Pan Pacific Petroleum Nl (PPP)

[Sehnsucht888]

Where does the 40 million NZ come from Digger?

Agreed we are in the dark about this

I get 30 odd million if the price reaches: 256US.
187,600*(256-92)
- Being "lost" income due to the hedge... But if we are selling another million barrels at 250 odd, getting $250million in income, thats a big chunk, but a small price to pay in the long run to actually become a producer.

I would expect some of the hedging would have been taken up earlier on when the price wasn't expect to go so high...
187,600 barrels is a small percent of the total they will produce. 13% of this years only, and descreasing as we go forward.

[digger]

I get 30 odd million if the price reaches: 256US.
187,600*(256-92)
- Being "lost" income due to the hedge... But if we are selling another million barrels at 250 odd, getting $250million in income, thats a big chunk, but a small price to pay in the long run to actually become a producer.

I would expect some of the hedging would have been taken up earlier on when the price wasn't expect to go so high...
187,600 barrels is a small percent of the total they will produce. 13% of this years only, and descreasing as we go forward.

Here is my cals.
256-92= 164 US dollars=213 NZ dollars.at 77cents us= 1 nz dollar
213[187500]= 39,937,500
You can then see i took the liberty of rounding to 40 million.

[Corporate]

I get 30 odd million if the price reaches: 256US.
187,600*(256-92)
- Being "lost" income due to the hedge... But if we are selling another million barrels at 250 odd, getting $250million in income, thats a big chunk, but a small price to pay in the long run to actually become a producer.

I would expect some of the hedging would have been taken up earlier on when the price wasn't expect to go so high...
187,600 barrels is a small percent of the total they will produce. 13% of this years only, and descreasing as we go forward.

Where did the figure of US$256 a barrel come from? - maybe I missed something along the way.

If it is just a number plucked out of the air, I'm not sure what all the worry is about. It's all speculation. The hedges could even be partly or completed used. I'm sure whoever controls the "call" option would "call" far before the price of oil reached US$256 per barrel.

[Sehnsucht888]

Here is my cals.
256-92= 164 US dollars=213 NZ dollars.at 77cents us= 1 nz dollar
213[187500]= 39,937,500
You can then see i took the liberty of rounding to 40 million.


Cheers digger, I should have converted to NZD, should have seen that.

But, yes - where did 256 come from in the first place?

[Bixbite]

.

If we not happy with the company would lose $40M because of the oil prices reached to US$256 per bbl.

Perhaps we could wish the oil prices gone below US$92 per bbl, the company would not lose, and then everyone would be happy.


Ps. I never see it as a loss, unless no oil produces.


.

[boysy]

has any company done a recent valuation of PPP or is it still under the radar ?

[digger]

Where did the figure of US$256 a barrel come from? - maybe I missed something along the way.

If it is just a number plucked out of the air, I'm not sure what all the worry is about. It's all speculation. The hedges could even be partly or completed used. I'm sure whoever controls the "call" option would "call" far before the price of oil reached US$256 per barrel.

The figure came from a range of figures given by big investers that have made heaps on guessing and investing on that assumption in oil.Perkins is a billionair that thinks oil could go to 300 to 500 in that time.Remember if the call options can be exercised any time in the next two years that are yet to run oil could be well pst 256US.So on some estimates i have chosen a more consertive figure.I used 256 as it gives a lose of 40 million NZ and am now saying that this 256 figure is no more unreasonable than 145 was two years ago.

[digger]

.

If we not happy with the company would lose $40M because of the oil prices reached to US$256 per bbl.

Perhaps we could wish the oil prices gone below US$92 per bbl, the company would not lose, and then everyone would be happy.


Ps. I never see it as a loss, unless no oil produces.


.
That is a natural arguement that i expected.It is a bit like saying you hope you make a loss as then no tax to pay.
It remains a point nevertheless that this arrangement could lose us 40 million regardless of how weallthy we will be on such a outcome.I hope it happens but that does not negate the point of arguement.

[digger]

Subject now closed from my part.Have just emails company and asked them to reply by way of the quaretly so all can have this info.If not then email me and i will put any info i get on sharetrader.

[Corporate]

Subject now closed from my part.Have just emails company and asked them to reply by way of the quaretly so all can have this info.If not then email me and i will put any info i get on sharetrader.

Thanks Digger. Lets hope they comply with your request.

[Dr_Who]

has any company done a recent valuation of PPP or is it still under the radar ?

I am not aware of any broking firm that have done research on PPP, so yes, under the radar.

[Glendoonie]

Subject now closed from my part.Have just emails company and asked them to reply by way of the quaretly so all can have this info.If not then email me and i will put any info i get on sharetrader.
Yes, please. And thank you in advance Digger. Info I need because I wish to know whether PPP is worth the risk ...
G

[digger]

Have received back an email from PPP signed by Marianna. Firstly remember my first request was that they be sure to include details of the hedging arrangement in next quartely. Marianna assures me that the company will include this info in next report due end of July 2008.So nothing immediate but best for all and for all time record that it be in quartely.

[Romer]

We eagerly await the quarterly.

Glendoonie: You are the only person who can answer that question for yourself but I must admit my sentiment is better in than out. But I do emphasise that is only a personal opinion for myself. - - Even though the price at the pump eased off another notch today.

[boysy]

so when is the quarterly expected out for ppp ? the same as nzo ?

[Hoop]

so when is the quarterly expected out for ppp ? the same as nzo ?
Usually last day of the month(31st July). See Diggers Post above #1023

[kanejones]

Strong report from NZO. Can we expect the same for PPP?

[boysy]

it all depends at what price ppp has sold their oil at .Hopefull a high price has been achieved i mean look at the current market cap can we assume a pe of under 1 for the financial year.

[Corporate]

it all depends at what price ppp has sold their oil at .Hopefull a high price has been achieved i mean look at the current market cap can we assume a pe of under 1 for the financial year.


Is anyone else considering making a quick play and buying on NZX in the next hour or so, in anticipation of a jump onces the market opens in AUST with the quartely report?

[kanejones]

Is anyone else considering making a quick play and buying on NZX in the next hour or so, in anticipation of a jump onces the market opens in AUST with the quartely report?

Definately considering it.

[macduffy]

I did just that a few days ago.
Everything now crossed!

;)

[boysy]

up to 26 on the asx and no report out yet what are people thinking ?

[Dr_Who]

PPP
31/07/2008
QUARTER

REL: 1321 HRS Pan Pacific Petroleum NL

QUARTER: PPP: JUNE 2008 QUARTERLY ACTIVITIES REPORT _31 JULY 2008

JUNE 2008 QUARTERLY ACTIVITIES REPORT

Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)

The four existing Tui field production wells continue to perform strongly.
Production from the Tui oil fields totalled 3.8 million barrels (PPP 0.38
million barrels) for the June quarter, averaging close to 42,000 barrels a
day despite rising water production. Production was curtailed at the end of
June due to poor weather delaying tanker loading, but as of mid July
production had returned to around 42,000 barrels per day. Cumulative field
production to the end of June 2008 was 14.2 million barrels. (PPP share
1.42m/b).

The anticipated detailed Tui field re-assessment was undertaken resulting in
an increase in the initial proved and probable (2P) reserves from 47 million
to 50.1 million barrels.

The terms of the FPSO contract have been extended through to 31 December
2022. Under the contract with Prosafe Production, the owner and operator of
the Umuroa, the fixed term of the charter has been extended to 31 December
2015 followed by seven, one-year options to extend through to 31 December
2022. The full operating cost of the charter for the financial year ending 30
June 2009 is forecast to be approximately US$61million. This rate reduces
annually, as negotiated in the FPSO contract, so that operating costs fall as
oil rates decline over the field life.

Planning for the previously announced additional development well, Tui 4H,
continues with long lead equipment currently being purchased. Reserves
attributable to Tui 4H are included in the 50.1 million barrels of 2P
reserves discussed above. Studies to accommodate Tui 4H production into both
the subsea and FPSO facilities are also well advanced. Tui 4H is currently
expected to be drilled in late 2009 to early 2010 depending on rig
availability. Additional appraisal and/or exploration drilling in and around
the Tui fields is also under consideration for the period of the same
drilling campaign.

Toke permit (PEP38499) Taranaki Basin (PPP interest 10%)

Interpretation of the 2007 Toke seismic data has been completed and the joint
venture operator's recommendation as to further work is awaited.

Hector permit (PEP 38483) (PPP interest 14.091%)

The permit operator is nearing completion of its assessment of the Hector 1
exploration well results and is considering options for further seismic or
exploration in the permit.

Maitland WA-33R (PPP interest 10%)

The joint venture Operator, Apache, has completed an assessment of the
Maitland project after incorporation of the results from the 2007 drilling
campaign. While the technical challenges of drilling and producing in the
Maitland field are in the process of being resolved, the Maitland 2 core data
and Maitland 3H test results have resulted in some reserves uncertainty. The
Operator is now working on options to reduce this uncertainty to a level that
would allow a development to proceed. These options include the possibility
of further appraisal drilling and flow testing prior to a development
decision being taken.

New Ventures/Senior Appointment

Following on the strong performance and cash flows from the Tui project and
its firm commitment to expand the Company's activities the Board has
appointed Mr Tom Prudence to the newly-created position of General Manager,
Exploration and Production to assist with this process. Mr Prudence will in
addition to his role as manager of the Company's existing operations, be
tasked with the job of developing exploration and production opportunities
for the Company. Mr Prudence held the position of Principal Adviser/Chief
Geoscientist for RISC Pty Ltd, an international consultancy for the last four
years. In this capacity he has advised on multiple diverse projects including
strategy and new business developments. His new role with the Company will
commence in September of this year.

.
Financial Highlights as at 30 June 2008 (unaudited)

Current Assets include: Cash held (see note below) A$91.5m
Receivables for oil sales (gross) A$18.3m

Tui oil inventory (WMP share) 40,412 barrels

Current Liabilities include: Hedging - call options over 87,744 barrels @
US$92/barrel (marked to market)

A$ 4.4m
Accrued royalty taxes A$17.0m
Income taxes (preliminary estimate) A$22.0m
Tui project loan nil

Note:
The Tui Project loan with CBA was repaid in full on 30 June 2008. Also on
that date, US$10 million (A$10.4m) was deposited with CBA as cash collateral
to support the Tui FPSO letter of credit. This deposit forms part of the
abovementioned cash held of A$91.5m.

Hedged Position

During 2007 the Company hedged by way of put options approximately 719,000
barrels of oil to provide downside protection in oil prices. The Company
partially offset the cost of the put options by selling call options
requiring the company to deliver no more than 187,600 barrels of oil at
$92.00. As at 30 June 2008, of the 187,600 barrels of oil, 72,890 barrels had
expired at no cost to the Company, while a further 47,767 barrels were cash
settled on maturity of the call options at a cost of USD$727,117. The
remaining 87,744 mature over the period July 2008 to March 2010.

B Flatters-Wright
Company Secretary
31 July 2008

[sideline]

Excellent results,
and big kudos for detailing the hedging position clearly!!!

[Dr_Who]

Excellent results,
and big kudos for detailing the hedging position clearly!!!

Thanks to Digger, the hedging position is nice and clear. Not much exposure in the hedging which is good news.

I am rather surprise the sp is so weak. I like the result and the reduced exposure to the hedging. A$91 million cash in the bank and market cap is only A$138m with continue Tui revenue flowing into the bank!!!!! Surely this has to be one of the cheapest company on the market.

[Corporate]

Thanks to Digger, the hedging position is nice and clear. Not much exposure in the hedging which is good news.

I am rather surprise the sp is so weak. I like the result and the reduced exposure to the hedging. A$91 million cash in the bank and market cap is only A$138m with continue Tui revenue flowing into the bank!!!!! Surely this has to be one of the cheapest company on the market.

Yeah seems strange - guess thats the market for you. I had a quick scan of the quarterly and didn't see anywhere how much revenue they got in the final quarter?

[macduffy]

Yeah seems strange - guess thats the market for you. I had a quick scan of the quarterly and didn't see anywhere how much revenue they got in the final quarter?

We need to see the Appendix 5 B. Last quarter it was released on the same day as the Quarterly.

[digger]

Reserve uncertainties for maitland. This seems to me to be the fly in the oitment,otherwise it is hard to see why PPP has such a low SP.The way of the investing public is such that PPP will have to pass on a dividend to attract attention to itself.It is certainly capable of doing so hence i wondered if one might be coming with the release of the annual report.The only thing needed is expenses for maitland and some exploration but theses should be easily covered by TUI,so i fear unless a div is coming the company will be unnoticed by the market.
Great to see the hedging settled.Not as bad as it could be but then things should be made clear as otherwise the worst is always suspected.

[macduffy]

Yes, I reckon a divvy is more than likely, following the example of its stablemate, NZO. After all, they have the same pedigree, majority owners and " jockeys".

;)

[Sehnsucht888]

Previous Quarterly:
Financial Highlights as at 31 March 2008

Assets: Cash held A$69.6m
Receivables for oil sales $12.9m

Tui oil inventory 40,900 barrels

Obligations:
Tui project loan (US14.13m) A$15.4m
Tui FPSO bank letter of credit(US$10m) $10.9m
Accrued royalty taxes $ 9.9m

This Quarterly:
Current Assets include: Cash held (see note below) A$91.5m
Receivables for oil sales (gross) A$18.3m

Tui oil inventory (WMP share) 40,412 barrels

Current Liabilities include: Hedging - call options over 87,744 barrels @
US$92/barrel (marked to market)

A$ 4.4m
Accrued royalty taxes A$17.0m
Income taxes (preliminary estimate) A$22.0m
Tui project loan nil

Does this equate to:
Q3 Q4
Assets:
$69,600,000.00 $91,500,000.00 Cash
$12,900,000.00 $18,300,000.00 Receivables for oil sales
$5,317,000.00 $5,252,000.00 Oil Pending Sale
$87,817,000.00 $115,052,000.00 TOTAL

Commitments:
-$15,400,000.00 -$4,400,000.00
-$10,900,000.00 -$17,000,000.00
-$9,900,000.00 -$22,000,000.00
-$36,200,000.00 -$43,400,000.00 TOTAL

Nett:
$51,617,000.00 $71,652,000.00

The 2 lots of taxes seem quite high...

