NZ Oil & Gas (NZO)

[shasta]

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!

NZO's board should be thinking about IT's OWN shareholders first & foremost, its options are:

1. Cease funding anymore loans to Pike & await what transpires (allow shareholding %age to be dilluted, medium term strategy)
2. Look to exit its shareholding, take the loss & focus on Kupe, Tui & there exploration portfolio (short term strategy)
3. Throw more money into it to assist the long road ahead to coal production (long term strategy)

NZO has PRC shares, convertible notes, short term loans, + the coal production rights, so its a bit of a financial weave to unravel its association from PRC without putting them further in the crapper...

Personally i'd take the #2 option, but i'll assume NZO will choose #1 (for now), & hopefully not #3

Fabs, totally agree with your timeframes & cost estimates

[friedegg]

how can nzo make an imformed decision on pike by tomorrow,its stupid

[Lion]

Via ASBSEC, I see Morningstar have made a valuation of NZO at $1.08 AUSTRALIAN after the Pike explosion. (They last traded at A92c) They warn that NZO may well be oversold when it starts trading again, noting that only 20% of NZO's market cap is made up of PRC and that if NZO's sp falls by more than 20% when they start trading, it would be excessive.

Edit - I assume that means that if NZO did fall by 20% it would mean PRC had no value at all - surely that wouldn't happen? There's still a conservative $11b worth of coal there.

[Beagle]

NZO's board should be thinking about IT's OWN shareholders first & foremost, its options are:

1. Cease funding anymore loans to Pike & await what transpires (allow shareholding %age to be dilluted, medium term strategy)
2. Look to exit its shareholding, take the loss & focus on Kupe, Tui & there exploration portfolio (short term strategy)
3. Throw more money into it to assist the long road ahead to coal production (long term strategy)

NZO has PRC shares, convertible notes, short term loans, + the coal production rights, so its a bit of a financial weave to unravel its association from PRC without putting them further in the crapper...

Personally i'd take the #2 option, but i'll assume NZO will choose #1 (for now), & hopefully not #3

Fabs, totally agree with your timeframes & cost estimates

I agree with you and Fabs, its pretty clear the value the market should attribute to the PRC component of NZO's balance sheet is minimal if any. On this basis I see no logical reason why NZO should be kept in a trading halt, sure emotions are running high but the market is logical and will mark NZO back by about 20-25% (approx 30 cents) on the basis that its investment in PRC is worthless.

Obviously there will be some who believe the mine is still potentially a going concern, (I am definitly not one of them) and they have the option to buy into NZO if they still believe in the PRC story.

I agree NZO should turn off the cash tap, PRC is a mine out of cash, out of time, out of excuses and out of luck. I would strongly encourage NZO Directors to stop throwing good money after bad.

[blockhead]

In theory you are correct DONK but in reality it doesnt always work like that.

PS I was employed as a professional firefighter for 27 years !

[Anna Naum]

Salvus announcement after market today estimating that the 9% of SAM holding in NZOG is going to be worth 3.2cps to SAM NAV.

[shasta]

I agree with you and Fabs, its pretty clear the value the market should attribute to the PRC component of NZO's balance sheet is minimal if any. On this basis I see no logical reason why NZO should be kept in a trading halt, sure emotions are running high but the market is logical and will mark NZO back by about 20-25% (approx 30 cents) on the basis that its investment in PRC is worthless.

Obviously there will be some who believe the mine is still potentially a going concern, (I am definitly not one of them) and they have the option to buy into NZO if they still believe in the PRC story.

I agree NZO should turn off the cash tap, PRC is a mine out of cash, out of time, out of excuses and out of luck. I would strongly encourage NZO Directors to stop throwing good money after bad.

The Govt has backed many other dogs (yes even SCF) so let them bail out PRC & be repaid from future revenues.

The flow on effect for employment in Reefton/Greymouth area might make the Govt act

[skid]

Holy Mac! From what I can see NZO is up and running again Buy98 sELL100

[777]

Holy Mac! From what I can see NZO is up and running again Buy98 sELL100

Trading halt still in place as far as I can see.

[Lizard]

As I understand it, bids and offers can still be placed while a company is in halt, but won't be executed until halt is removed. This is the difference from suspension where all bids/offers are removed prior to re-opening.

NZO will have to release an update prior to coming out of halt. ASX would normally require a halt to finish at their open this morning, so would need a reasonable case for a further 2 day halt, but may suspend them if they don't provide an update. Since was not halted on NZX until yesterday, they might have a bit longer here.

Surprised we did not have an announcement by now, but most likely get one by 10am Aussie time.