like it turned out to be an unfortunate call to not explore both sides of the Momoho fault.Would imagine there would be a daily charge for having the rig on site but it will be less than drilling. As a farmer i know only too well how easy it is to call the weather wrong but that is what happens when you are up against nature.

[Corporate]

This morning I've been thinking about what is going to make NZO's share price appreciate in the long term.

1. Tui - We all know it has performed beyond any expectation, and high oil prices have just further compounded this. However, the best is probably behind us, as production is set to decrease. The market knows how successful Tui has been and unless further reserves are discovered, I can not see this as a driver of a higher share price. The future revenues are factored in, along with market sentiment.

2. Kupe - Apparently 80% complete. As and when Tui revenues decline. Kupe will hopefully kick in, and will enable NZO to maintain a steady stream of revenue. However again, I don't see it as driving the share prices from where we are currently at. Tui down, Kupe takes over.

3. Pike - Is Nearing productions which should see a re-rate. It seems that NZO's intention, from what I understand has always to eventually sell out in one way or another. This will just add further cash to the kitty, and isn't really a long-term share price driver.

4. Momoho - A bit of a dead duck for the foreseable future.

So the long term share price appreciation seems to hinge on what NZO do with all the Tui and Option Cash. They are fundamentally sound; with the value of cash and PRC totaling about half the current market cap, along with steady income streams from Tui and then Kupe.

I'm not in favour of NZO paying out a 10-20c dividend for the sake of it. I want growth, and a heafty dividend is short term thinking in my view! Sure if they can't find something worth spending the cash on, then fine, give it back.

Even buying PPP and returning any revenue to shareholders above payback would be a better option than spending what cash we currently have on a dividend. Once it's gone, it's gone.

This is a bit of a thought dump. But interested to see other peoples views.

[Mick100]

sounds like it's time for you to sell