But a gain of 20million for the quarter.
For a company worth 180 Million market value.....

And it closed down on the NZX....

[boysy]

someone an other jv partner must be crunching the figures on ppp even if just for their share of tui ?

[dsurf]

I have often wondered if there is an agreement between some / all of NZO, PPP, AWE, etc not to buy each other out or similar arrangement.

[the machine]

ppp now back to where we bought our last shares 5 months ago @ 22c au.

with the money in the bank and steady income from tui, all tui development now paid, ppp should be adding 1-2c/month per share in cash held on behalf of shareholders.

m

[boysy]

are we expecting some sort of directional statement from the company when the anual report comes out. Are they in a position where dividends are practical that is another important question.

[Mr Tommy]

Annual profit just out, AUD $52m.
Cash in bank at 30 June AUD $81m - probably over $90m now.
And whats the market cap ..... about AUD $140m
So to buy the company at current price = $50m

[macduffy]

Would need to allow for the $24m tax showing as a current liability but agree PPP looks undervalued and on a P/E of about 2.6!
Incidentally, NP $52m arrived at after booking $57m in tax and royalties!

;)

[macduffy]

I've just realised there is a PPP thread on ASX. Probably better located there - it is an Aust company after all!

;)

[boysy]

though in saying that everyone here in nz is fixated about NZO what about ppp its got under a 3rd the market cap and 10% at tui. Would any valuation firm here in nz do a valuation on ppp ?

[fish]

Would need to allow for the $24m tax showing as a current liability but agree PPP looks undervalued and on a P/E of about 2.6!
Incidentally, NP $52m arrived at after booking $57m in tax and royalties!

;)

Despite all that tax paid are there any tax credits ?

[macduffy]

Despite all that tax paid are there any tax credits ?

Hi fish

A good question for someone who knows about tax, particularly the taxation of oil companies! That's not me!
The presence of a "current tax" liability of $24m in current liabilities suggests the need for this to be paid in the next ( 12 months) period.

[Corporate]

Has PPP broken its downtrend today?? Possibly to my untrained eye

[boysy]

about time lol lets hope mr market is waking up to the fact ppps so under valued

[HKYLIE]

Testing,digger trying to get a connection.

[HKYLIE]

Hi all.
Been held up moving and lost my internet connection.Love the Dividend and think the company did the right thing here by passing on the success of TUI.Some have suggested that as the company has just taken money it now should not be giving any back.The dividend is a rightful reward from TUI and is entirely seperate from the exercising of the options.
See you tomorrow Cheers Digger.

[macduffy]

Hi all.
Been held up moving and lost my internet connection.Love the Dividend and think the company did the right thing here by passing on the success of TUI.Some have suggested that as the company has just taken money it now should not be giving any back.The dividend is a rightful reward from TUI and is entirely seperate from the exercising of the options.
See you tomorrow Cheers Digger.

I'd love a dividend from PPP but it's news to me!

NZO perhaps?

;)

[boysy]

yeah no dividend announced that i know well for ppp anyway

[HKYLIE]

Am trying to log in from computer in morrinsville store and it is having some problems. How my dividend comments got from NZO to PPP is one of those little secerts that only computers know.Yes it was meant for NZO and was sent there,in fact yesterday i did not even access PPP,so it all beats me.
As for PPP giving a div that would be nice but i will be going flat out to spend the NZO one.

[boysy]

while PPP is an AUS company it should get some mention locally due to it being dual listed why dont NZ stock brokers value PPP ?

[Tok3n]

Which one of you guys bought 11 millions shares? :)

and who sold? =p

[boysy]

wasnt me lol thats a fair few shares mind you

[Mr Tommy]

Which one of you guys bought 11 millions shares? :)

and who sold? =p

Maybe Tattersfield ?

[Dr_Who]

Which one of you guys bought 11 millions shares? :)

and who sold? =p

The more interesting question one should be asking is, who bought? Will have to sniff through the registrar in a few weeks. PPP at these levels must be a potential T/O target.


while PPP is an AUS company it should get some mention locally due to it being dual listed why dont NZ stock brokers value PPP ?

The company is too small, dont pay a div and have little institutional interest. Brokers are only interested in researching firms with institutional interest.

[Mr Tommy]

Maybe Tattersfield ?

Yep it was Tattersfield, bought 8.5 million at 21c
He is obviously confident, and saw a bargain.

[oldowl]

Can anyone tell me why the share price is 20 cents and the value of the available assets is 16 cents per share at 30 June 2008. Must be a bargain to take over.
OO

[macduffy]

Can anyone tell me why the share price is 20 cents and the value of the available assets is 16 cents per share at 30 June 2008. Must be a bargain to take over.
OO


Yes, would agree that it's an attractive proposition. Must bear in mind however that directors have large shareholdings and would be able to block anything that they didn't approve of. Meanwhile, they seem to be happy with the status quo and their directors' fees.

;)

[oldowl]

Divide 144 mil (NZ$ cash in the bank) by 588 mil shares , my calculator says that is more than 24 ct NZ per share. Last sale at 20 ct. Thats just crazy.

OO

[Dr_Who]

Divide 144 mil (NZ$ cash in the bank) by 588 mil shares , my calculator says that is more than 24 ct NZ per share. Last sale at 20 ct. Thats just crazy.

OO

Indeed it is. Thats why I have bought more shares. The two directors bought over 20 million shares in the last few months. Tui is still pumping oil. It is a cash cow...MOOOooooo!

I have a feeling PPP is going on a acquisition trail. This statement says it all...

"It is anticipated that the global market volatility and credit restrictions
will yield attractive opportunities for companies that have short term funds
and can act relatively quickly, and PPP is well placed in this respect."

[kerryo]

174 million nzd cash in hand at todays rate, based on sept 30th totals as posted in todays notices. lol

[Dr_Who]

174 million nzd cash in hand at todays rate, based on sept 30th totals as posted in todays notices. lol

Where did you get $174m from?

AU$128m/.8997 = NZ$142m

[kerryo]

Where did you get $174m from?

AU$128m/.8997 = NZ$142m

Note 2:
As at 30 September 2008 the PPP group held the following cash balances:

$million Equivalent AUD
NZD 6.9 5.7
AUD 28.3 28.3
USD 74.7 94.0
128.0

These AUD totals above were calculated on 30th Sept. ----
74.7 mil USD now = 137 mil NZD
28.3 mil AUD = 31 mil NZD
plus 6.9 mil NZD
Total = 174.9 mil NZD

29.5c per share.

Cheers.

[boysy]

kerryo where did you get those figures from ?

[kerryo]

kerryo where did you get those figures from ?

They were in the quarterly activities report released by ppp today 28-10-08 I read it on Direct Brokings site.

[boysy]

wow thats gota be good just read it on ASB securities

SEPTEMBER 2008 QUARTERLY ACTIVITIES REPORT


Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)

Production from the Tui oil fields totaled 3.2 million barrels (PPP 0.32 million barrels)
for the September quarter, averaging 34,300 barrels a day. Production was down 16%
compared with the previous quarter as a consequence of a combination of increasing water
production, delayed offloading due to poor weather conditions and facilities operational
issues. Production operations had returned to normal at the end September with
production of approximately 35,000 barrels a day. Cumulative field production to the end
of September 2008 was 17.4 million barrels (PPP share 1.74 million barrels). Field
performance was generally as forecast and consequently there were no reserves revisions
during the quarter.

Planning for the Tui 4H additional development well continues, while the Tui joint
venture partners are also still considering additional exploration drilling. Timing of
any activities will be subject rig availability, but could be as early as early 2009.

Toke permit (PEP38499) Taranaki Basin (PPP interest 10%)

The interpretation of the 2007 Toke seismic data failed to identify targets which would
justify undertaking the work program required by May 2009 if continuing in the permit;
150 Km2 of 3D seismic, or drill one exploration well. Consequently the joint venture
partners have agreed to surrender the permit.

Hector permit (PEP 38483) (PPP interest 14.091%)
The first 5 year term of PEP 38483 ends in December 2008. Following a review by the
operator the joint venture partners have agreed to apply for the extension of PEP 38483
into a second term, and the area to be retained following the 50% compulsory
relinquishment. It is proposed to acquire further seismic and undertake additional
interpretation and studies to evaluate the remaining exploration potential.

Maitland WA-33R (PPP interest 10%)

The joint venture Operator, Apache, continues to investigate options to progress
commercialization of the challenging Maitland gas/condensate field. Further appraisal
drilling and flow testing remains a possibility, but there is no firm proposal for these
activities at this time.

New Ventures

The Company has initiated a strategy review to determine goals and focus areas for
growth. The strong cash flows from the Tui project place PPP in an excellent position to
compete for new exploration and production opportunities, and to build a sustainable
revenue position. Given these ambitions, PPP has elected to retain the cash in hand
rather than disburse through dividend payments or share buyback, and to target increased
total shareholder return through reinvestment, and subsequent share price growth.

It is anticipated that the global market volatility and credit restrictions will yield
attractive opportunities for companies that have short term funds and can act relatively
quickly, and PPP is well placed in this respect.


Financial Highlights as at 30 September 2008 (unaudited)

Current Assets include: Cash held (see notes 1 & 2 below) A$128.0m
Receivables for oil sales (gross) A$ 9.5m

Tui oil inventory (WMP share) 32,060 barrels


Current Liabilities include:
Hedging – call options (marked to market)

A$ 1.3m
Accrued royalty taxes A$ 8.0m
Accrued Income taxes (estimate) A$ 11.9m

Note 1:
US$10 million (A$12.6m) is deposited with Commonwealth Bank of Australia as cash
collateral to support the Tui FPSO letter of credit. This deposit forms part of the
abovementioned cash held of A$128.0m.

Note 2:
As at 30 September 2008 the PPP group held the following cash balances:

$million Equivalent AUD
NZD 6.9 5.7
AUD 28.3 28.3
USD 74.7 94.0
128.0

Subsequent to the end of the quarter the Company purchased NZD to ready itself for
upcoming NZD denominated payments and AUD to repay intercompany loans denominated in AUD.

The group’s funds are held in Commonwealth Bank of Australia, ASB Bank Limited, Westpac
banking Corporation and BT Investment Management in New Zealand and Australia, including
the USD accounts, these institutions currently have a minimum Standard and Poor's rating
of AA.


B Flatters-Wright
Company Secretary
28 October 2008


Notes:
1. References to PPP, and the company, are to be read as inclusive of the subsidiary
companies within the consolidated PPP group.
2. Where appropriate activities and events occurring after 30 June 2008 have been
recorded in this report.
3. Except where otherwise stated, dollar amounts are in AUD currency

[Mr Tommy]

It looks like TR just rehashed his NZOG agm speech for PPP and changed a few dollar values.

"PPP's attractive position is clearly known to the industry and we are regularly approached regarding new business opportunities. However, we are maintaining a disciplined approach to project quality and acceptable risk, and our strategic goals, and to date we have not found a project which meets our investment criteria "

This is the same line we got at the NOG agm - both companies in the same position with wads of cash, looking for the same special opportunity - maybe they should look at each other a bit closer.

[macduffy]

Cash balances now around A25.5cps and Tui still laying golden eggs!

;)

Disc: Happy to hold.

[Dr_Who]

Cash balances now around A25.5cps and Tui still laying golden eggs!

;)

Disc: Happy to hold.

HO HO HO MErry Xmas Macduffy.

We are very happy PPP shareholders indeed. :):):)

[boysy]

The falling oil price presnts many interesting opportunities for cashed up oilers even as the price falls PPP still making $150k a day profit and with little outgoings just sit back and watch knowing that PPP wont be bought for the cheap if the dirrectors have anything to say about it.

[Crypto Crude]

This is by far my favourite defensive stock...
There really is no possible way to lose money from here...
even if Oil falls apart...
a million a week in revenues...
smart management...
buy some...
:cool:
.^sc

[Corporate]

This is by far my favourite defensive stock...
There really is no possible way to lose money from here...
even if Oil falls apart...
a million a week in revenues...
smart management...
buy some...
:cool:
.^sc


Haha SC you've really changed your tune on PPP

[Crypto Crude]

hehehehe...
hey shephejame,
I have to changed...
I used to think management were dumb for there low level of proactivity...
and non acquisition path....
now I think they are smart...
Look at all the opportunities that face them...
Id be happy if they did plain nothing over the next year...
this would pose them with the greatest opportunities going forward...
It seems right to now Back Tricha and the gang...
PPP is now a steal, and yesterdays presentation opens up abit more behind the thought patterns of management and why they are doing nothing...it all makes sense...the new cash backing figures of 25.5cents per share was abit of a surprise...
hum... NZO looking pretty tidy also...
:cool:
.^sc

[Wiremu]

The list of TSX resource companies with a market capitalisation considerably less than the company's cash holdings runs to three pages in fine print.

PPP and NZO are reflecting current market sentiment.

[boysy]

how many of those companies are the size of ppp though in having no debt + active projects ? NZO cash doesnt exceed market cap yet does it ?

[the machine]

The list of TSX resource companies with a market capitalisation considerably less than the company's cash holdings runs to three pages in fine print.

PPP and NZO are reflecting current market sentiment.

please clarify what TSX is.

