Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)
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Surely this is good news...
https://www.nzx.com/files/attachments/217620.pdf
(Although it would be great if someone could explain the massive net inflow from investing activities section...)
Certainly looks good at face value. $120m revenue this year (analyst consensus was just $100m) and $84m in cash. And you can buy this beauty for a market cap of only $169m ...
However - not quite clear what impact the "sort of" CUE takeover had on the numbers. If they added the CUE sales to their numbers, than the financials would not look that flash (but I suppose they didn't - does anybody know?)
Ah yes - if you are referring to the cash paid for equity investments ($34.9m) -
this is what the footnote says:
I guess this answers probably as well the question in my previous post (CUE consolidated into the books). Still a respectable result, given that this was just for one quarter.Quote:
2(a) (b) & 2(e). New Zealand Oil & Gas obtained control of Cue Energy Resources Limited (Cue) with an effective date of 31 March 2015.
In previous cash flow reports the acquisition was treated as an equity investment under 2(a)(b) with an outflow of $34.9 million. Cue is
being consolidated into the Group from 1 April 2015, the equity investment under 2(a)(b) being reversed and the net impact of the Cue
cash added on acquisition ($30.7 million inflow) and the cost of the acquisition ($34.9 million outflow) shown under 2(e).
Thoughts on Clipper? If it was a winner surely this could be worth many millions to NZO... activities report seems to imply there has been some 'major' new development/news... how material is this?
Hi BlackPeter and all
I think this result and spurious reference to Clipper (they have been on and off in this permit over the years if I remember correctly) but I guess a possible drill 2017 will get a bit of excitment. The conservative application of funds doesn't wash when you look at administration expenses year to date. Pretty expensive lunches in my opinion. Comments.
Regards
-dodgy (owner/shareholder - somewhat disenchanted).
Did anyone else go to the Investor meeting at Napier on Wednesday .?
The meeting was a very [toooo relaxed] affair. Firstly about two months ago I had to ring John Pagani to point out that the meeting was on 29th july and not the 29th April as was on the nZO websight for some weeks. This got corrected smartly.
My wife and I were the first to arrive and by 12 oo noon start time there were about 25 others but no NZO personal. By 12-05 JohnPagani our External Affairs Manager turned up. Another 5 mins and the Chief Finanical Officer Andre Gaylard made an appearance . The tables were situated such that the two NZO staff would be talking to us so that the sun was behing them and in our eyes. I asked that the curtains be pulled so that we could all see who was speaking. This got an acceptance from the room and from the two at the head table. Later on I had the same acceptance from other shareholders when the chairman of the meeting charged into the company details with out introducing himself and Jonh Pagani.
So it was off to a poor start. There were no directors present. Note that AK was at the CUE meeting in AUS at the same time.
Finally we got started. The chairman then did a good job of outlining what the company was up to in the last quarter and plans for the future.An excellent map was presented of all the basins around NZ that I have not seen before. There was talk about a drill in about 2017 CLIPPER from memory. Also talk about the drills in the 80ies in the great South Basin that all showed hydrocarbons. We then went over the CUE acquistion. Andre replied to a comment from the floor that it was unlikely that NZO would move further with a takover of CUE for two reasons. The first being that the CUE tax losses would then vanish and that it is very hard to get the last 16 % of shareholders to sell.[I agree with that]
What I did not like the sound of and now want others to comment on is that at the end of August we are to have another special meeting to bring up again the buy back of NZO shares. This time special permission will be sought from holders to allow Zeta to not take part and thereby allow there holding in NZO to rise above the 20% limit. I do not like this one bit as I feel the money would be far better spent on acquistions. I did suggest Horizon Oil[HZN] as they have debt and could be talked into a placement on very favourable terms to NZO. HZN also has on the negative side debt but on the positive side a good lot of reserves that NZO should and needs to take a stake in. At the lunch afterwards both speakers agreed with me that they to liked acquistions. In fact I went away from the meeting feeling that maybe the directors just do not have the proper handle on the unique time we are now in in History. Maybe never again in our life time will the OIL market be so up side down as it is now. To Hell with drilling and buybacks get on with studying the acquistion market.
Comments
Thanks mate, appreciate the post.
I've always been for buy backs instead of dividends, but you raise a great point. This is the time to improve oil assets.
The Cue investment seems to be paying off, tho I still need to crunch the digits from Cues last quarter.
I wouldn't mind further oil/gas asset investment, but id prefer assets that are already generating revenue.
