PPP = Cash and they blew it!

[macduffy]

Nope, Ausie Dollars

AUD amount but largely held in USD, as at 30 June.

[h2so4]

Interesting puchases by directors. Probably maxing out those credit cards.:)

[boysy]

the directors buying into PPP thats gota be a good sign a bit of a difference between aus and NZ sp

[Corporate]

the directors buying into PPP thats gota be a good sign a bit of a difference between aus and NZ sp

Yes very interesting. Maybe they saw my post asking why they were not purchasing :p

I'm thinking about buying a few

[tricha]

Directors are in damage control, they WELL know that if a take over offer comes along, around a 33% gain to them, by letting the SP fall to far, they risk losing millions.
And lets face it, theres no risk of this one going into finanical ruin in a hurry.


P/E Ratio (http://javascript<b></b>:glossaryId('3')) 2.24 Market Cap (http://javascript<b></b>:glossaryId('4')) $117.7 Million

Lets face it what other companies have a p.e ratio of 2.24 ????????????????????

1 * No debt

2 * Millions in the bank

3 * Cash pouring in every day.


4 * A director buying


5 * Extremely low over heads.

Better than a bank, u bet, banks are on a hiding to none, p.e of 8 -11 and a housing market that is crashing. Hmm plenty to unfold.

As long as PPP do not do something stupid :rolleyes:

.................................................. ..................................................

Disclosure - PPP is by far my biggest holding, so what I just said is ramping ;)

[boysy]

OIL up
US$ up
PPP up

In this sort of economic environment PPP should sit on thier cash its their best bet but as tricha said above its the directors responsibliity not only for themselves but to maximise company value. In this sort of environment what really are their options to maximise value of PPP ?

[h2so4]

OIL up
US$ up
PPP up

In this sort of economic environment PPP should sit on thier cash its their best bet but as tricha said above its the directors responsibliity not only for themselves but to maximise company value. In this sort of environment what really are their options to maximise value of PPP ?

Nope disagree. With the cashflow they have rolling in they dont have to do anything. They know the share price is a bargain. Why work for nothing? assiduity my friend....assiduity.... sit on ass until do it.:)

[tricha]

Directors are in damage control, they WELL know that if a take over offer comes along, around a 33% gain to them, by letting the SP fall to far, they risk losing millions.
And lets face it, theres no risk of this one going into finanical ruin in a hurry.

Just show's u how sure the directors are, when the chips are down, they dine out on more. They already own mega millions.

Most companies go for a share buy back to protect their assets, where as these guys put their money where their mouth is. Or r they just taking candy form the babies.:confused:

With their cash they could take out COE or CUE in one foul swoop.:rolleyes:

Or will AWE or NZO with their cash take out PPP in one foul swoop.:D

Dog eat dog.

Warning - this is a dedicated ramp, PPP is my biggest shareholding by far.

[shasta]

Just show's u how sure the directors are, when the chips are down, they dine out on more. They already own mega millions.

Most companies go for a share buy back to protect their assets, where as these guys put their money where their mouth is. Or r they just taking candy form the babies.:confused:

With their cash they could take out COE or CUE in one foul swoop.:rolleyes:

Or will AWE or NZO with their cash take out PPP in one foul swoop.:D

Dog eat dog.

Warning - this is a dedicated ramp, PPP is my biggest shareholding by far.

Tricha

Forget PPP & CUE, theres an emerging O&G producer we both know will be much bigger than them both...;)

[tricha]

Tricha

Forget PPP & CUE, theres an emerging O&G producer we both know will be much bigger than them both...;)

Not in this crazy market, PPP is a banker.:p

[tricha]

Tricha

Forget PPP & CUE, theres an emerging O&G producer we both know will be much bigger than them both...;)

PPP has a p.e ratio of not much, 9 monthes from now, at this price, cash will = sp, everything else is free.

Free = 10 years of future TUI production, abeit at a lower output, but who cares.
Tui exploration upside and no Helen.

Maitland who cares. Mr Market who cares.

As an accountant Shasta, what do the numbers tell us ???

[shasta]

PPP has a p.e ratio of not much, 9 monthes from now, at this price, cash will = sp, everything else is free.

Free = 10 years of future TUI production, abeit at a lower output, but who cares.
Tui exploration upside and no Helen.

Maitland who cares. Mr Market who cares.

As an accountant Shasta, what do the numbers tell us ???

PPP will get knee capped on the cheap by either AWE, NZO or TAP.

Only problem with PPP is the lack of direction as to where it's cashflows will go.

Perhaps it might want to farm into the Phillipines with our good friends OEL ;)

[p0ssy]

Quote from Shasta
"Tricha

Forget PPP & CUE, theres an emerging O&G producer we both know will be much bigger than them both..."


Now you can't post something like this and then leave us hanging! How will I get to sleep tonight?

[tricha]

PPP will get knee capped on the cheap by either AWE, NZO or TAP.

Only problem with PPP is the lack of direction as to where it's cashflows will go.

Perhaps it might want to farm into the Phillipines with our good friends OEL ;)

The directors hold around 20% and I can see them wanting 30-35 cents a share mininium.
Lack of direction or misconception, cash is King. Ask Mac.

OEL want a good kick up the ...., 6 months behind the 8 ball.:(

[shasta]

Quote from Shasta
"Tricha

Forget PPP & CUE, theres an emerging O&G producer we both know will be much bigger than them both..."


Now you can't post something like this and then leave us hanging! How will I get to sleep tonight?


Tricha gave it away, its OEL (first oil has been delayed) but on the positive it's had a 64% reserve updated before production has started!

Re PPP - a predator is not going to want to spend more than $1 to receive $1 back, therefore if PPP is merely a cashbox, it will likely fall prey for not much more than cash backing!

[the machine]

in space of next 5 weeks the agm's will be out, with tui extra development drilling, additional near targets etc will push sp quite a lot higher

m

[tricha]

Tricha gave it away, its OEL (first oil has been delayed) but on the positive it's had a 64% reserve updated before production has started!

Arr, theres the flaw, NDO are ramping again, Otto never said such a thing.

Re PPP - a predator is not going to want to spend more than $1 to receive $1 back, therefore if PPP is merely a cashbox, it will likely fall prey for not much more than cash backing!

Like I said the directors of Pan own heaps and "they ain't no fools" 30 to 35 cents mininium.;)

AWE is on the cust of a huge exporation phase around TUI, the game has just started and PPP will piggy back along for the ride. Might cost them 30 million.

Otto is still a gamble :rolleyes: Money in the bank in this market is what counts at the end of the day.:D

[shasta]

Like I said the directors of Pan own heaps and "they ain't no fools" 30 to 35 cents mininium.;)

AWE is on the cust of a huge exporation phase around TUI, the game has just started and PPP will piggy back along for the ride. Might cost them 30 million.

Otto is still a gamble :rolleyes: Money in the bank in this market is what counts at the end of the day.:D

Tricha - whilst not wanting to talk OEL on the PPP thread, refer the link i posted about the reserves upgrade...

I was in PPP a long time ago now, & its lack of direction put me off...

Are PPP's management just in this to link there own pockets or what?

[the machine]

fyg



Saturday, September 20, 2008

49 US Gulf platforms destroyed by Hurricane Ike
The US Interior Department's Minerals Management Service today reported 49 of 3,800 Gulf of Mexico production platforms have been destroyed...

[macduffy]

Hi shasta.

I respect your views but doubt whether PPP management are there merely to line their own pockets, if by that you are referring to salaries, directors's fees etc. Directors have too much wealth tied up in their controlling shareholdings not to be vitally interested in the future SP of the company.

;)

[shasta]

Hi shasta.

I respect your views but doubt whether PPP management are there merely to line their own pockets, if by that you are referring to salaries, directors's fees etc. Directors have too much wealth tied up in their controlling shareholdings not to be vitally interested in the future SP of the company.

;)

So what are they "actively" doing to reward ALL there shareholders?

It's not right to wait until you're nearing retirement to put out the "for sale" sign.

[macduffy]

So what are they "actively" doing to reward ALL there shareholders?

It's not right to wait until you're nearing retirement to put out the "for sale" sign.

I'm happy to keep picking up a few at these prices ( P/E 2.4 ) while the Tui cash rolls in.
Directors have too big a stake to allow AWE or NZO to pick them off cheaply.

;)

[upside_umop]

So what are they "actively" doing to reward ALL there shareholders?

It's not right to wait until you're nearing retirement to put out the "for sale" sign.

As for actively? They just employed Tom Prudence who has got a reasonable background...

A sharebuyback would have been more beneficial to all shareholders rather than them picking up the road kill personally.

But, PPP do have things in the pipeline...even if its just tui and the planned appraisal. An eventual 100mb field will suit me just fine :)

TAP have always had a high probability associated with Maitland, but some have said thats disappearing?

I'm sure PPP are waiting as eagerly as NZO for more offshore block auctions...

If you want direct exposure to oil, with minimal downside (most likely none in 12 months time), then PPP is a great company...also takeover potential both ways.

As MacDuffy has said...directors hold a large chunk and wont see it go cheaply...

I've been buying as of late, although its still in that downtrend (sorry Phaedrus, I'll learn one day!)

[boysy]

simply by not spending money they are creating value for the shareholders. In these markets would a sharebuyback really be the best course of action cash is king, i hope they are sitting on their hands and examining all oportunities in due course. TUI is a absolute ripper for PPP and with 10% they should actively increase asset outputs they know have a high probability of sucess.

[shasta]

simply by not spending money they are creating value for the shareholders. In these markets would a sharebuyback really be the best course of action cash is king, i hope they are sitting on their hands and examining all oportunities in due course. TUI is a absolute ripper for PPP and with 10% they should actively increase asset outputs they know have a high probability of sucess.

Fair enough, but i'll give you the tip anyway.

Until such time as PPP enlightens the market as to how it will use it's treasure chest, the market will simply overlook it & value it based on it's cash.

Therefore expect it to trade sideways until they do tell the market!

[tricha]

Fair enough, but i'll give you the tip anyway.

Until such time as PPP enlightens the market as to how it will use it's treasure chest, the market will simply overlook it & value it based on it's cash.

Therefore expect it to trade sideways until they do tell the market!

Buying it just on it's cash value is just fine by me Shasta, in this loony bear market cash will win the day over debt.
Buying more like the directors, upside_umop and myself on this down trend is a great way to topup and make money.
They are a money making cash cow. The only way to derail them is pure stupididy ( lucky PT is not in the scene ) or an earthquake off Taranaki.

Looking at ROC, AWE and COE buying someone else cheap has been punishing in this market.:o

If AWE or NZO see a potential field extension around Tui and that's what AWE is implying at the moment, PPP will be dog tucker.

Please edify me if I'm missing something Shasta.

Heres the equation.

Cash = 20 cents + interest in 9 months.

Risk in 9 months will equal zero.

Upside.

* Tui upside

* Maitland

* Takeover

* in nine months, a further 11 years of Tui production or income to PPP.

Downside.

* Stupidity by management

* Earthquake

* Oil goes to < $60

[shasta]

Buying it just on it's cash value is just fine by me Shasta, in this loony bear market cash will win the day over debt.
Buying more like the directors, upside_umop and myself on this down trend is a great way to topup and make money.
They are a money making cash cow. The only way to derail them is pure stupididy ( lucky PT is not in the scene ) or an earthquake off Taranaki.

Looking at ROC, AWE and COE buying someone else cheap has been punishing in this market.:o

If AWE or NZO see a potential field extension around Tui and that's what AWE is implying at the moment, PPP will be dog tucker.

Please edify me if I'm missing something Shasta.

Heres the equation.

Cash = 20 cents + interest in 9 months.

Risk in 9 months will equal zero.

Upside.

* Tui upside

* Maitland

* Takeover

* in nine months, a further 11 years of Tui production or income to PPP.

Downside.

* Stupidity by management

* Earthquake

* Oil goes to < $60




That a good analysis of the pros & cons, i'd just add to the downside, lack of direction.

NZO experienced the same problem & it took a change at the helm to "unlock" the value we all saw in it.

[bermuda]

That a good analysis of the pros & cons, i'd just add to the downside, lack of direction.

NZO experienced the same problem & it took a change at the helm to "unlock" the value we all saw in it.

Hi Shasta,
I really dont think NZO has changed direction at all. Exploration, Development, Production and now the Revenues with more to come from Pike and Tui. The new Management has certainly exposed the company but the direction is still the same as that defined by the board.

But I do agree with posters about PPP. In this market what a wonderful place to have your cash.

[Phaedrus]

I do agree with posters about PPP. In this market what a wonderful place to have your cash.

I presume you are being sarcastic, Bermuda!!!!

http://h1.ripway.com/Phaedrus/PPPx2.gif

[Nitaa]

Paedrus. Although i value your charts, very informative etc, ppp as i mentioned the other day is a DONT SELL stock at present. I musty add that i am talking about ppp being about 25 26 cps (nz). i did sell a good chunk at 35 cps last year. This is irrespective what the market does short term.

If you buy this stock you are effectively buying cash at a discount. So in this case i would chuck the chart out the window as fundamentals are too strong to ignore.