M

[Wiremu]

The Machine: Toronto Stock Exchange

Boysy: Plenty, and many much larger. Here is a section from the report (it may lose the formatting):

Source: Capital IQ 1 of 3 As at October 28, 2008
TSX and TSXV Mining Companies
Financial Information
Cash as % of
Company Name Primary Industry Share Price Mkt Cap Market Cap Cash & STIs Total Debt TEV
($mm) ($mm) ($mm) ($mm)
Stingray Copper Inc (TSX:SRY) Diversified Metals and Mining $0.19 168% $10.9 $18.3 $0.0 ($7.4)
Western Copper Corp. (TSX:WRN) Diversified Metals and Mining $0.31 81% $22.6 $18.2 $0.0 $4.4
Bayswater Uranium Corp. (TSXV:BAY) Coal and Consumable Fuels $0.09 144% $12.4 $17.8 $0.0 ($5.4)
Copper Mountain Mining Corporation (TSX:CUM) Diversified Metals and Mining $0.56 100% $17.7 $17.7 $0.3 $0.3
U308 Corp. (TSXV:UWE) Diversified Metals and Mining $0.23 322% $5.3 $17.1 $0.0 ($11.8)
Tournigan Energy Ltd. (TSXV:TVC) Precious Metals and Minerals $0.18 80% $21.5 $17.1 $0.0 $4.4
Olympus Pacific Minerals Inc. (TSX:OYM) Gold $0.06 122% $13.9 $17.0 $0.4 ($2.6)
Mundoro Capital Inc. (TSX:MUN) Gold $0.17 257% $6.6 $16.9 $0.0 ($10.3)
Committee Bay Resources Ltd. (TSXV:CBR) Precious Metals and Minerals $0.05 345% $4.8 $16.6 $0.0 ($11.8)
Strategem Capital Corp. (TSXV:SGE) Investment Banking and Brokerage $1.62 196% $8.2 $16.1 $0.0 ($7.9)
RPT Uranium Corp. (TSXV:RPT) Coal and Consumable Fuels $0.09 150% $10.5 $15.8 $0.0 ($5.3)
Almaden Minerals Ltd. (TSX:AMM) Diversified Metals and Mining $0.62 56% $28.0 $15.6 $0.0 $12.4
Energy Fuels Inc. (TSX:EFR) Diversified Metals and Mining $0.20 143% $10.5 $15.1 $1.2 ($3.4)
ATW Gold Corp. (TSXV:ATW) Precious Metals and Minerals $0.34 77% $19.1 $14.7 $0.0 $4.4
Mega Silver Inc. (TSXV:MSR) Gold $0.24 269% $5.3 $14.4 $0.0 ($9.1)
International Enexco Ltd. (TSXV:IEC) Diversified Metals and Mining $0.23 322% $4.4 $14.0 $0.0 ($9.6)
Serengeti Resources Inc. (TSXV:SIR) Precious Metals and Minerals $0.18 179% $7.8 $14.0 $0.0 ($6.2)
Fortune Minerals Ltd. (TSX:FT) Diversified Metals and Mining $0.39 64% $21.7 $13.9 $0.0 $7.8
Golden Predator Mines Inc. (TSX:GP) Gold $0.15 151% $9.1 $13.7 $2.3 ($2.3)
First Nickel Inc. (TSX:FNI) Diversified Metals and Mining $0.05 193% $7.0 $13.5 $1.1 ($5.4)
Red Dragon Resources Corp. (TSXV:DRA) Diversified Metals and Mining $0.08 244% $5.5 $13.4 $0.0 ($7.9)
Avalon Ventures Ltd. (TSX:AVL) Diversified Metals and Mining $0.41 51% $26.5 $13.4 $0.0 $13.1
Candente Resource Corp. (TSX:DNT) Gold $0.15 109% $12.1 $13.2 $0.0 ($1.1)
Revett Minerals Inc (TSX:RVM) Diversified Metals and Mining $0.14 129% $10.1 $13.1 $3.6 $0.6
African Aura Resources Ltd. (TSXV:AAZ) Gold $0.04 588% $2.2 $13.0 $0.0 ($10.8)
Geologix Explorations Inc. (TSX:GIX) Diversified Metals and Mining $0.41 62% $21.0 $13.0 $0.0 $8.0
Strathmore Minerals Corp. (TSXV:STM) Coal and Consumable Fuels $0.18 101% $12.7 $12.8 $0.0 ($0.1)
Talon Metals Corp. (TSX:TLO) Diversified Metals and Mining $0.30 155% $8.1 $12.6 $0.0 ($4.5)
Keegan Resources Inc. (TSXV:KGN) Oil and Gas Exploration and Production $0.50 88% $14.2 $12.5 $0.0 $1.7
Eurasian Minerals Inc. (TSXV:EMX) Diversified Metals and Mining $0.66 66% $18.7 $12.4 $0.0 $6.3
Uruguay Mineral Exploration Inc. (TSXV:UME) Gold $0.40 64% $19.5 $12.4 $0.2 $7.2
Inter Citic Minerals Inc. (TSX:ICI) Gold $0.32 47% $26.4 $12.4 $0.0 $14.0
Staccato Gold Resources Ltd. (TSXV:CAT) Diversified Metals and Mining $0.05 242% $5.0 $12.1 $0.0 ($7.1)
Corona Gold Corp. (TSX:CRG) Gold $0.30 214% $5.7 $12.1 $0.0 ($6.4)
NWT Uranium Corp. (TSXV:NWT) Diversified Metals and Mining $0.03 377% $3.2 $12.0 $0.0 ($8.8)
Miranda Gold Corp. (TSXV:MAD) Gold $0.25 107% $11.0 $11.8 $0.0 ($0.8)
Santoy Resources Ltd. (TSXV:SAN) Coal and Consumable Fuels $0.07 180% $6.5 $11.7 $0.0 ($5.2)
High Desert Gold Corporation (TSX:HDG) Precious Metals and Minerals $0.16 179% $6.5 $11.6 $0.0 ($5.1)
Metallic Ventures Gold Inc. (TSX:MVG) Gold $0.26 85% $13.5 $11.5 $0.0 $2.0
Brilliant Mining Corp. (TSXV:BMC) Diversified Metals and Mining $0.13 119% $9.5 $11.3 $2.4 $0.6
Carpathian Gold Inc. (TSX:CPN) Diversified Metals and Mining $0.10 85% $13.2 $11.3 $0.0 $1.9
Mawson Resources Ltd. (TSX:MAW) Coal and Consumable Fuels $0.37 85% $13.3 $11.3 $0.0 $2.0
Minco Silver Corporation (TSX:MSV) Precious Metals and Minerals $0.35 100% $10.9 $10.9 $2.6 $2.6
Volta Resources Inc. (TSX:VTR) Gold $0.07 290% $3.7 $10.8 $0.1 ($7.0)
SNS Silver Corp. (TSXV:SNS) Precious Metals and Minerals $0.07 405% $2.6 $10.7 $0.0 ($8.1)
CanAlaska Uranium Ltd. (TSXV:CVV) Coal and Consumable Fuels $0.07 118% $9.0 $10.6 $0.0 ($1.6)

[the machine]

thanks wirema - would be interesting to see same data for asx and nzx

M

[boysy]

depth on the sell side has dried up on asb securities well here in NZ any way no sell orders between 25 and 30 cents.

[the machine]

depth on the sell side has dried up on asb securities well here in NZ any way no sell orders between 25 and 30 cents.


really think they have started uptrend and expect significant drilling news in a couple of weeks, around time of awe agm

M

[Zephyrus]

The Machine: Toronto Stock Exchange

Boysy: Plenty, and many much larger. Here is a section from the report (it may lose the formatting):

Source: Capital IQ 1 of 3 As at October 28, 2008
TSX and TSXV Mining Companies
Financial Information
Cash as % of
Company Name Primary Industry Share Price Mkt Cap Market Cap Cash & STIs Total Debt TEV
($mm) ($mm) ($mm) ($mm)
Stingray Copper Inc (TSX:SRY) Diversified Metals and Mining $0.19 168% $10.9 $18.3 $0.0 ($7.4)
Western Copper Corp. (TSX:WRN) Diversified Metals and Mining $0.31 81% $22.6 $18.2 $0.0 $4.4
Bayswater Uranium Corp. (TSXV:BAY) Coal and Consumable Fuels $0.09 144% $12.4 $17.8 $0.0 ($5.4)
Copper Mountain Mining Corporation (TSX:CUM) Diversified Metals and Mining $0.56 100% $17.7 $17.7 $0.3 $0.3
U308 Corp. (TSXV:UWE) Diversified Metals and Mining $0.23 322% $5.3 $17.1 $0.0 ($11.8)
Tournigan Energy Ltd. (TSXV:TVC) Precious Metals and Minerals $0.18 80% $21.5 $17.1 $0.0 $4.4
Olympus Pacific Minerals Inc. (TSX:OYM) Gold $0.06 122% $13.9 $17.0 $0.4 ($2.6)
Mundoro Capital Inc. (TSX:MUN) Gold $0.17 257% $6.6 $16.9 $0.0 ($10.3)
Committee Bay Resources Ltd. (TSXV:CBR) Precious Metals and Minerals $0.05 345% $4.8 $16.6 $0.0 ($11.8)
Strategem Capital Corp. (TSXV:SGE) Investment Banking and Brokerage $1.62 196% $8.2 $16.1 $0.0 ($7.9)
RPT Uranium Corp. (TSXV:RPT) Coal and Consumable Fuels $0.09 150% $10.5 $15.8 $0.0 ($5.3)
Almaden Minerals Ltd. (TSX:AMM) Diversified Metals and Mining $0.62 56% $28.0 $15.6 $0.0 $12.4
Energy Fuels Inc. (TSX:EFR) Diversified Metals and Mining $0.20 143% $10.5 $15.1 $1.2 ($3.4)
ATW Gold Corp. (TSXV:ATW) Precious Metals and Minerals $0.34 77% $19.1 $14.7 $0.0 $4.4
Mega Silver Inc. (TSXV:MSR) Gold $0.24 269% $5.3 $14.4 $0.0 ($9.1)
International Enexco Ltd. (TSXV:IEC) Diversified Metals and Mining $0.23 322% $4.4 $14.0 $0.0 ($9.6)
Serengeti Resources Inc. (TSXV:SIR) Precious Metals and Minerals $0.18 179% $7.8 $14.0 $0.0 ($6.2)
Fortune Minerals Ltd. (TSX:FT) Diversified Metals and Mining $0.39 64% $21.7 $13.9 $0.0 $7.8
Golden Predator Mines Inc. (TSX:GP) Gold $0.15 151% $9.1 $13.7 $2.3 ($2.3)
First Nickel Inc. (TSX:FNI) Diversified Metals and Mining $0.05 193% $7.0 $13.5 $1.1 ($5.4)
Red Dragon Resources Corp. (TSXV:DRA) Diversified Metals and Mining $0.08 244% $5.5 $13.4 $0.0 ($7.9)
Avalon Ventures Ltd. (TSX:AVL) Diversified Metals and Mining $0.41 51% $26.5 $13.4 $0.0 $13.1
Candente Resource Corp. (TSX:DNT) Gold $0.15 109% $12.1 $13.2 $0.0 ($1.1)
Revett Minerals Inc (TSX:RVM) Diversified Metals and Mining $0.14 129% $10.1 $13.1 $3.6 $0.6
African Aura Resources Ltd. (TSXV:AAZ) Gold $0.04 588% $2.2 $13.0 $0.0 ($10.8)
Geologix Explorations Inc. (TSX:GIX) Diversified Metals and Mining $0.41 62% $21.0 $13.0 $0.0 $8.0
Strathmore Minerals Corp. (TSXV:STM) Coal and Consumable Fuels $0.18 101% $12.7 $12.8 $0.0 ($0.1)
Talon Metals Corp. (TSX:TLO) Diversified Metals and Mining $0.30 155% $8.1 $12.6 $0.0 ($4.5)
Keegan Resources Inc. (TSXV:KGN) Oil and Gas Exploration and Production $0.50 88% $14.2 $12.5 $0.0 $1.7
Eurasian Minerals Inc. (TSXV:EMX) Diversified Metals and Mining $0.66 66% $18.7 $12.4 $0.0 $6.3
Uruguay Mineral Exploration Inc. (TSXV:UME) Gold $0.40 64% $19.5 $12.4 $0.2 $7.2
Inter Citic Minerals Inc. (TSX:ICI) Gold $0.32 47% $26.4 $12.4 $0.0 $14.0
Staccato Gold Resources Ltd. (TSXV:CAT) Diversified Metals and Mining $0.05 242% $5.0 $12.1 $0.0 ($7.1)
Corona Gold Corp. (TSX:CRG) Gold $0.30 214% $5.7 $12.1 $0.0 ($6.4)
NWT Uranium Corp. (TSXV:NWT) Diversified Metals and Mining $0.03 377% $3.2 $12.0 $0.0 ($8.8)
Miranda Gold Corp. (TSXV:MAD) Gold $0.25 107% $11.0 $11.8 $0.0 ($0.8)
Santoy Resources Ltd. (TSXV:SAN) Coal and Consumable Fuels $0.07 180% $6.5 $11.7 $0.0 ($5.2)
High Desert Gold Corporation (TSX:HDG) Precious Metals and Minerals $0.16 179% $6.5 $11.6 $0.0 ($5.1)
Metallic Ventures Gold Inc. (TSX:MVG) Gold $0.26 85% $13.5 $11.5 $0.0 $2.0
Brilliant Mining Corp. (TSXV:BMC) Diversified Metals and Mining $0.13 119% $9.5 $11.3 $2.4 $0.6
Carpathian Gold Inc. (TSX:CPN) Diversified Metals and Mining $0.10 85% $13.2 $11.3 $0.0 $1.9
Mawson Resources Ltd. (TSX:MAW) Coal and Consumable Fuels $0.37 85% $13.3 $11.3 $0.0 $2.0
Minco Silver Corporation (TSX:MSV) Precious Metals and Minerals $0.35 100% $10.9 $10.9 $2.6 $2.6
Volta Resources Inc. (TSX:VTR) Gold $0.07 290% $3.7 $10.8 $0.1 ($7.0)
SNS Silver Corp. (TSXV:SNS) Precious Metals and Minerals $0.07 405% $2.6 $10.7 $0.0 ($8.1)
CanAlaska Uranium Ltd. (TSXV:CVV) Coal and Consumable Fuels $0.07 118% $9.0 $10.6 $0.0 ($1.6)

Out of all those companies you've listed Wiremu, I can't see any that are anywhere near the size of PPP. Most are about 1/10th of the size.

[boysy]

exactly with companies so small and so illiquid there are bound to be companies with market cap less than cash held. But PPP is is of a size and liquid enough that the current discount to cash held must mean that people have very little faith in the company going anywhere. Fair enough the fall in the price of oil has made oil and gas companies lose thier shimmer but PPP is still making over $100,000 profit a day and has a small management team with comparitively little outgoings. I clearly have a biased view of the stock as it constitutes a significant share of my portfolio even so at these prices their is little downside i just scratch my head into thinking why the market values this company at such a discount to the cash it has in the bank.

