NZ Oil & Gas (NZO)

[bermuda]

This stock has 12000 odd shareholders and many of them dont understand that NZO has just about booked in annual revenues of over $NZ100 million per annum for the next 15-20 years,....

Until they do the sp could go anywhere,...but when they do the sp will go well north of where it is now. We will see some retraction today but with sausage rolls being served at both the PRC AGM tomorrow and at the NZO AGM on Friday I would expect a lift and a continual lift as the Kupe drilling gets nearer.

PS you picked on NWE and AED being down substantially.They were hit by news of reduced production and sand problems.Not really fair of you to include them as part of the sell off..

No such problems with Tui

[Onthemoney]

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.

Hi Nita

Sorry I have been referring to the first block of shares they sold a few years ago.... Not any before Tui....

[oldowl]

Tough rock drives costs up
By MARTA STEEMAN - The Press | Thursday, 25 October 2007

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Tunnelling the Pike River coalmine has proved more difficult than expected, Pike River Coal's shareholders were told yesterday at the firm's inaugural annual meeting.


"In fact, based on tunnelling experience to date we now expect nearly all the tunnel to be in the more expensive rock classes, rather than a maximum of 40 per cent," managing director Gordon Ward told about 70 shareholders at the meeting, which was held at the mine site.

The 2300-metre tunnel to the coal seam was 71% complete with 666m to go. Pike River Coal (PRC) expected to hit the coal seam next April 30.

That was about a month later than previously forecast although there was still potential for more slippage of one to three months, Ward said.

Last month, PRC said it had approved an $11 million increase for the extra tunnelling costs taking the approved budget to $185m, excluding a working capital budget of $33m.

Since July 2005, $105m had been spent on the underground mine development. The mine is in the Paparoa Range, 46km north of Greymouth with the access road cutting through Department of Conservation land. PRC raised $85m in an issue of shares to the public in July. Overall, the benefit of higher coal prices was expected to more than offset the increased mine development costs, Ward said yesterday.

Pike was poised to reap the benefit of an expected jump in hard coking coal prices next year. China and India were big influences on the price. For the first time China had become a net importer of thermal and coking coal.

Ward said market commentators were expecting premium hard coking coal – the type PRC would produce – to sell about $US120-125 a tonne from next April, compared to the current price of $US96.

Construction of the $19.2m coal preparation plant was expected to start at the end of the month and be completed in May next year in time for the first processing of coal.

Production in the first 12 months to April 2009 was forecast to be 240,000 tonnes building to 1m tonnes in the following year.

In the next six months the company would recruit 50 staff.

The company was looking at options to transport the first coal exports of about 60,000 tonnes next year. A possibility was by rail to Lyttelton Port.

Transport by two purpose-built vessels from Greymouth to Taranaki for export from there was being finalised by the West Coast Coal Consortium, Ward said.

Ward told shareholders coal exports were to be exempt from the Government's carbon emissions trading scheme.

Once the mine was running at full capacity, PRC's mine would be the fourth largest employer in the Grey District and would spend about $35m a year in the local economy on labour, services, power and transport.

[Toddy]

Looks like they may be giving away free Tui down on the Naki.

STOCK EXCHANGE ANNOUNCEMENT

24 October 2007

Taranaki Basin incident

AWE Ltd, as operator of the Tui Area Oil Project, has been informed by New
Zealand authorities that degraded oil, in the form of tar balls, has washed
up on a stretch of beach on the country's Taranaki coast.
AWE is working closely with New Zealand authorities, including Maritime New
Zealand and the Taranaki Regional Council, to identify the nature and source
of the oil.
AWE, has been asked for and supplied, a sample of Tui crude to Maritime New
Zealand for analysis and comparison with the degraded oil washed up on the
coast.
Taranaki Regional Council, which is co-ordinating the cleaning of the beach,
has collected approximately six cubic metres of oil contaminated sand,
understood to be the majority of the affected area.
The Tui area oil project lies approximately 60 km from the affected Taranaki
coastline.

[duncan macgregor]

Six cubic metres is a big spill to big to be a little accident so someone will pay a hefty fine. The sp will take a tumble making a good buying opportunity the moment we know who spilled what. They are a little unlucky with wind direction, that points to it being a TUI spill. The winds have been gale force west to south west with huge seas. Hope its proved that they are not the culprits, but who knows at this point. Get ready to buy in at under a dollar, might make a decent trade next week. Macdunk

[Ripping]

Six cubic metres is a big spill .... Macdunk

They've removed 6 cubic m of contaminated sand, not to say that it was a spill of 6 cubic metres. Thats about a truckload of sand they've removed. Not good news... but no reason to think it was anything but a small spill....

[shane_m]

I am out until the investigation results ann, just minimizing risk.

[JBmurc]

maybe perfect timing as my funds will be in my new NZ ASB account next week sub $1 NZO sounds good to me and maybe a top up in PPP- 100k to be invested

[arjay]

They've removed 6 cubic m of contaminated sand, not to say that it was a spill of 6 cubic metres. Thats about a truckload of sand they've removed. Not good news... but no reason to think it was anything but a small spill....

6 cu metres of contaminated sand found on one one area of beach 60 km from the source suggests a rather large amount of oil lost.

[bermuda]

My two cents on this is that these tar balls are shipping discharge from one of the numerous vessels that enter the Taranaki Port.

Reminds me of the old days in Bermuda when the beautiful pink beaches were an illusion because when you went to stand on the sand you sunk down into black tarry oil that had been illegally discarged by ships in the area.The hotels and motels had bottles of drycleaning fluid to use to clean your feet.

The international maritime union got onto it as it was becoming a problem worldwide and within a couple of years the problem was almost eliminated by heavily fining those vessels owners.

Oil has its own 'DNA' (Nickel : vanadium ratio) and the culprits were easily found.

This oil could be from anywhere but the source should be found with a good bit of detective work. My pick would be from a vessel and not associated with Tui ( a very light crude oil).

However it could have come from one of the support vessels or from the FPSO but my pick is from something else.

You have to be an optimist otherwise the world could get very bleak.