Also worth noting, AT is still accumulating albeit in small quantities. He is in a wonderful position to name his price if any takeover etc were to happen.

discl. hold

[Phaedrus]

I follow your reasoning, Nita.
Of course, from my perspective, all I see is the lovely tidy trend channel!
I have marked today's probable opening price in green. The good news is that the OBV (not shown) has stopped falling. The bad news is that there is no sign of it rising yet.
A Close above 23 would break the trendline and trigger a Buy signal, but unless a bit of volume kicks in, it would not do to get overexcited about this!

http://h1.ripway.com/Phaedrus/PPPa922.gif

[bermuda]

I presume you are being sarcastic, Bermuda!!!!

http://h1.ripway.com/Phaedrus/PPPx2.gif

Hi Phaedrus,

I am certainly not being sarcastic at all. Sentiment rules this stock...until something happens. When it is going to happen I dont know...but happen it will.

[boysy]

11 million shares bought/sold thats a fair chunk will they have to disclose whos buying selling ?

[tricha]

11 million shares bought/sold thats a fair chunk will they have to disclose whos buying selling ?

Phaedrus has finally seen the light, he's buying big time, into this down trend, but he will not disclose.
Not till they have go up anyway.;)

[JBmurc]

11 million shares bought/sold thats a fair chunk will they have to disclose whos buying selling ?

I'm not 100% but I'm pretty sure it has to be 5% or larger holding has to be disclosed
I know COE brought 4.99% which was never disclosed of IPM before making a Takeover bid
the 11m crosstrade could have been between a couple of the large holders with one needing to free up some cash

[the machine]

as no increase in the sp then either the sell market depth was 11m or an arranged t/f - go with the later.

M

[Romer]

My theory for what it's worth is a trade in or out of a family trust. Maybe it was John Key ;)

[Phaedrus]

Phaedrus has finally seen the light, he's buying big time, into this down trend
Not me Tricha - I consider buying into an established downtrend to be a mistake. Remember?

Tricha, you need to pay more attention to the clouds. After a while you will begin to notice that different formations are very closely associated with the subsequent weather. It's not all that difficult to see when rain is threatening. Besides, why go out shopping and risk being soaked when the barometer is obviously falling? Especially when you refuse to carry an umbrella!

How many soakings do you need?

[AMR]

One of those big jumps in OBV again.

But a downtrend is a downtrend.

[Phaedrus]

The big jump in the OBV is an aberration and should, in fact, be a big fall.

The 11 million crossing went through at 21 cents - below the previous Close of 21.5. Because the day Closed up half a cent at 22 cents, this large volume registered on the OBV as a rise when in actual fact it should have been a fall since the VWAP was 21 cents.

This sort of thing doesn't happen often, but it is something to watch out for. If data suppliers provided VWAP figures, it wouldn't happen at all.

[tricha]

Not me Tricha - I consider buying into an established downtrend to be a mistake. Remember?

Tricha, you need to pay more attention to the clouds. After a while you will begin to notice that different formations are very closely associated with the subsequent weather. It's not all that difficult to see when rain is threatening. Besides, why go out shopping and risk being soaked when the barometer is obviously falling? Especially when you refuse to carry an umbrella!

How many soakings do you need?

Arr maybe that's where the trouble lies Phaedrus, where I live there is not to much rain and the clouds are to distant to identify.:rolleyes:

On the other hand folks, page 9 of this report clearly shows what PPP will earn in the next few years, fundamentally out there. NZO total = 12.5% , PPP not much less at 10%.

And at the price PPP is now, it makes logical sense NZO will strike and make it 22.5%.

Unfortunately Phaedrus, T\A will not identify it, hence I will wave to u when I am sailing past your window ( while u r off to work in your train)
:p

http://www.stocknessmonster.com/news-item?S=NZO&E=ASX&N=306029

[Phaedrus]

Tricha, let me give you a tip.

Before you embark, make sure the boat/plane/train/stock you are interested in is heading North. This simple, commonsense advice will save you a lot of money. Here are a just a few of many poignant examples of ill-timed travel arrangements :-

"If u wait to long, the train might has left the station and u r left kicking the wall". (OEL at 48 cents - now 29 cents)
a little later "wait for the news and u will be sitting at the station watching the clouds sail past".

"The ship is leaving the port without u" (PEM at $3.93, now 30 cents)

There is no point wasting time and money by jumping aboard anything that is not heading the way you want to go.

[tricha]

Phaedrus here we go again, "The past tense"

And I'll say it again, unless u put up, u are gutless and can never be held accountable for any trades.

U can never make a mistake or ten like me.:o

I'll explain it again, PPP is dirt cheap, they have production till 2020 for doing nothing.
The directors came in last week tp shore up the price, why, if a take over offer comes, they can ill afford the s\p to be too cheap. They have millions invested in it and would be after a 33% gain from when an offer begins.

U on the other hand will pick them, when it is too late, thats how your system works unfortunately. Past tense.:eek:

[macduffy]

I doubt whether the directors need to "shore up the price".
They hold a controlling interest as it is and would be able to defeat a t/o if necessary.
For me, I'm more than happy to see Phaedrus keep warning about the dangers of buying in a downtrend. It's a lesson I need to keep re-learning!

Disc: Holding PPP and will buy some more if/when the SP trends up.

;)

[shasta]

PPP -

Whats your exchange preference ASX or NZX??? any advantages in one over the other.

Which one has the better spread and liquidity ....for PPP?

I think you guys are on to a winner here with PPP.

And I get a feeling that its not too far away from some good event ... one way or another.

AA

AA

Check my post on OEL thread re PPP (sorry posted in reply to Tricha asking!)

[upside_umop]

Phaedrus shows a graph a page back or so.
Not much difference, but you may be able to intra trade.
I got some on both sides of the tasman.

[Phaedrus]

Whats your exchange preference ASX or NZX??? any advantages in one over the other? Which one has the better spread and liquidity?
A distinct lack of any arbitrage opportunity and ASX:PPP having five times the volume of NZX:PPP would make that a no-brainer wouldn't it?

http://h1.ripway.com/Phaedrus/PPPanz927.gif

[Dr_Who]

Jumped on board today at 19.5c, A give away at this price. I believe Support will hold strong around this level and may build a base, looking forward to a dividend announcement in the near future. I hope PPP doesn't get taken over before its closer to fair value, none the less a fairly safe medium term investment at this price.

I intend to continue to accumulate on weakness

AA

I may actually join you and get some more shares if there is further weakness on the Dow. Why are they holding an agm in Sydney??

[shasta]

I may actually join you and get some more shares if there is further weakness on the Dow. Why are they holding an agm in Sydney??

Doesn't the chairman TR live there?

[boysy]

The next quarterly should be interesting reading i hope some sort of statement as to what they plan to do next is released as well. Cash held must be approaching if having not exceeded market cap.

[KentBrockman]

The next quarterly should be interesting reading i hope some sort of statement as to what they plan to do next is released as well.....

The problem with that is that someone says that EVERY quarter....and nothing seems to happen....:(

[boysy]

i Think when they release the ammont of cash held that in itself should help wake up mr market well we all hope so anyway

[tricha]

The problem with that is that someone says that EVERY quarter....and nothing seems to happen....:(

Please do not forget Kent, we are in the middle of a major bear market, even good news gets treated with contempt.

Pan Pacific to me, is not a get rich scheme, it's more a longer term investment. When the cash = the setpoint nine months from now :p
And it has bonus critera attached as WELL.

Shares are being passed from the impatient to us. ;)

P.S Look at it another way, Ziniflex wasted 700 million buying AGM because they had to and they could, just because of some egotist at the helm, go see what it is on their books at the moment and then half it again :rolleyes:

[Dr_Who]

I actually prefer PPP to hold onto the cash and do nothing with it until the global market settles down. Just keep pumping that oil out of the ground. There maybe some opportunities to acquire some very cheap Aussie oilers that is currently producing with good drilling programs.


Cash is king in this market.

[boysy]

Exactly PPP has the upper hand in a market like with such a high proportion of cash to market cap. Though i hope PPP dont rush into anything but oilers are getting hammered so im sure opportunities will present themselves. What companies do people think PPP might be eyeing up if any ? PPPs a safe bet for now ( well as safe as oilers can be IMO) but i would like to see management build on TUIs success and now seems like a good a time as any to weigh up opportunities that present themselves

[Sharp737]

There are a few targets PPP could have a crack at. It's a bit late for BOW but they would have been good. NWE could be a goer too as that Cobra field in the UK is just a matter of time....of course I hold some NWE so that's a bit biased.

I think that cash is certainly King at the moment and with a large drill program coming up on those prospects....by the way, did you notice the rough area of those now at last disclosed prospects? By my reckoning, about the same total size as Tui, Amokura and Pateke combined which makes me think of some former posts.... and some 'pub talk' in the Taranaki taverns :)

Am happy to hold

Sharp

[boysy]

yes the drilling program for tui certainly does look encouraging hopefully the jv can secure a rig sooner rather than later

[Tok3n]

PPP should takeover NWE.

Its not like management in either company does much seeing neither hold a lot of assets thus this would reduce the overheads in both companies.

[Misc]

What do you lot make of Resolution 4?

Smacks of the Radford of old , and will be interesting to see if it gathers the required 75% vote.

I would imagine most will vote against this resolution (as a reflection of the distain felt toward the current Directors).

Misc

[upside_umop]

I've noticed it before. 40,412 barrels were accounted for at cost?
At 30 June this was around 40412*140 USD = ~5.6 million...
Less your taxes and royalties still another $3 million on the books.
I thought these were meant to be held at net realisable value?

[Corporate]

I've noticed it before. 40,412 barrels were accounted for at cost?
At 30 June this was around 40412*140 USD = ~5.6 million...
Less your taxes and royalties still another $3 million on the books.
I thought these were meant to be held at net realisable value?

inventory is held at the lower of cost of net realisable value. hope that helps

[upside_umop]

Yeah, thats for 'ordinary' inventory under IAS 2.
When you get minerals/agriculture it changes and specifically excludes the scope of agriculture, agriculture produce, minerals, and mineral produce from IAS 2. I havent read through the whole of IAS 41 but would have thought 'oil inventories' would come under a similar recognition. hmmm

[macduffy]

What do you lot make of Resolution 4?

Smacks of the Radford of old , and will be interesting to see if it gathers the required 75% vote.

I would imagine most will vote against this resolution (as a reflection of the distain felt toward the current Directors).

Misc

My reading of the situation is that directors wish to reinstate the situation where a partial bid would need to be approved by shareholders of the company to be valid. It seems that this was the situation from 2000 and that the requirement for such approval lapsed after 3 years. Interestingly then, it seems that a partial bid has been possible without shareholder approval for the last 5 years and that, if the resolution is now passed, the requirement will last for another 3 years before it will need to be renewed again.
If I've got this right, and I must say I havn't had a look at the company's Constitution ( not available on the web-site) it then boils down to whether one thinks a partial takeover, with its pros and cons, is in one's best interests. It seems to me that there is some validity in keeping approval with shareholders but we must bear in mind that directors have large shareholdings and there may be situations in a partial takeover where their interests don't coincide with those of the majority of the rest of us.
Happy to be corrected on any of the above.

:)

[boysy]

is anyone going to the agm ? if so maby some questions could be asked on behalf of members of this forum ?

[tricha]

What do you lot make of Resolution 4?

Smacks of the Radford of old , and will be interesting to see if it gathers the required 75% vote.

I would imagine most will vote against this resolution (as a reflection of the distain felt toward the current Directors).

Misc

Anyone want my votes against this resolution, give me a bell.

Hmm, Tony's getting 250K for doing not much, that does seem a bit rich.
I'd do it for $50, expenses and options at 40 cents.
Lets face it they are not the operator at Tui. They attend a few buillsh.t meetings and do nothing, ( doing nothing is a blessing in this bear market ) but is nothing worth $250,000 in this instance, I think no way .

Mr Tom Prudence, MSc Petroleum Geology; BScHons Geological Geophysics; FGS; as General Manager, Exploration Production.

Production, where the hell does that fit in ? They do not produce, they sit on the coat tails of AWE.

Hmm, I've got a lousy 300,000 votes, if anyone wants them as a proxy to dispute paying someone $250,000 for doing a job worth a max of $100,000 they are welcome to them.

Am I being biased, is managing PPP worth $250,000

Can anyone tell me why it's worth $250,000, is TR that good.

Cheers Tricha

[AMR]

Does anyone know what the chances are of a company trading below the value of their cash holdings during a bear market? Has it ever happened before?

[KentBrockman]

Does anyone know what the chances are of a company trading below the value of their cash holdings during a bear market? Has it ever happened before?

Looks like anything is currently possible. Would have to be the best time to do a buy back ever. Or take another co. with deflated SP over.

Not holding my breath though.... :(

[Dr_Who]

Does anyone know what the chances are of a company trading below the value of their cash holdings during a bear market? Has it ever happened before?

Yep, I ve seen stock trading below cash holding due to lack of confidence in management. If PPP comes out with a plan to spend that money, the sp will head south very quickly. LEts hope PPP is very very prudent in their use of the cash. I hope they continue to hope cash until the market seens a bottom and starts to turn or merge with a oiler that has good cash reserve and good drilling like NZO.

This is a ripe time for NZO or AWE to T/O PPP.

[Dr_Who]

PPP cash is around 17 cps?

[boysy]

are we taking into account that ppp hold most of there cash in usd on the 31st june they had A$81 million though at the time the value of A$ was much higher so id hazard a guess to say that cash held would be around A$105 -110 million or about 18 - 19 cents a share.