[Dr_Who]

I think the reason the market is discounting PPP's cash position is that PPP has indicated they are ready to look for acquisitions. Until the market knows what that acquisition is, it is taking a caution approach and putting a discount on the sp.


dis: shareholder

[macduffy]

Fair comment, doc.
Just because PPP has a stack of cash it doesn't necessarily follow that it will be spent wisely, let alone distributed to shareholders.
I happen to think that it will be spent to good effect, largely because the directors have such a huge personal stake to see that it is, but I can understand the market's nervousness in present circumstances.

;)

[Dr_Who]

I would like to see PPP do a merger with a firm of similar size and cash position and to distribute 20-40% of the cash back to shareholders. I hav a feeling if PPP stays at these current sp, it wcould be a T/O target.

Also, will be a nice to see PPP make a script T/O offer for a firm with good cashflow and making good profit while retaining cash in the bank. There are plenty of very attractive under valued coys out there trading well below valuation.

PPP can learn something from QGC.

[macduffy]

I have no concern about a takeover of PPP. Radford and Co have sufficient shares to force a realistic price or to block if necessary.
As for PPP taking over someone else, it's a bit of a moot point whether cash or shares should be PPP's preferred weapon of choice. Amounts to much the same thing in that cash per share is diluted if PPP offers shares.

;)

[digger]

We have gone on since Adam was a yearling about PPP being a T/O target ,but it never seems to happen.I was convinced of this some years ago before TUI strart up,and on reflrction it would have been a good move for anyone.
I do agree with the poster that said the acquisition when it comes will be a good one as directors have a firm holding so will think in terms of a good outcome SP wise.
In the meantime the world every day sinks further into the finanical mess,and no one has any money even to buy shares with cash backing greater than the SP. Makes me wonder what would happen to the SP if PPP gave all the money back to the shareholders.Would the future income from TUI and other projects take on a negative value. Seems crazy but that is what todays market is saying.
Digger

[Wiremu]

Those examples from the smaller end of the list, the other end:

Consolidated Thompson Iron Mines Ltd. (TSX:CLM) Steel $1.45 190% $172.1 $327.4 $0.0 ($155.3)
Nautilus Minerals Inc. (TSX:NUS) Diversified Metals and Mining $0.85 240% $124.6 $299.0 $0.0 ($174.3)
Quadra Mining Ltd. (TSX:QUA) Diversified Metals and Mining $4.53 88% $299.0 $262.2 $7.8 $44.6
Anvil Mining Limited (TSX:AVM) Diversified Metals and Mining $2.86 100% $203.8 $203.5 $0.8 $1.0
European Goldfields Ltd. (TSX:EGU) Gold $1.78 63% $319.3 $201.0 $0.0 $118.3
Eastern Platinum Limited (TSX:ELR) Diversified Metals and Mining $0.56 51% $380.9 $195.4 $4.0 $189.5
Baffinland Iron Mines Corp. (TSX:BIM) Steel $0.61 143% $90.3 $129.5 $0.0 ($39.2)
Lake Shore Gold Corp. (TSX:LSG) Gold $0.92 75% $161.3 $121.5 $0.2 $40.0

[upside_umop]

I was about to say the same thing about the list of companies that were put up...

To find another difference, however, is that those are all mining companies where potentially the cost of extraction is going to be higher than sale price. I'm sure you know of PEM...

Therefore they could actually be burning cash for the foreseeable future and without any further direction from directors a negative NPV from operations may be assigned to the company from investors.

PPP on the other hand is still making over $100 k per day and directors gave guidance of a similiar net profit to this year for ending June 09. Marginal cost of production currently less than $10 USD per barrel...

A no brainer in my book...I hold a few and look forward to some hefty returns if/when this drilling goes ahead for tui expansion. Of course the SP will could react negatively if plan is scrapped! The question is...how much more negative? Cant be much...

[the machine]

hopefully awe will announce further details of the 2009 tui drilling campaign at their agm

M

[boysy]

ppp going balistic today surely somethings going on

[Mr Tommy]

ppp going balistic today surely somethings going on

Yeah 12 noon in Oz, 6.5m traded, volume now over 10m in Oz

[Mr Tommy]

Now at 34c, up 47% in NZ
Volume on ASX over 16m traded.
Whazzzzuppppp ????

[boysy]

yes i think thats the question we all want to know

[upside_umop]

Its definitely a hostile bid. I reckon they will put in a bid for 28ish AU - Just above the cash backing.... Thats my bet...I'll bet all my PPP shares! haha Is this you Bermuda? haha

Joking about the bet ;)

[Sharp737]

Better be more than that!

Sharp

[upside_umop]

Yeah...I will take 32 ish...:cool::cool::cool:

[boysy]

remember people that cash backing is still around NZ$0.31 . The announcement today also very positive about the taranaki basin and hector where ppp have a 14.09% stake and so forth. So while TUI is still the crown in PPP their is plenty more for this comapny to do before its taken over. Even at these prices ppp is cheap just remember that.

[upside_umop]

I know...I'm talking AUD boysy....so i'd take 39ish NZD.

I'll wait and see what the directors say...they will no doubt get an independent report, which will advise of their assets plus a DCF valuation on tui...by the time this comes out, a drilling program will have been announced. Maitland will get a mention...so maybe 39 cents will be too low!

[boysy]

i think you may be right about 39 cents being too low though only time will tell.

[Mr Tommy]

A total of 28m traded in Oz today, just under 5% of the shares.
PPP has released a statement on ASX saying they know nothing.
Price finished at .30 AUD, thats .35 NZD

[the machine]

A total of 28m traded in Oz today, just under 5% of the shares.
PPP has released a statement on ASX saying they know nothing.
Price finished at .30 AUD, thats .35 NZD

my most valuable stock today jumped 42% - might have a drink tonight to celebrate.

effect on my portfolio is almost a 24% in value in 1 day

will do wonders for my share trading competitions as well

M

[Hoop]

A total of 28m traded in Oz today, just under 5% of the shares.
PPP has released a statement on ASX saying they know nothing.
Price finished at .30 AUD, thats .35 NZD

30c Aud / 0.8324 = 36c NZD :D:D

[boysy]

900,000 shares already traded on the nzx are we expecting another high turnover day

[boysy]

now up to 8 million shares traded on the nzx somethings definately up

[mattyroo]

On the direct broking depth screen, it shows all todays traded shares with a condition of "IN".

What does "IN" mean?

[boysy]

international i presume ?

[777]

On the direct broking depth screen, it shows all todays traded shares with a condition of "IN".

What does "IN" mean?


If you click on " need some help " on any page of DB's site then click glossary you will get the definition of IN and everything else.

In this case IN is international.

[CAM]

May be a silly move in hindsight...but I have taken the opportunity to sell half my holding to be now free carried on whatever happens next....a bird in the hand so to speak

[macduffy]

May be a silly move in hindsight...but I have taken the opportunity to sell half my holding to be now free carried on whatever happens next....a bird in the hand so to speak

Not a silly move by any means, IMO.

I'd be doing the same if my entry price was lower!

;)

[Mr Tommy]

Yesterday in Oz pre-opening there was a sale of 6,500,000 at 30 aud which seemed to have kicked the price rise off.
Today on the NZ market pre-opening (9:08am) there was the same sale of 6,500,000 at 36 nzd.
Could this have simply been a share transfer with a nominal price of 30c and everyone has jumped on it thinking something is up?

[upside_umop]

New CEO? Tom Prudence....hmmm

[upside_umop]

Yesterday in Oz pre-opening there was a sale of 6,500,000 at 30 aud which seemed to have kicked the price rise off.
Today on the NZ market pre-opening (9:08am) there was the same sale of 6,500,000 at 36 nzd.
Could this have simply been a share transfer with a nominal price of 30c and everyone has jumped on it thinking something is up?

Seems this could be bang on...

Tom Prudence buying a stake as incoming CEO, but having to pay fair value for shares. Thoughts?

[macduffy]

Seems this could be bang on...

Tom Prudence buying a stake as incoming CEO, but having to pay fair value for shares. Thoughts?

Could well be that.

Whatever, it's a good guide to what "insiders" see as fair value rather than just a nominal price.

[digger]

Seems this could be bang on...

Tom Prudence buying a stake as incoming CEO, but having to pay fair value for shares. Thoughts?

Well that would be a new one. A CEO paying fair price instead of market price when fair price is the greater--- not likely mate,where have you been these years with that sort of thinking. More likely a CEO gets you to subsidise him a hugh reduced price. The only thing right about this story is the volumn.Yes that would be about the amount a new CEO would want but the price above market puts payed to that theory.
Digger

[upside_umop]

Do you think the directors would sell some of their stakes at market price knowing there is 28 cents AUD cash in the bank and over 30 cents AUD by June 30th?

Something else is definitely going on...I guess we'll just have to wait until the SSH notice..its just very fishy that a new CEO is announced today and all this was going on yesterday.

[sideline]

Do you think the directors would sell some of their stakes at market price knowing there is 28 cents AUD cash in the bank and over 30 cents AUD by June 30th?

Something else is definitely going on...I guess we'll just have to wait until the SSH notice..its just very fishy that a new CEO is announced today and all this was going on yesterday.

I don't think the new director is all there is to this story - remember the unusual number
of small trades on Friday.....

[macduffy]

Do you think the directors would sell some of their stakes at market price knowing there is 28 cents AUD cash in the bank and over 30 cents AUD by June 30th?

Something else is definitely going on...I guess we'll just have to wait until the SSH notice..its just very fishy that a new CEO is announced today and all this was going on yesterday.

Except that if the theory of Tom Prudence buying/ a director selling is correct, the big sale was at a price well above the previous market price. The rest of the trading would have been punters following on.
As you say, we'll have to await a SSH notice.

[boysy]

once again the shareprice finishes at A$0.30 and over 28 million shares change hands or once again around 5 % of shares on issue. is this simply the mr prudence effect ?

[the machine]

once again the shareprice finishes at A$0.30 and over 28 million shares change hands or once again around 5 % of shares on issue. is this simply the mr prudence effect ?


whoever has been the buyer then would expect they now have over 5% so in due course a substantial shareholder notice will be lodged - this could take a few weeks.

if it is awe then that implies the drilling tui program for 2009 is not signed, otherwise awe are witholding sensitive information. [it might be announced this week]

again if it is awe then that is a big plus for ppp and it may not all be linked to tui either as ppp have stranded gas assets off north west WA, including maitland and corvus.

arc/awe merger may need to boost their gas reserves so can move forward with more contracts and a merger with ppp would help that quite a lot.

can see ppp going quite a lot higher with 2 drivers - the mystery buyer and the tui 2009 drilling [once confirmed]

M

[macduffy]

Just as interesting as the possible revelation of a new substantial holder will be any variation to the holdings of present subst holders, eg if one or more directors have sold to Mr P.

[Wilkins_Micawber]

REL: 0946 HRS New Zealand Oil and Gas Limited

GENERAL: NZO: NZOG Takes Shareholding in PPP

New Zealand Oil & Gas Ltd (NZOG) has disclosed to the NZX and ASX that by the
close of trading on the ASX yesterday it had acquired 5.77% of the issued
shares of Pan Pacific Petroleum NL (PPP).

NZOG is seeking to acquire a strategic stake in PPP so as to increase its
exposure to the attractive producing Tui area oilfields in offshore Taranaki.
The two companies are joint venture partners in Tui; NZOG with a 12.5% stake
and PPP with 10%.

The shareholding is being acquired at a premium to the recent market price of
PPP. NZOG Chief Executive David Salisbury said NZOG believes it is paying a
fair and attractive price to achieve a meaningful shareholding in PPP.

PPP is an Australian company and Australian Foreign Investment Review Board
(FIRB) requirements restrict NZOG to a shareholding below 15% unless FIRB
approval is received.

At this stage NZOG is focused on acquiring a strategic stake. In due course
NZOG will reassess its position to determine what, if any, further steps
might be taken.

[Dr_Who]

"O" for Owsome! :):)

[Mr Tommy]

Why did PPP respond on the ASX to the price enquiry that they knew of no reason for the price rise. This is total BS as Tony Radford is the chairman of both PPP and NZOG.

[Dr_Who]

Why did PPP respond on the ASX to the price enquiry that they knew of no reason for the price rise. This is total BS as Tony Radford is the chairman of both PPP and NZOG.

That is so true. Maybe a stock exchange enquiry? Lets see if the NZX has any teeth.

[bermuda]

Upside,
That surely is one good looking portfolio.

The Machine,

NZO are now in a position to buy PPP. They will have to offer a fair price. If they dont, someone else will. Wouldnt worry about it.

Hi The Machine,
It finally happened. Took a while. But common sense prevailed. Makes me feel good to see DS making good decisions.

Well done to holders.

[boysy]

well both companies are heading in the same direction its good to see that someone in the market realises ppp potential.

[Wiremu]

Mr Tommy

If NZOG was intending to buy PPP shares (as it has) it would be good practice to make sure that anyone who had a potential or real conflict of interest wasn't involved, and is kept well out of the loop.

NZOG have even used brokers for the PPP purchase which I can't recall them using before.

[Mr Tommy]

Yep it was Tattersfield, bought 8.5 million at 21c
He is obviously confident, and saw a bargain.

a nice profit in 2 months.

[Mr Tommy]

Mr Tommy

If NZOG was intending to buy PPP shares (as it has) it would be good practice to make sure that anyone who had a potential or real conflict of interest wasn't involved, and is kept well out of the loop.

NZOG have even used brokers for the PPP purchase which I can't recall them using before.

But this would mean NOG would be keeping their directors in the dark when they are taking a strategic stake in another company. Is that likely ?

[digger]

Why did PPP respond on the ASX to the price enquiry that they knew of no reason for the price rise. This is total BS as Tony Radford is the chairman of both PPP and NZOG.

