NZ Oil & Gas (NZO)

[bermuda]

so about how much is a tonne of lpg worth?i hope its more than iron ore per tonne if we can sell only 15000 a year!!

I dont know what the actual price is but as a fuel it commands a premium. This is a very good little earner for NZOG.

[fish]

Somewhere around $800US per tonne is a figure I heard.

Am I correct in saying

1) Royalties are only 5% on this project
2) Production costs are minimal
3)Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely

[bermuda]

Am I correct in saying

1) Royalties are only 5% on this project
2) Production costs are minimal
3)Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely

Gidday Fish.
They are pretty impressive stats.

[sideline]

excerpt from CNN article about upcoming intelligence briefings for Obama:

A team of intelligence briefers has been named and is ready to discuss with Obama the Presidential Daily Brief, similar to the one provided to President Bush, says a message to CIA employees obtained by CNN.

According to McConnell's outlook, economic and population growth will strain resources. "Demand is projected to outstrip the easily available supplies over the next decade," he said at the annual conference.

The intelligence community's forecast indicates oil and gas supplies will continue to dwindle and production will be concentrated in unstable areas, he said. And there appears to be no relief at hand.

McConnell said studies have shown that new energy technologies -- such as biofuels, clean coal and hydrogen -- generally take 25 years to become commercially viable and widespread.

[sideline]

IEA predicts oil price to rebound to $100
Published: November 5 2008 19:01

Oil prices will rebound to more than $100 a barrel as soon as the world economy recovers, and will exceed $200 by 2030, the International Energy Agency will say in its flagship report to be published next week.

“While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over,” the report states.

The developed world’s energy watchdog has doubled its long-term price expectation from last year’s $108 a barrel for 2030 and assumes oil prices will rebound from today’s $60-$70 a barrel to trade, in real terms adjusted by inflation, at an average of more than $100 a barrel from 2008 to 2015.

The IEA’s World Energy Outlook has come to this conclusion largely because it believes companies will struggle to pump enough new oil to offset the steep production declines of the world’s older fields.

“Current global trends in energy supply and consumption are patently unsustainable,” the report states.

[bermuda]

IEA predicts oil price to rebound to $100
Published: November 5 2008 19:01

Oil prices will rebound to more than $100 a barrel as soon as the world economy recovers, and will exceed $200 by 2030, the International Energy Agency will say in its flagship report to be published next week.

“While market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over,” the report states.

The developed world’s energy watchdog has doubled its long-term price expectation from last year’s $108 a barrel for 2030 and assumes oil prices will rebound from today’s $60-$70 a barrel to trade, in real terms adjusted by inflation, at an average of more than $100 a barrel from 2008 to 2015.

The IEA’s World Energy Outlook has come to this conclusion largely because it believes companies will struggle to pump enough new oil to offset the steep production declines of the world’s older fields.

“Current global trends in energy supply and consumption are patently unsustainable,” the report states.

Thanks Sideline. This is a truly amazing turnaround in the IEA's thinking. They did as Matt Simmons recommended. Do a detailed study of the world's top oilfields.

Let's hope the world takes notice.

[Crypto Crude]

fish-Am I correct in saying

1) Royalties are only 5% on this project
2) Production costs are minimal
3)Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely

I'll add something to that...

5) the current market value of NZO suggests that Kupe is given a big phat zero...

.^sc

[friedegg]

i think kupe may be slightly comming in to play because i got home and expected nzo to have lost yesterdays gains,lower oil price,dow and pikes retreatment but they did fairly well,and the low volume indicated to me that holders arent throwing them away on down days like last month

[Bob Marley]

Quote:
Originally Posted by fish
Am I correct in saying

1) Royalties are only 5% on this project
2) Production costs are minimal
3) Nzo should net at least 15million a year from the lpg alone
4) Reserve upgrades are likely
.................................................. .................................................. ..........

Fish mon,

1) My understanding is that Kupe is subject to 12.5% AVR.
2) Kupe is a pretty big project so I'd be surprised if operating costs were minimal.
3) The market price of LPG has recently plunged from around US$800/tonne over July/Aug to around US$500/tonne currently. I've seen long-term forecasts of between US$600-650/tonne. NZO's share of Kupe LPG is currently 165,000 tonnes spread over about 15 years. So gross annual revenue from the LPG is likely to be closer to NZ$11m pa.
4) Why do you think a reserve upgrade is likely?

[trackers]

Thats fair enough STRAT but Shrewdy is becoming a worry with his attitude to only losing money if you cash up. The loss and profit is when you buy a share its todays value that counts, if you cashed out right now. The value of CUE to me is 16 c or roughly in profit 18.5%. The value of SHREWDIES CUE is 16c or roughly a loss of 25%. It depends on your window of time in other words timing is everything. The people that bought NZO at a dollar and were smart enough to time the market did really well. The people that paid money buying options converting and still holding are losers. Its all in reading the sign posts to time, and knowing when to exit your position that counts. I read the sign posts and got right out the market now is the time to look for the odd bargain, by timing my entry to whatever.
I pick with the northern winter coming on oil will uptrend in the short term. The best short term oiler i worked out is CUE which is a very illiquid stock hard to get out of if it goes wrong, so therefore its a punt not a system stock. I could buy NZO and stagnate for the next couple of years but thats not much fun. I am whippin your AR*E shrewdy keep them coming i will tell you what i buy when the time comes. Macdunk

Whats your profit now? Keeping in mind that the low of the day was your average entry price, and is now the highest buying price