[Crypto Crude]

If NZO could get PPP for 20c...then that would be a steal...
But they would surely have to pay north of 25c... and up to 30cents...with 18cents cash (im going off previous posters)... assuming that PPP have no other directon, is there money to be made by stripping the assets and shutting the company down?
Add in a huge premium for current market risk... im not so sure that PPP is such a steal.....
I wonder which path would be most attractive...
what the costs would be of winding the business down,
or returning total captial to the shareholders would be?
or maintaining the current company, with running costs and all that...
:cool:
.^sc

[tricha]

If NZO could get PPP for 20c...then that would be a steal...
But they would surely have to pay north of 25c... and up to 30cents...with 18cents cash (im going off previous posters)... assuming that PPP have no other directon, is there money to be made by stripping the assets and shutting the company down?
Add in a huge premium for current market risk... im not so sure that PPP is such a steal.....
I wonder which path would be most attractive...
what the costs would be of winding the business down,
or returning total captial to the shareholders would be?
or maintaining the current company, with running costs and all that...
:cool:
.^sc

Have to disagree there Shrewd, the risk to PPP is an earthquake of Taranaki, otherwise it is a printing press, it's still $120 OZ a barrel for their oil.

PPP is by far my biggest holding and could swallow CUE in one gulp, paid in cash ;)

[Dr_Who]

What is PPP's production cost per barrel to pump out the oil from Tui?

[macduffy]

Have to disagree there Shrewd, the risk to PPP is an earthquake of Taranaki, otherwise it is a printing press, it's still $120 OZ a barrel for their oil.

PPP is by far my biggest holding and could swallow CUE in one gulp, paid in cash ;)

Except that Todds and Singapore Petroleum aint gonna allow that!
( Not to mention Shrewdy and Friends).

;)

[Crypto Crude]

tricha,
im not saying that PPP is a bad company whats so ever...
ok, lets take this in steps...
whats your guess as to how much it would cost per share to take this company out?

Doubt PPP could pay for CUE in cash (yet)... CUE could pay for PPP two times over with its gas assets... get a loan out against the assets
:)
.^sc

[Crypto Crude]

hehehehhee...
:cool:
.^sc

[Corporate]

tricha,
im not saying that PPP is a bad company whats so ever...
ok, lets take this in steps...
whats your guess as to how much it would cost per share to take this company out?

Doubt PPP could pay for CUE in cash (yet)... CUE could pay for PPP two times over with its gas assets... get a loan out against the assets
:)
.^sc


SC - don't really see either of those purchases happening. Both have significant owners with lots of shares.

[tricha]

tricha,
im not saying that PPP is a bad company whats so ever...
ok, lets take this in steps...
whats your guess as to how much it would cost per share to take this company out?

Doubt PPP could pay for CUE in cash (yet)... CUE could pay for PPP two times over with its gas assets... get a loan out against the assets
:)
.^sc

Cost to take over PPP, u would have to ask the directors what their bottom line is, I'm only hazzarding a guess at 35 -40 cents.

Probably knowing u Shrewd, not your cup of tea as this is not a multi bagger potential like CUE, but in this bleak bear market a 10% gain is big. Companies in this market with, cash, no debt and income will win the day over more risky ones like CUE and OEL ( which I still hold :o )

All I know is the cash register is still rattling :p Their cash will one day soon equal the share price.

And u can breath easy, they will not be after CUE as MacDuffy rightly pointed out, "Except that Todds and Singapore Petroleum aint gonna allow that!"

Happy hunting Shrewd

Tricha

[shasta]

Cost to take over PPP, u would have to ask the directors what their bottom line is, I'm only hazzarding a guess at 35 -40 cents.

Probably knowing u Shrewd, not your cup of tea as this is not a multi bagger potential like CUE, but in this bleak bear market a 10% gain is big. Companies in this market with, cash, no debt and income will win the day over more risky ones like CUE and OEL ( which I still hold :o )

All I know is the cash register is still rattling :p Their cash will one day soon equal the share price.

And u can breath easy, they will not be after CUE as MacDuffy rightly pointed out, "Except that Todds and Singapore Petroleum aint gonna allow that!"

Happy hunting Shrewd

Tricha




Sorry to take the tread away from PPP.

Tricha - you still in OEL?

[tricha]

Sorry to take the tread away from PPP.

Tricha - you still in OEL?

Thats what I just said Shasta :o

[shasta]

Thats what I just said Shasta :o

Sorry the pink border has gotten to me...

Wish i held onto my PPP shares :confused:

[the machine]

What is PPP's production cost per barrel to pump out the oil from Tui?

operating costs are less than usd$10/barrel

M

[tricha]

:D
operating costs are less than usd$10/barrel

M

My maths suks but I'm sure someone will edify me if I am wrong.

Taken of the NZO site

Last quarter

3000 barrels a day to PPP x 92 days = 276000 barells X $120 ( $130 oZ a barrel average - $10 operating cost = $120 )

= 33.12 million

- 20% royalites
- 20% tax

Profit for last quarter $19,872,000

Which would add about 3.3 cents to the cash backing.
Add that to the existing 12 cents a share

Gives Pan Pacific Petroleum cash per share of about 15.3 cents + interest

It does not take much to work out cash, is fast catching up to the shareprice.:rolleyes:

P.S it is still $126 a barrel OZ :D

[Dr_Who]

8.5m shares crossed.

Something is brewing and no ssh announced!

[upside_umop]

I'm hoping it was a share buy back....

Do share buybacks need to be announced to the market before they proceed?

Tricha...i would say there is at least market cap worth of cash atm. I will check later..

[boysy]

people arnt factoring the exchange rate gain that PPP has clearly made. Most off ppps cash was held in $USD at the time around 30 june 2008 and i suspect they have kept the large ammount of their cash in $USD. At the time of 30th june A$81 million of cash was held the large part being USD.

[Dr_Who]

people arnt factoring the exchange rate gain that PPP has clearly made. Most off ppps cash was held in $USD at the time around 30 june 2008 and i suspect they have kept the large ammount of their cash in $USD. At the time of 30th june A$81 million of cash was held the large part being USD.

I just read the latest annual report and I cant find where it says they are holding the cash in $US.

[macduffy]

I just read the latest annual report and I cant find where it says they are holding the cash in $US.

Note 34.
Equivalent of AUD74.4m of total AUD81m held in USD.

;)

[boysy]

page 49 of the report shows current holdings of USD NZD and HKD.

http://www.panpacpetroleum.com.au/docs/annual_reports.htm

[macduffy]

Directors' disclosures today.
Two directors still buying.

Disc: I'm not selling!

;)

[macduffy]

Directors' disclosures today.
Two directors still buying.

Disc: I'm not selling!

;)

And, of course, the fact that directors are buying means nothing significant is pending - just now!

;)

[Dr_Who]

Allan Tattersfield just bought 8.5 million shares. Total holding of 66.3 millions shares.

N. Tomkinson bought over 10 million shares in Sept and topped up some more shares today. He now has total holding of 47.9 million shares.

Someone hidden under ASB Nominees has been selling down.

I am gonna top up some more myself. :)

Disc: shareholder

[the machine]

And, of course, the fact that directors are buying means nothing significant is pending - just now!

;)

nor unlikely to be in next 4 - 6 months

good to see directors buying as shows their support for company

its like buying cash at a discount like a p[revious poster said

m

[boysy]

looks like its a good time to be holding $USD. that cash held in $USDs itself must be approaching the current market cap of PPP. Can we guess a bottom for PPP my bet is it must be fast approaching if not already happened just my 2 cents though.

[the machine]

my stab on ppp financials is they holding about usd$84m plus quite a lot in aud as per the full year report.

with fall of aud$ then just the usd$84m alone is more than market cap, plus the aud$ and plus profit of usd$1.5m every week aftertax.

so bought another 20,000 today@ au.19

to me it was like buying cash for a 15% discount

M

[bwana]

question , where is our money in PPP being held ? is it safe ? many uk and european corporations and local authorities have parked funds in 'fancy ' accounts offshore in banks that have collapsed ! ! ! ! viz uk local councils / iceland !

has anyone asked PPP about this and is anyone intending to ask at the agm ? ? ?

simple question , simple answer required ! ! !

[KentBrockman]

question , where is our money in PPP being held ?

Excellent question, and I have wondered that myself. Directors must think it's safe, otherwise they wouldn't just have bought more shares. In any event, hopefully someone will ask at the AGM.

[JBmurc]

question , where is our money in PPP being held ? is it safe ? many uk and european corporations and local authorities have parked funds in 'fancy ' accounts offshore in banks that have collapsed ! ! ! ! viz uk local councils / iceland !

has anyone asked PPP about this and is anyone intending to ask at the agm ? ? ?

simple question , simple answer required ! ! !

your'd think with directors buying more they'd be have the funds in the safest of banks I see retail deposits of major banks in the US has increased alot of late,would be good to know which bank.

[the machine]

at least ppp have not dropped today in nz

will it remain so is a big question that can be answered in about 7 hours time

M

[upside_umop]

You spoke too soon! 19 cents...ouch

[Dr_Who]

You spoke too soon! 19 cents...ouch

Dropping sp? Good!

I bought more shares and will buy more if it drops. In this market everything and everyone is illogical. This is a no brainer, unless they go and do something stupid with the cash.

[Dr_Who]

PPP net cash is 19 cents and the market is selling 17.5 cents!!!!! Come to daddy!!

[Zephyrus]

Hi can anyone tell me the cash costs per barrel of oil produced in $US?

Also, what is their exploration spend, if any?

Cheers,
Z.

[macduffy]

Hi can anyone tell me the cash costs per barrel of oil produced in $US?

Also, what is their exploration spend, if any?

Cheers,
Z.

Have a look at the 2008 Annual Report

http://www.panpacpetroleum.com.au

Given that their costs accrue in USD/AUD/NZD and the volatile movements between these currencies, I wouldn't like to try to estimate the current cost in USD.

[upside_umop]

Production at Tui has been stated to be still less than $10USD a barrel.
It is expected to rise however.
I wonder how the FPSO fluid handling is going? Maybe an update in the quarterly...

[Zephyrus]

Thanks for that. I did some rough calcs, using data from the Annual Report, & came up with costs of approx US$15 per barrel at todays exchange rates. If they produce 900,000 barrels this year then their profit will be around AU$25 million if oil averages US$60 per barrel (Credit Suisse estimates oil will drop to that level).

So they'd be making a decent profit as well as having cash on hand equal to their market cap. I hope they move their US$ cash to Australia or NZ soon to take advantage of the exchange rate.

Cheers,
Z.

[boysy]

The question is will Opec let oil get down to $60 ? i also belive that moving most of the $USD over to $A would be sensible sooner rather than later.

[Dr_Who]

Thanks for that. I did some rough calcs, using data from the Annual Report, & came up with costs of approx US$15 per barrel at todays exchange rates. If they produce 900,000 barrels this year then their profit will be around AU$25 million if oil averages US$60 per barrel (Credit Suisse estimates oil will drop to that level).

So they'd be making a decent profit as well as having cash on hand equal to their market cap. I hope they move their US$ cash to Australia or NZ soon to take advantage of the exchange rate.

Cheers,
Z.

Dont rely on these jokers (investment banks and brokers) forecast. I recall they were saying oil going to $200 not too long back and now changed their minds once oil is at $100bbl.

[upside_umop]

Thats pretty harsh doctor...a few things have happened since then.

I recall you saying you would buy up large is oil was to go below $100...the question is, have you?

[tricha]

Thanks for that. I did some rough calcs, using data from the Annual Report, & came up with costs of approx US$15 per barrel at todays exchange rates. If they produce 900,000 barrels this year then their profit will be around AU$25 million if oil averages US$60 per barrel (Credit Suisse estimates oil will drop to that level).

So they'd be making a decent profit as well as having cash on hand equal to their market cap. I hope they move their US$ cash to Australia or NZ soon to take advantage of the exchange rate.

Cheers,
Z.

WELL looks like we are miles apart, only going to earn 5 million for the rest of the year :(

My maths suks but I'm sure someone will edify me if I am wrong.

Taken of the NZO site

Last quarter

3000 barrels a day to PPP x 92 days = 276000 barells X $120 ( $130 oZ a barrel average - $10 operating cost = $120 )

= 33.12 million

- 20% royalites
- 20% tax

Profit for last quarter $19,872,000

[Dr_Who]

Thats pretty harsh doctor...a few things have happened since then.

I recall you saying you would buy up large is oil was to go below $100...the question is, have you?

I ve bought more PPP. Gonna wait till oil bottom before I buy more oil stocks.

[tricha]

Come on guys, $19,872,000 million profit on oil production for the 1st quarter of this finanical year, that's my best guess.
Anyone else come up with a result, I only did 18% in school cert maths.


WELL looks like we are miles apart, only going to earn 5 million for the rest of the year :(

My maths suks but I'm sure someone will edify me if I am wrong.

Taken of the NZO site

Last quarter

3000 barrels a day to PPP x 92 days = 276000 barells X $120 ( $130 oZ a barrel average - $10 operating cost = $120 )

= 33.12 million

- 20% royalites
- 20% tax

Profit for last quarter $19,872,000

[boysy]

for the first quarter of this year my bet is overall production of some 311,600 barrels this comes off the NZOG website which has production from july 01- oct 13 of some 3.5 million barrels PPPs share being 10% of this.

The average price over the period was NZ$160 or arround A$143 at NZ$1 = A$0.88

gross income after Opex = A$133 x 311600 barrels = A 41.5 mill

tax @ 30 % = A$12.4 mill
royalties @ 25% = A$10.5 mill

Profit for Quarter around A$19 million though gain of forign exchange held on usd alone worth around A$30 million since 30-06-2008 alone. And we dont know how much of the current Quarters cash is held in USD which would again add to forign exchange gain.

cash held should be around USD$80 million + NZD$15 million + HKD$6 million plus A$19 million increase in cash for quarter. So around A$140 -$150 million at current prices

or around $0.235 - $0.255 per share compared against markets current A$0.20

[Zephyrus]

I calculated from the Annual Report that cost (production & other - whatever that means) were AU$21 per barrel (AU$30 divided by 1.42 million barrels). Using the exchange rates at the time that equates to about NZ$26 per barrel, which is equal to about US$16 per barrel now. I wonder how much of those costs are fixed?