Exactaly my first thoughts Mr Tommy.Now i wonder if it is still legal as the stock exchange quiry must not preempt the substantial holding release that the exchange would have been told was already in the pipeline. Well that is how i now see it in any event.
Taking a holding in PPP is the best acquisition move that NZO can make. Firstly the acquisition will have no adverse suprises as all too often happens with overseas [beyond Aus] purchases.Also note that so far NZO has payed up only to the value of the money in the bank with the remaining assets coming for nothing. I hope NZO can in the future move beyong the 15% stake limit that is now in place.
Well done NZO. Money for jam.
Digger

[boysy]

NZOs stake in PPP up from 5.77 % at yesterday close to 7.083 % currently

http://research.iress.com.au/ids/current/20081217/00914234.pdf?uid=1E3CB4CCCB7A11D4BC4E8DB33134C3FF7 B0C0000A54FFAE4F36EE340F1AB0000F4120000&ppv=

[Mr Tommy]

17 December, 2008

In light of the substantial shareholder notice received today from New
Zealand Oil and Gas Limited (NZOG), and in recognition of NZOG's announced
intent to obtain a "strategic stake" in PPP, the Board of PPP has formalised
a process to manage any potential conflict issues which relate to the fact
that the PPP's Chairman Mr Tony Radford is also an NZOG Director and Chairman
of that company. These measures have been put in place to ensure that
decisions of the Directors are taken without the possibility of any conflict
of interest arising from Mr. Radford's dual directorship position.

As indicated by the attached Financial Information which PPP intends to
update on a monthly basis, PPP has a strong cash position and no debt, which
places the company in a highly competitive situation given the current global
credit constraints. As at end November PPP has retained some A$148 million
(equivalent) in cash comprising A$53 million, NZ$38 million and US$41
million. This excludes US$7 million deposited as collateral to support the
Tui FPSO lease arrangement.

PPP remains on track and committed to its growth objectives as outlined at
PPP's recent AGM and is currently considering a range of opportunities in the
oil and gas business.

Belinda Flatters-Wright
Company Secretary

[boysy]

nzos stake in ppp up to 8.996 % from 7.083 % from yeterday

https://ost.asbbank.co.nz/A1699D0F227510F854D04C13511054A7/Quotes/AnnouncementsList.aspx?stockCode=NZO&exchange=NZ

[Hoop]

As per normal the NZX releases it's announcements in a format which borders the unreadable. I'm starting to think they do this just to piss off its customers (us folk) as they are well aware of the criticism.

For an easy to read version
http://www.asx.com.au/asxpdf/20081217/pdf/31f7p6m05rsgq4.pdf

[bermuda]

As per normal the NZX releases it's announcements in a format which borders the unreadable. I'm starting to think they do this just to piss off its customers (us folk) as they are well aware of the criticism.

For an easy to read version
http://www.asx.com.au/asxpdf/20081217/pdf/31f7p6m05rsgq4.pdf

Agree Hoop, Weldon needs to get his act together. Cant seem to handle the simplest of things. This is elementary stuff. Perhaps the ASX could take him ( NZX ) over.

PPP a perfect mix for NZO eh.

[the machine]

nzos stake in ppp up to 8.996 % from 7.083 % from yeterday

https://ost.asbbank.co.nz/A1699D0F227510F854D04C13511054A7/Quotes/AnnouncementsList.aspx?stockCode=NZO&exchange=NZ


so another 6% can be purchased before reach the foreign investment review limit.

at this rate of purchase then will reach the 15% pretty soon and maybe before the tui 2009 drilling campaign is announced

M

[boysy]

from a news article it seems as thogh nzo have already approached the Australian Foreign Investment Review Board

" NZOG spokesman Chris Roberts said the company had applied for that approval, as a matter of course, so it had the option to go up to 19.9 per cent."

http://nz.biz.yahoo.com/081217/9/9v0n.html

who knows where this is headed

[Hoop]

Agree Hoop, Weldon needs to get his act together. Cant seem to handle the simplest of things. This is elementary stuff. Perhaps the ASX could take him ( NZX ) over.

PPP a perfect mix for NZO eh.

Yes perfect mix ...merging of companies of sorts..
Buying at the bottom of the market too ...picking up PPP's share of Tui oil still in the ground + other bits and pieces for 5AUcents/share must be a good bet for the future NZO

Disc: sold down 2/3s

[Mr Tommy]

Quick calculation for a full takeover - 588m PPP shares at say 35c = $205m NZD

And PPP has $148m AUD in the bank which is about $176m NZD, so it could effectively cost just $30m to get 10% more Tui, plus all the other bits they hold.

[boysy]

35 cents isnt going to get them ppp lets be serious now

[Mr Tommy]

35 cents isnt going to get them ppp lets be serious now

I dunno, they only ever got to about 40c twice before for a very short time. And 35c is a lot better than the 23-24 they have been sitting on for ages.

[boysy]

directors arnt going to let go of shares at this level. PPP have a NZ$0.30 cash backing the value of tui and its permits are worth well over NZ$0.05 investors realise this look at nzo share price and think how much tui is worth and translate this back to ppps shareprice.

[boysy]

NZOs stake up to 10.055 % they sure are buying at around A$0.30


now holding 59,187,000

[Sehnsucht888]

I dunno, they only ever got to about 40c twice before for a very short time. And 35c is a lot better than the 23-24 they have been sitting on for ages.

That it is, but the first time they got to 40c they didn't have 140million in the bank, and steady income streams.. Times were more optimistic then, and will be again I'd expect. I guess it depends if you need the money when they offer or not,

[boysy]

over 26 million shares changed hands today or around 5% of ppp shares.

[the machine]

the strategic stake of course makes it almost impossible for another company to take over ppp.

a lot of small shareholders have sold out on first day when nzo made their move.

nzo will have aquired their initial 10 - 15% pretty cheaply.

nzo now talking about making the foreign investment application with 19.9% stake in mind - just below the takeover threshold.
expect all purchases up to this percentage will be iaround the same 30c au, unless a spoiler makes a move.

will nzo reveal any approval to go beyond 15% before increasing stake?
why should they.

PPP when they hear about it [there could be a delay] might or might not inform the market.

interesting times ahead.


when did nzo make their application to foreign review - was it this week or some time ago and have keptit quiet?

M

[KentBrockman]

the strategic stake of course makes it almost impossible for another company to take over ppp.

a lot of small shareholders have sold out on first day when nzo made their move.

nzo will have aquired their initial 10 - 15% pretty cheaply.
M

Tomkinson bought more at 30 cents, so he must think the eventual t/o offer will be significantly higher

[upside_umop]

I think I'm going to sell mine today.

I dont see an immediate takeover occuring...but eventually yes.

NZO wil stop buying after 15% then price will fall.

Then they will get approval and get 19.99% and the price will fall.

Then they will offer a reasonable price and most shareholders will accept it, even though it wont be much higher than what they're scooping shares up for now as they know, if they dont accept it, shareprice will settle down and wont recover so quickly.

Oil is now down to mid 30's and this is quite the christmas gift...will be nice to see the cash in the bank. I'll probably buy back in after this is 15% is done...:cool:

Well done all shareholders who withstood some short term pain for short term gain ;)

[Mr Tommy]

Good idea umop, your toilet paper really will be dollars bills this christmas.

[upside_umop]

Maybe hundred dollar bills? haha

Im all out now...for 35 cents. Didnt think it was going to go through for a minute there!

[boysy]

nzo now have 14.865% of ppp will they stop buying today or keep going up til 19.9 if they have approval ?

[the machine]

nzo now have 14.865% of ppp will they stop buying today or keep going up til 19.9 if they have approval ?

very good question.

however someone is still buying them with another 1%+ traded so far today.

M

[boysy]

would nzo have to announce when / if they get approval to the market stright away ? i mean they submitted to the FIRB last monday how long would it take to get a reply ?

[bermuda]

would nzo have to announce when / if they get approval to the market stright away ? i mean they submitted to the FIRB last monday how long would it take to get a reply ?

I have said for years that PPP was the perfect mix for NZO. The only reason NZO had to sell down their holdings was to finance PRC. Now they are 'cash rich' they will look to an aquisition. As per their Annual Report and numerous other hints from DS. And with the market as it is I believe NZO will go all the way and try and get the lot. I mean why not. NZO know Taranaki and they know that Tui has a good chance of producing more.

TR is getting on and DS wants to enlarge NZO. It is win / win and always has been.

[Dr_Who]

I am guessing that NZO will have to obtain the entire company to get hold of the cash. I am also guessing there wont be much upside from current sp of AUD30.

[boysy]

down to 27.5 on the asx looks as though people are real skitish once the big buyers come off the market.

[KentBrockman]

I am guessing that NZO will have to obtain the entire company to get hold of the cash. I am also guessing there wont be much upside from current sp of AUD30.

I beg to differ. A 15 or 20% stake (or any stake bar a complete takeover) will be relatively useless to NZO.

To gain access to PPP's assetts, NZO needs to do a complete takeover. They did a fairly smart move in shaking out all the weak hands at sub 30c. I suggest from here on it will be uphill for NZO.

My guess is a takeover won't be successfull below 55 - 60 cents (and surely, any independent valuation will be AT LEAST that).

The fact that Tomkinson bought more shares is also reassuring.

[bermuda]

I beg to differ. A 15 or 20% stake (or any stake bar a complete takeover) will be relatively useless to NZO.

To gain access to PPP's assetts, NZO needs to do a complete takeover. They did a fairly smart move in shaking out all the weak hands at sub 30c. I suggest from here on it will be uphill for NZO.

My guess is a takeover won't be successfull below 55 - 60 cents (and surely, any independent valuation will be AT LEAST that).

The fact that Tomkinson bought more shares is also reassuring.

Exactly Kent. Like ABC.

[macduffy]

If we're anticipating an eventual takeover of PPP by NZO it's worth bearing in mind that the highest price paid in a t/o is usually the last.

;)

[KentBrockman]

If we're anticipating an eventual takeover of PPP by NZO it's worth bearing in mind that the highest price paid in a t/o is usually the last.

;)

From NZO's announcement today:

"While FIRB approval is being sought NZOG has no current intention to purchase PPP shares beyond
the present level."

Yeah right.

One wonders though, didn't an article in yesterday's NBR suggest that FIRB was already given?

[macduffy]

From NZO's announcement today:

"While FIRB approval is being sought NZOG has no current intention to purchase PPP shares beyond
the present level."

Yeah right.

One wonders though, didn't an article in yesterday's NBR suggest that FIRB was already given?

Quite so. NZO has "no current intention while FIRB approval is being sought."

But then?

;)

[digger]

Quite so. NZO has "no current intention while FIRB approval is being sought."

But then?

;)

Between the lines and considering the season ,it reads to me that while the christmas and new year break is mostly closing down the NZX and everyone is off to the beach that NZO has decided to not try to buy PPP shares that will not be for sale until mid january.End of story.
the best for the coming year
Digger

[Dr_Who]

I beg to differ. A 15 or 20% stake (or any stake bar a complete takeover) will be relatively useless to NZO.

To gain access to PPP's assetts, NZO needs to do a complete takeover. They did a fairly smart move in shaking out all the weak hands at sub 30c. I suggest from here on it will be uphill for NZO.

My guess is a takeover won't be successfull below 55 - 60 cents (and surely, any independent valuation will be AT LEAST that).

The fact that Tomkinson bought more shares is also reassuring.

Well, good luck. I am all out of PPP at 30 cents. Got better fish to fry.

Have you guys try reading the PPP ssh in NZ compare to Aussie ssh? I can barely read the NZ ssh, looks like something the dog dragged in.

[boysy]

STOCK EXCHANGE ANNOUNCEMENT


29 December, 2008


Board Appointments

On 23rd December 2008, New Zealand Oil & Gas Limited (NZOG) announced that it held a
relevant interest in 15.436% of the issued share capital of Pan Pacific Petroleum NL (PPP
or the Company) and that it had applied for Foreign Investment Review Board (FIRB)
approval, required for a shareholding of 15% or greater. NZOG stated that “while FIRB
approval is being sought, NZOG has no current intention to purchase PPP shares beyond the
present level�. NZOG also announced that “the NZOG Board currently considers it
appropriate that Mr Radford participate in any further Board consideration in PPP�. Mr
Radford is a Director of PPP as well as being Chairman of NZOG.

On 26th December, 2008, Mr Radford resigned as Chairman of PPP following which the Board
has appointed Mr Neil Tomkinson as Chairman.

The Board of PPP announced recently that it had formalised a process aimed at managing
any potential conflict issues relating to Mr Radford’s then current Director and Chairman
roles of both PPP and NZOG. This process will now be reviewed in the light of Mr
Radford’s decision to step down as Chairman and to participate in ongoing NZOG board
discussions regarding PPP.

Reflecting the changes which have recently occurred in the shareholding and management of
the Company, the Board members other than Mr Radford have moved to strengthen the make up
of the PPP Board by the appointment of two additional experienced Directors, Mr Michael
Daniel, a well known New Zealand company director, and Mr Joshua Pitt, an experienced
Australian corporate investor and director. These new appointments will better enable the
Company to address the current situation following NZOG’s announced intention to obtain a
“strategic stake� in PPP and � to invite Mr Radford to participate in any further NZOG
board consideration in PPP� as well as to deal with other matters which may arise.

Michael Walter Daniel, B.Com.Ec, is the Chairman of New Zealand listed Northland Port
Corporation (NZ) Ltd and Northport Ltd and a director of each of NPC Corporate Services
Ltd, and NorthPort Coolstores (1989) Ltd each NZ companies. Mr Daniel was a former
stockbroker and merchant banker and has held previous directorships with GSB Supply Corp
Ltd, GSB Supply Vehicles Ltd, Force Corporation Ltd, Northland Health Limited, Northpower
Ltd, Sky City Leisure Ltd, Professional Service Brokers Ltd and was a Chairman of Elders
Northstock Ltd.

