NZ Oil & Gas (NZO)

[shasta]

Could be our dividend gone-in which case I will have to start selling my stake .
This is the very last thing I wanted for nzo .

The actual costs involved at this stage are <$NZ1m...

The receptionist probably used the snack box money...

I'm not too concerned

[boysy]

AUDAX Resources believes it is in a strong position to bid for highly prospective exploration and development acreage in Romania after New Zealand Oil & Gas joined the company’s Romanian area of mutual interest agreement.



Map of Eastern Europe showing Romanian oil and gas fields

The company said NZOG became a partner after it bought Kairiki Energy’s 33.33% interest in the AMI for 235,000 euros ($A454,000). This is payable on certain milestones being achieved.

NZOG is a diversified upstream energy company with production, development and exploration in New Zealand.

The company is debt free and has a war chest of almost $NZ212 million ($A175 million).

Chief executive officer David Salisbury has an extensive European network of contacts from his time with OMV, Austria’s largest and one of Europe’s leading oil and gas corporations.

“With NZOG and Nexus Energy as partners backing the AMI, Audax is in a very strong position to successfully bid for highly prospective Romanian exploration and development acreage in the upcoming large and historically unique relinquishment of Petrom and Romgaz licences,” the company said.

OMV-controlled Petrom and Romgaz are the largest licence holders and oil and gas producers in Romania.

Audax said the since the AMI in 2007, the company has compiled a large database and identified promising areas within Petrom and Romgaz’s licences.

Meanwhile, Kairiki Energy said it had sold its interests in the Pantelleria and Kerkouane permits in the Sicily Channel to AuDAX Resources in an effort to cut exploration costs and maintain cash reserves.

Kairiki held a 30% interest in the offshore Pantelleria permit in Italy and the nearby Kerkouane permit, offshore Tunisia. AuDAX is operator of both permits and holds a 70% interest.

Under the sale, Kairiki is free of any further obligations for the two permits, including the 2009 and 2010 financial obligations of funding a 2D seismic program on Kerkouane and a well on each permit with a total estimated cost net to Kairiki of $US14 million ($A20 million).

The company will receive $US280,000 ($A408,000 ) for each permit once AuDAX farms out an interest in each permit.

This morning, AuDAX requested a trading halt pending the announcement regarding a farm-out agreement, though it’s not clear if the agreement is for the Sicily Channel permits.

The announcement is expected to be made no later than the close of business on Thursday April, 2.

Managing director Laurie Brown said that given the financial obligations required in the near term for the ventures and the current economic conditions for funding exploration activities, the company’s funds and resources would be better leveraged towards developing its lower-risk Philippines asset base.

“Kairiki’s approach is to continue our discipline in maintaining our cash reserves and clearly this significant reduction in our exploration commitments is one of several initiatives recently taken by the company in response to the current business climate,” he said.

[Balance]

Yet another NZ company thinking it can foot it overseas with the big boys. Getting sucked into a dark hole. Can just imagine the Eastern Europeans eyeing NZO's cash and grinning from ear to ear.

[bermuda]

Yet another NZ company thinking it can foot it overseas with the big boys. Getting sucked into a dark hole. Can just imagine the Eastern Europeans eyeing NZO's cash and grinning from ear to ear.

Balance,
I have met DS several times. Has a lot of European experience. I am going to wait and see the full deal before I comment. My own preference was for them to take out PPP and stay focussed on Taranaki.

If it is anything to do with the North Sea then count me in.

[digger]

Balance,
I have met DS several times. Has a lot of European experience. I am going to wait and see the full deal before I comment. My own preference was for them to take out PPP and stay focussed on Taranaki.

If it is anything to do with the North Sea then count me in.

Bermuda what pray tell is the connection between the North sea and this Romanian venture????

[friedegg]

its easy theyre both on the other side of the planet

[bermuda]

Bermuda what pray tell is the connection between the North sea and this Romanian venture????

Nexus. Had a crack at the North Sea. An experienced and enterprising Aussie oiler. Would love NZO to go into the North Sea with Nexus. Some big pockets left....after Romania.

[Nitaa]

Yet another NZ company thinking it can foot it overseas with the big boys. Getting sucked into a dark hole. Can just imagine the Eastern Europeans eyeing NZO's cash and grinning from ear to ear.

Balance. There are many companies that have been burnt by venturing the globe in some format. Don't forget, by just sitting in your own pond you will never grow. I appluad nzo for looking beyond. Whether its a good idea or not remains to be seen. I feel somewhat bemused by the lack of foresight people have and fear stepping out of their shadow. One of us kiwis biggest negative is the lack of "take on the world" attitude. I wish people like yourself would rather encourage companies to venture out rather than shoot them down for trying to

[Pipeline]

Bermuda

Nexus is cactus and is unlikely to trade again. They have huge drilling liabilities and no cash. If this is the preferred JV partner of DS and NZO, then I wish you and them all good luck.

I dont post here often, but this comment is just so wrong on so many levels.

I dont own NZO, but have lots of PPP and even more exposure to AWE, thus the interest.

PS I like the upcoming programme in Taranaki and wonder why DS is not focusing closer to home.

Pipeline

[the machine]

The actual costs involved at this stage are <$NZ1m...

The receptionist probably used the snack box money...

I'm not too concerned

any payment is only after reaching certain milestones and as already speculated on that the milestones could be making a bid under the AMI for round 10 of the release [ expected mid year] and then a successfull outcome of the bid late 2009 early 2010 as bid expected to close in October.

any bid may include developing already discovered oil or gas fields.

if any partners under AMI are short of funds to progress a successful bid, then nzo may find themselves being the operator with an increased share.

from what little have read, am pretty sure OMV would rather not divest their assets.

M