NZ Oil & Gas (NZO)

[gambier33]

Thanks for the comment Chris Roberts. We all need to be reminded of history at times.

I was one of those investors in the original float of NZO in 1981. I have never regretted it. The oil floats at the time were where the action was - Petro Taranaki, Horizon etc - and they were highly sought after. I think the orginal maximum NZOG allocation (highly scaled back) was 400 shares for the mum-and-dad investors.

I've never sold a NZO share and between my wife and I have now built up what is a large number for us over the intervening thirty years. I'm way ahead, and think the company and its staff have done well for all shareholders to be where they are in 2010. I am always an optimist when a well is being drilled, but realistic enough to know that they don't always deliver. I never complain at the result - smarter people than me have chosen the target - if I didn't like it I'd move on.

I now see an exploration company become a long term producer. Tui excites, but Kupe (and, yes, I remember when it was discovered) is what will put this company in a great position to be even greater - regular income for years to come. Whether NZO use it to pay dividends or find more oil or both - I'm happy to leave it to them to decide.

Be happy :-)

[Grimy]

I now see an exploration company become a long term producer. Tui excites, but Kupe (and, yes, I remember when it was discovered) is what will put this company in a great position to be even greater - regular income for years to come. Whether NZO use it to pay dividends or find more oil or both - I'm happy to leave it to them to decide.
Be happy :-)

A refreshing post after all the BS you can read through this (and other) thread(s). It seems to me that some people like to post for the sake of reading their own comments, or upping their post score. So great to read a comment from someone who is probably very representative of the majority of investors. If you like the share you're in. If you don't get out!

[Beagle]

A refreshing post after all the BS you can read through this (and other) thread(s). It seems to me that some people like to post for the sake of reading their own comments, or upping their post score. So great to read a comment from someone who is probably very representative of the majority of investors. If you like the share you're in. If you don't get out!

Okay I conceed I may have got the year wrong but I can assure you that just after the original float the share price was $1.40. Some would like to give the misleading impression that NZO has shown a steadily improving share price over time. Nothing could be further from the truth. They may have paid 4 dividends in recent years but they are the only dividends ever paid in nearly 30 years of the company's existence.

Having said that I think they are now getting to the the point where they are bearing fruit so at $1.19 cum a 5 cent divvy and with concerns regarding peak oil at some stage in the future they're probably good buying at these sort of prices.

[Zito]

Roger the share price alone is meaningless if not taken together with number of shares on issue (ie capitalisation) and returns to investors over time. I doubt that investors such as Gambier33 would be happy with their investment in NZOG if there had been little or no capital appreciation over the past 29 years.

[Beagle]

NZOG didn't exist in 1980. It issued 40 million 50 cent shares in August 1981 (nominal market cap $20m).
In 2000, NZOG had a market cap of approx $40m (135m shares, share price 30c).
2005 approx $180m (200m, 90c each).
2007 approx $280m (255m, $1.10 each).
Today approx $465m (390m, $1.20 each).
The 5c dividend to be paid 1 October will make it 20c in dividends since April 2008.

So by your own admission Chris, in the 19 years from listing date in August 1981 to the year 2000, the share price went from 50 cents, (par, down to 30 cents). In that time the company paid how many Dividends ? let me tell you, NONE !! As we can see during that period of time the company issued significantly more shares and although my memory fails me as to the terms thereof, I think we can safely assume those new investors also lost a significant chunk of their capital.

http://www.rbnz.govt.nz/statistics/0135595.html

NZOG's performance from listing in Aug 1981 to the year 2000 was absolutly appalling. From the inflation calculator we can see that 50 cents in Q3 1981 should be worth $1.42 in 2000, but the share price was only 30 cents and in real terms investors lost 79% of their money over those two decades.

Performance since then has thankfully been better but it should be noted that the above mentioned substantial decline in value over the first two decades was against a back-drop of booming sharemarket's which far exceeded the inflation rate so in risk adjusted terms NZOG investors were really burned to a far worse extent than the simple inflation analysis suggests.

Long term the company has been an extremly poor performer, I would love to see a relative performance graph of NZO's price compared to the N.Z. sharemarket index since 1981, perhaps if your feeling extremly brave Chris you could enlighten us.

So you'll excuse me for beiong a cynical old investor and treating company claims of growth this and expansion that with a grain of salt. All your projects are now, or will hopefully shortly be bearing fruit, (assumming the boys can FINALLY get the coal mine cranking along) and I reckon its long overdue that the company paid out consistent decent dividends. I personally don't think 8-10 cents a share is an unreasonable ask going forward.

[777]

Roger, who were you before you were Roger? Your whinging sounds familiar. If you don't like the company feel free to sell a p... off.

[Beagle]

Roger, who were you before you were Roger? Your whinging sounds familiar. If you don't like the company feel free to sell a p... off.

I wasn't any other identity before as you suggest 777, a dose of reality is obviously too tough for you to take in an objective manner. I don't mind the company as it currently stands, (so with your permission of course, I might stay invested for a while seeing as there's such a paucity of other mining stocks on our N.Z. market), but anyone pretending they have been a great long term investment is sadly mistaken.

[digger]

Interesting Roger and some truth in your comments about the realy history,but unless your a historian i fail to see the relevance going forward.Over all these many years quite a few wells have been drilled.KUPE was discovered in 1986 but of little use until 6 months ago due to being overshawed by Maui. After that only TUI was found and we all know that history. Still my point here is that investers did have many opportuities to strike it rich. Going way back to the beginning as you have done please remember NZO is the only suriver from that era of which there were a far few,most i which i played with and made money but they all fell by the wayside.
I entered NZO about 91 or 92 so on those first purchases the DIV is now just equalled that first outlay. Last year to balance things out i took shares in lui of dividend so with 4 dry wells and coal harder to get out than those Chilean miners i have taken a knock this year.

Still Roger i do not understand where you are coming from by digging up the past.We were an explorer than and mostly and forever more now a producer.What is this hangup with the past??

[RRR]

Any views about DRP. I participated last time and took a hit(share price was higher-1.60 was the strike price for DRP). I will be reinvesting again this year due to the low share price and they better make good use of my reinvested dividends.

[fish]

Last year I took it in cash-ended up not needing most of it so reinvested at a profit to the drp-but with the negativity of the market ended up making a loss recently-but only a paper one as i will not sell at todays ridiculously low low price .
If the sp stays this low i might make a last minute decision to reinvest and sell other companies if i need the cash .