To be prudent, we could assume that costs are fixed, so at 900,000 barrels for this year (according to Annual Report) & NZ$35 million fixed costs, gross profit @ US$80 per barrel will be (80x900,000)/0.6 - 35,000,000 = NZ$85 million (AU$75 million). Take away other expenses of approx AU$9 million leaves AU$64 million.

Therefore NPAT will be approx: AU$32 million for the year, assuming average price of US$80 per barrel & exchange rates stay stable from now.

I used this same analysis earlier at US$60 per barrel to get AU$25 million profit.

Obviously there are a lot of variables at play here. I'm just trying to be ultra conservative.

Cheers,
Z.

[macduffy]

Let's hope boysy's numbers are somewhere near the mark!

It's all too hard for me but what we do know for sure is that PPP were estimating 2008/2009 production at 900,000 bb. The figure quoted from the NZO update shows production so far well in excess of this rate.
Add in the depreciation of the AUD against the USD, assuming that the cash wasn't brought back to AUD until recently, if at all, and despite the fall in the PoO, things are looking very rosy.

;)

Disc: Holding.

[tricha]

for the first quarter of this year my bet is overall production of some 311,600 barrels this comes off the NZOG website which has production from july 01- oct 13 of some 3.5 million barrels PPPs share being 10% of this.

The average price over the period was NZ$160 or arround A$143 at NZ$1 = A$0.88

gross income after Opex = A$133 x 311600 barrels = A 41.5 mill

tax @ 30 % = A$12.4 mill
royalties @ 25% = A$10.5 mill

Profit for Quarter around A$19 million though gain of forign exchange held on usd alone worth around A$30 million since 30-06-2008 alone. And we dont know how much of the current Quarters cash is held in USD which would again add to forign exchange gain.

cash held should be around USD$80 million + NZD$15 million + HKD$6 million plus A$19 million increase in cash for quarter. So around A$140 -$150 million at current prices

or around $0.235 - $0.255 per share compared against markets current A$0.20

Thanks Boysy for doing a comparision.

Lock in 19 million xtra cash for the quarter :p

As far as the exchange in US $ go, they would be wise to bring it back to OZ $ real quick smart and lock that in. The US $ is as far as I a can see, going to go down the drain.

[boysy]

i definately agree that the strength of the USD will more likely than not fall and it would be a good idea to cash in some of the forign exchange gains. I understand why PPP holds these currencies but do we really need such a large ammount of USD$ i mean the expenditure in the forseable future is not alot so why not cash in even half of their $USD to hedge the possible currency risk. What are peoples thoughts ?

[tricha]

A few things that could relate to PPP ;)
Oil explorer wants to bump up NZ program

October 14, 2008 - 7:09PM



Australian Worldwide Exploration (AWE) managing director Bruce Wood says the big oil miner is looking at accelerating its planned New Zealand exploration program.
"As the heat has come out of the oil price, rigs are getting easier to contract," he told The Australian newspaper.
The company wants to fast track some high-risk drilling at two prospects in the Taranaki Basin that it says radically change the company if they come off.
"We want to expose our shareholders on a regular basis to some elephant-hunting," Mr Wood said.
The company was "cashed up" in turbulent times: "There are a lot of opportunities coming towards us."
Next year's New Zealand drilling program includes the Hoki-1 and Kahu-Stratigraphic exploration wells, each of which offers the potential for an oil discovery at least as large as Tui, Mr Wood said.
Drilling planned in the second half of 2009 will target a further "potential elephant," and the risk of those wells will be balanced by lower-risk drilling planned to add to the reserve of its outstandingly successful Tui field .
The company is seeking a rig to accelerate a New Zealand drilling program that will target two potential "company-changing" prospects as well as additions to Tui reserves.
The estimated size of the Tui field, off the North Island's western coast, has almost doubled since it started production in July last year.
Higher-than-forecast output has added to Australian Worldwide's cash reserves, put at $A200 million ($NZ230 million) in August.
The Sydney-based company will also examine the increasing number of asset acquisition opportunities arising from the global financial crisis, Mr Wood said.
The Tui Area Oil Fields, began production on July 30, 2007, and in less than a year had its reserves upgraded by 80 per cent, and production 42 per cent ahead of forecast with returns had been boosted by record international oil prices.
Pre-production of the proven and probable reserves were estimated to be 27.9 million barrels and that has been lifted to 50.1 barrels.
Plans are being developed to increase the water and oil handling capacity of the field's floating production vessel, the Umuroa, to 180,000 barrels a day and the lease of the Umuroa has been extended to 2015, with seven further one-year rights of renewal.
© 2008 NZPA (http://news.theage.com.au/action/displayCopyrightNotice?sourceOrganisation=AAP)

[the machine]

bring on the new drilling program - will do wonders for the sp

m

[boysy]

lets hope thay can get favourable terms on the rig. and hope that the umuroa handling capacity can be raised that would be a surefire way to increase revenues.

[Dr_Who]

AWE, NZO and PPP should merge and have one head office. Their combined cash holding will be over AU$500m. A beast that size will attract corporate raiders and give it economic scale to target large fish. Institutions will have to buy it for indexing etc.

[macduffy]

lets hope thay can get favourable terms on the rig. and hope that the umuroa handling capacity can be raised that would be a surefire way to increase revenues.

I know less than nothing about the technical side of oil production but I seem to remember reading that:

- the rate of production from Tui is expected to decline reasonably rapidly after the first year or so ( from an AWE chart a few months ago).
- the ratio of water to oil will increase progressively.

Given this, it seems that the handling capacity of the Umuroa would need to be raised merely to handle the increased volumes of water, if oil production is to be maintained at a reasonable level.

Would an oily be able to comment on this?

Disc: Holding AWE and PPP.

[boysy]

im not expert myself mcduffy but i believe that the jv were suprised that the water cut didnt kick in so fast. If they can get the oil out of the ground quicker this would increase the PV of earnings expected from TUI. By increasing the capacity of the umuroa from 120,000 barrels of liquids per day to 180,000 is it safe to say that actual oil extracted could again be up around 50,000 bopd from the current 30,000-35,000 bopd ?

[tricha]

AWE, NZO and PPP should merge and have one head office. Their combined cash holding will be over AU$500m. A beast that size will attract corporate raiders and give it economic scale to target large fish. Institutions will have to buy it for indexing etc.

WELL Peter Strachan has finally clicked on to PPP, must has been reading sharetrader.;)


Like Cooper, Pan Pacific has an EV of only $19 million, since it is sitting on a pile of
about $99 million of cash, generated by its 10% interest in Tui. The company is looking
for something to do with this money at a time when the market could not be more
favourable for someone with a spare dollar. Watch this space to see how they spend it.

[Dr_Who]

TRricha, post link pls.

[tricha]

TRricha, post link pls.

Can't do, of Stockanalysis, subscription only sorry.

[tricha]

Hey Boysy where did u get the info on where the money is held, I can not find it anywhere :confused:

Ha, got some more today before the directors, get in again :p
.................................................. .................................................. ..
Pan Pacific Petroleum

outstanding shares 588,612,110
current price asx = A$0.185

market cap A$ 108.9 million

cash on hand 30/06/2008

79 million USD
15 million NZD
6 million HKD

Boysey - "at current exchange rates this is 79 / 0.66 = A $ 120 million
15/ 1.1 = A $ 13.5 million
6/ 5.11 =A $ 1.1 million

production of oil since 30 june 2008 = 10 % of 3,500,000 barrels of oil @ average of
A$145

=A$50 million - opex - tax (30%) - royalties ( 25%)
= A $ 45 - $ 6 milion - 15 million - 12.5 million
= profit around A$16 million since 30/06/2008

so all up

market cap $108.9 million
less : net cash held $150 million ( made up of USD$79 million
NZD$15million
HKD$1.1
cash from operations since 30/06/2008 AUS$16

market cap less net cash = -(negative) $41.1 million

cash held per share currently around A$0.255

current sp on ASX A $ 0.185

so currently no value is being attributed to PPPs 10 % share in TUI . PPPs share of daily production being in the region of 3200 - 3500 bopd even at these prices that brings in around A$ 380,000 gross or around $180,000 net into PPPs pocket.

No woder the directors are stocing up on these prices"

[boysy]

page 49 of the anual report covering market risk

http://www.panpacpetroleum.com.au/pdf/PPP_Annual_Report_2008.pdf

[Lizard]

Possibly should deduct the $24m of current tax due and $12m of remediation allowance from the cash? Still looks interesting due to cashflow, although I am wondering if much of the remaining cashflow from Tui is likely to be needed to fund further exploration to secure future cashflow?

[adv]

Possibly should deduct the $24m of current tax due and $12m of remediation allowance from the cash? Still looks interesting due to cashflow, although I am wondering if much of the remaining cashflow from Tui is likely to be needed to fund further exploration to secure future cashflow?

Liz,

But what about the $24m of receivables at balance date - offsets the tax nicely.

Tricha,

I think that you will find that the Royalty is 20% (of net profits) and tax (30%) is net of the royalty - by my reckoning that is 44% of net profit.

adv

[the machine]

Hey Boysy where did u get the info on where the money is held, I can not find it anywhere :confused:

Ha, got some more today before the directors, get in again :p
.................................................. .................................................. ..
Pan Pacific Petroleum

outstanding shares 588,612,110
current price asx = A$0.185

market cap A$ 108.9 million

cash on hand 30/06/2008

79 million USD
15 million NZD
6 million HKD

Boysey - "at current exchange rates this is 79 / 0.66 = A $ 120 million
15/ 1.1 = A $ 13.5 million
6/ 5.11 =A $ 1.1 million

production of oil since 30 june 2008 = 10 % of 3,500,000 barrels of oil @ average of
A$145

=A$50 million - opex - tax (30%) - royalties ( 25%)
= A $ 45 - $ 6 milion - 15 million - 12.5 million
= profit around A$16 million since 30/06/2008

so all up

market cap $108.9 million
less : net cash held $150 million ( made up of USD$79 million
NZD$15million
HKD$1.1
cash from operations since 30/06/2008 AUS$16

market cap less net cash = -(negative) $41.1 million

cash held per share currently around A$0.255

current sp on ASX A $ 0.185

so currently no value is being attributed to PPPs 10 % share in TUI . PPPs share of daily production being in the region of 3200 - 3500 bopd even at these prices that brings in around A$ 380,000 gross or around $180,000 net into PPPs pocket.

No woder the directors are stocing up on these prices"


yes, trading at a substantial discount to the cash position [if all shown in aud$]

the nzo website shows weekly average tapis price, being a guide for tui sales and provided all sales still heldi n usd$ then the aud$145 for sept quarter might be on the low side using present exchange rates

M

[tricha]

AWE, NZO and PPP should merge and have one head office. Their combined cash holding will be over AU$500m. A beast that size will attract corporate raiders and give it economic scale to target large fish. Institutions will have to buy it for indexing etc.

Yeah what a cash beast that would make Dr Who, 100 mill PPP, 300 mill NZO and I reckon AWE will profit close to 80 miilion of Tui this quarter, so they would hold $250 odd mill

Total 650 million cash cow, 65 % Tui, wow what a beast.

They could go on a buying spree and take out Otto, Nexus, Cooper or who ever and still have income pumping in.:p

[the machine]

Yeah what a cash beast that would make Dr Who, 100 mill PPP, 300 mill NZO and I reckon AWE will profit close to 80 miilion of Tui this quarter, so they would hold $250 odd mill

Total 650 million cash cow, 65 % Tui, wow what a beast.

They could go on a buying spree and take out Otto, Nexus, Cooper or who ever and still have income pumping in.:p



why don't you make an offer to buy the company - pitched at au20c cash subject to 100% acceptance.

that way if it happens then you end up owning company with purchase price paid out of cash held, with quite a few million left over and earning revenue on production every week.

at the very least ppp would have to respond [at thats what were after] with a recommendation to shareholders with details why offer should be rejected


and then ppp might be on a few more radars [with a sp quite a lot higher]


look at what happenned when tap oil was tried to be taken over - sp went through the roof and the raiders bailed out with huge profits

m

[tricha]

why don't you make an offer to buy the company - pitched at au20c cash subject to 100% acceptance.

that way if it happens then you end up owning company with purchase price paid out of cash held, with quite a few million left over and earning revenue on production every week.

at the very least ppp would have to respond [at thats what were after] with a recommendation to shareholders with details why offer should be rejected


and then ppp might be on a few more radars [with a sp quite a lot higher]


look at what happenned when tap oil was tried to be taken over - sp went through the roof and the raiders bailed out with huge profits

m

R that's where patience is required The Machine, the directors are not buying to support a charity. :rolleyes:
That's why I have been buying more as WELL, if u can't beat them, join them ;)

[Dr_Who]

why don't you make an offer to buy the company - pitched at au20c cash subject to 100% acceptance.



If I have AU$100m I would attempt a T/O of PPP. The directors own over 20% of the shares, so would be a big ask to acquire the company at a discount. Maybe thats why they have been buying, cmaybe they feel it is a possible T/O target in the future.

