NZ Oil & Gas (NZO)

[Bilo]

Hey, TA got me into PRC back when it was in the dollar range

I haven't been in the markets for long, but when something has risen as fast as PRC or the POO, then we get a big increase in volatility. One of these days oil will decline by something like $15 in one session after gaining $30 the previous week. I saw it on the chinese markets, the hang seng, and now we'lre seeing it in coal.

My reading of the yesterday's coal market activity was that it only applied to thermal coal - for power station use. Coking coal prices although influeneced by the thermal coal price (i.e. they will always be higher) were not mentioned in market action. The coking coal sale price is largely set by the annual negotiations which have just set it at USD300 a tonne - spot prices have been higher. There is no world shortage of thermal coal expected in the next couple of hundred years - just greeny concern and mining and port capacity.

Coking coal will be in short supply until steel making by traditional means becomes too expensive.

The sharp corrections you mention tend to be temporary unless accompanied by other measures that remove liquidity from all markets. The chinese have raised interest rates and bank deposit rates heaps.

[Lion]

Anyone have any idea what NZO's share of the costs would be? Less than $100k a day I'm sure.

I recall costs being less than $10 a barrel, that's $US I think.

So 45,000 x 12.5% x 10 = $56,250 or about $NZ74k

[Corporate]

I recall costs being less than $10 a barrel, that's $US I think.

So 45,000 x 12.5% x 10 = $56,250 or about $NZ74k

Don't forget tui's probably not producing 45k per day anylonger. More like 42k.

[Crypto Crude]

argonaut-Shrewdie - perhaps NZO might be a good place to put some funds recently released from the sale of a somewhat languishing high risk ASX/AIM dual listed resource stock?

Hey argonaut,
I now understand... Im real proud of you...
re-invest two months before spud...
put those funds into NZO?
perhaps you could, its the most undervalued NZX stock...
This will not be a cash cow... This will be a cash Cow with its whole family...
brothers, sisters and the whole barn yard...
I like the look of CUE... Maari for CUE will perform better than Tui for NZO...-->Much more upside in the CUE SP...
later...

.^sc

[Nitaa]

NITA the very worst thing has happened when the price of oil shot up in price. People cant afford to buy it demand drops. Alternative solutions get explored with the likelyhood of a new discovery discovered sooner rather than later. The world economy will take a massive hit leading to a greater chance of conflict. All ships drop in a falling tide as you are now starting to realise.
We are in for a share market crash NZO will drop in share price other companies will go to the wall nothing good will come from the rising price of oil other than disaster. I battened the hatches at the start of this year, stuck my storm sail up and tossed my sea anchor out much to the disgust of the blue eyed brigade. Macdunk

DM. Am i mising something here. What you are saying i am tell you first but then you repeat me.

1 of things things is going to happen to oil prices in the short term. continue spike, correction or a crash in oil prices. my comment was reffering to the graph that is is proably less than 5% chance that oil prices are going to trade sideways over the next 3 or 4 months. If if continues to spike the correcotion or crash will be bigger4. Simple.

If you read my posts you will see that for the sake of nzo investores medium to long term and global economy short to medium term then oil prices need to retreat to around the $100 - $120.

the rest of your post is also stating the obvious especially if you were around 25 yrs ago to see petrol prices at 99.9 cents per litre, petrol rationing, cng, lpg and so on.

[zorba]

NZO looks back to normal today. Meanwhile:



http://www.stuff.co.nz/4607492a13.html


Upstream is showing the tapis price at US$153.07.



NZ$202 a barrel for NZO


45,000 x 202 = $9,090,000 for JV...



At 12.5% = NZ$1,136,250 per day for NZO (NZ$414,731,250 for NZO p/year at current rates).


Anyone have any idea what NZO's share of the costs would be? Less than $100k a day I'm sure.

Trackers,

Apart from production costs, think 50% tax+royalty rate on net earnings after production costs subtracted .....

30% due to company tax, plus another 20% petroleum royalty

Z

.

[CAM]

Trackers,

Apart from production costs, think 50% tax+royalty rate on net earnings after production costs subtracted .....

30% due to company tax, plus another 20% petroleum royalty

Z

.

They also have a whole bunch of tax credits if I recall correctly

[trackers]

Trackers,

Apart from production costs, think 50% tax+royalty rate on net earnings after production costs subtracted .....

30% due to company tax, plus another 20% petroleum royalty

Z

.

Tax is a killer, true... But the company tax is on net profit, so we will have to wait and see what they have planned for the war chest (leave it sitting in the bank, book it as profit and pay tax on it doesn't seem the way forward to me!)

[zorba]

MacDunk and Nita,

Agree with both your recent posts.

For stability in the world economy we want oil at US$ 110 - 120 range.

But for the moment I think its going higher -- notice both the MACD and RSI are pointing upwards and open interst is very high.

Mick100, could you give us an update on wether net open interst is short or long ?

.



.

[bermuda]

Hey argonaut,
I now understand... Im real proud of you...
re-invest two months before spud...
put those funds into NZO?
perhaps you could, its the most undervalued NZX stock...
This will not be a cash cow... This will be a cash Cow with its whole family...
brothers, sisters and the whole barn yard...
I like the look of CUE... Maari for CUE will perform better than Tui for NZO...-->Much more upside in the CUE SP...
later...

.^sc

Shrewdy,
Maari is more complicated but will perform okay with good adjacent upside.

But it wont perform better than Tui.

Tui has been outstanding from the start.