Maybe it's time for the ladies.....
as in FRE & AIA.
BB
Printable View
Maybe it's time for the ladies.....
as in FRE & AIA.
BB
The inquiry continues next week and this preview will give the die-hard Noggers and Pikers less pause for thought :
http://www.nzherald.co.nz/business/n...ectid=10764529
http://www.stuff.co.nz/national/pike...ike-River-mine
Seems to me the Japanese fellow has a few questions to answer himself, if he was an "expert" and was as worried as he says he was the question is, why did you not tell the fellow who employed you ?? (Peter Whittal)
I would imagine he probably has a few sleepless nights thinking of what happened there.
And, before you say it (un) Balanced, I am not trying to deflect the heat from Mine management.
Totally agree with you.
Or was it a case of him telling management, finding them unresponsive and so he decided best he moved on?
Remember the evidence given to date of management ignoring submissions on safety :
1. http://www.miningaustralia.com.au/ne...te--geologists
"Newman recommended investigation and research into these anomalies, but the miner failed to follow up her suggestions."
2. http://www.nzherald.co.nz/nz/news/ar...ectid=10750114
"A year before the blast, four people were to test the ascent. The first two were so exhausted that no one else even wanted to try. Neither made it as far as the surface.
Mr Rockhouse said he tried to convince Mr Whittall to buy a refuge station.
With no official sign-off on the second escape exit, other safety measures were delayed, including smokelines to navigate to safety in a smoke-filled tunnel.
Mr Rockhouse said that in late 2009, he asked Mr Whittall if he could train the management team on the emergency system. Mr Whittall refused and said he was comfortable with the company's ability to respond."
And so on and so forth .....
Let's wait though to hear why the "Japanese fellow" not tell the "Australian fellow" who employed him.
And let's wait to hear why the "New Zealand fellows" who employed the "Australian fellow" continued to have confidence in him when the "New Zealand fellow" (CEO of NZOG) expressed no confidence in the "Australian fellow."
There are those who would perhaps wish it would all lie fallow for some time I think old fellow
PPP just announced 5c ( I assume AUD) per share capital return.
NZOG owns about 15% so should be getting a big payout, between $4 and $5 million AUD?
Yawn? Exactly Mr Tommy. Talk about a broken record too. Dont go away Balance..you are the source of my daily entertainment.
Happy to oblige as Noggers and Pikers need constant reminder of the hundreds of millions squandered, and the 29 lives lost.
Only the truth will set NZOG free.
Says one Nogger to one Piker - "They just don't get it - we mushrooms like and need to be kept in the dark".
5cents is awesome.....
and NZO will love the income to fund their share buyback!
i wonder if the board knew of the 5cent distribution when they announced the buyback?
NZO, if it was interested in looking after its shareholders would give a special divi to its own shareholders from the PPP distribution.
Seems like the capital pay out is just clearing the cash holding ready so they can approve NZO's takeover offer for 100 mil huh
ppp is sitting on a huge cash pile........... so is nzo.
ppp has just said that with all their searching they havent found anything worthwhile to invest in.
so i assume that nzo hasnt found anything to invest in either...... since they are in the same game.
ppp looks after in shareholders.
what is nzo doing with its income?
not buying into anything that is understood by shareholders
not giving it back to shareholders.
below bankrate divis
no major investments in proven production...... ie cue, ppp, awe, etc.
what!........ with ppp sp under cash reserve....... nzo could of bought that cash at a discount!
but share buybacks........ (burning share certificates)
1 cent prepaids for staff, management.
and kupe is a glowing success.
pike insurance came through......... but everyone got paid first....... especially the banks!
pike soon to be sold......... nzo must know the figures?
yet the shareholder is still in the dark.
i was never involved in hanover..... but starting to understand what they went through.
maybe i shouldnt say that ...... but it is my opinion and should be treated as such.
disc. i have most of my investments in NZO for 6 odd years..... and am still negative in return.