Joshua Norman Pitt, BSc, MAusIMM, MAIG, is a geologist with extensive exploration
experience who has for more than thirty years been a director of exploration and mining
companies in Australia. He has had a successful career in the provision of seed capital
for and the management of listed exploration and mining companies including Aztec
Exploration Limited, Golden Grove Mining NL, Forrestania Gold NL and Dalrymple Resources
NL. Mr Pitt is currently a non-executive director of Hampton Hill Mining NL, Traka
Resources Limited, Red Hill Iron Limited and Red Metal Limited and was formerly a
non-executive director of LionOre Mining International Limited. Mr Pitt is also involved
in substantial private resource investment in Australia.

PPP has appointed Origin Securities Pty Limited to assist with an assessment of PPP’s
assets and in the formulation of a strategy to maximise value for shareholders so that
PPP is fully prepared if a bid or any other proposal for its issued capital eventuates
from whatever source. Additionally, Allens Arthur Robinson has been appointed as legal
adviser.

Shareholders should note that NZOG has acquired its interest in PPP shares at prices up
to 30 cents per share, not significantly higher than PPP’s cash backing per share of 25
cents (based on net cash at 30 November 2008 of A$148 million).

In the absence of a significant acquisition, PPP’s net cash holdings will continue to
increase in the financial year to 30 June 2009, and hence current market trading prices
place negligible value on the Company’s most significant asset, its 10% interest in The
Tui Area Oil Fields. Remaining reserves net to PPP at 30 November 2008 comprised 3.1
MMbbls.

PPP remains committed to its growth strategy, and is continuing to progress attractive
opportunities currently in hand.

The Company will continue to keep shareholders fully informed on what is currently a
fluid situation and as envisaged will continue to issue on a monthly basis, statements
detailing PPP’s cash position.

Belinda Flatters-Wright
Company Secretary

[macduffy]

Looks like the scene is being set for the next move on PPP.

;)

[boysy]

sure seems like that the wording in the announcement made it seem like ppp are not going to go for the cheap. And the fact that they say ppp is still undervalued and directors still buying in have to be a good sign. watch this space

[neopole]

this is getting annoying........
the directors get fat salaries and buy cheap PPP shares with it, in an enviroment of doom and gloom and cashed straped investors not having monies to invest.
yet the directors subdue the sp by keeping its shareholders in the dark and not offering dividends etc to lift the shareprice.........
maybe they are gorging at the trough at the shareholders expence.

im sure if a takeover goes though the directors will all keep their jobs and recieve a bonus from the takeover payout.

in the meantime......... the hord of cash which belongs to the shareholders is given away to finance the takeover.

end result could well be the shareholders get their PPP cash converted to state cash and lose all the potential risk/reward that the directors have offered in investing in PPP.

sounds like a rout to me.

my share a not forsale.

[digger]

this is getting annoying........
the directors get fat salaries and buy cheap PPP shares with it, in an enviroment of doom and gloom and cashed straped investors not having monies to invest.
yet the directors subdue the sp by keeping its shareholders in the dark and not offering dividends etc to lift the shareprice.........
maybe they are gorging at the trough at the shareholders expence.

im sure if a takeover goes though the directors will all keep their jobs and recieve a bonus from the takeover payout.

in the meantime......... the hord of cash which belongs to the shareholders is given away to finance the takeover.

end result could well be the shareholders get their PPP cash converted to state cash and lose all the potential risk/reward that the directors have offered in investing in PPP.

sounds like a rout to me.

my share a not forsale.

Your last line makes most of the rest of your article contradictory.If your PPP's are not for sale your in the same boat as i am and the directors are,so what is the problem? The fact that PPP gave no dividend and had a cash backing greater than its SP is all well known. It was well known to the so called cash strapped holders that sold. I must be getting mean as the older i get the more i am certain that to be cash straped requires a certain lifestyle to be followed. There are two many ways to be cash straped to list but for here the big one is to sell too early in a move that looks like a takeover.It also smells like one and is acting and playing out like one.
So i have no sympthy for these cash strapped former PPP holders that decided by there own judgment to grab the bird in the hand.They may still be correct and that no further NZO action will follow for one reason or another.If any feeling for others are to be displayed it should be for holders in other companies that have no NZO coming along to offer an above market price for their stake.
If PPP does get taken out,it will be higher than the 30 AUS price.Probably about 45 cents or a scrip offer equating to up to 60 cents.Even at 60 cents it half funds itself with its own money already in the bank. Note these are my own thoughts and could well be hopelessly wrong,but for now make up my thinking and acting.
Cheers Digger.

[boysy]

well put reggid the next big question is what nzo strategic stake will be it will be an interesting time untill we hear back from the firb and how nzo will act from here on out .

[Dr_Who]

How did you guys get a valuation of 45 -60 cents?? lol

[boysy]

valuation taken in april of this year by mcdouall stuart valued tui alone as worth $0.96 a share to nzo. this equates to 367 million for a 12.5 % stake so this values PPPs share at $294 million. add to this ppps 180 million cash and you have 474 million / 588.6 million shares and you have $0.81 a share. This valuation was made when oil was around NZ$140 . clearly things have changed but even if tui value has halved as the oil price has this still equates to 147 + 180 = 327 / 588.6 million = around 56 cents a share.

[digger]

valuation taken in april of this year by mcdouall stuart valued tui alone as worth $0.96 a share to nzo. this equates to 367 million for a 12.5 % stake so this values PPPs share at $294 million. add to this ppps 180 million cash and you have 474 million / 588.6 million shares and you have $0.81 a share. This valuation was made when oil was around NZ$140 . clearly things have changed but even if tui value has halved as the oil price has this still equates to 147 + 180 = 327 / 588.6 million = around 56 cents a share.
Agree with the above but also throw in that if we are talking a T/O the end game will always have a small premium built in,and particularly so if a scrip offer is made.PPP will not be too dear for NZO if the end game half funds itself.Given this arguement if true [your decision] PPP has 30 cent AUS so 55 to 60 cents should not be out of the way at close of T/O.
Digger

[KentBrockman]

Agree with the above but also throw in that if we are talking a T/O the end game will always have a small premium built in,and particularly so if a scrip offer is made.PPP will not be too dear for NZO if the end game half funds itself.Given this arguement if true [your decision] PPP has 30 cent AUS so 55 to 60 cents should not be out of the way at close of T/O.
Digger

What do you guys reckon a possible scrip scenario should be?

I reckon I *may* be convinced by A$0.30 cash plus 3 for one PPP/NZO.

Are you still reading here, BWR?

[boysy]

why would they use the cash wouldnt a all script offer make more sence for both partys ?

[KentBrockman]

why would they use the cash wouldnt a all script offer make more sence for both partys ?

I think people want to see cash on the table (at least I do). May also be better for NZO's share price post takeover, as not everyone may head straight for the exit.

[boysy]

you have to look at it in terms of dilution to existing shareholders what would be the best case scenaro for nzo shareholders be as this would be the main focus of nzo directors ?

[macduffy]

you have to look at it in terms of dilution to existing shareholders what would be the best case scenaro for nzo shareholders be as this would be the main focus of nzo directors ?

But it's not NZO shareholders who you have to convince to part with their shares.
I agree that PPP s/holders will want to see some of their cash and not have it all absorbed into the bigger NZO, leaving them entirely at the mercy of the more volatile NZO SP. A bit of cash might make them more amenable to a T/O. At least it will this one!

;)

[friedegg]

looking at todays shareprice on asx tells me not many are expecting a much greater t/o offer if any

[boysy]

we cant expect a t/o offer untill one is announced after the firb announces its decision and only if this allows nzo to go up to 19%. I think multiple things have to play out before we see the sp rise and hence the caution of the market to assume things befor they are announced.

[the machine]

this thread may now be a bit more appropiate for discussing ppp

M

[boysy]

well heres hoping anyway

[Sharp737]

Glad I got back in with a few yesterday. Somebodies buyin'...

Sharp

[boysy]

bit of a missmatch between nzx price and asxs big buying late in the day in aus could be an interesting day perhaps the start of something bigger.

[the machine]

had been planning to sell 40,000 and 40 minutes before asx closed there were 6,000 buy @ 30c, so we put in the sell order.

some of these would have been bought by me many years ago @ 10c.

weighed up likely t/o play up to 60c au, but the temptation where funds will go was to much - hopefully a 4 bagger in a year or so



will be interesting what action there is tomorrow

still hold 200,000 ppp - more than enough

M

[the machine]

R u's all holding PPP via NZX?

mine are asx as live in sunny perth

M

[Stranger_Danger]

Mine are in AUD for currency reasons - I'm very underweight the NZD and take any opportunity to be more so.

[Phaedrus]

NZX:PPP is very lightly traded. Average daily turnover is around a mere $27,000 and there are even days without a single trade. This makes it very difficult to build up a decent holding and similarly, selling is a problem. With an average daily turnover of around 400,000 shares, ASX:PPP has about five times the volume of NZX:PPP.

Because they track each other fairly closely (as you would expect) there is little or no arbitrage opportunity here.

The low volumes of NZX:PPP also mean that TA does not work quite as well. In fact, some excellent indicators such as candlesticks are all but useless unless you move to a weekly (rather than daily) timeframe.

[macduffy]

Mine are in AUD for currency reasons - I'm very underweight the NZD and take any opportunity to be more so.

Same here.
A bit of a currency "play" and better marketability.

;)

[the machine]

2 trades on nzx this morning for a decent volume, but sp not moved - offer is only 1c above these 2 big average trades.

basis where there are big average trades [over 150,000] then most likely there will be more.

maybe buyer waiting for asx to open and then go for it.

will ppp be at these low prices again after this morning?

M

[boysy]

i saw that those trades going through first thing looks as though things need to line up on the asx before anyone is willing to take a punt on the nzx. As pointed out 300k volume on the nzx is big with average being around 100k but reading nothing into this trade yet .

[boysy]

The sell side on the nzx is looking a bit thin though im sure if the price heads up more sellers will offload . Currently a 5:1 buyer seller ratio on the nzx.

[the machine]

ppp went nowhere today on asx - we completed sale of another 40,000 @ .315 and have now completed purchase of a significant stake in another company - basically swapping cash for cash.

will hand onto remaining 160,000 ppp and let then ride.

M

[Corporate]

ppp went nowhere today on asx - we completed sale of another 40,000 @ .315 and have now completed purchase of a significant stake in another company - basically swapping cash for cash.

will hand onto remaining 160,000 ppp and let then ride.

M

What have you gone after now M, if you don't mind?

[the machine]

What have you gone after now M, if you don't mind?

kasbah resources

M

[digger]

kasbah resources

M

I have noted in the last 18 months a lot of former PPP and NZO holders have jumped to new enterprises. Would anyone who have done so like to say how well they have done with this hopping policy. Perhaps they should form a new enety called "The mid stream horse hopping assocation"
It is true that if you horse hop in mid stream you may still get to the other side,but are you doing any better than sticking with a proven income earners such as PPP and NZO. Here i have to disclose that about 99% of my money is tied up with these two companies.
Blue sky apart,where is a better less risk known investment? That is the final question

[croesus]

Valid point... probably you are right... but new stocks are akin to new Girlfriends...can be exciting till the novelty wears off....unfortunately not as easy to dispose of in a hurry tho.

[boysy]

ppp current market cap A$31.5 * 588.6 million = $185 million

cash at dec 2008 equivilent A$150 million

made of

A$52.4 million
NZ$38 million
US$45.9 million

current value of these holdings is equivilent A$152.4 million

between dec 30th 2008 and march 11 th 1.7 million barrels of oil sold . PPPs share being 170,000 barrels.

average price over the period $US46.7

gross sales of US$46.7 *170,000 = US$8,000,000

This US$8m after tax and royalties around US$3.2 million

ontop of this ppp has 219,000 puts @ US$52

Cash holding estimate current A$157.4 million against MC of A$185 million.

Market is valueing all of ppp permits and 10 % of tui at less than A$28 million.


seems as though there is very little downside and plenty of upside. id expect the cash held to create some sort of price floor around A$0.26 and creaping up as ppp add to their pile of cash. The fact that they have not done anything with this money can now be seen as a very astute move by management. With companies needing to refinance their debt im sure ppp will be presented with many oportunities i am glad that the management hasnt acted hurridly and blown the hard fought money. We have little capital commitments on the horizon aside from 3-4 quarter drilling. keep up the good work ppp mgmt you are in a position that many others are envious of and most people know this fact.

[digger]

ppp current market cap A$31.5 * 588.6 million = $185 million

cash at dec 2008 equivilent A$150 million

made of

A$52.4 million
NZ$38 million
US$45.9 million

current value of these holdings is equivilent A$152.4 million

between dec 30th 2008 and march 11 th 1.7 million barrels of oil sold . PPPs share being 170,000 barrels.

average price over the period $US46.7

gross sales of US$46.7 *170,000 = US$8,000,000

This US$8m after tax and royalties around US$3.2 million

ontop of this ppp has 219,000 puts @ US$52

Cash holding estimate current A$157.4 million against MC of A$185 million.

Market is valueing all of tuis permits and 10 % of tui at less than A$28 million.

seems as though there is very little downside and plenty of upside. id expect the cash held to create some sort of price floor around A$0.26 and creaping up as ppp add to their pile of cash. The fact that they have not done anything with this money can now be seen as a very astute move by management. With companies needing to refinance their debt im sure ppp will be presented with many oportunities i am glad that the management hasnt acted hurridly and blown the hard fought money. We have little capital commitments on the horizon aside from 3-4 quarter drilling. keep up the good work ppp mgmt you are in a position that many others are envious of and most people know this fact.

Excellent summary boysy.Can not see anything out with your figures.
Also would add that if current rate continues,that is if SP stays where it is ,then by year end PPP will have cash equal to market cap.

[the machine]

I have noted in the last 18 months a lot of former PPP and NZO holders have jumped to new enterprises. Would anyone who have done so like to say how well they have done with this hopping policy. Perhaps they should form a new enety called "The mid stream horse hopping assocation"
It is true that if you horse hop in mid stream you may still get to the other side,but are you doing any better than sticking with a proven income earners such as PPP and NZO. Here i have to disclose that about 99% of my money is tied up with these two companies.
Blue sky apart,where is a better less risk known investment? That is the final question


we took a position in an olive oil delevopment and it went very bad - this was a couple of years back and to take the stake we sold down some ppp.
the high aud$ made it very difficult to compete with cheap imported stuff.

even before that we sold out of aquarias platnem at aud$4.80 and made a heap doing so, think we bought nzo or ppp. [aquarius went on to over aud$40 I think]

but we stll have 160,000 ppp and 39,200 nzo so that is still a lot in oil

M

[the machine]

with the 2 major directors buying 100,000 each then clearly ppp have no immediate plans to do anything with their money, so all the unsolicited offers go mostly in the bin.

if ppp were to be planning on doing anything then the directors could not buy.



