NZ Oil & Gas (NZO)

[Lion]

There's been a flurry of postings on HC today, speculating what the foreign exempt listing means. Many think it could make it easier for NZO to mount a takeover of CUE. Another view reckoned NZO would need liquidity on the ASX if Ironbark is successful. I don't get that - if I/B is successful, won't NZO and Cue (and we shareholders!) be awash with cash? (Edit - I suppose they will have to find more money to develop the field(s) before any cash rolls in).
Another poster thought the other NWS partners would be after NZO & CUE if there's a successful strike, but that doesn't make sense either, OGOG won't want to sell NZO, and NZO have a majority share in CUE (just) and wouldn't want to sell either.
One hopeful CUE holder said he'd sell his shares for a dollar pre-drill (currently 15c).

Exciting times ahead, guys!

[mistaTea]

Very few shares available for under 68c today. And then only ~70,000 shares available for 68c-70c.

Too right too, it would be nuts to sell any shares at the moment unless the price offered was compelling and allowed you lower your downside by taking some money off the table (but still allowing you to participate in the drill in a meaningful way).

And this stock has a lot higher to go before much selling happens I think.

Current market cap of CUE =A$104M, which is ~NZ$113M.

NZOG share of Cue then = NZ$56.5M.

NZOG Market Cap = NZ$108M.

If we subtract our share of Cue (which has been valued by ASX investors) then the rest of NZOG is currently only worth NZ$51.5M apparently.

Now, if we subtract the money we have set aside for the Ironbark drill, NZOG still has ~$50M of cash just sitting in the bank ready to be invested (and no debt). Forget that we still hold 4% of Kupe (which has just had its reserves significantly upgraded)...no value seems to be ascribed to that.

So it will be interesting to see if re-listing on the ASX helps with interest in the business and pushes the market value up to something that seems more realistic.

[blackcap]

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So it will be interesting to see if re-listing on the ASX helps with interest in the business and pushes the market value up to something that seems more realistic.

It does open up a whole new market of investors that would otherwise not purchase shares off the NZX. In fact does anyone know Australians that ask their brokers to purchase shares on the NZX? Not that I can think of. So a huge potential market of interest. Will it transpire to more interest and liquidity? Probably not the liquidity but maybe more buying pressure?

[mistaTea]

Will it transpire to more interest and liquidity? Probably not the liquidity but maybe more buying pressure?

Yeah there are only about 50mil shares not owned by OGOG which could potentially be traded.

Of those shares, you can easily subtract 10-15mil of those to account for investors like ACC, fish, digger, wiremu and myself who don't want to sell much if any shares before the drill (unless the price really did become compelling beforehand).

So it will never become an especially liquid stock...and that may put some investors off. Having said that, if the price keeps going up there will be a point where a good number of sellers appear.

At the end of the day, even if the price rocketed up to $1/share... a large investor could buy 5% of NZOG for ~NZ$8M. Chump change to own a significant stake of a company that has ~25% equity in the biggest drill this century and the deepest drill in Australian history.

So let's hope the ASX brings some rich Aussies who want a piece of history!

[mistaTea]

A HotCopper user shared this earlier...I wonder if our leaders wish they hadn't banned offshore now that we will need every single revenue stream we can get our hands on to recover economically from Covid-19. A lot of them are ideologues, so probably not.

AFR article from a week ago:

Northern gas appetite fuels exploration interest

The growing interest in exploring for gas off Australia's north coast has prompted the release of several new exploration permits to international and domestic energy companies.
About 42 permits are being offered, covering 100,000 square kilometres in Commonwealth waters off Western Australia, the Northern Territory and Victoria in the federal government's 2020 offshore petroleum licensing round.
Federal Resources Minister Keith Pitt said that despite COVID-19 bringing about lower prices and softer demand in the oil and gas industry, exploration would play a key role in helping the economy recover from the pandemic.
The acreage on offer is dominated by areas in established provinces for oil and gas production with existing pipelines that would help ensure low costs, Mr Pitt told a webinar on the release, open to explorers from around the world.
"This is consistent with the drive to ensure major projects have and maintain steady supply into the future," he said.
Exploration had been picking up before the pandemic hit, Mr Pitt said, pointing to two significant gas discoveries made in the December half last year, at the Bratwurst well drilled by Shell off WA and at the Annie well drilled off Victoria by Cooper Energy and Mitsui.

ExxonMobil also drilled a deep well in the Bass Strait, Sculpin-1, but has not released the results, fuelling speculation it has not been successful.
Although oil and gas companies have cut their spending budgets following the oil price slump in March, some drilling is continuing, including the coming Ironbark well by BP, which is being closely watched. Involving Cue Energy Resources, Beach Energy and New Zealand Oil & Gas, it is set to be the country's deepest well drilled offshore, with a depth of 5.5 kilometres, and is targeting a large gas find.
Geoscience Australia's manager for the acreage release, Tom Bernecker, pointed to the continuing industry appetite for exploration in proven petroleum provinces such as the North West Shelf as well as to a revival of interest in gas in the Bonaparte Basin off the north coast.
"It is interesting to see the Bonaparte Basin has become a new focus of industry interest," he said, highlighting "really strong remaining gas potential" in that region.
According to Geoscience Australia calculations, nearly 28 trillion cubic feet of gas could be in the Bonaparte Basin, compared with just 350 billion cubic feet of gas so far produced.
The Browse Basin, Australia's newest gas producing basin which started up in 2018 at the Ichthys field, also has significant potential, with an estimated 39.75 tcf of gas remaining compared with production so far of 70 bcf.
Bids are due by June 1, 2021, and the acreage is to be awarded based on planned exploration work.

https://www.copyright link/companies/energy/northern-gas-appetite-fuels-exploration-interest-20200826-p55pir

[mistaTea]

https://www.nbr.co.nz/story/nz-oil-g...annual-meeting

LOLLLLLLLL. Christ I needed a good laugh today and by God I got one!

[blackcap]

https://www.nbr.co.nz/story/nz-oil-g...annual-meeting

LOLLLLLLLL. Christ I needed a good laugh today and by God I got one!

Hi MistaTea, whats the gist of the article? No longer am subscribed to the NBR.... cheers.

[fish]

Hi MistaTea, whats the gist of the article? No longer am subscribed to the NBR.... cheers.

I need a good laugh too(after reading the annual report-so PC but I guess that is a sign of the times )

Some interesting changes in the ranking of the top 20 shareholders.

[Fabs37]

Some interesting changes in the ranking of the top 20 shareholders.[/QUOTE]


Also thought, Quite an Interesting Renumeration List for Employees running the Co. from home,

Just in the Numbers & $s [ 18 paid between 110000 to 3/4 of a million ]

[fish]

Some interesting changes in the ranking of the top 20 shareholders.

Also thought, Quite an Interesting Renumeration List for Employees running the Co. from home,

Just in the Numbers & $s [ 18 paid between 110000 to 3/4 of a million ][/QUOTE]

Can this kind of remuneration in the current climate be justified?
What are so many employees actually doing?