NZ Oil & Gas (NZO)

[notie]

So Notie, if you had $25m sitting in the bank, and could get 13% for the next 2.5 months, what would you do.

Well the took the money from shareholder to buy into oil and gas investments, not to drop it down a coal mine. Given nzog involvement in setting pike up I would think it has a high chance of failing.

So no guarantee they will even get the money back.

From what I hear even if nzog tried to pull a decent E&P investment deal together then certain members of the BOD would not give it the OK.

[Unicorn]

So no guarantee they will even get the money back.

PRC has a market cap of around $460 million, assets worth well in excess of $200 million, and minimal debt. NZO is lending less than $25 million, for a very short term (and under very favourable terms).

If you think there is a significant possibility that NZO funds are not safe under those circumstances, then I think you should find some avenue of investment other than the sharemarket. You are obviously well out of your depth here.

[Mr Tommy]

The short-term facility has an interest rate of 13%, establishment and
monitoring fees totaling $600,000 and is repayable in full on 15 December
2010.

So $25m at 13% for 2.5 months earns them about $677,000
Plus the $600,000 fee
Total nearly $1.3 million for just 2.5 months
Thats about 25%, Pike could have used its credit card.

[shasta]

The short-term facility has an interest rate of 13%, establishment and
monitoring fees totaling $600,000 and is repayable in full on 15 December
2010.

So $25m at 13% for 2.5 months earns them about $677,000
Plus the $600,000 fee
Total nearly $1.3 million for just 2.5 months
Thats about 25%, Pike could have used its credit card.

Quite clearly Pike had no other options to raise the $25m, as Pike's focus should always be to look after there shareholders, not NZO's.

13% is way more than any of the finance companies were offering, but is this sufficient reward for what i see as significant risk?

Pike won't even generate $25m revenue between now & the repayment date, so what's the likelihood, Pike is unable to refinance the $25m?

I guess NZO has the funds spare & can probably extend the terms of the loan, given they are earning interest at more than twice the going rate of the big banks, but this tells me NZO have no better use of those funds for the remainder of the year.

[fabs]

The new facility is value creating for NZOG and is a continuation
of our strategy of managing this investment in the interests of our
shareholders."
So the constant rant and spiel about looking for investment opportunity was all a long a sham , more concerned with propping up this venture, which always was obvious a long way out to knowledgeable people in the industry, to be fraught with problems due to lack of experience. on top of the usual teething difficulty's with mining.
5 or 6 years ago at an NCO AGM the much more successful oil man and owner of Greymouth Petroleum stormed out as the then Management would have no bar of his comment on PRC as compered to concentrating on oil.
Are the chicken slowly coming home to roost?

[sheepy]

Pike wont use 25 million as Peter Whittal says in todays national business review. But it is available for them if they need it. So your interest and workings are worthless. And I dont think they will be drawing out 25 million in one hit today.

[notie]

Pike wont use 25 million as Peter Whittal says in todays national business review. But it is available for them if they need it. So your interest and workings are worthless. And I dont think they will be drawing out 25 million in one hit today.

no, they will use this 25 mill, then nzog will bail them out again when the next bill comes along.
The whole pike river design and start up was a product of nzog and Gordon Ward who had held a senior role at this company. This speaks volumes about whole competent nzog are.

have nzog got any money left to invest in any reasonably sized oil or gas project? I think not. So from now on they are relying on their bad investments in Pike River and Pan Pacific.

[fish]

no, they will use this 25 mill, then nzog will bail them out again when the next bill comes along.
The whole pike river design and start up was a product of nzog and Gordon Ward who had held a senior role at this company. This speaks volumes about whole competent nzog are.

have nzog got any money left to invest in any reasonably sized oil or gas project? I think not. So from now on they are relying on their bad investments in Pike River and Pan Pacific.

Not only have they got plenty banked but also good ongoing income from kupe and tui .

[fish]

good to see Asia and Australia doing so well . Price of oil is rising nicely .Digger is forcasting Tapis at $90 at the end of this year-could easily be a little more

edit-tapis is $88 today

[digger]

good to see Asia and Australia doing so well . Price of oil is rising nicely .Digger is forcasting Tapis at $90 at the end of this year-could easily be a little more

edit-tapis is $88 today

Hi Fish,
I said 100 for Tapis at year end not 90. Will stick with it.
Been reading a lot lately about more warnings about peak oil from some previously non beleivers.Concern for the future will slowly start to have an effect do to stock piling well before the event. actually i stockpiled 1400 lts of deisel yesterday to save to sa about 90 dollars. In a year or two this could be a daily problem for the whole world.
Now what is the drilling plan for this year? What has changed to make it more successful---or i mean less a total failure.