come on Balance...that was yesteryear....the company is a lot more nimble and dynamic now that it doesn,t have to lug all that cash around
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just thinking about PPP (cos thats what we do at work on a Sunday) 566 million ppp shares minus 15% already owned
leaves aprox 480 million shares times 10 cents per share equals $48 million minus the $20 mill in ppp coffers and nzo can own an extra 1 million barrels of Tui for $28 mill.,,,and 10 cents is over generous for an sp at 5.6 cents.....just thinking (with a lull in my hectic schedule)
Interesting as 10 cents is about what I got,after adding in a doubtful sum for the 5% in Vietnam if the Chinese will allow us to have it and again if the project goes ahead. If a takeout does eventuate and is succesfull that would give 42.5 % of tui. It could be possible in the future to get extra from TUI by reinjecting gas to force the stranded oil for recovery. But that is just me talking and I know of no plans to do that but I wonder,but still more likely if we have the say of 42.5%
Exactly right.
PPP is probably an excellent example how the clowns in NZOG have been running the company :
1. NZOG used to own 58% of PPP. It decided to distribute the PPP shares to shareholders in 2001.
2. Then in the midst of the worse of the GFC, when NZO had cash and could have picked up any number of cheap oil and gas assets around the world, directors decided to buy PPP shares.
PPP has been a dog - no order way of describing it.
Shows how shallow the management depth really is when all the investments they have made - Tunisia, Indonesia and PPP (excluding the dry holes and Pike River) - are duds.
Not that Nodders and Noggers would notice!
NZog buying 15% of PPP signalled how lost for ideas they were for ideas and PPP is now dead in the water and that investment looks as good as the Pike one
Now NZOG has declining production at Tui, is getting out of Nth Africa, but is throwing money into Indonesia where they will never make any money.
Back in NZ they have got into a JV with Woodside as non-operated who will most likely spend them out of the water and they are years off any drilling The rest of the permits they hold are largely worthless and they can go through the motion acquiring expensive seismic then handing the permit in.
Kaheru-that will cost over 50M to drill and a remote chance of finding anything. Have they had anyone farm in on this??
Their matuku investment was at top dollar (million bucks a point) and earnt them nothing.
No doubt NZOG will be trotting out the same old story to shareholders at their AGM, but now they are the 'explorers' from NZ....pretty laughable really, but also very sad as they have the potential to be something as they were well cashed up
On the other hand largely unnoticed, that well enumerated lot spent a lot of time and funds following the Footprints left by perhaps the largest animal ever to walk on Earth in Rort-orua.
Revenue from Tourism once they tracked that Denizen down will make this co.the Darling of the S/Market again.
NZOG will indeed make money out of the investment in Indonesia. This is a point I brought up with AK at the Hamilton presentation. He told this to me before the meeting and again at the presentation. Under the Indonesian scheme the oil is owned by the govt. Drillers get 85% of the revenue until all their costs are met then the revenue falls to 15%. . The costs are per premit not by the total investment you make in the country. So as explained if a driller finds nothing in one premit those costs have to be carried by the company as they are in NZ. Naturally I would expect that all the true costs including travel and adminstration time costs must be included.
No value for the Indonesian investment is in the SP. This will be producing about June 15 as will Pateke so things while they are not included now will have to be closer to production date. This is much like what has happened with TAP on the ASX where the SP has almost doubled in the last 4 months.
The Indonesian area for drilling is prolific so much easier to find oil. The Indonesian govt seems to have driven out the big companies with there structure so if NZO can make money here we are well placed. Needs more looking into instead of just saying we will make no money. About this time next year we will be in clover.