""Should have taken note of Notie's warnings.""
im just a mum and dad investor.........
but am definitely more aware and critical now.
too bad directors of nz listed companies still regard shareholders/ investors as easy cash cows.
wonder how many kiwi folks will invest in the new soe public shares.......
i for one wont........
well not until company directors respect those they get their cash from.
and a government that enforces rules.
honestly......... no matter how many shares nzo buys back.......... i cant see $1.50 sp ever again.
even the jewel kupe cant do that.
im better off buying a dairy with lotto outlet under full management. the return is far better.
wet bus ticket politics has alot to answer for in nz business........ and the worst is still to come.
by then the olde boys club will be long gone smiling.
disc. i have most of my investments in NZO for 6 odd years..... and am still negative in return. Reply Reply With Quote .
Eggs in one basket !!.. Never a really good way to go !!..
I think Balance should change his/her name to Polly!!
that would be nice.
I wonder which way nzo voted with their 15%.
with 2 resolutions defeated then that required a lot of shares saying NO.
Of course the board can't vote their shares for the renumeration but stopping the partial takeover provisions should open up the door for nzo - ie make a bid for 35c and get to keep all the shares they buy in same
M
Kakapo is a dog and expect some significant delays on getting this drilled, even if they get permission to drill it from the govt which is rumored not to be happy about it being drilled under the current environmental laws.
This organization will soon loose its ceo and radford or one of his sycophants will take over. nozg will continue on its rudderless way.
While radford it there it will go no where as he treats it like his pension fund.
It will never get near $1.50 unless they really change tack. Unlikely
Compare and contrast the difference between PPP and NZO.
PPP looks at its cash pile, informs shareholders that it has had a close look at over 70 prospects and having decided against them, returns a big chunk of the cash back to shareholders.
If PPP needs cash, it knows it can go back to shareholders and get them to contribute.
What do NZOG directors do with the cash and how well have their investment decision making process been?
the latest news is great!.... not
I'm new to the energy sector so not sure what NZO's been doing in the past. I hope the person that has his/her cash locked up in NZO for the past 6 years or longer at least got a decent dividend every year to show for. So is every one voting for National and supporting asset sale? The last SOE stuff up I can remember was with transit rail. Didn't we (the gov't) ended up buying back the assets from the Aussie at a premium after they've given up putting more cash into a bottomless pit?
Anyway, does anyone think NZO is still worth investing at the current low price?
Animeart, NZO is a good bet at current prices. I feel for holders from the $1.5 era. I lost a chuck in the GFC days buying stacks at $1.5 and bailing out at $1.15.
Saw this on a Oil & Gas ranking commentary:
'Unfortunately, NZOG (NZO) is a slow moving entity which is unlikely to change its
spots and create value for shareholders. The company receives good long term cash
flow from Tui oil and Kupe gas, but seems content to just pay salaries to its
management and Board.'
Looking at some of the older posts, it seems to sum up NZO.....
Moggie,
where did you see this?
It is from a Stock Analysis report:
http://www.stockanalysis.com.au/samples.htm
Click on:
Volume 8
Issue 32 494kb
NZO
18/11/2011 09:17
OFFICE
REL: 0917 HRS New Zealand Oil and Gas Limited
OFFICE: NZO: New NZOG CEO Appointed
NZOG (New Zealand Oil & Gas Ltd) announces the appointment of Andrew Knight
as its new Chief Executive Officer, effective 1 December 2011.
Andrew is currently a non-executive director of NZOG. He is also a director
of Powerco Limited and several privately held investment companies.
Andrew's previous career includes senior executive roles with Vector, Natural
Gas Corporation and The Australian Gas Light Company, in addition to roles
with Fletcher Challenge Energy and Coopers & Lybrand.
The NZOG Board completed a comprehensive search process and received strong
interest from international and domestic candidates.
The Board would like to express its thanks to David Salisbury for his service
to the company as CEO for almost five years and his undiminished commitment
whilst the Board undertook the recruitment process.
End CA:00216499 For:NZO Type:OFFICE Time:2011-11-18 09:17:35
Snrs.
Excellente choose. Intelligent person.
Not an experienced CEO of an oil and gas company but worked for natural Gas and Fletcher energy. He's left with a legacy of missed opportunities, bad luck and wasted cash flow. I await his statement of intent as to what direction NZO should be heading to realise value for shareholders.
The appointment itself should reassure the market.
What, recruited from there own ranks for the 1/2 Mil. plus per an. position?
How Bizarre.
Clearly no intention to change anything, lets hope what worked for J.HENRY works for NZO
Any takers they do it in less than 4 years or ever?