Interesting what you say... bit disappointed at managements conduct if this is accurate... and although they did mention share buy backs, they also did mention acquisitions... but yes I don't know why they are so focused on share buy backs... it should be solely focused on acquisitions, especially with the cash that is now mounting up...
(note how I saw acquisitions, not wildly drilling in any random place around nz or the rest of the globe)
Digger, thanks for the post - acquisitions at the right price seems like a good idea
I wonder how many Cue shares ZETA now own - if any
I was in Napier in 1974 - might get back there one day
M
Digger, thanks for the post - acquisitions at the right price seems like a good idea
I wonder how many Cue shares ZETA now own - if any
I was in Napier in 1974 - might get back there one day
M
I really liked the quarterly report so ended up buying more nzo yesterday.
Great cash flow despite low oil prices.
Successful cue acquisition
Exciting drilling being planned-if suitable partners to farm out.
I have also been impressed by Zeta-they know how to acquire cheaply-lets use their expertise to acquire another carefully selected oiler.
They don't have the money or the intention to take out NZO.
So what to acquire-maybe using some of our us dollars?
Thanks Digger,
for the detailed report.
Was there any info/discussion of dividend vs buybacks?
At the current low price a buyback could be good value.
Acquisitions of producing assets are preferable to wild drills, but they have to stack up in
the current low price-of-oil environment. And I'd be very wary about taking on debt as HZN has.
sideline
Thanks Digger for the debrief. I'm worried about the intentions of ZETA here. Correct me if I'm wrong but I have owned shares in NZ companies before where after a major holder got above a certain percentage they could force the rest of the shareholders to sell at an offered price. Could that happen with NZO.
Appreciate your honest effort Digger and thanks for that.
Not surprised by slack performance by members of management.
No problems with you suggestions either.
As for some posters take, that zeta is good for nzo???
Well test will come at special meeting.
My take is they will get it through and that will open the door just that bit more to do whatever their plan is.
Have my doubts whether S/Hs interests figure much in that.
Get impression the bulk of small S/Hs in this co. already matter less & less with this outfit.
Hope to be proven wrong.
Under the takeover code the compulsory buy out of your shares only happens once the takeover company get to 90% of the target company.At that point remaining shareholder can ask for an independent valuer to get the true market value of the company. In fact I think they can even get two independent valuers to assess the company so the remaining 10% can be harder for the takeover company. At the meeting in Napier Andre Gaylard did say in reply to a question that that is why NZO will probably not go any further with the CUI investment. As he said the last 16 % tend to be hard to get possession of at a reasonable price.
Do you really think that Zeta have that deep of pockets.Even at 50cents they would need something like 160 million to buy out the remaining 320 million they do not own. Now Fish and me and I am sure a few others want more than 50 cents so the last say 15 % will probable want 90 to a dollar for their shares maybe more,so the price goes up.
In the meantime I will oppose the buyback in favor of more acquistions. I think the NZO management should be looking at not less than 40 companies to take a stake in to lift our reserves.
Another point about why I am against drilling is that new drilling methods are just a few years away which will give us results faster and cheaper. Also as I have said in other posts we can buy back anytime. The golden Acquisition age is now and may not be here in as little as 2 years maybe less.
Just a minor correction digger-I opposed the TTP takeover which wasn't that long ago.
It was actually quite an enjoyable process.
Its one arbitrator that determines the valuation on what is fair and reasonable and awards costs.
All participants get to write an essay on what is a fair and reasonable price.
My wife is a very good essay writer.So where all the other essays-10 or so people writing good essays for a high valuation-and one lawyer for ttp writing for their valuation.
Essays are exchanged and then a critique of the other parties essays( if it happened I could get yours proof read Digger)
The arbitrator then makes his decision and awards costs.
TTP were arrogant enough to appeal the arbitrators decision-so ended up losing in court and more costs awarded against them.
No way will zeta attempt a full takeover.
Ok, thanks for that.
Hope Fish & Digger that you both are right.
Ironically T/R also thought that his other Co. at the time { Otter - Gold formerly Mineral Res. } was save from T/O.
At present yes agree no chance of that happening with nzo,
but in a fast changing environment what are condition for it in 6,12 or 18 months time.
As the saying goes, there are many ways to skin a cat.
As ever, Hoping to be proven wrong.
Announcement
MEETING: NZO: Notice of Special Meeting of Shareholders 12:23p.m.
NZO
07/08/2015 12:23
MEETING
NOT PRICE SENSITIVE
REL: 1223 HRS New Zealand Oil and Gas Limited
MEETING: NZO: Notice of Special Meeting of Shareholders
New Zealand Oil & Gas will hold a special meeting of shareholders on Friday,
28 August 2015 to vote on a proposed share buyback.
A copy of the Notice of Meeting is attached, together with the Independent
Adviser's Report and Appraisal Report.
