NZ Oil & Gas (NZO)

[Sideshow Bob]

Its NZO - failure was probably already expected & priced in.....

[fish]

Its NZO - failure was probably already expected & priced in.....

Ain’t over until the fat lady sings

[kiora]

I remember when this was first listed in 1981 ........

41 years latter .......

Where has it got to now....... ?

[Sideshow Bob]

https://www.nzx.com/announcements/398871

15/9/2022, 9:58 amGENERAL• New Zealand Oil & Gas signs a new Gas Supply Agreement with Shell Energy Australia for supply of gas from the Mereenie field.

• One year term from 1 January 2025 for delivery of 0.64 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions.

New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with Shell Energy Australia (Shell) to supply 0.64 PJ of gas over one year, commencing 1 January 2025. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 3.65 PJs to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.

Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.
For further information please contact the Company on:

email enquiries@nzog.com
phone +64 4 495 2424

[fish]

https://www.nzx.com/announcements/398871

15/9/2022, 9:58 amGENERAL• New Zealand Oil & Gas signs a new Gas Supply Agreement with Shell Energy Australia for supply of gas from the Mereenie field.

• One year term from 1 January 2025 for delivery of 0.64 Petajoules (PJ) of gas from New Zealand Oil & Gas into the East Coast domestic market.
• Fixed price, take-or-pay contract reflects strong market conditions.

New Zealand Oil & Gas Limited (ASX:NZO, NZX:NZO) is pleased to announce that it has executed a new Gas Supply Agreement (GSA) with Shell Energy Australia (Shell) to supply 0.64 PJ of gas over one year, commencing 1 January 2025. The GSA is for firm gas supply, with take-or-pay provisions and a fixed price.

Gas supplied under the GSA will be aggregated with gas from the Mereenie Joint Venture (Macquarie Mereenie (50%), Central Petroleum (25%), New Zealand Oil & Gas (17.5%) and Cue (7.5%)) to deliver up to a total of 3.65 PJs to Shell over the one-year term, commercialising a portion of existing Mereenie uncontracted gas production for the year.

Gas will be supplied into the East Coast domestic market, with pricing under the GSA reflecting strong market conditions. The parties will enter into required gas transportation agreements as a condition precedent to the GSA, to enable delivery of this gas.
For further information please contact the Company on:

email enquiries@nzog.com
phone +64 4 495 2424

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

[Lion]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

That's an exciting calculation, fish, I sure hope it is correct.
The contract runs for a year starting Jan 2025 - seems a long way away.

NZO got a mention (for this deal) on the RNZ midday business report today.

[blackcap]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

Unfortunately I do not see shareholders getting a cent of this and that is why the SP will continue to drift in the doldrums. No dividend, OGOG will keep using NZO as their exploration vehicle and when the cash comes it will go out as fast again.

That said I might be tempted at these prices but the presence of OGOG is a great impediment.

[JBmurc]

Hope my calculation is correct-I make this one contract worth 40 cents a share ! gross-will have to subtract the netback-?5cents

best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

Nothing all that amazing esp as the PV-12 disaster didn't drill the large DEEP 128PJ target that would have been great for the JV and added much needed reserves ... ..instead they have side tracked P1 resource they are already producer from so are just going drain the reserve much quicker ..fine in the Short term but will pressure the JV to explore sooner than later or see production drop

[fish]

[QUOTE=JBmurc;975289]best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

You need to do better research .
I phoned Andrew a couple of months ago and they were getting over $30 Gj for the 20% gas not contracted .
Current long-term contracts expire soon.
They are probably priced at around$4 Gj
Gas prices look unlikely to fall in 2023 and 2024.
So when current contracts expire what price do you think will be achieved on the spot market-?
My guess is $30 to $40
See we do not have to wait until until 2025-we get the real bonanza starting soon.
In my opinion you have grossly underestimated 2025 futures.
No doubt you want to justify why you sold out of cue-it seemed a daft idea to me when you said you were selling at a time just before profits multiply.

[JBmurc]

[QUOTE=fish;975302]

best you keep to you day job Fish .64Pj is 640,000Gj ... at present Aus east coast spot prices have seen insane record high $28Gj last year the record high was a touch over $10Gj .. this contract sale isn't for more than 2yrs away so who knows what the Gas price will be ... going off longer term average contract prices we could see $7-$8Gj ...so 1yr contract 640,000Gj @ $8Gj = A$5.1mill ...

You need to do better research .
I phoned Andrew a couple of months ago and they were getting over $30 Gj for the 20% gas not contracted .
Current long-term contracts expire soon.
They are probably priced at around$4 Gj
Gas prices look unlikely to fall in 2023 and 2024.
So when current contracts expire what price do you think will be achieved on the spot market-?
My guess is $30 to $40
See we do not have to wait until until 2025-we get the real bonanza starting soon.
In my opinion you have grossly underestimated 2025 futures.
No doubt you want to justify why you sold out of cue-it seemed a daft idea to me when you said you were selling at a time just before profits multiply.

No I'm a realist .. maybe you haven't spoken with many Energy-resources companies mgmt. before but I can promise you they all only talk the positive ..the market however does what it does ... $30Gj - $40Gj is completely insane levels .... only last year Aus east coast Nat gas broke a record just over $10Gj

At present in Canada (which has massive Gas resources) they have seen major increase in gas prices YOY JUNE to C$6.53Gj

WA Aussie A$5.56Gj ..https://www.afr.com/companies/energy...0220902-p5bete

East coast gas prices in the June quarter ranged from an average of $6.36/GJ to $29.85/GJ, EnergyQuest said, with the bottom of the range marked by the average price received for domestic gas by Origin Energy in the quarter, while the top of the range was the Adelaide wholesale price at $29.85/GJ.

I'd be very surprised if NZO/CUE/CTP can get $30Gj contracted Gas .... yes small amounts on the spot market while the EAST coast has supply issues ... but LNG exporting terminals are getting built ....pipelines installed to fill the high priced markets ...