[the machine]

If I have AU$100m I would attempt a T/O of PPP. The directors own over 20% of the shares, so would be a big ask to acquire the company at a discount. Maybe thats why they have been buying, cmaybe they feel it is a possible T/O target in the future.


we raised this point in context to think about the consequences if there was a T/O.

success or failure is beside the point.

the point is PPP would have to respond to any T/O and in doing so that would raise the profile of the company and along with it the SP

key points
p/e ratio of 2 times
nil debt
cash equivilent in aud$ exceeds market cap
earning after tax/royalties aud$150 - 190,000 per day
at the earning rate then every month earning about $4.5 - 5.7m depending on tapis oil price
[they also have options to sell oil at about usd$90/barrel]
profits every month nearly represent 1c per share = over 12 months nearly 12c per share


these are the sort of points that would be highlighted in any response to a t/O

M

[boysy]

i just hope that some of those usd$ are converted to AUS$ while the exchange rate stays favourable. Yes their may be further down side but they should lock in some of the gains before the quarterly comes out especially as no project comitments can be sen on the near term horizon. as stated in the anual report the company uses the USD$ as a natural hedge but at the same time states that net exposure is kept to an acceptable level by buying and selling forign currencies. Then why is it that 86 % of cash is held in $USD and only 13% in $NZD and the remander in $HDK. Wouldnt it be prudent to lock in some forign exchange gain now especially as the $USD cash held doesnt look like its going to be needed ( or most of it anyway) in the near term especailly as directors buying up now pritty much rules out any significant developments happening in the near- short term anyway ? views

[upside_umop]

we raised this point in context to think about the consequences if there was a T/O.

success or failure is beside the point.

the point is PPP would have to respond to any T/O and in doing so that would raise the profile of the company and along with it the SP

key points
p/e ratio of 2 times
nil debt
cash equivilent in aud$ exceeds market cap
earning after tax/royalties aud$150 - 190,000 per day
at the earning rate then every month earning about $4.5 - 5.7m depending on tapis oil price
[they also have options to sell oil at about usd$90/barrel]
profits every month nearly represent 1c per share = over 12 months nearly 12c per share


these are the sort of points that would be highlighted in any response to a t/O

M

Hi Machine,

PE ratio probably wont hold at 2 this year...maybe 3-4.
I believe the $90 options were for Calls. Ie they had sold call options to fund the purchase of Put options at ~$50. So we have 'some' downside protection for the POO...

There will be no liability on the b/s now with regard to selling calls...so profit after tax will be $4.5 million higher (or what ever they were recorded on the b/s for at balance date)..net of tax because they wouldnt have had tax benefits from this expense in the 07/08 period in the first place. Just another thing that will make the b/s look more tidy :)

I would like to see PPP have a play for IPM...I reckon they would be a great buy at the right price....and that could be coming soon. Cashflow would provide enough for ongoing development wrt to tui and permits..

[macduffy]

Hi Machine,

PE ratio probably wont hold at 2 this year...maybe 3-4.
I believe the $90 options were for Calls. Ie they had sold call options to fund the purchase of Put options at ~$50. So we have 'some' downside protection for the POO...

There will be no liability on the b/s now with regard to selling calls...so profit after tax will be $4.5 million higher (or what ever they were recorded on the b/s for at balance date)..net of tax because they wouldnt have had tax benefits from this expense in the 07/08 period in the first place. Just another thing that will make the b/s look more tidy :)

I would like to see PPP have a play for IPM...I reckon they would be a great buy at the right price....and that could be coming soon. Cashflow would provide enough for ongoing development wrt to tui and permits..

So a higher net profit with a virtual doubling of the P/E implies a doubling of the S/P.

I'll vote for that!

;)

[tricha]

i just hope that some of those usd$ are converted to AUS$ while the exchange rate stays favourable. Yes their may be further down side but they should lock in some of the gains before the quarterly comes out especially as no project comitments can be sen on the near term horizon. as stated in the anual report the company uses the USD$ as a natural hedge but at the same time states that net exposure is kept to an acceptable level by buying and selling forign currencies. Then why is it that 86 % of cash is held in $USD and only 13% in $NZD and the remander in $HDK. Wouldnt it be prudent to lock in some forign exchange gain now especially as the $USD cash held doesnt look like its going to be needed ( or most of it anyway) in the near term especailly as directors buying up now pritty much rules out any significant developments happening in the near- short term anyway ? views

Absolutey Boysy, we should all email the company and ask them to lock in the US\OZ exchange, who cares if the OZ falls furthur, it's a great profit and the way the US govt has been printing money, u would have to ask
how long will the US $ stay up :confused:


Upside Umop - "would like to see PPP have a play for IPM...I reckon they would be a great buy at the right price....and that could be coming soon. Cashflow would provide enough for ongoing development wrt to tui and permits.. "


IPM far too risky, Turkey, u have gas one day, the next day it could be thin air. Soverign Risk.

They will need around 30 million for their share of further Tui drilling and wouldn't that be a buzz if AWE found some more oil and hook it into the existing Tui system. :)

[upside_umop]

IPM far too risky, Turkey, u have gas one day, the next day it could be thin air. Soverign Risk.

They will need around 30 million for their share of further Tui drilling and wouldn't that be a buzz if AWE found some more oil and hook it into the existing Tui system. :)

I'm not so sure about the risk, Turkey cant risk it for EU entry.

But on further look, I dont like their assets. Best use of money is to invest inself..ie buyback. Maybe this will happen once directors have taken as many as they need and then they can buy back till they have a controlling share...

[upside_umop]

So a higher net profit with a virtual doubling of the P/E implies a doubling of the S/P.

I'll vote for that!

;)

haha..well considering average oil price achieved last year has been significantly higher than late, and production is dropping, I dont see the same operating net profit, or the more important 'cashflow.'

if oil stabilizes and this drilling goes ahead, we could see some healthy returns on the drilling period for sure.

[boysy]

talk ON THE ipm tread of possible friendly merger between ppp and ipm what are peoples thought here ?

[JBmurc]

talk ON THE ipm tread of possible friendly merger between ppp and ipm what are peoples thought here ?

Don't read to much into my comment it was a pretty of the cuff remark made as we talked about the cash rich COE having a unfriendly go at IPM I brought up the fact that another of my holdings PPP was also a major target ,he stated friendly mergers with the like of PPP could work more favourable with IPM and that he's been in contact nothing serious one target talking with another

[boysy]

i just hope that ppp start moving some of the money back here to aus quick smart. Time to lock in some of those forign exchange gains.

[the machine]

Tricha, let me give you a tip.

Before you embark, make sure the boat/plane/train/stock you are interested in is heading North. This simple, commonsense advice will save you a lot of money. Here are a just a few of many poignant examples of ill-timed travel arrangements :-

"If u wait to long, the train might has left the station and u r left kicking the wall". (OEL at 48 cents - now 29 cents)
a little later "wait for the news and u will be sitting at the station watching the clouds sail past".

"The ship is leaving the port without u" (PEM at $3.93, now 30 cents)

There is no point wasting time and money by jumping aboard anything that is not heading the way you want to go.


Phaedrus, guess its to soon to know sp is heading north for sure - need a few more days to guage the base support level.

[our last purchase @ 19c au was found out to be 1 day [and 1c] premature, but at least sp is now @ 20.5c au - the day in question being oct 10 - the day of no hope!

any charting you have would bemost welcome

regards

M

[tricha]

Phaedrus, guess its to soon to know sp is heading north for sure - need a few more days to guage the base support level.

[our last purchase @ 19c au was found out to be 1 day [and 1c] premature, but at least sp is now @ 20.5c au - the day in question being oct 10 - the day of no hope!

any charting you have would bemost welcome

regards

M

Yes come in Skywalker, the buyer of thin air and watching trains leave the Port of Fremantle :D

What does history tell us, oh thou mighty one :rolleyes:

[the machine]

AWE still interested in offshore Taranaki block
(Tuesday, 21 October 2008)

OPERATOR Australian Worldwide Exploration has applied for a second five-year term for its offshore Taranaki, New Zealand licence PEP 38483 where, in August 2007, it drilled the unsuccessful Hector-1 wildcat well.
Full Story...

from enery review

[JBmurc]

IPM far too risky, Turkey, u have gas one day, the next day it could be thin air. Soverign Risk

LOL

[Sideshow Bob]

I'm in.......

That must be a downward signal????

[Corporate]

I'm in.......

That must be a downward signal????

from my untrained eye it looks like PPP bounced off the top level of it's longterm downtrend today and will head back down towards 17cents.

[the machine]

from my untrained eye it looks like PPP bounced off the top level of it's longterm downtrend today and will head back down towards 17cents.

don't want to hear that.

ppp finished down 1 c on asx, after spending most of day down half a cent.

nzo's agm next week may give tui update and if positive may rub off onto ppp

otherwise nov 7 is ppp agm

just have to hang in there and tough it out

M

[Dr_Who]

I dont see PPP going anywhere with oil prices continue down trend.

disc. shareholder

[shasta]

surely there would have to be a upward drift in share price once cash levels exceed market cap, say a cent to 2 a month price appreciation even if oil prices sag?

I actually sold some, because I needed the money in things with more movement, but PPP does look a fairly defensive stock in this bumpy market, given cash reserves and cashflow. (even if they are shrinking with the price of oil)

Surely oil wont go below $50? :eek:

Oilers have been hammered to extreme levels, sets them up nicely when things finally turn around... "when" thats the million dollar question... could be a bit of a wait...

AA

Hey at least one positive for PPP, the delays in getting first oil meant they came into production when the POO was over $100/bbl, & have benefited nicely by the higher prices.

Spare a thought for OEL & NDO coming into production with oil prices retreating at a great rate of knots!

[boysy]

falling poo = increasing USD = cash held predominantly in USD increasing in value. PPP is gaining more cash every day even if its profit is down to around A$130,000 a day and this is added on top of their pile of cash. Im just waiting for the quarterly report in the next week or 2 and hope that this report explains what a healthy position PPP is in compared to other market participants.

[tricha]

falling poo = increasing USD = cash held predominantly in USD increasing in value. PPP is gaining more cash every day even if its profit is down to around A$130,000 a day and this is added on top of their pile of cash. Im just waiting for the quarterly report in the next week or 2 and hope that this report explains what a healthy position PPP is in compared to other market participants.

I sent PPP another email regarding switching their US$ back to OZ$ and locking in the gain, ( they might have already done it) it would be great if all PPP shareholders who believe they should lock the gains in, email or phone them. Ph 02) 9957 2177 or enquiries@panpacpetroleum.com.au



The death of the dollar?



By Professor Ngaire Woods
Presenter, Analysis, BBC Radio 4
http://newsimg.bbc.co.uk/shared/img/999999.gif


http://newsimg.bbc.co.uk/media/images/45132000/jpg/_45132985_-11.jpg The dollar is becoming more of a problem for the US, Prof Woods argues.


We are living in economic chaos. Banks, homes, jobs, and businesses are at risk.
Yet curiously, the one thing that seems stable is the dollar.
It is a symbol - and a lever - of American power and leadership, itis the standard unit of account for much of the world's economic activity. And in times of crisis, it has often seemed a safe haven.
But in the longer term, some experts believe this crisis could mark a turning point in the dollar's fortunes, hastening a fall from power which has seen its value decline over several years before its recent rally.
"I think today's financial crisis is going to hasten the end of the dollar as the world's reserve currency", says Avinash Persaud, chairman of Intelligence Capital Limited.
"For the first time ever we're now seeing that in the financial markets it costs money to guarantee you against a US government default."
'Exorbitant privilege'
http://newsimg.bbc.co.uk/shared/img/o.gifhttp://newsimg.bbc.co.uk/nol/shared/img/v3/start_quote_rb.gif For the American government there is simply no such thing as living beyond its means. With the rest of the world demanding dollars, all the US has to do is to keep printing them http://newsimg.bbc.co.uk/nol/shared/img/v3/end_quote_rb.gif


Prof Ngaire Woods


He wonders whether the combined cost of foreign wars and domestic bail-outs is being seen as "a burden too far" for the US.
But for the dollar to lose reserve currency status would end what has been in many ways a huge bonus for the US.
It is sometimes described as the ability to write cheques that no-one ever cashes.
So for the American government there is simply no such thing as living beyond its means. With the rest of the world demanding dollars, all the US has to do is to keep printing them.
This makes possible things that no other government could imagine - a power that America's rivals have historically denounced as an "exorbitant privilege".
In the early 1970s, US Treasury Secretary John Connally even told the outside world, brutally, that the dollar was "our currency, but your problem".
Euro reluctance
Since then, Europe has developed its own currency, the euro, which has taken on a global role.
As it grew in strength against the dollar it challenged some of the dollar's glamorous reputation. Supermodels in New York started asking for contracts in euros rather than dollars.
But European leaders are far from keen on seeing their currency become the world's reserve money.
http://newsimg.bbc.co.uk/media/images/45133000/jpg/_45133035_-26.jpg Chinese exports have helped it build up huge dollar reserves


"Europe has got a much less vast set of ambitions than America has ever had", says David Marsh, a banker who is just finishing a book charting the birth of the euro. Adopting the currency, he adds, was a "flight into a lack of ambition".
Potential to undermine
So might a rising economic power like China supply the dollar's eventual global successor?
At present, China lacks the open markets or institutions to support that role. But Avinash Persaud points out that similarly dismissive things were said about the US a century ago.
http://newsimg.bbc.co.uk/shared/img/o.gifhttp://newsimg.bbc.co.uk/nol/shared/img/v3/start_quote_rb.gif We are emerging into is this very hazy and slightly worrying state of affairs where there isn't going to be any single country leading the world in the way the US has done and with it no single currency either http://newsimg.bbc.co.uk/nol/shared/img/v3/end_quote_rb.gif