John Pagani
External Relations Manager
+64 21 570 872
End CA:00268090 For:NZO Type:MEETING Time:2015-08-07 12:23:09
They are hell bent on getting this through.
The more i think about this, the more i feel rather than a Buy-back in a climate where O/P's & Share/M's are falling and management clueless in doing what there payed to do.
ZETA looking after themselves, can't blame them really.
Surely it would be better to return as much as possible to the S/H's by paying DIVIDENDS again.
If zeta friendly individuals end up coming into the mix, [ if not in all ready ] the S/H's position not looking good.
Good afternoon Fish, Digger and all
Its time for you guys to wake up to this and start try to influence your security's value. In my somewhat unqualified opinion ( shareholder since the 80's), Zeta and or AK (research "watchman capital") maybe trying to secure oil assets at a very low entry price. Think NZO, CUE, PPP - all common or joint, through direct or cross holdings, nominees etc? Maybe I am wrong with this but to me all the signs are there. Please do some independant research and tell me where I am going wrong.
Have a nice investing day.
-dodgy (owner/shareholder - dismayed watcher as all three shareprices head south)
Thanks Dodgy,
So you think we need a stir up.
First dodgy it is not just NZO,ppp and cue that are heading south. All oil companies that I know of are heading south--the big ones and the little ones. Canada is heading into a recession with the two last quarters being negative. There oil sands need about 80 to 90 to break even and in the near term that is just not going to happen.Not much salvation but thank god I am in NZO and not the tar sands of Canada.
So why this sudden turn around in the last 14 months. Well to me it is all about Russia entering Ukraine. We are sharing the same fall off in demand that the Dairy Industry is and again because of Putin in Ukraine.
Where to from here??? Saw the other day a German saying that renewals are getting so good that oil will have to fall to 7 dollars to be competative.The next speaker agreed but thought the time frame for that would be about the year 2100. Hence if you think oil is a gonner in next 10 or 20 years then NZO is way overvalued at 49 cents.However if your like me at 74 years old you have seen many up turns and downturns. But still it does mean that before we vote on any buyback we should get some idea of what oil life still may or may not exist in the coming decades. I live near Morrinsville and dispite all the carry on have not yet seen a electric car that I know of in this town.In fact I own the only self power system around these parts with solar wind and back up diesel generator. So from what I can see on the ground here in my patch it looks like oil will be around slightly longer than this German Scientist suggests.
Now next question. Why a buyback? Why not a dividend or a buy into another company? No drilling please-not at this stage anyways.To answer my own question I am against dividends as we have had our share of that for a year or so . So it sort of comes down to a buyback or a buy into another distressed oil company.
We have 338 million shares on issue and 83 in the bank . At 50 cents we could eliminate 160 million shares or just under half of those currently in the market,leaving about 178 million. Now with this quick cals I made a few assumptions. firstly that sellers would line up to meet the supply and god forbid the next two months we find that the shares could have been bought at a much lower price.Always something to keep in mind as the world is in unchartered territory. Also note that ZETA would then owned about 40% of the company. Currently the NZO thinking with CUE is that if you owned 40% of a company you in effect have full control.
I still prefer buying into another company,but can see that buybacks should be looked into.
Others thoughts
Cheers all
Fully agree Digger.
A buy back is fine by me-as long as the shares are so cheap-maybe a maximum of 30 million shares.
I want to keep cash in our treasure chest until the excess supply over demand is reversed.
I think we all who are interested in this company should priortize what NZO should do with the 83 million available.
Here is mine
1/ Acquisition
2/Buyback where Zeta has to sell the equivalent to remain under 20%
3/ Dividend
4/ Do nothing for now
.
.
.
.
x/ drill
x+1/ Buyback where Zeta is allowed to get control of the company without buying in directly. In other words using NZO money to give away control of the company to Zeta.
Buy-back without Zeta having to sell down will go through.
Co. policy before zeta came on the scene, return part of annual profit to S/H's in Div. etc;
Management clueless in taking adv.of past opportunity's, so doubtful if anything has improved there.
DOING NOTHING NOW, say for at least 3-6 months most prudent and best in the present Climate
BTW:
Not wishing to turn this Forum into a political one, but blaming Putin for mayor things going wrong in the world, way over the top.