Bizarre alright! Hire some HR firm to search the world then settle on someone from the existing BOD. Talk about keep it in the family. Expect nothing really to change at nzog.
I see they only drilling action they were going to be involved in has now slipped to the end of 2012 (at least) with kakapo drilling now being deferred. So it looks as if they will sit around and burn more investor's cash in the meantime.
I don't see this as a bad thing. The new CEO was an independent director of NZOG not what I would call the "family".
My first impression with this appointment was suprise as Andrew is young and has been with NZO only three years.On the flip side that means that if he comes very committed to NZO he has the potential for a very long future with the company.Have only had the opportunity to talk with him on short occasions but he did seem quick and sharp.
DS has to be the unluckly CEO of all times. He has been with the company when the four drills were all negative,PIKE was clearly never his brain favorate child and managed to blow up before he could flog it off,and probably the worst is that DS has been at the helm during the GFC the worst since the 1920's.
So now we move on with AK.
Here is a few things i would like to see in the coming future under new leadership.
Firstly we need to get back to some drilling mainly near TUI and KUPE. For now i am not that much in favor of raceing off around the globe competing in areas where it is hard to see a comparative advantage to NZO.I still believe more oil is to be discovered here.
Secondly we should look again at lifting or taking over PPP when it is still at a market value less than monies in the bank
Thirdly we are entering a new era where the 99% are likely in coming years to have a serious go at super high CEO incomes. Therefor i suggest that we face that and have some or a good part of that income as share instead of cash. That would certainly show confidence in the company and some acceptance that events can happen where we all must take up the loss.
Good luck AK you my well find that luck is sometimes as important as knowledge or experience.
Digger, some good thoughts on NZO going forward.
I'd like to see:
PPP and NZO merger at maybe 1 NZO share for 4.5 PPP. This would leave NZO with 22.5% of Tui and almost $250m in cash. This would really give them some leverage to look at acquisition.
My preference would be for NZO to increase its share in Kupe. A now well understood but relatively young asset. A dividend policy would be set based on a percentage of the Kupe's free cash flow.
Leftover funds would be used as you say for drilling close to home.
after payment of the 5c per share then ppp directors might be interested in progressing their desire to merge with another company.
if it's nzo then that would make sense to me, however a premium would be needed if ppp are to be just absorbed.
M
The current share buyback started on 8 November, so its been running 3 weeks..
So far its effect has been a big fat ZERO
So its not working, just like the last one.
The daily buys have been small, 20k, 40k, 50k etc
The plan is to buy back 10 million shares.
Maybe its time to step it up a notch and buy a bit more agressively, otherwise give up on it.
Trouble is if they raise their own sp they just spend more shareholder funds in doing so
I can't agree with you Mr Tommy. They should be buying back shares as cheap as possible .. the upside for us is when they distrubute the funds there is more to go around becauase there are less shares.
With agressibe buybacks all that happens is the shareprice rises while it is happening then quickly returns to its orginal levels ( unless of course there is some good news that keeps it going)
The only grudge I have is that it should of been 40 million shares bought back.
At the current buying they will complete the buyback within the year timeframe
Yes and no to that one Mr Tommy. I do not agree with you in saying it is not working as it is just too early to say. Somewhere in the back of my mind another share i held many years ago did the same buy back with zero results in the short term then suddenly it all hit home and the reduced shares on issued finally took effect.
I do agree that if the company is sure the SP will be bigger in the future then they should step it up to buy more shares while they are still cheap
On another topic,what has happened to this 100 million deal nog was supposted to have been in. It seems in the last few years the company was into deals about to be completed in a few weeks to vanish without trace.
yes very strange. I'm guesing either the deal fell over or they are waiting for PPP to make the capital payout then make the T/O :P
Tommy, share buybacks are not targetted to make the supply demand imbalance and therefore the shareprice rise - this is a short term measure.
It is to purchase shares, at what is deemed to be below "fair value" and thus increase earnings per share on the remaining shares in the future. It's usually used as more of a signal....
As has been discussed on here, the amount of shares is probably going to have an insignificant effect on the share price due to increases in EPS, so I would take it as more of a "signal" more than anything.
so the "signal" is more esop?
Hmmmm ... I need to pay for my new shed but can't decide whether to seel my Bonus Bonds or NOG. They're giving equal returns, but which has the greatest potential for upside?