Jim O'Neill
Goldman Sachs


The US did not have a Central Bank until 1913, yet within a few decades the dollar was challenging sterling for world domination.
For now, China has a huge stake in what happens to the dollar, as it has built up well over a trillion dollars' worth of assets in the US currency thanks to its recent export boom.
That gives China a vested interest in a strong dollar. But it also gives Beijing the power to undermine the US currency should it choose to move its money.
This has been called by one former US Treasury Secretary the "balance of financial terror".
"It's like the idea of mutually assured deterrence" says leading US political scientist Barry Eichengreen. "We hope that everybody becomes respectful of the financial power of the other side, but that such destructive power won't be deployed."
Balancing act
So a new kind of American economic diplomacy has to emerge, particularly with the Gulf States. They're not only holding dollars, but pricing their oil in "petrodollars".
The US government is torn. Dollar-rich foreign states may demand a strong US currency, but that is bad for American exporters.
http://newsimg.bbc.co.uk/media/images/45133000/jpg/_45133036_f394535f-cf99-4d5f-8fc1-3cfd5946223d.jpg A strong dollar makes US exports expensive


It makes every American car or computer sold abroad more expensive. That is why the dollar has been quietly let slide over the last six years - and the weaker dollar has boosted American exports.
Jim O'Neill, Head of Global Economic Research at Goldman Sachs, believes "we are emerging into is this very hazy and slightly worrying state of affairs where there isn't going to be any single country leading the world in the way the US has done and with it no single currency either".
So the next American President has a delicate balancing act ahead.
If dollar-rich foreign countries don't like what's happening to the US currency, they may look for alternatives. And everyone knows that, down the line, the power of the dollar has to decline as the global balance of economic power changes. So the dollar is no longer their currency and everyone else's problem. It is now the world's currency - and mostly America's problem. Ngaire Woods presents 'Analysis: The Dollar and Dominance' on BBC Radio 4 on Thursday October 23rd at 20.30 BST and Sunday October 26th at 21.30 GMT. Or listen via the BBC iPlayer

[upside_umop]

Hey Tricha,

Maybe it would be best doing it in proportions...ie 10% each week for the next 10 weeks to smooth it out.

But yes...i think the USD will go down the gurgler (that doesnt mean the US economy!!) after all this mess is cleaned up, right now its just the safe haven. Who would have thought...EUR/USD1.28?!! Or even better for us..the AUD/USD ;)

I hope they make it clear in the quarterly what cash positions are held...if so, this could be the best looking quarterly in history for PPP..

[the machine]

sent an email off to ppp re clarifying usd$ cash position in quarterly and that a small dividend would be most welcome.

only reason usd$ is so high is that all the capital is having to be returned to usa from overseas - thus driving up usd$.

once sufficient capital rteturned then usd starts falling again

M

[tricha]

sent an email off to ppp re clarifying usd$ cash position in quarterly and that a small dividend would be most welcome.

only reason usd$ is so high is that all the capital is having to be returned to usa from overseas - thus driving up usd$.

once sufficient capital rteturned then usd starts falling again

M

Cheers for that machine, it's a bit like Contact, the sheer weight of numbers at the shareholders meeting yesterday, stopped the directors getting 100% pay increase.

I do not expect a reply, but the more that do it the better and I think I will phone them as well.
I asked for a special dividend as well.

[boysy]

at a time when cash is king it makes no sense that they havnt already started to move money back into $A . This is one way the company can show they are in the business of increasing shareholder wealth. With no commitments on the horrizon their is no reason why the company should expose so much of is cash in USD$. My hope is that in the quarterly they shown the appreciation in cash held and what they plan to do with it now and into the future.

[shasta]

Cheers for that machine, it's a bit like Contact, the sheer weight of numbers at the shareholders meeting yesterday, stopped the directors getting 100% pay increase.

I do not expect a reply, but the more that do it the better and I think I will phone them as well.
I asked for a special dividend as well.

I think some shareholders of PPP (& to a lesser extent NZO) have lost sight on an important issue. (im an ex holder of both)

They have only been in production since June 07, so are hardly mature producers, so expecting dividends or a steady dividend program, probably isn't in the PPP Directors/Management thinking for a couple of reasons.

1. Current P1 reserves are being depleted & they will require another drill to tap into more P2 reserves, meaning they will need to keep exploring to replace the reserves, or PPP becomes a 1 project company with diminishing revenues as production tappers off. (Still useful $$$)

2. Boards are usually conservative in paying out dividends/cash, when they may end up having to go back to shareholders at a later date to raise more funds, especially with all the bargins in this market.

3. Market Valuation - just like a one mine resource company, PPP needs other projects or increased reserves from existing projects to ensure they have enough reserves to maintain a steady production rate.

NZO has Kupe coming online around the very time the Tui oil production is meant to tapper off, so they roughly have the same revenue over a long period (say 10 years +), this makes a valution based on P/E much easier & is more likely to attract broker attention.

Once Capex costs are repaid & exploration tappers off to concentrate on production (like NZO is doing), then is the time to pay dividends IMO.

I like PPP it's a cashbox, but the market won't re-rate it, or place any premium on it until the Board signals what the cash will be used for.

No use paying out a fully franked 3c a share dividend, only to find it can't maintain it, the market would not view this kindly.

Tricha's idea of a special dividend has merit, but if they were to pay say a 5c dividend, that would indicate to me they don't have any plans for the cash moving forward!

I'm interested to know what PPP's plans are going forwards, Boards aren't well paid (& given free/cheap options) to place the money in the bank & collect interest, we all could do that!

When PPP provides some real direction i will be back onboard.

[boysy]

those USDs in the bank must be looking good. The fall in oil more than matched by the fall in the $A

[Corporate]

those USDs in the bank must be looking good. The fall in oil more than matched by the fall in the $A

Don't think so. Oil has drop further than the AUD

[boysy]

i ment in the last few days im sorry for not specifying oil is still around A$100 a barrel .

[tricha]

I think some shareholders of PPP (& to a lesser extent NZO) have lost sight on an important issue. (im an ex holder of both)

They have only been in production since June 07, so are hardly mature producers, so expecting dividends or a steady dividend program, probably isn't in the PPP Directors/Management thinking for a couple of reasons.

1. Current P1 reserves are being depleted & they will require another drill to tap into more P2 reserves, meaning they will need to keep exploring to replace the reserves, or PPP becomes a 1 project company with diminishing revenues as production tappers off. (Still useful $$$)

They need 30 million to pay their share for AWE to do surround Tui drilling.

2. Boards are usually conservative in paying out dividends/cash, when they may end up having to go back to shareholders at a later date to raise more funds, especially with all the bargins in this market.

NZO paid 2 x 5 cent dividends, PPP can WELL afford one and still retain around 100 million cash.

3. Market Valuation - just like a one mine resource company, PPP needs other projects or increased reserves from existing projects to ensure they have enough reserves to maintain a steady production rate.

NZO has Kupe coming online around the very time the Tui oil production is meant to tapper off, so they roughly have the same revenue over a long period (say 10 years +), this makes a valution based on P/E much easier & is more likely to attract broker attention.

Once Capex costs are repaid & exploration tappers off to concentrate on production (like NZO is doing), then is the time to pay dividends IMO.

PPP has already paid of their debt.

I like PPP it's a cashbox, but the market won't re-rate it, or place any premium on it until the Board signals what the cash will be used for.

No use paying out a fully franked 3c a share dividend, only to find it can't maintain it, the market would not view this kindly.

They have income for the next ten years from Tui, can just sit back and pay dividends, if Tui exploration comes good, a bonus.

Tricha's idea of a special dividend has merit, but if they were to pay say a 5c dividend, that would indicate to me they don't have any plans for the cash moving forward!

I'm interested to know what PPP's plans are going forwards, Boards aren't well paid (& given free/cheap options) to place the money in the bank & collect interest, we all could do that!

Could we all do it :confused:, there are some risky banks out there. Like you said Shasta they have only just started earning and in this market there is no rush to go out and buy, or shall they "be greedy when others are fearful"

When PPP provides some real direction i will be back onboard.

Interesting times for PPP and I am awaiting quarterly results, which will be a goodie. Oil averaged over $130 OZ for the quarter.

Warning - Buyer beware, I am ramping this stock because it makes up over 50% of my portfilo.

[Paddie]

Hi Tricha,

When are the quarterly results due out?

Thanks
Paddie

[boysy]

end of this month either the 31st oct or the 1st of november

[the machine]

with the fall of the aud against greenback, then in theory had ppp converted to aud4 today, then would have got over 10% more aud compared to last week.


certainly hope ppp clarify their usd$ holdings in the quarterly.

M

[macduffy]

with the fall of the aud against greenback, then in theory had ppp converted to aud4 today, then would have got over 10% more aud compared to last week.


certainly hope ppp clarify their usd$ holdings in the quarterly.

M

Previous quarterly reports have shown cash on hand as a total AUD amount.
Perhaps someone "friendly" to the company could email a request for a breakdown this time?

:)

[tricha]

Previous quarterly reports have shown cash on hand as a total AUD amount.
Perhaps someone "friendly" to the company could email a request for a breakdown this time?



I have already done that and no reply as expected, these people do not believe in PR.:mad:

I guess we will have to read it on Friday. :)

[Dr_Who]

I have already done that and no reply as expected, these people do not believe in PR.:mad:

I guess we will have to read it on Friday. :)

Try giving them a call?

I am also interested in knowing their forex position.

[boysy]

i think all investors are interested in their forex position lol

i just hope that they relise some of this paper profit gain soon

[Zephyrus]

Well, according to the Quarterly, they still had US$74.7 million in cash. If they still hold that cash in US$ then it is now worth AU$123.4 million compared to AU$94 at the end of September, a gain of nearly 30 mill. Hope they convert it soon, if they haven't done so already. Also, it looks like they have all their cash in fairly safe accounts, which is good to see.

[boysy]

based on that quarterly report the cash held in $USD on the 30/06/2008 would exceed market cap. some $A106 mill market cap now with between $A123 million and $150 million in cash lets just hope these figures and forex gain are shown in the quarterly late this week or early next week.

so cash per share is between A$0.21 - A$0.25

compared to sp of A$0.18

a discount of around 16 - 38 % on cash held alone

so current market cap doesnt value TUI and prospects as well as discounting cash in hand. Lets just hop that some of these forex paper profits are converted into actual profits.

[boysy]

quarterly report

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

[Tok3n]

The RBA is trying to defend the AUD

PPP might wanna convert some of those USDs soon.

[boysy]

one would like to think so. Even at these rates PPPs cash reserves at 30th sept are now worth A$160 million as opposed to the A$123 million back then. On top of this we have to add Profit for tui of over A$5 million so PPP sitting on A$165 million or around A$0.28 a share at current share price of $0.195 this constitues a 43% discount and thats just cash held markets sure are irrational.

[tricha]

one would like to think so. Even at these rates PPPs cash reserves at 30th sept are now worth A$160 million as opposed to the A$123 million back then. On top of this we have to add Profit for tui of over A$5 million so PPP sitting on A$165 million or around A$0.28 a share at current share price of $0.195 this constitues a 43% discount and thats just cash held markets sure are irrational.

Yep 22.5 cents a share sitting in the bank, irrational to the max.:p Their future oil is discounted to , Minus - something a barrel :rolleyes:

Like the directors, this is one share that u can buy and sleep soundly at night.

[the machine]

good to see that ppp not only released quarterly report early, but also detailed forex situation.

asx liked it and price jumped 1.5c today

M

[Dr_Who]

If tui continues to pump out oil, we may see PPP buyout another oiler that is revenue positive and still retain over 21 cps in cash.

[Tok3n]

I hope they changed some USD to AUD yesterday!

[tricha]

I hope they changed some USD to AUD yesterday!


I rang them yesterday and asked them if they answered emails and she said yes, hmm.

I asked them about reducing risk in US dollars and she said they might need them for some acquisition in US $. Hmm extremely risky as the US $ not worth as much, as the paper it is printed on.

Hmm and no dividend or share buy back in the quarterly, which is a real shame, looks like they are going hunting for big game. Maybe they think they are Warren Buffet in the making.

[boysy]

Having US$74 million sitting round seems risk enough for me. I just hope that they lock in some of the forex gain before its too late. Not sure how much more upside their is of holding so much $USDs i would of thought, while at the same time their is plenty of downside of not holding AUDs or locking in some of that gain. Hope this doesnt become a told you so situation.

[tricha]

Having US$74 million sitting round seems risk enough for me. I just hope that they lock in some of the forex gain before its too late. Not sure how much more upside their is of holding so much $USDs i would of thought, while at the same time their is plenty of downside of not holding AUDs or locking in some of that gain. Hope this doesnt become a told you so situation.

Maybe the two directors that hold a big hunk of PPP have more money then they need.

Question - Does anyone out there have a handle on the directors credibility, other than they hold a lot of shares. :confused:

[JBmurc]

I rang them yesterday and asked them if they answered emails and she said yes, hmm.

I asked them about reducing risk in US dollars and she said they might need them for some acquisition in US $. Hmm extremely risky as the US $ not worth as much, as the paper it is printed on.

Hmm and no dividend or share buy back in the quarterly, which is a real shame, looks like they are going hunting for big game. Maybe they think they are Warren Buffet in the making.