Regarding Crimea, the proper term is REUNITING not ANNEXATION. btw:[ poles apart ]
As for Russians in Ukraine takes some explaining,
Just for the record Kiev was the capital of Russia long before ST Peterborough or Moscow for that matter.
So what does that tell you?
Good afternoon Digger, Fish and all.
My question applies to NZO or any NZ listed security. Simply - can someone explain to me which NZ companies that have executed forced buy backs, and capital returns, have long term benefited by an upward re-rating of their share price? I say "forced" because all voted resolutions in NZ appear to be pre-empted by the larger corporate shareholders , generally in theirs and managements/governors best interests, and voting is only paying lip service to the smaller owner/shareholders . The specifics of moving currency and moving oil price is not as important day be day, as the preparation and forethought that management/govenance should implement prior to any event actually occuring.
Regards and happy investing
-dodgy (owner/shareholder)
Hi dodgy,
I have no comprehensive overview of which companies are doing share buybacks and what happens with the company afterwards, but here are some examples from recent memory where the method seemed to have had good consequences for share holders:
IFT - actually, an interesting one - the SP even dropped short term, but look where they are now!
NPX - buying back for a long time ... and so far it certainly brought the SP up
CVT - admittedly still fresh, but shareholders for sure must like where the SP is going ...
TEM - maybe not quite comparable (its an investment fund), but overall do I think that the ongoing buyback there is as well in the best interest of the share holders.
So - I don't think that there is anything wrong with share buybacks in itself ... it certainly increases the EPS - and if the company does not know a better way to invest their funds, than it might be better for the directors to admit that and buy back, than just splashing the money into less profitable ventures. Sure - they can as well declare a dividend, given however that NZO has at current no imputation credits to distribute would this be from a tax perspective suboptimal.
What annoys me with the proposed NZO buyback is just that ZETA would creep towards control without paying a premium for that, and I certainly don't see how they would have the best interest of other shareholders at their mind.
Discl: holding (a wee parcel) and intend to vote against the buyback unless they offer an option which does not increases Zetas voting power.
"Prediction is very difficult, especially about the future" (Niels Bohr)
Certainly endorse above statement
There are a few possible important flaws in some of the comments.
1 ZETA does not necessary need a t/o of nzo. for full control of board.
2 Lots of negatives have accumulated over the years re: Management, probably contributing in large part for depressed S/P.
3 Economic climate may not have been as uncertain when other Co's launched a B/B.
4 O/P tracking steady lower, So short medium & quite likely long term outlook bleak. [ SO DOUBLE HIT ]
5 A major war, striking a gusher or miraculous world economic recovery short term needed to change that. Have another TUI!
6 Lots of SH's trying to get out, some maybe because no more Dividends in foreseeable future.
7 Hard to see the B/B having a lasting benefit
How the S/H's will fare if ZETA gains control of the board, Well any-bodys guess really.
Just received & processed my voting pack from NZO. The independent report is a joke - and is not even able to highlight any convincing benefit for existing minority share holders in approving this share buy back together with an increase of ZETA's control.
The report nevertheless recommends this share buyback. I guess its easy to see who paid the authors: the board, though using our (share holders) money for this wasteful action.
Anybody proposing a board spill? If yes - this would be a resolution I could support ;)
Hi Fabs
Agree entirely. Why does NZO have their pre-empted owner/shareholder meetings in Wellington? Geographic lack of spine and resistance in the seat of government yes men. If I lived there I would pass a vote of "no confidence" in management and governance. In reply to BlackPeter, the buy/backs you quoted - without any substance from yourself it may take me a while to provide factual endorsement or otherwise. Wish me luck.
Regards
-dodgy Owner/shareholder - despondantly watching the price ratchet downward from the capial repayment. The only upside to the impending result, will be the gains from the unhedged $US reserves, the cause of substantial historic losses!)
YES,
anything to spoil this farce, the question is WHAT???
May-be far to late, should have acted long ago but theme's the breaks.
Open to any suggestions.
I have also read most of the dribble and now more than ever will vote against it. When you read it keep it clearly in mine that this special meeting is only about having a share buy back where Zeta does not have to sell shares and thereby allow its percentage holding to rise above the 20% limit. As the document says up to 24.5 % if all the 64 million shares are purchased.
What I like most is 2.9 where they deal with the implications of it not being approved. Note this could lead to a buy back where shareholder approval is not required and ZETA then have to stay below 20%. Also note that all the benefits of a buy back we are supposed to enjoy if ZETA is allowed to get around the takeover code also apply apply if this resolution does not succeed and we still have a buy back. I am for a buy back but definitely not for letting control slip away from all shareholders . This resolution is just an attempt to get around the takeover code.
