NZ Oil & Gas (NZO)

[duncan macgregor]

NITA, I dont know about JOEKING but macdunk got it wrong as well. However it taught me a lot about what to look for in a company served me really well with my trading in other companies. I feel sure TIM 23 will forgive me when i say the alarm went off at the 2006 AGM. I have never heard bullsh*t and waffle like it since my three year stint in the army.
I think once the nests get fully feathered there might be enough left to drill a few more holes in the ground before they ask for more money. Macdunk

[Kropotkin]

I think you are confused; one minute you own the stock next minute you don't, why did you buy in the 1st place if you did your management assessment??

Dear oh dear! I shouldn't really bother but here goes.
Not quite sure where confusion should be apportioned here, but I have been quite clear that I own ops but intend to downsell at a little loss (already downsold my heads at a minor profit).

My initial assessment to purchase was based on what I saw as market potential.
My subsequent decision to sell is based on actually seeing the management face to face and how they present/respond to stockholders.
In short, I don't trust them to represent shareholder value. End of story.

If I lose out in the long ran bad luck for me. I won't be crying about it though.

Anyway, enough of this sidetracking. Back to the real stuff.
I think Mick100 + shasta covered off the actual news of the AGM pretty succinctly with the addition of:

a) actively look at onshore exploration
b) wouldn't speculate (for commercial reasons) about picking up assets being shed post govt carbon announcement

[dsurf]

MacDunk - did you say anything at the 2005 AGM?

[Nitaa]

Oil bursts through another record
New 3:30PM Monday October 29, 2007

Oil prices set a new all-time high today, lifted by heightened tensions between Turkey and Kurdish rebels in northern Iraq, as well as a second wave of abductions in major oil producer Nigeria.

US light crude leapt more than half a dollar to a record US$92.43 in early electronic trade, adding to Friday's US$1.40 surge. It was trading up 52 cents at US$92.38 a barrel by midday (NZT).

London Brent crude rose 41 cents to US$89.10. It hit an all-time high of US$89.30 on Friday.

"There remain concerns that oil market conditions are tightening and geopolitical tensions are continuing to add a premium to oil prices," said David Moore, a commodities analyst at the Commonwealth Bank of Australia.
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Can someone explain to me how the call options work with regards to NZO. I have bought call options before on the Aus futures and when i came in the money i really came in the money. Thoughts please

[Mick100]

Oil bursts through another record
New 3:30PM Monday October 29, 2007

Oil prices set a new all-time high today, lifted by heightened tensions between Turkey and Kurdish rebels in northern Iraq, as well as a second wave of abductions in major oil producer Nigeria.

US light crude leapt more than half a dollar to a record US$92.43 in early electronic trade, adding to Friday's US$1.40 surge. It was trading up 52 cents at US$92.38 a barrel by midday (NZT).

London Brent crude rose 41 cents to US$89.10. It hit an all-time high of US$89.30 on Friday.

"There remain concerns that oil market conditions are tightening and geopolitical tensions are continuing to add a premium to oil prices," said David Moore, a commodities analyst at the Commonwealth Bank of Australia.
.................................................. .................................................. ...............

Can someone explain to me how the call options work with regards to NZO. I have bought call options before on the Aus futures and when i came in the money i really came in the money. Thoughts please

Nita

Nzo sold calls
so when they come in the money NZO lose
only 100,000 bbls over the next three yrs though - so nothing to worry about
.

[Mingeathinaikos]

I exited NZOODs today... never like to agree with macdunk too much, but would have been a significant amount of pinger lost had the music stopped and I couldn't find a seat.
I was slightly worried at how many were traded in the 20-30c range a few months back, those punters will be off-loading at anything above current price in the next couple of months I reckon.

Now the decision to put it all back into NZO, or scope something else.....

[shane_m]

I got out on the oil spill ann, waiting for the outcome. I reckon all oilers will get a re rating if turkey attacks PKK.

[Dr_Who]

Nita

Nzo sold calls
so when they come in the money NZO lose
only 100,000 bbls over the next three yrs though - so nothing to worry about
.

Mick, how much will this impact on their bottom line?

[boysy]

good article in the herald this morning talking about how TUIs oil helped our decrease our trade deficit last month

http://www.nzherald.co.nz/section/3/...ectid=10472869

[Bilo]

Mick, how much will this impact on their bottom line?

I'll have a go for you.


The company could have and should have answered this one properly when asked. Dismissive of the effect OK, but an explanation was requested and not provided. In any other forum I might have expected the Chair to ask the shareholder if the question was satisfactorily answered, particularly where it was a point where the company had everything to gain and nothing to lose, no reason to be seen to withhold info, no reason to race the meeting to a close having already got their bonus shares.

To me the answer required a $ figure put on it. It was answered by the CFO and he would have been very capable of putting a figure on it. My understanding is that NZO don’t “lose”. They only don’t get paid for the difference between ~USD85 and the oil price for 100,000 barrels spread over three years. The difference is unlikely to be over USD10 per barrel.

On the high side then, we are talking about USD1M over three years but remember that we are getting a decent return before this occurs.

Over that period NZO should sell in excess of 2.5M barrels and if it is priced over USD85 =USD212M. So much less than the 1pc - I think the reply was "less than 1pc" of revenue over the period.

(NZD110 at today’s exchange rate this would be NZD275M – sounds pretty good with Tui recovering NZO capitalisation within three years – the Tui operating costs were also low).