4 more trading days before included in asx300


M

[Sehnsucht888]

with the 2 major directors buying 100,000 each then clearly ppp have no immediate plans to do anything with their money, so all the unsolicited offers go mostly in the bin.

if ppp were to be planning on doing anything then the directors could not buy.



4 more trading days before included in asx300


M

I don't think it was 100K each.
Rather 2 companies that they are both directories of increased their holdings by 100K total and so both directors need to disclose the interest.


The directors positions have been increasing periodically, and these could be companies that have a standing instruction to buy PPP now and then.
So the fact they are increasing doesn't necessarily mean there is no plan for the $.

[the machine]

I don't think it was 100K each.
Rather 2 companies that they are both directories of increased their holdings by 100K total and so both directors need to disclose the interest.


The directors positions have been increasing periodically, and these could be companies that have a standing instruction to buy PPP now and then.
So the fact they are increasing doesn't necessarily mean there is no plan for the $.

thanks

M

[upside_umop]

I have noted in the last 18 months a lot of former PPP and NZO holders have jumped to new enterprises. Would anyone who have done so like to say how well they have done with this hopping policy. Perhaps they should form a new enety called "The mid stream horse hopping assocation"
It is true that if you horse hop in mid stream you may still get to the other side,but are you doing any better than sticking with a proven income earners such as PPP and NZO. Here i have to disclose that about 99% of my money is tied up with these two companies.
Blue sky apart,where is a better less risk known investment? That is the final question

Dont some people want higher returns?

Higher returns is accompanied by higher risk...as you say, NZO and PPP are less risk. They dont really fit the high return category any more...they're certainly safe, but they are no multi bagger that some look for.

[Paint it Black]

Possibly we will not see more buying in by Oil & Gas until their position becomes clear on their underwriting of PRC which won't be known until mid April.
Another possible reason PPP is not moving much is the advice I just received from my accountant that PPP is regarded as a foreign company by the IRD in NZ and therefore not exempt from the new tax regime introduced last year by Mr Cullen despite the oil being in NZ and PP being an Australian company. If the Fair Divided Rate method is applied my understanding is then one gets taxed on 5% of the 31 March share value.

[macduffy]

It might pay to get your accountant to check that advice in due course.
PPP joins the Aust AllOrds on 20 March at the quarterly rebalance of the indices. Until now, Australian companies in the AllOrds have been exempt, with a few exceptions such as property trusts etc and of course the odd foreign company such as LHG, OSH etc.
The effective date of such inclusion for NZ tax purposes is a question for the experts.

[Sehnsucht888]

Possibly we will not see more buying in by Oil & Gas until their position becomes clear on their underwriting of PRC which won't be known until mid April.
Another possible reason PPP is not moving much is the advice I just received from my accountant that PPP is regarded as a foreign company by the IRD in NZ and therefore not exempt from the new tax regime introduced last year by Mr Cullen despite the oil being in NZ and PP being an Australian company. If the Fair Divided Rate method is applied my understanding is then one gets taxed on 5% of the 31 March share value.

Interesting point that last - The NZ IRD rules are quite messy, and PPP NZX shares are covered as foreign investment shares, (till 20 march). But at the end of this tax year they are exempted - when they move into the ASX ALL Ordinaries - wonder how that works for 10 days exempted, the rest not.
note: this is my understanding - it may be wrong.
- As for the PRC requirement, I don't see it as a large amount of $ considering the bank balances..

[Sehnsucht888]

You beat me macduffy... Took me a while to check this through..

[Snapper]

Interesting point that last - The NZ IRD rules are quite messy, and PPP NZX shares are covered as foreign investment shares, (till 20 march). But at the end of this tax year they are exempted - when they move into the ASX ALL Ordinaries - wonder how that works for 10 days exempted, the rest not.
note: this is my understanding - it may be wrong.
- As for the PRC requirement, I don't see it as a large amount of $ considering the bank balances..

From the IRD website

Example 3
Platinum Asset Management (PTM) was added to the index on 20 March 2008. If you acquired shares in PTM before that date you will not qualify for the FIF exemption. However, if you first acquired shares in PTM after 19 March 2008 you will qualify for the exemption.

[Sehnsucht888]

Thanks Snapper.

[777]

From the IRD website

Example 3
Platinum Asset Management (PTM) was added to the index on 20 March 2008. If you acquired shares in PTM before that date you will not qualify for the FIF exemption. However, if you first acquired shares in PTM after 19 March 2008 you will qualify for the exemption.

Snapper can you post the link for this please.

[Sehnsucht888]

777 - its :
http://www.ird.govt.nz/toii/fif/how-taxed/how-tax-exemption/

(The power of google...)
"Platinum Asset Management (PTM) was added to the index "

[Paint it Black]

Thanks everyone. From what I'm reading once PPP is part of the ASX200 any PPP shares purchased after 20 March will be exempt from Foreign Investment tax. However any PPP shares owned prior to 20 March will still need to be listed as foreign and included in foreign portfolio for the FDR calculation on the 1 April every year they continue to be held . This therefore obviously raises the question of selling everything now (too late?!) and repurchasing on the 20 March. Maybe some astute people have recently already done this? It all seems very messy and difficult even for the IRD to monitor - how are they to know whether I'm holding 'old' or 'new' PPP shares next year etc? Have I got this right?

[the machine]

Thanks everyone. From what I'm reading once PPP is part of the ASX200 any PPP shares purchased after 20 March will be exempt from Foreign Investment tax. However any PPP shares owned prior to 20 March will still need to be listed as foreign and included in foreign portfolio for the FDR calculation on the 1 April every year they continue to be held . This therefore obviously raises the question of selling everything now (too late?!) and repurchasing on the 20 March. Maybe some astute people have recently already done this? It all seems very messy and difficult even for the IRD to monitor - how are they to know whether I'm holding 'old' or 'new' PPP shares next year etc? Have I got this right?


asx300 is where ppp going

M

[the machine]

Possibly we will not see more buying in by Oil & Gas until their position becomes clear on their underwriting of PRC which won't be known until mid April.
Another possible reason PPP is not moving much is the advice I just received from my accountant that PPP is regarded as a foreign company by the IRD in NZ and therefore not exempt from the new tax regime introduced last year by Mr Cullen despite the oil being in NZ and PP being an Australian company. If the Fair Divided Rate method is applied my understanding is then one gets taxed on 5% of the 31 March share value.


with this afternoons announcement by ppp giving financials as at jan 31 and the reminder of joining asx300 the sp jumped to finish at 32c au.


if there is a tax advantage to - say nzo - by not buying anymore ppp until after 20th then that surely would bethe case - they would not buy tomorrow.

[who knows if they will buy next week???]

but punters buying on nzx come monday will have an advantage by reading this thread andthis can only help the sp more

M

[777]

That was 20th March last year not this year not this.


Thanks for the link Sehnsucht888. I have been monitoring the IRD site but missed this one. The whole thing is a shambles from go to whoa.

[the machine]

wonder if the self off on asx today is linked to tax ruling in nzo - sell today and buy after included in the index.

if so the monday could be interesting on asx and wonder if any institutions will bein the mix

M

[croesus]

Digger.. ( or anyone else) sure you would know this question... what do you reckon PPP would have as a cash backing per share..... my back of envelope gives me about/ nearly 37c nz......thoughts ? (added a interest return on money banked of 5% p.a....)

[macduffy]

Digger.. ( or anyone else) sure you would know this question... what do you reckon PPP would have as a cash backing per share..... my back of envelope gives me about/ nearly 37c nz......thoughts ? (added a interest return on money banked of 5% p.a....)

I reckon that would be a bit of a stretch.
On 19 March, the company advised that it had the equivalent of AUD150m cash ( various currencies) as at end of January.
With 588.6m shares that equates to about AUD25.5cps.

[digger]

Digger.. ( or anyone else) sure you would know this question... what do you reckon PPP would have as a cash backing per share..... my back of envelope gives me about/ nearly 37c nz......thoughts ? (added a interest return on money banked of 5% p.a....)

That is very close as i see it. Macduffy gave company release correctly but then missed your question which was what is the cash backing in NZ dollars,his being in AUS. I would put it now roughly[which is near enough] at 35 cents.To get this take Macduffy PPP release and add to it some estimate for income up to today and also add in some small conserative bit that the company would be erring on when handling foreign exchange.Then convert to NZ dollars.
At 35 cents cash backing all the rest of the company is worth 2 or 3 cents according to Mr Market.
Cheers.

[croesus]

Cheers Digger.

Next question.....at current ( albeit slowly declining) flow rates, weighted against current oil price .....have you done the math on the monthly increase in bank funds equated to share cash backing..

ie if we agree a net share cash of say 35c nz at April 1...would we then be able to say
( excepting any problems, oil price shocks etc) that by May 1.. it would be 36c.. or 40c by Oct 1st.. ???..



Croesus.
disc buying PPP

[digger]

Cheers Digger.

Next question.....at current ( albeit slowly declining) flow rates, weighted against current oil price .....have you done the math on the monthly increase in bank funds equated to share cash backing..

ie if we agree a net share cash of say 35c nz at April 1...would we then be able to say
( excepting any problems, oil price shocks etc) that by May 1.. it would be 36c.. or 40c by Oct 1st.. ???..



Croesus.
disc buying PPP

Hi Croesus,
I find it best not to think too much in an exact way but prefer the general trend instead.There are just too many varibles and known and unknown events that get in the road to exactly pin down where the SP will be at any given time. If we start in july 07 PPP had debt and nil cash .Eighteen months later nil debt and our now est of 35 cent backing.That is a gain in a very good oil revenue time of about 2.5 cents a share per month.Remember here PPP had to not only pay back the dept but the interest as well.
Oil is not a sellers market for now so profit will be smaller but still coming in. I would guess we should be looking at 1 cent a month,so roughtly my take is about 40 cents next oct if things trend as they are now for the next 6 months.So agin we see it about the same.
Regards the TUI oil flow dropping i see this as a good outcome given the falling international oil values.In the long run according to Math Simmons you get more out of a field if it is taken out slowly allowing the oil level to recover.Too fast gives water breaks.Now you have probably guessed i believe that the JV'ers are not busting themselves to keep TUI flowing just to supply a currently buyers market.However PPP is not just about TUI as it is now but what it might become.My 2.3 million shares are certainly not for sale.I await the outcome of the end of this years drilling with some excitement.
Cheers again,but if buying DYOR

[croesus]

Appreciate your thoughts.

Regards Croesus

[upside_umop]

Digger.. ( or anyone else) sure you would know this question... what do you reckon PPP would have as a cash backing per share..... my back of envelope gives me about/ nearly 37c nz......thoughts ? (added a interest return on money banked of 5% p.a....)

MacDuffy is closer to the mark.

We can calculate in NZD terms from the issue of the last company update, one week ago:

Hold approximately $150 million AUD, comprised of:

AUD$52 million/0.811 = NZD$64.11
NZD$32 million = NZD$32
USD$47 million/0.566 = NZD$83.04
Total NZD equivalent held = NZD$179.15 million

NZD179.15/588 shares = ~30.4 cents per share.

This is excludes the $7 million held as collateral for the FPSO lease arrangement.

Flow rates last time I did my calculation were around 25,000 bbls per day. That was about a month back...must be ~22-23 k per day now. Anyone kept up with the updates?

[boysy]

The thing i have to ask myself is what expences do ppp have . I say this because the cash backing per share hasnt changed since the end of december at A$150 million i do realise that the currencies that ppp are holding have fluctuated in the time but PPP cash backing per share hasnt changed since the end of november. The ammount of oil produced as of the end of november was around 4 million barrels and now they have produced 7.5 million barrels. Are we led to belive that PPP have made no gains from the sale of 350,000 barrels of oil in that time ?

[boysy]

On the NZOG website they have posted a new section underneith the oil produced to date tab saying on a "typical" day 22,000 barrels are being produced.

[digger]

MacDuffy is closer to the mark.

We can calculate in NZD terms from the issue of the last company update, one week ago:

Hold approximately $150 million AUD, comprised of:

AUD$52 million/0.811 = NZD$64.11
NZD$32 million = NZD$32
USD$47 million/0.566 = NZD$83.04
Total NZD equivalent held = NZD$179.15 million

NZD179.15/588 shares = ~30.4 cents per share.

This is excludes the $7 million held as collateral for the FPSO lease arrangement.

Flow rates last time I did my calculation were around 25,000 bbls per day. That was about a month back...must be ~22-23 k per day now. Anyone kept up with the updates?

The company said by end of Jan they held 150 million aus in cash or equilivent.To that i then add 2 months production and add back the sums that are earmarked as it is current cash we seek regardless of where it is to be spent. Your figures i take UU are for now and they only add to 145 million.To that you should add 12 million and some revenue for feb and march. I would also hate to admit it but with the possible takeover of PPP there could be some interest in downplaying PPP's assets.Having been a farmer for many years i am well aware how the books can be coloured up in the short term for whatever purpose. While i am interested in what others might have to say on PPP cash assets ,lets remember if we were operating in an area other than a possible T/O the monies would be less doctored and more immediately reliable.
I will stick with my 35 NZ cents cash backing as at end of March 09.Rest my case.

[macduffy]

lets remember if we were operating in an area other than a possible T/O the monies would be less doctored and more immediately reliable.
QUOTE.

On the other hand, if there was no takeover pressure I doubt that the directors would have advised the company's cash position between reporting dates as they did on 19 March.
Everything issuing from them lately has been to alert shareholders to the value of PPP so I doubt that they will be understating the cash in any way.
As substantial shareholders in their own right they have every incentive to maximise value for shareholders. I'm happy to leave that in their hands, knowing that the accumulated cash, whatever the cps, is growing steadily.