I have listed in a post above what I think the company should do with its money. NZOG is certainly not the only oil company under pressure with a depressed share price.
Hard to fight this....
"The global oil glut will last through next year as surging demand and faltering supply growth fail to clear the surplus, the International Energy Agency warned in its widely followed monthly report. "While a rebalancing has clearly begun, the process is likely to be prolonged," the agency declared, stating that stockpiles won't be diminished until Q4 of 2016 or later if sanctions on Iranian crude are lifted. After plunging to six-year lows on Tuesday, crude prices are now up 1% to $43.49/bbl."
Good morning RTM and all,
Obviously no one can defeat rising or falling oil prices - when they rise the company spouts self effacing documentation and propoganda, when they fall it blames them for the share performance. Remember however that currencies also rise and fall (ask John Key) and ours has been southbound for some time. Except for very clever negotiating/hedging neither influences can be fully combated. So what should prudent management do? Not capital returns which favour large corporate holders, or buybacks , preserve capital for low cost/efficient aquisitions and REDUCE, REDUCE, REDUCE the corporate overhead, backroom boffins, pr spin doctors, etc. pull their heads in for a while, and keep their powder dry. A lower corporate overhead, through the use of readily and maybe (from the record to date) actually good at number crunching, analyzing , exploring , along with carefully considered imputed or unimputed dividends - we all still pay tax either way - will place this company on a "war" footing to survival - not take over and the feathering of a few employee nests.
Kind regards and good investing
-dodgy OWNER/shareholder (feeling like spring is coming hence the references to things ornithological).
low prices =surging demand and the published IEA figures show this clearly.
What they cant predict is how much supply will be available to meet this demand.
Oil supply doesn't always follow the normal rules of supply and demand.
There are many reasons for this.
Its very political and this can change prices over-night.
Falling nz dollar is a big bonus for NZO.
Can anyone tell me if it's possible to vote online? I have done this with other companies but after checking the NZO website and logging into Computershare it doesn't look like a share holder can? Thanks.
sure as ... just go to www.investorvote.co.nz and use the controlnumber which is on the voting pack you received per mail.
Just make sure you put the tick into the right place ....;)
I'm with Black Peter and Digger on the abysmal and biased so-called Independent Advisers Report and Appraisal Report. In many places it states that "Zetas shareholding increasing from 19.8% to 24.42% (doesn't mention this is at no cost to Zeta) will not significantly increase Zeta's ability to exert shareholder control over NZOG." He goes on to state "At most, their voting rights will increase by 4.62% to 24.42%."
Anyone can calculate that the extra 4.62% actually represents a 22% increase in their voting power.
It appears to me that this report does not reasonably state the advantages and disadvantages of a share buy-back scheme, and is facile and biased towards the 22% increase of voting power that Zeta will gain without having to spend one more cent of their own money.
I will be joining Digger in voting against this proposal. With Zeta's interests not being allowed to vote I encourage everyone of similar mind to also vote against the proposal, we could well stop the resolution from succeeding.
By the way Digger, I see from page 10 of the Simmons Report that your company now holds 32,000,000 shares!
Hi BWR, For those of you who do not have along past with this company BWR was external relations officer [Correct me BWR not correct] He was for some years part of the management so has a working knowledge of the company and company matters.
Firstly I am pleased to say BWR that a extra zero was mistakenly put on my holding. Even at 3.2 million it is a hugh paper loss without making it 32 million.
Yesterday I tried to ring AK but ended up on hold in Australia . Today I did speak with Mike Dunn trying again to speak with AK. AK was to ring me back and as I have been out all day could have missed him. But I see nothing on my answer phone. Told Mike that the Simmons report was just buying the assesment you wanted in the first place and a waist of our money.You could just as easily put forward an arguement for why the resolution should be turned down and in that case I am sure Simmons would do so if the money was right. The Simmons case about Zeta holding rising to 24.5 % making not real difference is hollow and goes against the take over code. It was the take over panel that after considering many case and company working decided on 20% as the limit. Anytime any limit is placed on anything there is always someone who wants to rewrite it to better suit their interest.
When I do get to talk with AK I will be telling him straight my feelings. Either Zeta already controls NZO or the other non Zeta directors are cowed by them. For NZO to put forward this resolution shows weakness on the part of the company and I am sure the market will see it that way. It is an insult to shareholder integrity and shows a greater insult to the integrity of the non ZETA directors buy sending it to shareholders.