Maybe their looking at taking a position in a ASX US gas focused bargin like PSA STX SSN etc hopefully they aren't banking on futher USD/AUD gains as I think the USD is looking like it's peaked

[ELYOB]

Buy backs and dividends are useless; but buying reserves at this time of the market cycle would be smart . An attack on the likes of CUE and HZN which have great potential would be smart . Forget the PSA , history tells us PSA is not on ,.,......It has tried that in the past and fell over ; and has gone into debt like the last time .....we dont learn do we!

HZN and , or CUE would suite PPP ...........like comments here . CVN is an outsider here ?????

[Dr_Who]

Maybe the two directors that hold a big hunk of PPP have more money then they need.

Question - Does anyone out there have a handle on the directors credibility, other than they hold a lot of shares. :confused:

Alan Tattersfield been around for a long time. He was involve in mattress and beds (eg: Tattersfield mattress) and retail gold and jewellery chain store. Thats all I can recall from the top of my head.

[JBmurc]

Buy backs and dividends are useless; but buying reserves at this time of the market cycle would be smart . An attack on the likes of CUE and HZN which have great potential would be smart . Forget the PSA , history tells us PSA is not on ,.,......It has tried that in the past and fell over ; and has gone into debt like the last time .....we dont learn do we!

HZN and , or CUE would suite PPP ...........like comments here . CVN is an outsider here ?????

We will see as for PSA I'm looking forward to a hot central otago summer while the USA will be hit by many snowstorms Nat Gas surged overnight and should continue Once the 40 mmcfpd+ is flowing again so will the high cashflow and dept pay down which from the last broadcast nett dept stood at round 40mill now with a E.V well over 100mill I'm more than happy to buy more at 23c-25c when 5-6 recent analyst's value PSA between 1.20-2.70 add in the recent discovery PSA is set for a massive bounce

[tricha]

Ok, this is not from PPP, unfortunately PPP's PR is near nil, but this gives an idea where AWE, NZO and PPP are all heading.
Have cash and looking for cheap opportunities. Let the race begin :D

NZOG sees opportunities in meltdown

4:00AM Thursday Oct 30, 2008
By Grant Bradley (http://www.nzherald.co.nz/grant-bradley/news/headlines.cfm?a_id=351)


http://media.apn.co.nz/webcontent/image/jpg/um.jpg
The Umuroa processes oil from the Tui reservoir, which is expected to yield 32 million barrels before 2020.

New Zealand Oil & Gas sees a silver lining in the financial chaos which has sparked a plunge in oil prices.
From a high of US$147 a barrel in July oil prices have more than halved, but with cash in the bank the number of opportunities opening up for the company was growing quickly, chief executive David Salisbury said.
These range from the very attractive still beyond its financial reach in Australia to others he described as "moose pasture" - good for grazing animals but not drilling for oil.
"Six months ago when we talked to people about doing deals it was difficult to get them to engage on our terms - people had quite unrealistic price expectations."
Potential partners told NZOG then they would go to equity and debt markets instead.
"Of course as [those] markets have dried up and people have funding obligations they're coming under enormous financial pressure. Their price expectations are dropping markedly.
"It's certainly the case that financial turmoil is causing distress for companies that are unfunded or underfunded but that increases the pool of opportunities for a company such as ourselves."

http://media.apn.co.nz/webcontent/image/gif/oil2.gif






Ones that come available first are the lower quality ones but there were some good quality assets that were distressed.
Shareholders at the company's annual meeting were told it was debt free with cash reserves of $245 million.
Salisbury was coy on what the company would do next.
Confidentiality requirements and commercial sensitivities meant the company would not reveal the targets it was after.
"I can say that we have looked at quite a long list of opportunities and walked away from most of them."
Some shareholders had questioned why it was looking beyond New Zealand.
"Quite simply, we want to cherry pick the best investments and there are not enough opportunities to choose from in New Zealand alone."
Oil shot up as much as 6 per cent to over US$66 after stock markets rallied yesterday but some analysts say it could head towards US$50 as recession bites around the world. It was trading yesterday afternoon at US$65.05.
Salisbury said NZOG's commitment to 12.5 per cent of the Tui field off Taranaki was made when oil was at US$50 a barrel.
There were about 32 million barrels to be recovered from Tui until 2020 and oil and LPG expected from Kupe until 2025. NZOG was putting store in forecasts by international agencies that demand would increase by between 40 per cent and 70 per cent by 2030.

[Dr_Who]

I still think that AWE, NZO and PPP should merge, or AWE/NZO merge and buy out PPP. It all makes perfect sense.

[the machine]

a lot of good money to be made on PPP from now

I believe a retrace to 20c is an ideal top up time


Im selling my OZL to buy the rest of PPP


its just a no brainer.


and ****, I even agree with tony for once:eek:

don't think you will see them at 20c au again


to me anything under 25c au is like buying cash at a discount

M

[Hoop]

maybe not tomorrow, but Im pretty happy now to wait for more at 20c


you are basically calling the bottom and thats a pretty big call given current situation



g luck

It would have been a big call if Machine stated this last week but as from yesterday it seems some sort of rally is definitely taking place with various TA buy signals triggering. Whether we have seen the bottom or if this is another brief bear rally, we have to wait and see, However for now PPP has a trendbreak and the new trend is up comfirmed with higher highs and higher lows.

Underdog with an ounce of luck (TAwise) you may see a retraction of shareprice back to respecting the downtrendline at 19-20centish, but for now PPP seems bullish.

Phaedreus may wish to confirm when he returns from holiday. He's much better at this type of thing than me, as you can see.

[macduffy]

AWE postpones Tui expansion drilling.

http://www.theaustralian.news.com.au/business/story/0,28124,24583124-643,00.html

PPP has interests in one of these prospects ( Kahu Stratigraphic) but not the other (Hoki).

[tricha]

a lot of good money to be made on PPP from now

I believe a retrace to 20c is an ideal top up time


Im selling my OZL to buy the rest of PPP


its just a no brainer.


and ****, I even agree with tony for once:eek:

WELL, WELL, WELL a no brainer ;), twice u hold ODN as WELL :eek:

It's going to be embarassing, PPP now hold 22.5 cents cash, so the rest of their Tui oil, is valued at zero.
Their around 3 million barrels of future oil is worth absolutely nothing :D

.................................................. ...............................................

Caution - This is a ramp as PPP is over half my portfolio

[the machine]

todays local paper highlighted ppp's cash position versus market cap and 3m barrels of reserves - gave a buy recommendation

up it goes from 21c au

M

[macduffy]

Director Neil Tomkinson buys another 150k shares to bring his holding up to 48m odd!

;)

Disc: Holding, but a lot less than NM!

[Dr_Who]

The two directors continue to mop up stock at these levels. :)

From the share registry they both have bought over 20 million shares in the last few months. Are they trying to fend off a potential hostile T/O?

[ELYOB]

This is the typical stock that benefits from the post electoral bounce [USA] , it has the characteristics to lead the pack out . Next 2 weeks will be interesting...

[the machine]

Director Neil Tomkinson buys another 150k shares to bring his holding up to 48m odd!

;)

Disc: Holding, but a lot less than NM!

glad he paid more than we did for last purchase @ 19c au

M

[SCHUMACHER]

WELL, WELL, WELL a no brainer ;), twice u hold ODN as WELL :eek:

It's going to be embarassing, PPP now hold 22.5 cents cash, so the rest of their Tui oil, is valued at zero.
Their around 3 million barrels of future oil is worth absolutely nothing :D

.................................................. ...............................................

Caution - This is a ramp as PPP is over half my portfolio


TRICHA....So whats fundamentally wrong with PPP...i dont know anything about it as I trade......i understand they have lots of cash ?? whats the debt to equity ratio??
appreciate your comments

[macduffy]

TRICHA....So whats fundamentally wrong with PPP...i dont know anything about it as I trade......i understand they have lots of cash ?? whats the debt to equity ratio??
appreciate your comments

No debt, so no debt to equity ratio!

Stacks of cash!

;)

[Tok3n]

price to book ratio :)

[tricha]

TRICHA....So whats fundamentally wrong with PPP...i dont know anything about it as I trade......i understand they have lots of cash ?? whats the debt to equity ratio??
appreciate your comments

Whats fundamentally wrong with it.:confused:

It's could probably be termed a very boring stock and not in the trading cat Schumacher.
For me it's a long term hold and every quarter the cash backing per share will keep going up, untill they pounce. ;) or get pounced :p, only problem is the pouncers terms will have to court the directors, who hold around 20%

[the machine]

one would hope the greater tui drilling 2009 campain can be finalised soon, per awe's advice that looking for a rig and concentrating on exploration instead of combining 1 development well - cheaper to do 2 or more development wells later.

M

[tricha]

TRICHA....So whats fundamentally wrong with PPP...i dont know anything about it as I trade......i understand they have lots of cash ?? whats the debt to equity ratio??
appreciate your comments

WELL, WELL, WELL, u got the fundamentally wrong part,the fundamentally right part is, "Cash is still King" thats out of Peter Strahauns mouth today.

Companies are lining up every day to talk turkey and what PS says is PPP are in the box seat, a bit like COE, with all that cash, try and steal someone else ;)

WE should run a sweepstake, who will be 1st out of the blocks, AWE, NZO or PPP ???????????????

The mind boggles :eek:

[tricha]

WELL, WELL, WELL, u got the fundamentally wrong part,the fundamentally right part is, "Cash is still King" thats out of Peter Strahauns mouth today.

Companies are lining up every day to talk turkey and what PS says is PPP are in the box seat, a bit like COE, with all that cash, try and steal someone else ;)

WE should run a sweepstake, who will be 1st out of the blocks, AWE, NZO or PPP ???????????????

The mind boggles :eek:

WELL, WELL, WELL, more money than a BULL could roar.

$150,000,000 to be exact :D

And no debt.;)

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=528696


As at end October, PPP has retained some A$150 million (equivalent) in cash comprising US$44 million, A$51 million, and NZ$37 million. These funds are held in AA rated banks in Australia and New Zealand. US$7.1 million (A$10.6m) is deposited with Commonwealth Bank of Australia as cash collateral to support the Tui FPSO leasing arrangement. This deposit forms part of the above mentioned cash held.

[tricha]

About 27 cents a share cash, wow! ;)

[tricha]

This is out there :)

Despite the current challenging business environment, and lower oil prices, the outlook for the current year is also encouraging, again buoyed by Tui production which is forecast at some net 900,000 barrels net PPP share. Profit outlook for 2008-9 is clearly dependent on oil price and exchange rates, but based on results to date and assuming US$60-70 per barrel, then PPP profit after tax could be in the range A$50-60 million, or broadly similar to 2007-8, based on an exchange rate of US65 cents to one Australian Dollar.

Caution - This is a ramp, PPP is over 50% of my portfilo. ;)

[boysy]

well at last do we have some level of direction from the comapny -

PPP is actively seeking growth opportunities with a priority goal to acquire pre or early development oil reserves to provide short term production and replacement of the declining Tui Area Fields. In parallel with this effort we aim to develop a material, balanced exploration portfolio of opportunities in proven basins, with a priority on low-medium, rather than high risk prospects.

The focus area is Australia-New Zealand and the South East Asia region, leveraging existing knowledge and relationships, although other quality opportunities would also be considered. We have a preference for oil projects to retain exposure to the oil price upside.

We believe that recent fall in oil prices and a tight credit market will provided attractive opportunities for PPP which has a strong cash position and can act quickly. 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. A range of options are currently under consideration

Pan Pacific’s directors, who together represent a substantial equity in the company, are committed to capitalizing on PPP’s excellent position and using the leverage of our available funds to create a sustainable revenue base, and platform for long term company growth and increased share holder return.

[Dr_Who]

I love this bit from the AGM...


On this basis PPP’s total cash position at end financial year 2008-9 could be of theorder of A$200m (equivalent). Given the difficulty being experienced by many othercompanies in raising funds in the current market we have elected to retain cash forreinvestment with the goal of increasing total shareholder return through share pricegrowth.
:):):)

[boysy]

well if you want a bit of a safe haven in times of credit crisis in the sharemarket a company getting $100 k + a day profit adding to its pot of gold with no debt has got to look like a safe bet.

[macduffy]

About 27 cents a share cash, wow! ;)

Well, A25.5cps based on the 588m odd shares on issue in August.
Source - Annual Report.

;)

[tricha]

Well, A25.5cps based on the 588m odd shares on issue in August.
Source - Annual Report.

;)

Bang on Macduffy, my calculator got over excited. :)

[ELYOB]

Mr Peter Strachan told clients this week [Feedback report on Thursday]that PPP could well wait as a strategy till Q3 09 , and they will probably buy decent assets at firesale prices say 5c in the dollar . That is how bad some things are going to get with the recession ahead for some oilers struggling to survive . This view was similarly suggested by PPP in its presentations yesterday.