Just as well you asked that question.I can give you expert advice.Science here,choose a $2 coin.Take heads you keep NOG,tails you keep the bonus bonds,now toss the coin,and you will have the answer.Should you have doubts you may wish to try two out of three.
ps.Welcome to club tosser.!!!
No worries the Israel-US Axis will soon bomb the hell out of Iran, they certainly have ranted on about it now for nearly 10 years, Action must be getting closer.
Result rapid increase in O/P & NZO S/P
Not my desire but odds getting shorter.
Plenty of small cap oilers on the ASX they could be buying that have good permits and negative EV . But then maybe they would have to do some work eh
OFFICE: NZO: New CEO takes up role 09:14a.m.
NZO
08/12/2011 09:14
OFFICE
REL: 0914 HRS New Zealand Oil and Gas Limited
OFFICE: NZO: New CEO takes up role
NZOG (New Zealand Oil & Gas Ltd) confirms that Andrew Knight has signed a
contract and taken up the role of Chief Executive Officer.
He replaces David Salisbury, who had given six months notice in June this
year.
Andrew Knight, who's 41, has been a director of NZOG since 2008. He is also a
director of Powerco Limited and several privately held investment companies.
Andrew's previous career includes senior executive roles with Vector, Natural
Gas Corporation and The Australian Gas Light Company, in addition to roles
with Fletcher Challenge Energy and Coopers & Lybrand.
The ASX Corporate Governance Principles and Recommendations note that
entering into an employment agreement with a senior executive may trigger a
continuous disclosure obligation under ASX Listing Rule 3.1.
A summary of the key terms of Andrew Knight's employment agreement is
therefore provided.
Key terms of employment for Chief Executive Officer of New Zealand Oil & Gas
Ltd
1. Appointee: Andrew Knight
2. Contract duration: Indefinite term
3. Commencement Date: 7 December 2011
4. Remuneration: Base compensation of NZ$510,000 per annum
Short term incentive: A Bonus Scheme is operated under NZOG's Remuneration
and Performance Appraisal Policy. Any payment of a bonus to the CEO is at the
absolute discretion of the Board and will be assessed based on performance
against NZOG's business plan objectives.
Long term incentive: NZOG operates an Employee Share Ownership Plan. Subject
to approval at a meeting of shareholders, the Board intends to offer the CEO
the right to subscribe to up to 3 million partly paid shares with a final
issue price of $1.00 per share.
Other terms: The employment agreement also includes standard terms covering
confidentiality, termination, redundancy, restraint upon termination of
employment and conflicts of interest.
End CA:00217419 For:NZO Type:OFFICE Time:2011-12-08 09:14:51
© Direct Broking Limited 2005.
500k salary..... ok.
3 million part paid shares with final issue of $1.
haha
so if he gets the sp back to the old option price of $1.50.
he makes $1.5 mill profit!
not a bad deal
and most shareholders will STILL be out of the money.
just as well we have share buybacks
yes digger, your one of the very few outside the boardroom / staff that has done very well.
congrats to you.
i was reading your posts way back then when you started to purchase that huge holding.
i remember that this guy has guts or knows something.
it wasnt long after that i started to buy...... as you were one guy on ST that was always honest and knowledgeable and i thought to myself........ if your ever going to take a punt..... now is the time to start..... trouble is i only invested small amounts over a several year period, so my average is just over a $1
if you ever try to get on the board..... you have my votes.
cheers
Too daaaam big when it is on the way down from its hay day of 185 to the low point of 58.
You have to add back in the 22 cent dividends and the free PPP shares of years ago.
As i bought early mostly i never got into a loss in the holding but with everything going sour in the last few years it is not the share we all had hoped for in 05 to 08.
2012 will be NZO's year. Firstly it has been oversold . PIKE will give a bit back from what the market preceives.Income from Kupe will rise and TUI as well with the high oil price,and just maybe will will get back into drilling. Higher dividends will focus the market on the value of NZO Also our new CEO sweeps clean and hopefully can turn around the bad luck years that DS seemed to have had.
But where are our drillable prospects Digger? Back then we seemed to have leads on a whole host of potential gas and oil fields. They were all either dusters or the permits got abandoned. It's been a while now since we heard about picking up any new permits, doing any seismic etc. At least as far as Taranaki is concerned. Maybe the focus will be overseas from now on, hopefully without repeating the PPP Vietnam experience!