I did get back a comment from Mike Dunn that if Zeta had to sell to stay below the 20% limit it would put downward pressure on the SP. So what, someone or some company is already putting downward pressure on the SP. His arguement does not hold as ZETA has to sell within 6 months and as a buyback can be arranged to last 4 years the company could buy them.
I would like to invite anyone who wants vote against this resolution to do .
We could trash this to & fro till voting day, will make no difference to end result. [ it will pass ]
Explaining why, if it is not crystal clear how things are run by now, then that's the way its going to be. World is full of shills NZ no exception.
Predicted about 9 months ago on this forum that nzo will be gone in about 12 see no reasons to change my mind.
Lets wait and see.
HIW.
Voted tonight against - for what it's worth.
Here's a link....
https://waterpressure.wordpress.com/...mine-timeline/
I didn't think much of it as it read conspiracy all over.....
but the more i read the background and relevant links were provided and it made me wonder.
The reason i am posting this link now is because in the article it mentions the silent majority shareholders that are hidden.....
I have no idea what this means...... but it does explain the things that the board does which alot of smaller shareholders find strange.
If you have upwards of an hour spare you might find the above link interesting...... it is however very complex and over my head.
But my nose still works and I smell something..... just dont know what it is...... but it has stopped me from investing in anything but
myself for a very long time.
Hope someone here can make an informed critique of the link.
an extract
55)October 15, 2010: Then, a day later, none other than L1 Capital Pty Ltd of Level 5, 101 Collins Street, Melbourne, commences aggressively buying up shares in Bathurst Resources Ltd as well on behalf of National Nominees Ltd, (who just happen to be major shareholders in New Zealand Oil & Gas Ltd [5.76%] and BNZ/ National Australia Bank [11.98%]) State Street Australia Ltd, Cogent Nominees Ltd and JP Morgan Nominees Australia Ltd (also major shareholders in New Zealand Oil & Gas Ltd [0.65%] and BNZ/National Australia Bank [10.32%]) between October 5
– 13 October 2010 – increase its voting power to 7.09%. [Bathurst website PDF File: Oct 15, 2010, Becoming a Substantial Holder] – we remember, New Zealand Oil & Gas Ltd is the controlling shareholder of Pike River Coal Ltd as well.
double posted sorry.
Thanks BP that worked and yes, checked the right box!
Well I have done my bit to get this thing voted down. Spoke to all I know that have shares and the indication is that they will vote NO.
Have spoke to TR and AK,that is the past CEO and the present one. They know my thoughts and from what I got back AK he did agree with me that acquistions are a good way to go and they are studying a number of companies. I do not buy into the reasoning that if we have a buy back where ZETA has to sell that it would defeat the purpose of the buy back. You can believe anything if the money is right.
Anyone wanting to vote please note that time is running out.
Hi Digger
Voted NO! Its about time all who can attended briefings and AGM/Special (for whom) meetings, to show the controllers of our futures, what us (the owners) really think. A vote of no confidence would go a long way - net assets about 77c (according to ANZ securities) I say sell the whole thing, stop the bleeding and give the owners our futures and hard earned cash back.
Comments.
Regards
-dodgy (owner/shareholder/mug?)
Hi everyone,
voted no too.
What does anyone make of the bot-selling today? Saville acting through associates to influence voting???
Is Zeta's influence on NZO good or bad for other holders I wonder. I know they play hardball and will extract what they can for themselves (as they should). However they are not going to waste the cash that is there are they? Ie there may be more value for NZO shareholders with Zeta on board? Not sure what to make of this.
That is what I would say. The implication is that IF we agree to this vote all will be well. We just have to stay stupid enough to not realize that it will be a controlling 22.5% increase to ZETA at no cost to themselves.
Now of coarse it is true that to anyone who does not sell into this or any other buy back it means a % increase in holding,but the important part is it is not a controlling increase. IF Zeta gets away with this they will immediately want another seat on the board.
It will be too hard for me to attend the meeting so I am doing my bit here and with direct contact,
Again get on and VOTE. Together we can stop this madness.
Cheers.
Hi Neopole, I have voted against NZO proposal not because of the Zeta situation. Better to put spare funds into buying into a basket of oil shares - say five companies who have an abundance of reserves with low cost of production and quality oil (low sulphur). Think we are getting close to the bottom price of quality companies shares. NZO may never have the opportunity again.
Wouldn't worry too much about the nominee Banks.
Bought my shares through a UK broker who in turn used Bank of New York to appoint BNZ/National Australia Bank to hold the shares. (nominee)
Advised broker to vote against the motion (3,994,244 total shares).