[Crypto Crude]

elyob,
is it really going to get that bad?
The Worlds biggest oil producer Saudi Arabia can not afford to have oil prices under $60US per barrel... They might aswell just shut down production...
realistically oil prices can not fall below $50 US... a month ago I said $60US was the absolute bottom...
now its 50...

going on that... then it could be 40...hehehehe

I explained on the Peak oil thread a few pages back that Oil prices are being dictated by sentiment only...
this is not based on supply and demand...
in hignsight it has been good that the likes of NZO and PPP have held off acquisitions...
whats going to happen in the mean time to get PPP booming?
week to week nothing is happening apart from abit more cash gets added to the pile...
:cool:
.^sc

[the machine]

the chairman's address today is like a complete 180 degrees turn re invester information

good to see clarity given re cash position and intentions

ppp actually tested au22c today - a friday with significant bad lead from dow

next week there could be testing 25c au

M

[tricha]

elyob,
is it really going to get that bad?
The Worlds biggest oil producer Saudi Arabia can not afford to have oil prices under $60US per barrel... They might aswell just shut down production...
realistically oil prices can not fall below $50 US... a month ago I said $60US was the absolute bottom...
now its 50...

going on that... then it could be 40...hehehehe

I explained on the Peak oil thread a few pages back that Oil prices are being dictated by sentiment only...
this is not based on supply and demand...
in hignsight it has been good that the likes of NZO and PPP have held off acquisitions...
whats going to happen in the mean time to get PPP booming?
week to week nothing is happening apart from abit more cash gets added to the pile...
:cool:
.^sc

With all that cash Shrewd, they are going to try and steal someones shares.

Just like Cooper Energy are trying to do with IPM, just like AWE has done to ARQ.

So the three thiefs in the night with tons of cash ( and more cash pouring in every day) are competing for assets worth 5 -10 cents in the $.
AWE, NZO and PPP, who will strike 1st :confused:

AND like Warren Buffet they are looking for stocks at a discount and this will greatly enhance PPP shareprice when they strike.

Very interesting game. ;)

[the machine]

although it won't happen, just imagine if ppp bought into awe or santos or woodside or nzo

we know nzo previously said they do not speculate with shareholders funds and TR would carry that over to ppp

on another note, expect a drilling program soon fortui greater area, as awe's agm approaching

M

[tricha]

although it won't happen, just imagine if ppp bought into awe or santos or woodside or nzo

we know nzo previously said they do not speculate with shareholders funds and TR would carry that over to ppp

on another note, expect a drilling program soon fortui greater area, as awe's agm approaching

M

Hey Machine how is the greatest place in Australia hanging?

If Aunty Helen gets back in I'm back on a plane to WA!

TR and co are after 5-10 cents in the $ for a cash strapped company, I do not think that NZO, AWE, WPL or STO quite fit their profile.

Any thought folks on who they might target ??????????????

[shasta]

Hey Machine how is the greatest place in Australia hanging?

If Aunty Helen gets back in I'm back on a plane to WA!

TR and co are after 5-10 cents in the $ for a cash strapped company, I do not think that NZO, AWE, WPL or STO quite fit their profile.

Any thought folks on who they might target ??????????????

Helengrad won't win Tricha so don't worry. ;)

PPP might like to look at TAP, NDO or even OEL if they want a decent stake in high risk v high reward offshore drills?

[Crypto Crude]

hey tricha,
Ive sit back on PPP for awhile humming and harring...
giving the odd positive write up, and the odd negative write up...

Reading the presentation today, it all makes sense...
this management is actually quite astute...
let me explain myself...

they have held back acquisitions which has saved them money (and in the hope of getting assets cheaper again)... they have put themselves in a position by not becoming just another oil company that got lucky and burning up all the cash...
we are in a recession damn it... theres no need to do anything...
what dont investors understand about that?...
I just put up a post on another forumn and they gunned PPP down...
This is the time to buy PPP because all the punters are running for the hills... saying management this management that...
PPP has done well...
it has not performed... no companies have...
great company...
hold on upside d...
yeaaahhhh hhhaarggghhhh....
:cool:
.^sc

[shasta]

hey tricha,
Ive sit back on PPP for awhile humming and harring...
giving the odd positive write up, and the odd negative write up...

Reading the presentation today, it all makes sense...
this management is actually quite astute...
let me explain myself...

they have held back acquisitions which has saved them money (and in the hope of getting assets cheaper again)... they have put themselves in a position by not becoming just another oil company that got lucky and burning up all the cash...
we are in a recession damn it... theres no need to do anything...
what dont investors understand about that?...
I just put up a post on another forumn and they gunned PPP down...
This is the time to buy PPP because all the punters are running for the hills... saying management this management that...
PPP has done well...
it has not performed... no companies have...
great company...
hold on upside d...
yeaaahhhh hhhaarggghhhh....
:cool:
.^sc


Um shrewd, if a cash box doesn't do something with the cash, they tend to get taken over on the cheap!

[macduffy]

The difference here is that the directors hold blocking stakes and have been buying recently.
I'm with SC on this one!

;)

[Corporate]

I've had time to read the recent annoucements. Very interesting - nice to see some hint of a directions for PPP.

The company is currently valued at about a 20% discount to cash in the bank. ---> Not that unusual in this market.

Tui valued at Nil. What do people think about Tui at the moment? Are we actually serious that it is only going to produce 9 million barrels this financial year? Tui has already produced some 4.15 Million barrels after four months.

The announcement says they are looking at about the same profit as last year. That mean Tui is going to have to keep pumping at it's current rate....interesting then that they also say a few times that they need to replace tui depletion?

Maintland valued at Nil (is this actually worth anything?).

disc. Don't hold

[macduffy]

AWE ( the Tui operator) has been saying for some time that although Tui will continue to produce for several years, the rate will drop off fairly steeply after the first couple of years or so. There's a good chance that further drilling will add to reserves but I can understand PPP, who really have only the one producing field, to be anxious to see further assets being discovered and developed before Tui starts to deplete rapidly.
The experts tell us that " pumping" a field too hard usually results in recovering less than the optimum volume of oil so I wouldn't expect Tui to be pushed too hard, particularly now that the PoO isn't so attractive.

[Tok3n]

Are all 4 wells of Tui in production?

would like to see the rates of all 4.

I think the future of PPP lies within this region, e.g. small pockets of similar wells, if we're going to chase assets, better much sure we're getting them dirt cheap.

[boysy]

TUI has been very good to th likes of PPP NZO the next question that was answered by the release was that PPP are targeting low-med risk targets with appropriate returns. This is what the market needs to hear in these sort of times. The question is where is the future located for PPP will in be around TUI off taranaki ? its good to hear people are approaching PPP and being turned don as i assume the times will get tougher as credit tightens .

[Crypto Crude]

shasta-Um shrewd, if a cash box doesn't do something with the cash, they tend to get taken over on the cheap!

would share holders not mind a quick 30-35 cents?
:cool:
.^sc

[boysy]

cash is king in this market i wouldnt mind some attenton bought on to ppp by a potential takeover people could look over the numbers and see that current price of this stock isnt at all represented by its market cap

[the machine]

ppp tested 22c au today, but came off its high in last hour or so, coupled with some bargain hunting at the end.

well placed for any positive news overnight

M

[the machine]

ppp actually faired pretty well today on asx, tested .22au again, 926,000 traded and finished square - the later very good compared to other companies that went down.

m

[tricha]

ppp actually faired pretty well today on asx, tested .22au again, 926,000 traded and finished square - the later very good compared to other companies that went down.

m

Got smashed today, down 4.7 %. But thats it bottom, buyers are cueing up.:p

[tricha]

An extract out of the daily reckoning, I wonder which stock they are referring to ?


Buy a Dollar for 78 Cents Today
One little oil stock on the ASX is sucking up cash. In fact, it's making a killing - and keeping all the dough to itself.
Based on last year's performance, it's pumped full of enough cash to cover drilling costs for the next half a decade or so. Even better...it's gotten caught up in the craziest market of all time. You can buy it today for an absolute bargain.
Right now, for every dollar of pure cash it owns, you only pay 78 cents.
This kind of thing doesn't happen very often. Maybe one year in every 20.
But this is that year. So if you want to know the name of the stock - plus three more of the cheapest, cash-heavy mining and energy stocks on the market - click here to take out a free, three-month trial subscription to Diggers and Drillers.

[Corporate]

An extract out of the daily reckoning, I wonder which stock they are referring to ?


Buy a Dollar for 78 Cents Today
So if you want to know the name of the stock - plus three more of the cheapest, cash-heavy mining and energy stocks on the market - click here to take out a free, three-month trial subscription to Diggers and Drillers.

So did you keep going and find out?

[tricha]

Quote:
Originally Posted by tricha http://www.sharetrader.co.nz/images/buttons/viewpost.gif (http://www.sharetrader.co.nz/showthread.php?p=233266#post233266)
An extract out of the daily reckoning, I wonder which stock they are referring to ?


Buy a Dollar for 78 Cents Today
So if you want to know the name of the stock - plus three more of the cheapest, cash-heavy mining and energy stocks on the market - click here to take out a free, three-month trial subscription to Diggers and Drillers.

So did you keep going and find out?

No Shep, I can only assume it to be PPP, although COE comes close as WELL but they are spending.
Any more guesses ???

[tricha]

hey tricha,
Ive sit back on PPP for awhile humming and harring...
giving the odd positive write up, and the odd negative write up...

Reading the presentation today, it all makes sense...
this management is actually quite astute...
let me explain myself...

they have held back acquisitions which has saved them money (and in the hope of getting assets cheaper again)... they have put themselves in a position by not becoming just another oil company that got lucky and burning up all the cash...
we are in a recession damn it... theres no need to do anything...
what dont investors understand about that?...
I just put up a post on another forumn and they gunned PPP down...
This is the time to buy PPP because all the punters are running for the hills... saying management this management that...
PPP has done well...
it has not performed... no companies have...
great company...
hold on upside d...
yeaaahhhh hhhaarggghhhh....
:cool:
.^sc


WELL PPP, Shrewd are now at a big discount to cash.

Buy a Dollar for 78 Cents Today

And these old geesers who own around 20% have done extremely WELL in holding that cash tightly under the bed, for a better day. I wish I had their patience.:)

150 million cash in the bank 2 weeks ago and still climbing.

And on a big big bad bear day they held their own.

[the machine]

WELL PPP, Shrewd are now at a big discount to cash.

Buy a Dollar for 78 Cents Today

And these old geesers who own around 20% have done extremely WELL in holding that cash tightly under the bed, for a better day. I wish I had their patience.:)

150 million cash in the bank 2 weeks ago and still climbing.

And on a big big bad bear day they held their own.

ppp went up today on asx on solid volume.

M

[boysy]

underdog did any stocks you own go up yesterday. i see that on other threads all you do is wind people up is it really required on this tread as well ?

[the machine]

ahahaha

most of the day sold at 20!:D

with a final mere $70 lifting it into the green - dodgy

see what today brings - maybe dodgy's $70 was a very astute buy

M

[the machine]

see what today brings - maybe dodgy's $70 was a very astute buy

M

so far so good on nzx -up 2c

M

[KentBrockman]

There's no doubt that the TUI JV were hugely lucky with the highest POO ever coinciding with peak production from TUI.

Now with all debts paid off and rapidly falling POO, is there a point when it would be rational to stop production (or reduce production to merely cover costs) and wait for higher oil prices, rather than feeding more oil into the markets and thus implicitly contributing to the further slide in prices?

Kind of a prisoner's dilemma. I wonder if thoughts like this are entertained in the local oil industry?

[macduffy]

The same thought has occurred to me but I wonder how practicable it is to reduce/curtail production of an offshore field when there are higher overheads to cover, particularly the lease of the FPSO?
In the event that the JV partners' interests don't coincide in this regard, I imagine that the majority rules, ie AWE's 42.5% interest will pretty much determine any decision?
Any views from the experts?

:)

[Zephyrus]

The price of oil in NZ or Oz dollars is still pretty good remember. When the price of oil goes up (eventually), the value of the US$ will have dropped. And yes, high overheads means it's not worth running at break even.

[boysy]

The current oil price is still high compared to previous years i think we have to keep that in mind we still are making a decent profit at these prices and should continue to do so. Its a good thing that the oil price has fallen so sharp in the short term as it offers ppp oportunities that wouldnt of been within reach at the high oil prices. short term gain long term pain i say. PPP are well positioned to ride this one out and come out stronger on the other side.

[boysy]

not grumpy at all mate im more than happy to let the facts speak for themselves

[tricha]

not grumpy at all mate im more than happy to let the facts speak for themselves

Hey Boysy, Underdog is the re-incarnation of SectorSurfer ( got banned from this site )

Sector Surfer was a pice of work from hell and back :rolleyes:

Ate glass particles for lunch and hot chillies for tea.:o

Hound Dog keeps us on our toes :)

[STRAT]

Hey Boysy, Underdog is the re-incarnation of SectorSurfer ( got banned from this site )

Sector Surfer was a pice of work from hell and back :rolleyes:

Ate glass particles for lunch and hot chillies for tea.:o

Hound Dog keeps us on our toes :)
Mmm Tricha,
I may have started that rumor which may or may not be true.:o:confused::o
While Underdog obviously takes great pleasure in pissing people off often by presenting the truth in hindsight and in the most condescending manner possible he I must say also posts a fair amount of pertinent and useful material and shows quite a bit of insight.

I almost want to like him. :D

[the machine]

fact - look at chart on asx for ppp over last 6 months and in particular from october 1st

reletive to asx 200 it is doing much better

reletive ppp own sp, it appears to be trending up

does this now bring into play:

"only buy shares in a company when sp is trending up"


M

[STRAT]

fact - look at chart on asx for ppp over last 6 months and in particular from october 1st

reletive to asx 200 it is doing much better

reletive ppp own sp, it appears to be trending up

does this now bring into play:

"only buy shares in a company when sp is trending up"


MHi M,
Support over the last few weeks at 20.5 was broken yesterday on what was a good day. Would that mean wait and see?

[the machine]

Hi M,
Support over the last few weeks at 20.5 was broken yesterday on what was a good day. Would that mean wait and see?


i put it down to a friday thing with people not wanting to hold over weekend

next big news should come from awe agm re 2009 exploration drilling campaign

M