NZ Oil & Gas (NZO)

[Bilo]

Good estimate. My ball park view is that it should wipe off about $100m off the market value or about 30 cps

Pike has weighed heavily on the NZO share price for a good while now. Every announcement of support has reduced the SP. There is an argument that the NZO share price would have been better without PRC, just as it would have been better with better performance from PRC. Let us give people time to work this out. No doubt the shorters are itching to unleash mayhem on the investors and the bank margin lenders are poised to remove margin loans from their clients. Vultures all or is it just survival of the fastest and nastiest? IMO there is nothing to be gained from removing the trading halt until everyone can focus on an organised commercial outcome. For now we have 29 people underground and that should be everyone's focus.

[friedegg]

trouble is bilo im getting the feeling nzo will trade tomorrow(i hope not) yet prc stays in suspension,this means some nzo holders may have important decisions to make today

[Bilo]

trouble is bilo im getting the feeling nzo will trade tomorrow(i hope not) yet prc stays in suspension,this means some nzo holders may have important decisions to make today

I would find it morally insane for NZO to trade tomorrow. There is just no excuse to addto peoples misery. Imaging getting a margin call from your husband's bank when he is still down the mine? PRC isn't going to get sorted for months even if 29 miners walk out this afternoon, and trading a few shares won't help anyone. The OZL instance and NXS during the GFC are cases where trading halts allowed time for investors to be allowed follow all eventualities. The sooner an announcement to this effect the better, IMO.

[shasta]

this is so tragic. It appears that is a very likely that the miners were all killed in an explosion on Friday afternoon and a fire is now burning in the mine. This is the end to Pike River and there will be a witch hunt which will no doubt turn up some issues.

Where does that leave nzog? Well I don't think they will get their 85 million back from Pike and expect them to have to bail them out even more to clean this mess up. There will be no way anyone will want to buy the mine, and certainly not for the valuation nzog has put on it.

There is still a small chance some miners have survived, but it is remote.

This is a disaster in more than one way

In a perverse, but investment thinking way (no offence intended), perhaps NZO will want to pursue the coal seam gas potential of the brunner seam?

Looks very unlikely Pike River will ever get consent to mine for coal now, given the enormous costs they would have to spend upgrading the mines safety standards

Out of tragedy comes opportunity?

[Beagle]

I would find it morally insane for NZO to trade tomorrow. There is just no excuse to addto peoples misery. Imaging getting a margin call from your husband's bank when he is still down the mine? PRC isn't going to get sorted for months even if 29 miners walk out this afternoon, and trading a few shares won't help anyone. The OZL instance and NXS during the GFC are cases where trading halts allowed time for investors to be allowed follow all eventualities. The sooner an announcement to this effect the better, IMO.

I don't agree. NZO directors are presently working on a statement outlining scenario's and endeavoring to provide some clarity of the effect of the PRC event on NZO. PRC is only as associate of NZO and only one of its investments. The free and open market should be allowed to get on with its business once the staement from NZO directors is issued. To wait for the financial implications of the PRC event to be quantified with any reasonable degree of accuracy on that company and consequently upon NZO would amount to an unreasonable interference with market dynamics and could put NZO into a trading halt for weeks or months, who wants that ?

[Bilo]

To wait for the financial implications of the PRC event to be quantified with any reasonable degree of accuracy on that company and consequently upon NZO would amount to an unreasonable interference with market dynamics and could put NZO into a trading halt for weeks or months, who wants that ?

Everyone who ever invested in anything and has a modicom of concern for others, or the majority of their shareholders.
Unless NZO sell their PRC interests or get taken out themselves, there is no-one that will determine the commercial outcomes of this disaster to NZO for some time. IMO

[duncan macgregor]

Of course we don't know the damage to the mine as yet and we also do not know if there is a fire down there which could be impossible to put out but if the mine is able to be saved I suspect there will be pressure brought to bear from Coasters, miners and probably Smilin John to keep it going, it can provide a lot of economic gain for the Coast and NZ.
The Indians will no doubt be very interested in whats going on here as well, don't know what the implications are if there supply contract is broken.

If its a fire BLOCKHEAD it can be put out by blocking off its air source after the rescue attempt. If it is a fire that might explain the delay in getting the rescue attempt under way. Macdunk

[fish]

I would also like a long-term trading halt on prc and nzo-would stop the sharks feeding on the shipwrecked .
I have been selling stocks today in case of a major fall in nzo . I like to have plenty in reserve to keep that margin call away
My broker says it will most likely be trading tomorrow at around $1-00

[minimoke]

If its a fire BLOCKHEAD it can be put out by blocking off its air source ....

Thats probably what the residents of Centralia were told. Its been going for 50 years and estimates reckon it should be all over in around 250 - 1,000 years.

[fabs]

First thing NZO board, turn of money supply to PRC as a 30% S/H nzo is not responsible to bring mine to prod. now that the co. is bankrupt there is no way they get any of it back.
Cost to restart the mine to production level, probably 150 to 200 mil. Think of all the possible and likley scenarios
TIMELINE:
To restart
Short, 9 -18 mts.
Medium, 2-5yrs.
Long, 5- never.
PRC IS NOT DEAD IN THE WATER , IT IS SUNK.
Time for NZO the cut loss and concentrate fulltime on it,s core activity.
The gamble has not payed off
Irregardless the outcome of the present Tragedy!