Directors of NZO with inside knowledge of their industry should be able to chose the right shares to invest ????????.
Forum members; which oil shares would you propose NZO to invest in and hold on to until the oil price rises?
5 to 10% cut in oil production would probably send oil above $100
Monkey Poms.
Yes fully agree Monkey Poms,acquisition is the best way to go. Did speak with AK the other day and he did say they were studying a number of companies,so once this remit is turned down I think that is what will happen. Again this is a very unique time in history when oil is probably at about half the long term cost of true production. Of coarse established or pipeline production is less than 90 dollars but true new production costs are higher. At current value all Canada's tar sands will lose money.
Your point about voting against' not to defeat Zeta' does miss a valuable consideration. The 20% limit imposed by the takeover code needs to be strengthened so that there is no way a dominate holder can impose its will on the rest of the company . Get that sorted out then on to acquisitions.
Cheers
voting on line is so easy-and confirmation of the no vote via e-mail immediately.
I haven't posted here in years but as a hugely disappointed long-term investor(27 years) it amazes me that our directors are unable to make better use of company funds. To have spare cash at this time and not use it to advance productive assets and future income is bordering on incompetence. The opportunities for quality investment have not been better for years with very little risk. It must be that having such bad experience in Tunisia(cost us $8m) has made the board risk averse to absurdity. Hopefully Digger's efforts will prevail and the board will reconsider this desperate default proposal and move us into something with serious long term benefit.
I've also voted NO online. Dunno how much good it will do though, all us minnows can be cancelled out easily by a yes from bigger fish.
Results out.
https://www.nzx.com/companies/NZO/announcements/269157
Loss of $6.2m with a write down of $36.3m on Tui. No divvy.
$83.7m in cash, about 20cps.
What does everyone think?
In my view, can someone ask them this afternoon to look at acquisitions more closely and stop focusing on pushing through a share buy back? I won't be able to attend unfortunately
In the circumstances of low oil prices I am very happy with income-significantly up!
Kupe still looking good for a reserve upgrade.
Tui may stop production earlier if oil prices remain low.
25 cents per share in Cash reserves and ongoing income could allow another return of capital and share cancellation or buy a distressed oiler with good reserves.
Would be wasted on a share buy back which would enable zeta to increase their holdings.
Important to vote tomorrow-it is easy to do this electronically tonight-wouldn't it be great if nzo and zeta were made aware of the power of the average shareholder.
In the circumstances of low oil prices I am very happy with income-significantly up!
Kupe still looking good for a reserve upgrade.
Tui may stop production earlier if oil prices remain low.
25 cents per share in Cash reserves and ongoing income could allow another return of capital and share cancellation or buy a distressed oiler with good reserves.
Would be wasted on a share buy back which would enable zeta to increase their holdings.
Important to vote tomorrow-it is easy to do this electronically tonight-wouldn't it be great if nzo and zeta were made aware of the power of the average shareholder.
Ok this meeting was at 10 this morning,so what is the big holdup giving out the results.?????
we lost-not even close
The motion was carried about 3 to 1
Great shame. We lost all right if the sums are true,not only here but we could have better used the money to grow by acquisition. Shows a pathetic lack of direction and courage on the part of the company.In two years time this low oil price will be history and this once in a life time opportunity may never surface again. Buy backs may be acceptable in normal times but what we have now is not normal so instead of being acceptable it is a failure direction to take the company in at this time in our history. Great shame and a sad day for the company,opportunity lost.
there could have been drug testing before letting out the results jumbo
Agree Digger. Lack of 'intestinal fortitude'. Also known as not having the balls.
well this result says it all regarding the link i posted last week about someone doing a very indepth study on those who control (behind the scenes) nzo.
this co will be swallowed up for a song and the private shareholder will be shafted.
im just happy that i followed my nose and stopped investing many years ago.
just wish i followed my gut and sold out many years ago.... instead i stayed believing that the co has its shareholders in its best interest.
what i have learnt know is....... there are shareholders..... and there are "other" shareholders.
at least i havent lost the shirt of my back...... just my undies.
The interesting figure from the vote on the buy-back resolution was the very large ABSTAIN figure. The only reason a shareholder would bother going through the process of voting, and then register Abstain, must surely be to send the directors a message. Abstain votes represented 35% of votes cast, with votes against 17.16% of votes cast. Together these outweigh the votes in favour which are 48% of votes cast.
What does the take over code say? To get past 20% is a requirement that a simple majority must agree,or is it in this case that more voted for it than against. Clearly ZETA did not get authority from 50% of the shareholders or even 50% of those that voted.