I've been in for a good few years now, and I'm definitely behind overall.
ppp went into vietnam knowing that their holding would be reduced to 5% with success
by end on march 2012 ppp should know if they are going to double their reserves if vietnam is a goer without more drilling, or if not another appraisal to get it over the line [and double their reserves then]. not bad for something that has cost them under us$15m.
but I still think the 2 companies should merge, then the combine warchest can be put to work
M
It was always there in the back ground petrovietnam had 10% back in rights on PPP 15% in vietnam. In saying this 5% of something is much better than 100 % of nothing. People think NZO is undervalued PPP is under cash backing so for a negative EV you get TUI and Vietnam for free as well as cash balance
from NZOG website:
NZOG has a small team (around 20 employees) based in Wellington, New Zealand. We are not currently operating any projects or facilities, so have no field office or staff.
So how does running a company of 20 justify a $500k salary ?
I might go join the Occupy Wellington movement.
Andrew Knight was 14 years old when I first invested in NZO. Good on him for cashing in on what others established for him, although in return I expect him to very soon indicate his strategy for creating shareholder wealth. Hopefully his thinking goes beyond being Santa to those in his rather small team.
This Tunisia deal looks the goods. At last something to pat management on the back for!
The 6 million barrels PLUS adjacent lobes. They obviously feel its viable or they wouldn't be stumping up. Also gives them a foot in the door for further exploration.
Good coin...quick turnover?
NZOs 40% share at present day prices of $USN 100.00 = 240 MIL $US GROSS.
Will probably take quite a bit longer than 1 year but production start not until 2 1/2 -3 years away.
This is the M/EAST.
Good to learn that they still intend to be active in the oil & gas Business, so have to keep our fingers crossed M/T.
On a quick look, I like what I see.
At a quick glance, I don't think the deal offers that much - unless there is leads that can be effectively tied in.
I think they're being too generous with the burden of costs they have taken on.
It's difficult to know for sure without more information - I'm sure they must have looked at it on a risk/reward basis pretty hard...
My understanding/read on it is that the current 2P reserves offer a reasonable (but not stellar) ROI. The upside of this deal is the potential to increase those reserves with more exploration drilling in what is regarded as a fairly reasonable concession.
Cheers,
I-man
Hi Digger, yep will take a little time but I think this will be good for NZOG... and with the a name like Cosmos it bodes even better:)
Have a good weekend.
Cheers,
I-man
Cosmos is the name of our new Intranet at work. It is proving to be extremely sluggish, not at all like NZO.
http://www.stuff.co.nz/business/6219...-be-in-Tunisia
Former New Zealand Oil & Gas chief executive David Salisbury hopes to see a possible $100 million deal in Tunisia come to fruition for the company he left last week.
While the potential deal is still in negotiation, it would mark a significant step overseas for NZOG, after some recent baby steps to expand outside New Zealand.
Leaving after five years as the head of NZOG to spend more time with his family, Salisbury came in as production from the highly successful offshore Taranaki Tui oil field was just starting. That was followed a couple of years later by the Kupe gas field, in which NZOG also had an interest.
NZOG has been a joint venture partner in a handful of wells in New Zealand in the past five years, but all have come up dry. Earlier plans to drill a prospect called Kakapo have been put off till next summer.
Last year NZOG won a prospecting permit in the newly democratic Tunisia in North Africa, and announced plans to spend close to $4m on gathering seismic data at the Diodore permit. In the middle of December, NZOG said it executed an agreement to take a 40 per cent stake in the offshore Tunisian Cosmos concession that contains an oil field which could be brought into production as early as 2014.
At November's annual meeting, Salisbury hinted that a significant international deal was in the wings, with talks "quite advanced".
The recent investment in Tunisia was a "smallish investment up front" but in an oil discovery which, if all went well, would be an oil field development in a year's time, which would be a big step, potentially a $100m deal.
"That would change the face of the company, if NZOG invests that sum of money, and there is an `if'," Salisbury said of the potential deal.
If it went ahead, the investment would be bigger than the remaining value of the highly successful Tui field in New Zealand.
"They are small steps, but steps in the right direction," he said.
