NZ Oil & Gas (NZO)

[Drone]

All good stuff and another 5 cents per share dividend. Mr Fish will be pleased!!!!!!!!!!!!

Headline result perhaps slightly lower than expected but divvy should be supportive.

[sideline]

Excellent result, and still a PE of 6.7
Plenty of room to rise.

[upside_umop]

Result below most analyst expectations - average around the 38cps according to asb.
Yes - divi lovers will be happy. Only another $20 million from their almost $100 million profit..thats reasonable...all up will be $40 million per year, which should be sustainable. Really didnt think DS would bail on his words earlier. All good though.

And the kupe cost pressures, as we knew about, finally came out. The dividend should offset any hardfeelings about this..will see how mr market interprets it.

[Casa del Energia]

Most significantly....

"We have been systematically screening opportunities, both in New Zealand and
overseas, and we look forward to bringing the best of these into our
portfolio, commencing in the current 2008/09 financial year."

[Hoop]

All good stuff and another 5 cents per share dividend. Mr Fish will be pleased!!!!!!!!!!!!

Yes It is nice to see that NZO management has celebrated their cash windfall with their shareholders. ( AWE management ).
This is especially good news for margin holders. I would like to think that NZO had them in mind when accessing their dividend policy for this period.

NZO Management should give themselves a pat on the back for their performance in the last 6 months...well done.

Disc hold no NZO or AWE

PPP FBU MHI STU HBY cash 60%

[Chalice]

Result below most analyst expectations - average around the 38cps according to asb.
Yes - divi lovers will be happy. Only another $20 million from their almost $100 million profit..thats reasonable...all up will be $40 million per year, which should be sustainable. Really didnt think DS would bail on his words earlier. All good though.

And the kupe cost pressures, as we knew about, finally came out. The dividend should offset any hardfeelings about this..will see how mr market interprets it.

Fortunately 40% of the Kupe cost increase is the result of enhancements to the original project scope - the other 60% should be offset by liquids prices (oil and LPG) having risen strongly. As Kupe funds are held in USD the depreciation of the NZD may help mitigate increased local costs such as labour???
As the expected return on investment in Kupe has increased significantly so maybe the increaed costs are covered from initial cost/investment/ROI statements anyway.

Interesting to see the carry value and market value of Pike differ postively by $140 million, which will be recognised upon sale.

Also the interest from the cash funds invested in short-term banking facilities may be payable at end of term, so potentially another boost to come in the next quarter or 3.

Looks like a few disgruntaled SP performance holders are taking the opportunity to bail - will be interesting to see what the close is.

[Flintstone]

http://www.nzherald.co.nz/section/3/...ectid=10529630

Tui oil sparks profit surge at NZOG - $97.2m for the year
10:15AM Friday August 29, 2008

New Zealand Oil & Gas has posted a surge in full year net profit to $97.2 million on the back of production from the Tui oilfields off the Taranaki coast.
"This outstanding result was built on a combination of high oil prices and higher than expected production from Tui," NZOG said today.
The result for the year to the end of June compares with a figure of $6.8m the year before, restated for new accounting rules.
Revenue for the year rose to $234.1m from a restated $4.2m in the previous 12 months.
Earnings before interest, tax, depreciation, amortisation and royalties were $187.7m, with total revenue from Tui of $222.8m and a gain of $10.8m from the float of Pike River Coal.
Production from Tui started on July 30 last year, with total production for the financial year at 14.2m barrels, of which NZOG's share was 1.8 million barrels and the average net sales price just under US$100 ($144.44) a barrel, the company said.
NZOG achieved project "payback" - recovery of all exploration and development costs for the Tui Area Oil Project - by December, just 4-1/2 months from production start-up.

The company's cash balance had risen to $285m from $256m at June 30, and it was well positioned to pursue new investment opportunities.
NZOG chairman Tony Radford said the company had been systematically screening opportunities, in this country and overseas, and looked forward to bringing the best of those into its portfolio, starting in the current financial year.
A fully imputed dividend of 5 cents per shares was to be paid, on top of 5cps paid in April, NZOG said.
Also important to NZOG's near and medium-term future was the progress made on the Kupe gas project, which at year end was 80 per cent complete.
Preliminary analysis of three development wells off the Taranaki coast confirmed that the wells and the reservoir had met expectations, NZOG said.
The Kupe project, in which NZOG has a 15 per cent interest, is due to commence commercial production in mid 2009.
In July 2007, NZOG also sponsored the public float of Pike River Coal, which is developing a West Coast coal mine, as a separate company listed on the NZX and ASX. NZOG retains a stake of just over 30 per cent in Pike.
NZOG shares closed at $1.62 yesterday, having ranged between $1.91 and 97c in the past year.

- NZPA

[cazzer]

Given Net profit before tax (after royalties) was $138m, was a bit surprised to then see a tax expense of $41m (about a 30% effective tax rate). I thought the company had lots of unbooked tax losses which should have substantially reduced the tax expense.

I think the answer is in the IFRS transition where the benefit of those tax losses which arose in prior years has been booked directly through retained earnings rather than to the P&L account. Can someone confirm my thinking is right and the tax losses did not evaporate.

[Hoop]

Chalice quote.
"...Looks like a few disgruntaled SP performance holders are taking the opportunity to bail - will be interesting to see what the close is."

I'm not sure that they are disgruntled Chalice...there was an opportunity to buy in last week and make a fast buck using buy on rumour sell on fact strategy.
I looked at that strategy myself last week and tried a balancing exercise of a possible oil $/barrel not rising verses increased NZO price due to temporary pre-report momentum increase. The oil market in a short-medium downtrending phase put me off so didn't act on that strategy... end result I didn't buy any..unfortunately as it happened, oil price did rebound up a little this previous week (until today).

[777]

Given Net profit before tax (after royalties) was $138m, was a bit surprised to then see a tax expense of $41m (about a 30% effective tax rate). I thought the company had lots of unbooked tax losses which should have substantially reduced the tax expense.

I think the answer is in the IFRS transition where the benefit of those tax losses which arose in prior years has been booked directly through retained earnings rather than to the P&L account. Can someone confirm my thinking is right and the tax losses did not evaporate.

They paid tax last year as well which would indicate that all available losses had been used up. Note 8 on the accounts covers it.

http://www.nzog.com/f111,57934/57934...it_Opinion.pdf