Anyone know or prepared to find out?
What does the take over code say? To get past 20% is a requirement that a simple majority must agree,or is it in this case that more voted for it than against. Clearly ZETA did not get authority from 50% of the shareholders or even 50% of those that voted.
Anyone know or prepared to find out?
Nothing has changed obviously at NZOG.
I would say it is more like shareholders getting screwed while sleepwalking for years under the previous regime, and now waking up (too late) to be further screwed.
Karma.
Note : Pleased to be the one who posted and initiated page 1000.
I see PPP is following in NZO footsteps and having a buy back. Zeta has learned a small lesson from the NZO buyback and this time not asking the shareholders what they want. PPP [that is ZETA] at this stage will not say what they will do with the bought back shares.
This will be used by ZETA to take over PPP when the time comes,then later on merge with NZO. That to me is obvious but are there any other outcomes anyone else see happening.???
with nzo they required a special meeting to allow them to go over 20% yet with ppp there already at 46%....whats the difference.....not sure why nzo would sell their 15% ppp to Zeta then roll the whole lot under Zeta umbrella.....ppp have $20 mill cash so would have thought Zeta would offer 5 cents a share to get 54% of ppp they dont own with the cash component funding half the purchase
Thanks to Balance pointing out the onset of an oil glut enabling me to see the bigger picture and exiting nzo at the right time and price.....
W/P
Looks now beyond reasonable doubt who calls the shots in NZO but also no surprise various well payed characters playing along and why not.
May never score another easy & over payed job for that many years, anywhere in the industry or anywhere else.
WHAT A SHAM.
Plumbing new depths.
zeta price following suit - down to 32c, from 70c a year ago.
How long till NZO start buying back? Hopefully it gives this disappointing SP a boost. Kinda Strange knowing over the next four years NZO will sink roughly half the current MCap back in.
a 2 or 3 cent divi to "investor" shareholders instead of a buyback to "in and out" traders would send a better message to those looking at this stock.
nzo is still an income earner with at least one quality income stream...... why buy back shares (from non loyal traders) to prop the sp....
but we know what the vote was so its a waiting games to how many share certificates will be bought and burnt...... whoops that was the old days of paper certs.
Gosh - why does one need to be a cryptology specialist to understand certain SSH notices?
https://www.nzx.com/files/attachments/220556.pdf
I think it says that Ralph Noldan (director) sold 3200 ordinary shares from his family trust (down to NIL), 13367 ordinary shares he owned directly (down to NIL) - and he somehow "lost interest" in 100000 partly paid shares (down to 367000).
I guess I am not sure what's the story behind the partly paid shares (might be related to performance bonus or similar?), and the family trust might be directed by somebody else ... but why is he selling his directly owned shares? If the director thinks that NZO shares are at current price too dear - where is the bottom?
Am I missing something?
Who really does now know what is going on. The 100 thousand partly paid shares is the easiest to understand as the settlement may be at some lofty height of a dollar or more as in the earlier days that did happen.
For the rest you would have to be a fly on the wall at the family trust meeting to know what did happen and why. Maybe some one just wanted a settlement. It is not a lots of shares so either way it means little.
https://www.nzx.com/files/attachments/222332.pdf
I assume this is meant to boost the share price... Thoughts?
Nzog ran out of ideas long ago and they now think the best thing to do with their cash reserve is to buy employees shares via the buy back.
While Nzog currently has a good revenue stream via kupe and tui, they aren't replacing their reserves and I don't see they drilling with Kaheru or Barque. The zeta board members don't want them spending cash.
Who knows, maybe infratil has their eyes on nzog as a takeover target?
I read it that when the share buy back gets started the board will include these specific targeted ESOP shares. In fact I suspect they will come first on the buy back list up to 2 million in the next year.
We could have worked that out for ourselves but NZOG must for nzx rules tell us anyways.
To me it is just a straight forward legal requirment.
Chers
I must be reading the announcement all wrong (or have caught Balance's 3/4 glass empty disease), but my take is that in the past, employees 1c part-paid $1 shares would lapse if the sp failed to reach $1 by Exercise time. Now it appears that if the current sp is 40c then the Co. could buy back those 1c shares from employees for 39c? Wonderful news for Directors and employees if it were true.
Hi Arjay,
I do not see it the way you do. Line two says the targeted shares are ordinary shares.
i still believe that the 1 cent that AK paid for 3 million partly paid for his 1 dollar shares still stands. If it could be twisted the way you read it then surely AK would have upped the targeted volume to more than two million to include himself. Note the volume is only two million.