In New Zealand, NZOG has been involved in the drilling of five wells, including Hector, Kahu and Tui southwest.
While all came up dry, and that was disappointing, "that's part of the game we are in".
"You go in knowing that usually they are more likely to fail than not. It is very disappointing," Salisbury said.
"It is a numbers game".
New Zealand was also a difficult geology and it was hard to get a look in on successful areas that did have potential.
Ad Feedback That drove the company to look overseas.
"New Zealand tends to be higher risk/higher reward. If you go to other places like Indonesia it is lower risk and lower reward," he said.
Salisbury announced plans to step down in June.
After his final day clearing his office, he said he planned to take a few months off work, including a holiday up north, after 20 years in business. The plans include a bit of boating and snorkelling.
He had received some work offers but had "deliberately turned down some opportunities" for now to keep himself free to decide what to do next, though said he could do some consulting work in the coming year.
"I'm having a sabbatical ... though I've had some conversations," he said.
He is considering roles both in New Zealand and overseas, where there were "amazing opportunities".
Salisbury said he liked being back in New Zealand, but had also enjoyed working in Vienna with OMV before joining NZOG in early 2007, but had not talked to his former employer.
Austrian company OMV also has a big operation in New Zealand. OMV is New Zealand's largest liquid hydrocarbon producer, with stakes in the Maui, Maari and Pohokura fields in Taranaki. The company holds two exploration permits in the Great Southern Basin and another four in the Taranaki Basin.
Salisbury arrived in April 2007 to replace Tony Radford, who became NZOG chairman. Salisbury has now been replaced as chief executive by Andrew Knight, who has been an NZOG director since 2008.
Salisbury arrived just a month before the Pike River Coal initial public offering was launched, after it had been stalled for some time.
As chief executive he has ridden through the troughs at NZOG, which was a 29 per cent shareholder in Pike when the mine disaster happened just more than a year ago.
The mine explosion that killed 29 men marked the low point in Salisbury's time at NZOG.
"We watched in horror as everyone did as that situation unfolded," he said. "It was dreadful."
But some people did misunderstand NZOG's role.
"We were a shareholder [in Pike]. We were not in there operating or managing Pike," he said.
Though help was offered, NZOG was not involved in the operations at Pike after the explosion.
"Most of my information came through the media," Salisbury said.
NZOG also had to go through the decision to put Pike into receivership. As well as being a 29 per cent shareholder, NZOG was a secured creditor, owed tens of millions of dollars by Pike.
But NZOG was horrified as the details had come out about Pike's safety performance during the Commission of Inquiry into the disaster. The figures given to NZOG before the explosion didn't suggest any sort of problems.
"Post-explosion when people started delving into it ... it is a dreadful set of circumstances," Salisbury said, but it would take some time to form a final judgment.
The disaster wiped out the value of NZOG's stake in Pike.
NZOG's share prices slumped from more than $1.30 a share before the disaster to about 71c now, hit more recently by a downgrade on the reserves of the Tui field.
Even before the explosion, Pike's development was plagued with large cost overruns and production delays because of the complex geology of the West Coast mine.
However, Salisbury said NZOG made good progress in getting full value out of their assets during his five years.
"We have set the company up for growth, with people and skills and systems. I'm proud that the results of that are starting to flow. In the last year, we have gone into Indonesia and into Tunisia," Salisbury said.
While the investments were relatively small so far, NZOG had gone looking but had not found "the investment" to expand the company.
New Zealand remained on the international radar for oil explorers with the likes of Brazil's Petrobras looking for oil off the East Coast of the North Island and OMV exploring the Great South Basin. NZOG is not involved in those prospects.
"There was enthusiasm [in the Great South Basin] but it is very high risk, but very high reward," he said. "But it is not a must-have type of investment. It has a place in a portfolio" for a big oil company.
There was still exploration going on, but nobody was close to drilling an offshore well in the Great South Basin which could cost about US$100m (NZ$127m). Even then, the chances of success would be relatively low, "perhaps a one-in-five chance of success, if you are lucky".
"So you have an 80 per cent chance of losing your money," he said.
But there had also been small successes onshore in New Zealand, with Canadian-based Tag Oil notching a string of small wins in Taranaki in 2011. "But in the global scale, it is small beer," Salisbury said.
