Looks like one of those events just happened... :)
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Looks like one of those events just happened... :)
Strategic timing of announcement don't you think?
Well done to those that bought in at the 2.5c level.
[QUOTE=777;207664]Strategic timing of announcement don't you think?
see chris R post in last couple days-nzo would announce it as soon as they got the upgrade.
True to his word and I think we should all congratulate the new management for the smooth running of the most improved and best nzx company
Tui field's success heightens NZOG allure
5:00AM Friday June 20, 2008
By Grant Bradley
http://media.apn.co.nz/webcontent/image/jpg/oil16.jpg
NZOG is due to announce a revised appraisal of the Tui field reserves any day.
The success of the Tui field for New Zealand Oil & Gas has highlighted the company's appeal as a target for takeover and merger deals, analysts say.
NZOG is also looking to get a significant cash boost with most of a potential $208 million in options likely to be exercised by the end of the month.
Already about 4.2 million of the 139 million $1.50 options have been exercised and the company says the expected capital injection will increase the scale of opportunities it "can sensibly pursue".
The company is this year's second-best performer on the NZX, behind Pike River Coal in which it has a 31 per cent stake.
ABN Amro analyst Rob Foster said given takeover and merger activity in the energy sector across the Tasman, it was "possible" NZOG could be a target.
"It's one of the upsides of our investment view. With the oil price running so high you would expect that NZOG could be seen as a target. NZOG is by far the best New Zealand opportunity."
The company had an open share register, was producing good revenue and had good oil and gas prospects ahead of it.
"It could be attractive to someone, I just don't know who's been going around the globe looking at these things but it's definitely an option," he said.
Forsyth Barr analyst Andrew Harvey-Green said merger or takeover activity could go either way.
"They've [NZOG's] got the cash reserves themselves - if they want to have a go at someone they could probably do that but equally those cash reserves could be attractive to someone else coming in," he said.
"If you look at the smaller Australian stocks a lot of what they lack is cashflow but they have better exploration acreage than what NZOG has."
A merger with such an Australian company would be a nice. "It's certainly not outside the realms of possibility."
In a briefing for investors released yesterday NZOG outlined milestones reached in the Tui field, in which it has a 12.5 per cent stake.
In the past 10 months the company's share of production has been 1.75 million barrels, with the average net price per barrel of US$96 ($127). It repaid its share of exploration and development costs of $52 million in 4 1/2 months.
The company is due to announce a revised appraisal of Tui reserves any day.
Foster said although it was hard to predict, his firm was working on the assumption that about 80 per cent of options would be taken up.
NZOG shares closed up 2c at $1.56 yesterday.
http://www.nzherald.co.nz/section/3/...ectid=10517299
Your on to it Lion.This is a wise group of JVers. Be conserative and allow for future upgrades. My absolute bottom volumn is 60 million barrels and you can hold me to it that will be achieved in 12 months. Note i am only saying that 60 million will be the oil in place recovery volumn.By end of june 09 approximately 26 million barrels will be recoverd from TUI. That gives 12 million for the second fininical year. Remember the first year had only 11 months production from and will give 14.2 million,so i see 12 million achievable in the second finical year.That would be a average of 33,333 barrels a day which in time Tui will deliver. The company sees this falling to only 9 million per year or just under 25000 a day.
So next upgrade will be about end oct.Hey do we and AWE not have a AGM about then?????
Bearing in mind that production was supposed to be down to 25000 bbl/day by Christmas '07, we seem to be getting a good run. Exceeding expectations is putting it mildly. I wonder if the operator has really worked out what is going on yet? We seem to be getting a huge increase in production for a relatively modest increase in reserves, so there may well be more to come
The only downside is that with the extra oil we are getting extra flare gas, but Harry Duynhoven seems quite relaxed so long as the royalties keep coming.
We may have to wait until the next drilling round for a formal upgrade, but the AGM should be interesting anyway.
I had to mortgage the wife and sell off the grandchildren for medical research in order to convert the oppies. Now I can sit back, relax, and watch all the fun over the next month.