NZ Oil & Gas (NZO)

[macduffy]

The company needs to act to minimise unnecessary volatility in the share price, or it will become a plaything for speculators rather than investors. Quote.

Oil and gas companies by the very nature of their business will always attract speculators. Not a lot that management can do about that!

[friedegg]

if they did a buy back just so short of time from an option conversion they can only be seen as pussys ie they dont know how to grow!!
even though the sp sucks atm they are in a prime position to take advantage of other companies,tennants etc

[Unicorn]

Oil and gas companies by the very nature of their business will always attract speculators. Not a lot that management can do about that!

Oil and gas explorers yes, significant oil and gas producers no nearly so much. NZO is now a producer, with very strong income. But it still seems to be categorised as a junior explorer.

Unless something is done, there is a significant possibility that they may need to front up at the AGM and report that during a year of exceptional oil prices, fantastic production from Tui, enormous increases in reserves, and good progress with other projects they have delivered no material value increase to their shareholders.

[fish]

i dont want to see a share buyback/cancellation because in a market like this it really doesnt make the price go up,they say cash is king in this uncertainsey so i prefer if they held onto it and became an aggressive competitor in doing some outrageously good deals cause not many others have the cash or will be able to raise funds,so this bears the question-are the nzo management team an aggressive lot?i hope so

I think you are wrong in your assumption that a sharebuyback/cancellation would not send the price up for some many reasons

1)particularly in this kind of market it would reduce the number of margin traders and others needing cash being forced to sell below nta.
2) It reduces the number of shares on the market -nzo is awash with excess shares after the option conversion
3)Some holders of nzo-me included-would use some of the cash to buy more nzo shares.
4)It would demonstrate that the board is wise ,pragmatic and sufficiently flexible enough to change its plans to suit current economic conditions
5)It reduces the need for the company to buy overseas assets--I have been a shareholder in some many companies where overseas assets turn to custard --telecom air nz brierly ttp to name a few .
6)I am only suggesting about a third of the cash be returned-2/3 is still available for investments . Best not to put all ones eggs in one basket
7)Cash is king-in current conditions the only absolute safe place is in one own pockets
8)Tui has proved bigger than expected-Kupe looks the same-so less need to find further resources .With oil prices dropping so fast there is less urgency to increase reserves .
9)NZO has great cashflow from tui to meet all current needs-and kupe and prc will add to this soon .

[macduffy]

Hi Unicorn.
Take your point that NZO should be treated more as a producer and less as an explorer. Part of the problem is that they are one of a very few " speculative" shares on the NZX and therefore attract a disproportionate share of speculative attention.

[friedegg]

cdu in aus are doing a share buyback atm,thier price is soaring

[Unicorn]

cdu in aus are doing a share buyback atm,thier price is soaring

NZO should not do a buyback simply to increase the share price. They should do it to increase shareholder value by buying something worthwhile, very cheaply. NZO shares at present fit that criteria. Any buyback should only be while the share price remained very low - preferably around 120c, but not more than 140c.

[friedegg]

NZO should not do a buyback simply to increase the share price. They should do it to increase shareholder value by buying something worthwhile, very cheaply. NZO shares at present fit that criteria. Any buyback should only be while the share price remained very low - preferably around 120c, but not more than 140c.

doesnt matter,world markets and oil are plummetting again tonight so maybe a lot more tomorrow will run,cause when you think about it who is going or more importantly who can buy atm,surely not many funds as theyre hammered and good old mums and dads have thier money held up in collapsed finance instos

[Rif-Raf]

NZO should not do a buyback simply to increase the share price. They should do it to increase shareholder value by buying something worthwhile, very cheaply. NZO shares at present fit that criteria. Any buyback should only be while the share price remained very low - preferably around 120c, but not more than 140c.

Agree 100%
Buying at say 120 is value accretion as it is a damn good investment. The're's no deal risk, no need for due diligence, legals fees etc. Putting a floor on the SP just happens to be the bonus outcome.

[digger]

Many interesting comments about share buy back.My origional thoughts was that i was against it now after reading all your comments twice i have moved to neutral. Currently we all know that the company is looking at many deals of a lifetime as we have or soon will have approx 300 million.My thinking is that the company should be sure to include a buy back as one of many considerations.Remember they along have seen all the options before them and if there are some simply better than a buy back then go for the best one.I think that the directors and management at a time like this are best to focus what is best and not just go for short term fixes. Please remember if we can long term focus at this time we will be one of the few companies able to make decisions in this manner and thereby have the field largely to ourselves.So lets keep it in mind that the company can now pick and chose and all we should do is give them one more choice,but no pressure to aid the current SP unless it is in fact the best buy in town.
Digger