:cool:

[geezy]

Doesnt PPP have another producing well alraedy(with CUE)? That should be taken into account too right?

[upside_umop]

The company said by end of Jan they held 150 million aus in cash or equilivent.To that i then add 2 months production and add back the sums that are earmarked as it is current cash we seek regardless of where it is to be spent. Your figures i take UU are for now and they only add to 145 million.To that you should add 12 million and some revenue for feb and march. I would also hate to admit it but with the possible takeover of PPP there could be some interest in downplaying PPP's assets.Having been a farmer for many years i am well aware how the books can be coloured up in the short term for whatever purpose. While i am interested in what others might have to say on PPP cash assets ,lets remember if we were operating in an area other than a possible T/O the monies would be less doctored and more immediately reliable.
I will stick with my 35 NZ cents cash backing as at end of March 09.Rest my case.

Digger,

FYI - notice the date.

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=544641

As for the static cash position for the end of January, notice the flucuations in the value of the underlying currencies.

- 22/01/09 When the company made an update about the position, the exchange rates for:

- 22/01/09 = USD/AUD = $1.52488 compares to the rate at 19/03/2009 USD/AUD = $1.4462

Fair value loss on exchange rate = ($1.52488-$1.4462)*$57m USD = USD$4.48 million*1.4462 = AUD$6.48 million.

- 22/01/09 = NZD/AUD = $0.80543 compares to the rate at 19/03/2009 0.803668.

Fair value loss on exchange rate = ($0.80543-$0.803668)*32 million NZD = NZD$0.06 million which is neglible.

AUD cash is N/A.

For cash amounts, I used postion as at 19 March, as amounts werent stated as at 22/01/09.

So there you have it digger, PPP made a foreign exchange loss of $6.48 million in the last 57 days. Thats why the 'equivalent' cash has stayed the same in AUD and probably answers Croesus's answer on how much they are making per day in a very rough sense.

Why would PPP downplay their assets? Its a little hard to 'doctor' cash...for other assets, fair enough, but have a read of the financial statements and you could get a fair idea of their depreciation methods used on their oil development. Oil Assets are not applicable in my calculation.

www.x-rates.com

[Xerof]

On the other hand, if there was no takeover pressure I doubt that the directors would have advised the company's cash position between reporting dates as they did on 19 March.


They entered the ASX300 on the 20th March. My take on that announcement was that it was purely a PR exercise

[upside_umop]

Your figures i take UU are for now and they only add to 145 million.

Those are the figures from the latest report. So maybe they did included the FPSO in that...because your right, $179million NZD* 0.811 = ~$145 million AUD.

[upside_umop]

Doesnt PPP have another producing well alraedy(with CUE)? That should be taken into account too right?

No other revenue to speak of...other income would be interest.

[digger]

Digger,

FYI - notice the date.

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=544641

As for the static cash position for the end of January, notice the flucuations in the value of the underlying currencies.

- 22/01/09 When the company made an update about the position, the exchange rates for:

- 22/01/09 = USD/AUD = $1.52488 compares to the rate at 19/03/2009 USD/AUD = $1.4462

Fair value loss on exchange rate = ($1.52488-$1.4462)*$57m USD = USD$4.48 million*1.4462 = AUD$6.48 million.

- 22/01/09 = NZD/AUD = $0.80543 compares to the rate at 19/03/2009 0.803668.

Fair value loss on exchange rate = ($0.80543-$0.803668)*32 million NZD = NZD$0.06 million which is neglible.

AUD cash is N/A.

For cash amounts, I used postion as at 19 March, as amounts werent stated as at 22/01/09.

So there you have it digger, PPP made a foreign exchange loss of $6.48 million in the last 57 days. Thats why the 'equivalent' cash has stayed the same in AUD and probably answers Croesus's answer on how much they are making per day in a very rough sense.

Why would PPP downplay their assets? Its a little hard to 'doctor' cash...for other assets, fair enough, but have a read of the financial statements and you could get a fair idea of their depreciation methods used on their oil development. Oil Assets are not applicable in my calculation.

www.x-rates.com

Hi,i left the foreign exchange out as the NZ dollar relative to the US dollar has gone down then back up and will probably do so for a few more cycles yet.Unless the company specially said they used the exchange rate for a fixed day it could well have been an average over time that was used.I perhaps wrongly leave exchange rates aside as they are only relevant on the day they are used and the rest of the time bounce around a fair amount. The Aus has certainly fallen against the US but that is for now with the commodies crash which over time will go the other way.You however do have a point that in the small time period used PPP NZ cash equivlant has reduced.

[geezy]

No other revenue to speak of...other income would be interest.

I saw on one of cue's announcement that they are drilling one of the wells that ppp is also participating, it could be that they have not produced yet.

[the machine]

I saw on one of cue's announcement that they are drilling one of the wells that ppp is also participating, it could be that they have not produced yet.

and the well and location is?

M

[the machine]

see the rig is enroute from caribbean to australia/nz - this should make good reading in the quarterly report.

wonder if an extra couple of holes will be possible in nz - 1 for awe and 1 for tui

M

[digger]

see the rig is enroute from caribbean to australia/nz - this should make good reading in the quarterly report.

wonder if an extra couple of holes will be possible in nz - 1 for awe and 1 for tui

M

Have read several reports about the dropping active drill rigs count currently employed.It is down about half from the peak last july.This means it has dropped more than 50% as last july rigs were booked solid ,now for the rig operators it is get a well to drill if you can. All this means that any rig coming here will not in the current environment be in a rush to leave.Therefor we will most likely be able to drill whatever number of holes we are prepared to pay for.

[the machine]

Have read several reports about the dropping active drill rigs count currently employed.It is down about half from the peak last july.This means it has dropped more than 50% as last july rigs were booked solid ,now for the rig operators it is get a well to drill if you can. All this means that any rig coming here will not in the current environment be in a rush to leave.Therefor we will most likely be able to drill whatever number of holes we are prepared to pay for.


hoping for about 4 tui drills, so that inturn have at least 3 batch development holes
[1 already deferred from this year] - this will save heaps on development costs

M

[digger]

hoping for about 4 tui drills, so that inturn have at least 3 batch development holes
[1 already deferred from this year] - this will save heaps on development costs

M

My thinking is that the JVers might require time between the drills to study the results of the last one.The only time this is not required is when the info coming in is a clear success or failure.The inbetween ones takes months to get leads from. So even if we have the money and the rig we still might not elect to drill more than two Tui wells. Exciting and looking forward to it.

[Ponda]

Below is an announcement just released on the NZX.
Maybe that is why the share price has gone up 2.6% albeit on light volume, but on top of yesterdays rise.

Disclosure: Hold PPP amongs others


PPP
15/04/2009
GENERAL

REL: 1219 HRS Pan Pacific Petroleum NL

GENERAL: PPP: Company Position Update - 15 April 2009

STOCK EXCHANGE ANNOUNCEMENT

15 April, 2009

Please find attached the February 09 Financial Information.

As at end February PPP has retained A$154 million (equivalent) in cash
comprising A$52 million, NZ$32 million and US$49 million. This excludes US$7
million held as collateral to support the Tui FPSO lease arrangement.

On 20 March 2009 Pan Pacific Petroleum NL (PPP) and its joint venture
partners in the Tui oil fields were awarded new exploration permit PEP 51321
in the offshore Taranaki basin.

The respective interests in PEP 51321 are:

AWE New Zealand Pty Ltd 44.3%(Operator)
Mitsui E&P Australia Pty Ltd 22.7%
NZOG* 18.9%
Pan Pacific Petroleum* 14.1%
*held through subsidiaries

PEP 51321 lies south of PEP 38483, which is held by the same joint venture
partners.

The permit has a five year term. Initially the joint venture intends to
reprocess historic seismic data and in year 2 the joint venture has committed
to acquiring, processing and interpreting 200km of new 2D seismic. A
drilling decision is to be taken at the end of year 2.

Belinda Flatters-Wright
Company Secretary

Pan Pacific Petroleum NL ACN 000 749 799
Suite 1, 123 Walker Street, North Sydney, 2060, Australia
Telephone: + 61 2 9957 2177 Facsimile: +61 2 9925 0564
www.panpacpetroleum.com.au

Financial Information - 28 February 2009 (unaudited)

Consolidated statement of cash flows
Year ended
30/06/2008
$A'000 Year to date 28/02/2009
$A'000
Cash flows related to operating activities
Receipts from product sales and related debtors
134,200
106,537
Cash paid to suppliers and employees (15,862) (20,801)
Interest and other items of a similar nature received 1,926 2,501
Income taxes (paid)/refunded (15,466) (40,203)
Net operating cash flows 104,798 48,034

Cash flows related to investing activities
Payment for purchases of plant and equipment:
Payment of security deposit
Proceeds from asset available for sale
(Payments)/refunds for:
(a) exploration and evaluation
(b) production
(c) development
(d) restoration
Cash collateralise letter of credit (57)
(11)
676

(8,051)
(100)
(3,404)
(194)
(11,151) (51)
-
375

(266)
(1,474)
-
45
-
Net investing cash flows (22,292) (1,371)

Cash flows related to financing activities
Repayment of borrowing
Interest paid on borrowing
Derivative premium paid
Redemption from LC collateral account

(24,532)
(1,407)
(114)
-

-
-
(612)
4,189
Net financing cash flows (26,053) 3,577

Net increase in cash held

56,453 50,240
Cash at beginning of year 31,270 81,078
Exchange rate adjustments (6,645) 22,587
Cash at end of period
A$ 81,078
A$ 153,905

The above cash at end of period was held in the
following currency:

Australian Dollars
United States Dollars
New Zealand Dollars A$ 2,793
US$ 64,059
NZ$ 14,800 A$ 51,906
US$ 49,426
NZ$ 32,397

PPP is free of any debt. Cash at 28 February 2009 excludes cash held in
support of the Tui FPSO lease contract, US$7,097,627 (A$10,997,000).
Production & Reserves
Tui Area Fields (PPP 10%) Year ended 30/06/2008
MMbbls Year to date 28/02/2009
MMbbls
PPP total net production 1.42 0.70
PPP remaining net reserves 3.59 2.89
End CA:00178654 For:PPP Type:GENERAL Time:2009-04-15:12:19:27

[tobo]

those accounts are a pig to read, aren't they.
In fact there are a few numbers in there that are impossible to align with their labels.
I presume they are this way to suit some computer system, certainly not for humans to read...

[upside_umop]

those accounts are a pig to read, aren't they.
In fact there are a few numbers in there that are impossible to align with their labels.
I presume they are this way to suit some computer system, certainly not for humans to read...

this may help you tobo.

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=547329

[Ponda]

That is so much easier to read. Thanks Upside umop. Makes you wonder why we can't get that on the NZX

Cheers.
DISC Hold PPP

[digger]

MacDuffy is closer to the mark.

We can calculate in NZD terms from the issue of the last company update, one week ago:

Hold approximately $150 million AUD, comprised of:

AUD$52 million/0.811 = NZD$64.11
NZD$32 million = NZD$32
USD$47 million/0.566 = NZD$83.04
Total NZD equivalent held = NZD$179.15 million

NZD179.15/588 shares = ~30.4 cents per share.

This is excludes the $7 million held as collateral for the FPSO lease arrangement.

Flow rates last time I did my calculation were around 25,000 bbls per day. That was about a month back...must be ~22-23 k per day now. Anyone kept up with the updates?


Looks like you were spot on with your figures UU as todays release comes to 31 cents NZ

[croesus]

Touche.. U.U....

cheers Croesus

[tobo]

yes, thanks, upside.

Have now also found it as a PDF on the ASX.
It seems that maybe the NZX do a mechanical conversion of PDF to text and it gets scrambled.
I have emailed NZX about it.

T.B.

[Hoop]

yes, thanks, upside.

Have now also found it as a PDF on the ASX.
It seems that maybe the NZX do a mechanical conversion of PDF to text and it gets scrambled.
I have emailed NZX about it.

T.B.
I think it is notepad format.
I still can't understand why they persevere with messages people have trouble to read, and have protested to them about it.... they seem to be in complete denial...why can't they link the announcement to their website so we can all read it in PDF is beyond me........maybe this is too easy:rolleyes:

I too have emailed them without response and have now given up as a waste of time.

There was a time I felt like posting them a bunch of bananas..but now I do this (see below)

You can avoid this problem by registering on the NZX website (http://www.nzx.com/register) and looking up the announcements there in PDF after being alerted to the fact from the inferior NZX announcement. I must admit it is a very good site and should be a bookmark for all NZX investors + others.

[Sehnsucht888]

I think it is notepad format.
I still can't understand why they persevere with messages people have trouble to read, and have protested to them about it.... they seem to be in complete denial...why can't they link the announcement to their website so we can all read it in PDF is beyond me........maybe this is too easy:rolleyes:

I too have emailed them without response and have now given up as a waste of time.

There was a time I felt like posting them a bunch of bananas..but now I do this (see below)

You can avoid this problem by registering on the NZX website (http://www.nzx.com/register) and looking up the announcements there in PDF after being alerted to the fact from the inferior NZX announcement. I must admit it is a very good site and should be a bookmark for all NZX investors + others.

Its the NZX - they don't make money from it, so won't put any effort in...

[tobo]

Ho ho ho,
I got an answer from the NZX.


The original PDF document is available on the NZX website, but to access it you must be logged in to My NZX - this is free to subscribe to, and there is a login box / registration link on the right hand side of the page.

The plain text is just provided out of courtesy for those who do not wish to have an account.

All the best.
Obfuscation and awkwardness.

TB

[the machine]

ppp very popular on asx today

would be nice if nzo was buyer, now that pike capital raising out of the way.

next week will see news of the rig and drilling program

M

[Ponda]

...... and 1.7 million on the NZX today already

Discl hold PPP

[boysy]

seems very odd a few big parcels of ppp changing hands the first trade of the morning 900k ppp at 39.3 all trades so far made in the period 9-17 am 9-20 am. Big volume of pp trades for the nzx yesterday as well as the asx.