NZ Oil & Gas (NZO)

[mistymountain]

I struggle to see why the market does not rate NZO with its income stream that will last for the next decade and continuing exploration.

[shasta]

I struggle to see why the market does not rate NZO with its income stream that will last for the next decade and continuing exploration.

Kupe is the main thing holding NZO up at present, & thats mostly a gas project + light condensate

Tui is in decline & the lack of success with there drilling program hasn't helped, as these were meant to increase there reserves & be able to be tied back to existing tui infrastructure.

The money NZO have recently put into PRC wasn't planned, due to Pike's inability to meet forecast production targets , but in saying that when Pike River is in full swing NZO should do quite well when they eventually sell, in the short term that money could have been utilised better for NZO shareholders, but i see the longer term focus with this investment.

NZO missed a trick with PPP, & the share price is lower than NZO's entry price - this is surely a non core asset & should be divested at the best possible price, the market is aware of this.

NZO get the premium Tapis price for Tui oil & this has been quite stable in the $US70-80/bbl range (with the NZD/USD around the 0.71/0.72), so they should still be making a decent margin, they just need to have more exploration success to replace existing reserves.

NZO has the cash, but is still largely a minor player in there permits which are operated by larger companies (AWE mainly).

NZO needs to farm into some more prospective permits to boost reserves & production.

Remember the NZO board has the ambitious targets of having 2mmboe annual production, & 25mmboe reserves

A small increase in the final dividend may appease some shareholders, but NZO needs to be more actively drilling to really capture the markets attention.

[notie]

NZO has the cash, but is still largely a minor player in there permits which are operated by larger companies (AWE mainly).

NZO needs to farm into some more prospective permits to boost reserves & production.

Remember the NZO board has the ambitious targets of having 2mmboe annual production, & 25mmboe reserves

A small increase in the final dividend may appease some shareholders, but NZO needs to be more actively drilling to really capture the markets attention.

Minor player alright and I can't see it changing as nzog are so risk adverse they will never get into anything that has a faint bit of risk associated with it. Sorry, that is the nature of oil and gas exploration. nzo runs only a couple of permits and has talked a big story on one in South Taranaki, but chances are they will never drill a well there.

nzog have blown the 200 million war chest on buying some of PPP which they have now lost money on and bailing out Pike. Pike will probably make them some money in the long run, but did nzo investors really give them their money so they could bail out a coal mine?

[mistymountain]

Yes but given recent dividends, future income stream and upcoming exploration surely NZO is taking small steps forward. It's almost as if investors are super greedy and want the jackpot, cake and porsche all in the one hit.

[blockhead]

Won't matter if the cake is missing

[dsurf]

I hope NZO announce a market buyback of "up to $50m" over the next year at prices below $1,50. I would not expect them to spend more than 10% of this. This will immediately increase the SP even if they do not buy one share. It gives them the ability to manipulate the SP upwards on low volume days and also counteract any leveraged shorting plays. It is the best insurance against opportunistic takeover available and rarely is a financial mechanism in the interests of both shareholders & management & NZ like this one.

[BigBob]

I hope NZO announce a market buyback of "up to $50m" over the next year at prices below $1,50. I would not expect them to spend more than 10% of this. This will immediately increase the SP even if they do not buy one share. It gives them the ability to manipulate the SP upwards on low volume days and also counteract any leveraged shorting plays. It is the best insurance against opportunistic takeover available and rarely is a financial mechanism in the interests of both shareholders & management & NZ like this one.

Hear, hear...!! IMHO this is a total no brainer.....

[neopoleII]

yup..... its no brains all right when a company that produces and sells oil and gas has to buy its own shares to increase its sp to lift it to a level of value that it had before it even produced anything.

its a traders paradise and an investor money sink.
offer a divi better than bank rates and watch the investors support the company, and enjoy hand in hand with management long term capital gain.

if this is going to be a regular event........... sell millions of barrels of oil at top price and give its shareholders a few cents.......... whats the point?

it would seem from past performance that only a monster whale would make shareholders wealthy.
any other strike would only equal a few cents divi and a few cents increase in sp.

whats it going to take to get to $1.80?......... and further in the future?
a lucky strike whale?
and what percentage of that would NZO retain?

NZO is traders paradise.

[Hoop]

[QUOTE=dsurf;313707]I hope NZO announce a market buyback of "up to $50m" over the next year at prices below $1,50...... [/QUOTE

Hmmm...Buying your own shares worth $1.19 (NTA 30/12/2009) for anything below $1.50.....
>
>
Hey guys if I buy a sh**load of NZO tomorrow,... will you all buy them off me for $1.45 on Wednesday..that will make the NZO shareprice rise.

[the machine]

yup..... its no brains all right when a company that produces and sells oil and gas has to buy its own shares to increase its sp to lift it to a level of value that it had before it even produced anything.

its a traders paradise and an investor money sink.
offer a divi better than bank rates and watch the investors support the company, and enjoy hand in hand with management long term capital gain.

if this is going to be a regular event........... sell millions of barrels of oil at top price and give its shareholders a few cents.......... whats the point?

it would seem from past performance that only a monster whale would make shareholders wealthy.
any other strike would only equal a few cents divi and a few cents increase in sp.

whats it going to take to get to $1.80?......... and further in the future?
a lucky strike whale?
and what percentage of that would NZO retain?

NZO is traders paradise.

IMO 12 months is what it will take to see nz$1.80

M