American oil and gas exploration giant Anadarko has been exploring off Taranaki recently.
Tag Oil has also entered into an agreement with United States firm Apache Corp to explore the East Coast Basin for oil and gas.
Apache will spend up to US$100m to earn as much as half of Tag's present 100 per cent share of the exploration prospects, on completion of a third phase of proposed work. Exploration work would run for four years, with seismic testing starting late last year and a decision where to drill expected in the first half of this year.
- © Fairfax NZ News
so thats why sp gone up 2% today
M
Can anyone advice me why is NZO buying its ordinary shares back?
I don't know if NZO has made any statement about its intentions but the usual rationale is that the shares have got too cheap - in the company's view - and that there is no present better use for the cash. With less shares on issue the value of the remaining shares increases - bigger slices of the company pie!
The most positive thing you can read in share price movement is an up on very small volumn.Shows sellers are shy and that for any large number to change hands the price will have to be higher.This Tunisia thing from DS has the market starting to take notice given the short time frame they are talking about for production to start.
Cheers all and the best for the new year.
Just a quiet holiday market, IMO, but then I don't hold NZO.
Or could be management ramping S/P up by buying shares back at top of the trading days prices.
Tell you a story about where this 'confirmation bias' as you put it comes from.
Way back in 1963 i was sitting in a run down youth hostle in Australia reading this first ever sharemarket book about how this guy claimed he invented moving averages and made a million dollars on the market. A lot of money way back then.How strange it was for me to be reading such a book as at the times i only had two pennies to rub together.Anyways this book had two themes it pushed---moving averages and the predicitive value of future SP directions by noticing if it went up or down on small volumn.Going down on small volumn suggested that a future buy would only then take place if the price dropped further. And the same with rises.
So back in the pre computer days and direct market manipulations so common today that thing sort of worked.Today i say it still applies if you are sure some-one is not fiddling the books.
Anyways each to his own on that subject
Cheers, over and out
But do you have a plausible explanation for this, aside from stating that someone else said so?
Anyway, if you're right, I'm happy. I hold NZO too :-)
It seems most people I talk with that are holding NZO recently are waiting for a revaluation on the outcome of PRC sale. Most expect the secured debt to be repaid and anything extra is a bonus. After that however there is not too much happening this year to keep it going unless the some of the overseas plans start moving forward
The possibilities are endless..but with oil currently holding around $100/barrel, it makes for good cashflow and reasonable earnings this year.
There is currently great apathy in the market torwards NZO. Institutions do not want seem interested which is understandable
due to the many capital raisings and failed drills and then the PRC disaster. The TUI downgrade was the last straw.
Investors see no point buying as there seem to be no catalysts for SP appreciation. They have ignored $100 oil which a few years ago was a major talking point.
NZO management could easily turn the negative market sentiment around with a consistent simple dividend policy that is
communicated repeatedly and is easily understood. The current dividend policy is vague, unquantified and not well received by the market.
It is "that a reasonable portion of accounting profits will be paid out".
The level of financial management this implies is one of schoolboys yet to complete finance 101 in a tertiary institution.
To start off with the "accounting profit" measure has been out of date for decades with even the most simple textbook stating that
"dividends are paid from free cashflow" after the company has retained money for investment / growth purposes.
Plenty of free cashflow was generated in FY11 but there was a huge accounting loss so the dividend was not paid.
Incredibly this bad news was released 4 months before the end of the year and helped build up negative momentum just when
the SP was already in freefall & investors already capitulating. This was serious capital mis-management.
A low SP leaves the company vulnerable to takeover and reduces borrowing capacity.
The executive owe the long suffering shareholders at least a competent performance when it comes to dividend policy
since there actions have resulted in large negative returns for shareholders, particularly in FY11.
I have a very simple solution which I hope Chris Roberts can communicate to the executive on my behalf should he agree.
A new CEO gives a chance to improve on previous practises including dividend policy.
NZO should announce with the half yearly results a new dividend policy of either:
1/ A quarterly dividend that represents 5% of profit resulting from Kupe.
This would leave 80% of the profit to be re-invested and is my preferred choice as it highlights the cashflow generating strength of Kupe
or
2/ A 1c quarterly dividend
As shareholders we should be asking for a clear dividend policy that helps the SP instead of one which continues to hold it back.