NZ Oil & Gas (NZO)

[Onthemoney]

I hope i havent killed off what has been a pretty good discussion and thoughts while i have been relaxing on a tropical island the last few days. I would like some feedback or thoughts from digger, SC, Shasta etc on my previous post. Like in any good discussion one needs to ask all types of questions even if it challenges or questions your own judgement.

The initial response why they sold PPP was to some efect help reduce debt and possibly help in an aquisition. However i ask myself that if i was in the same shoes would i have done the same for the same reason? I keep coming up with no, except they think that PPP had reached a premium price. Apart from that i just dont buy into any of the other arguments.

discl. Have held NZO for 5 years although have 70% of my NZO and OD portfilio this year.

Hi Nita

NOG had to sell PPP to get some cash. They were in a very poor cash position before they sold the shares.

[shasta]

Hi Nita

NOG had to sell PPP to get some cash. They were in a very poor cash position before they sold the shares.

OTM

Totally agree, NZO did not wish to exercise the PPP options, & at a time where they had little cash, & selling the PPP shares would mean they didnt need to tap into there loan facility money (setup for Tui & Kupe).

NZO do have cash now (& did have), but the difference being it wasn't "available" for use.

Like the situation we have at present - over $30m in the bank, but during the last quarter NZO drewdown $5m for working capital, because $25m of there cash holding has already been earmarked for Pike.

Nita - I hope that clarifies your query.

[Nitaa]

thanks for that. the commitment to Pike seems to have been premature then. although as a substantial holder of Pike they must have needed to make that commitment to appease the bankers.

i guess no different to many own peoples personal finances... need to rob peter to pay Paul

[digger]

Nita,come to the AGM and ask that question. See you their.

[Nitaa]

Nita,come to the AGM and ask that question. See you their.

Are you referring to the question of why did NZO sell their PPP? I agree that they may not have been in an ideal position to fund their options but i still dont agree with Shasta and OTM that they needed the cash. They sold about a week prior to June 30th if i am not mistaken so it would like for the profit/loss statement. In less than 2 weeks from the time they sold Tui was pumping. Forward contracts of Tui was sold by Mitsui so cashflow was almost at the point that that NZO sold their shares. That is the reason for my question. Perhaps NZO needed to come up with money by June 30th but with caskflow iminent from Tui i just dont buy it. There may be 100 plus reasons for them selling when they did and most likely i will never know the real reason as they have pretty well covered themselves.

Will i attend the AGM? I would love to but i have other commitemtns that will have me out of the country at the time.

What i have been saying is not to detract from what DS is doing as i belive his efforts will be well rewarded for the shareholders. I have maintained for some time that i was never a fan of TR but since i was from Taranaki myself i know that DS is a pure bred (unless he was from south of New Plymouth). Seriously though i like his approach so far and hope it continues.

[the machine]

Quarterly out - I see they've dumped the Felix prospect.

per crown minerals felix is in play for mid 2008




NZOG sets ambitious exploration and growth targets
19 October 2007 - Wellington-based, New Zealand Oil & Gas, has laid out an ambitious exploration spending plan, and reserves and production growth targets in its 2007 annual report.
The rise in spending will follow the big increase in cash flow it has started to receive from the Tui oil field.

Chief executive officer David Salisbury says the company plans to spend around $25 million on exploration in the 2008 financial year.

He says that NZOG has set an “ambitious growth target” of increasing its current reserves from 14 million barrels of proved and probable (2P) reserves to 25 million barrels by 2012.

The company is also targeting to double production to two million barrels a year by 2012.

The nearshore North Taranaki Felix oil prospect, which NZOG operates has been recently upgraded after new seismic data. Drilling is planned around mid 2008.

The Kupe gas condensate offshore field in which NZOG is a partner (and where production drilling starts inside two months) will also see the planned Momoho-1 exploration well drilled in the second quarter of 2008.

Mr Salisbury says NZOG is also building an inventory of new exploration opportunities, seeking fresh exploration acreage, and is on the look-out for acquisition opportunities.

A key priority has been to recruit further experienced staff capable of realising NZOG’s growth strategy.

Recently a number of people have been appointed to the positions of chief geophysicist, staff geoscience co-ordinator, reservoir engineering manager, public affairs manager, commercial manager and legal counsel.

At current oil prices and exchange rates, NZOG’s share of Tui revenues over the 2008 financial year is expected to exceed $100 million.

The additional 15% upgrade in Tui reserves to 32 million barrels would at current prices deliver NZOG approximately $50 million in additional revenues with only minor costs.



Last updated 18 October 2007



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[duncan macgregor]

Lucky your market was on holiday yesterday and missed the knee jerk reaction to the drop in the DOW on friday. NZO did rather well on a small turnover down 1.5%. NWE went down 18.8% and AED 13.8%. The DOW is up at the moment so you might miss out on the drop.
Question are the shares now cheaper to buy in AUSTRALIA even with the exchange rate difference or will your sp drop or theirs rise straight away?. Macdunk

[Mingeathinaikos]

Lucky your market was on holiday yesterday and missed the knee jerk reaction to the drop in the DOW on friday. NZO did rather well on a small turnover down 1.5%. NWE went down 18.8% and AED 13.8%. The DOW is up at the moment so you might miss out on the drop.
Question are the shares now cheaper to buy in AUSTRALIA even with the exchange rate difference or will your sp drop or theirs rise straight away?. Macdunk

Macdunk, this is relatively constructive post for you on this thread, well done! Lets hope it continues this way.

[duncan macgregor]

I would say that NZO will drop about !% in NZ and rise about !% in Australia today to get back to near level. C-MON noggers give out your prediction before the market opens. That would be more interesting than waffling on about PEAK OIL surely. Macdunk

[Hoop]

107
Sorry I cheated