Option conversion - Can the exercis price be lowered?
Does anyone have a feel for whether the exercise price for the options could be lowered?
Appreciate the value transfer issues, need for resolution / EGM etc, but was thinking that the same issues would apply if the exercise date was extended and they have done that in the past.
dr nita's analysis on the famous macdunk
dr nita has much experience with patients or victums in such circumstances. i have recently named the symtom as macdunkitis. this is the most serious of illnesses but is very easlily diagnosible. symptoms include....totally in denial....only talks about his own winners and never ever talks about his losers...blames everyone else for a past screw up in a stocks.....shows extreme symptoms of a scorned lover of a stock who will seek revenge through spending half his life trying to figure ways on getting even.
Other bizarre traits of macdunkitis are....often wears a tartan dress with no panties....will always..always develop new trading systems but never ever sticks to his theories....last but not least will hang around agms eating as many sausage rolls as he can.
All is not lost... There is a very simple cure...suicide.
of course just poking you in the ribs macdunk. ya ol crusty tart nita
Meeting with David Salisbury
Herewith the answers to some questions I asked David Salisbury on behalf of Posters.
David gave an excellent 2 hour Broker presentation and I am sure that those going to the AGM will be impressed with both his mana and experience.
Here we go
1.You mentioned the possibility of a dividend some time back. This was of course before Hector and Taranui came up dry. What are your thoughts now particularly as the oil price has increased ?
Answer.
2008 Tui revenues will be used to repay debt, fund existing exploration commitments, meet administration costs and pay government royalties, and there is a need to keep $NZ 25 million spare just in case PRC make a call on it. Pike is independent from NZO but NZO will be there to help if required. Any such funding assistance would be at commercial arms length. Also as far as Dividends are concerned it would not be prudent to pass a dividend while NZO will not be paying company tax because of accumulated tax credits.
2. At $1.09 do you think NZO is a takeover target?
Answer
NZO is not in the game of commenting on it's shareprice but suffice to say that the current shareprice could be very attractive to any Predator.
3. How do you plan to to improve value for shareholders and achieve the $1.50 option target by 30 June 2008. Will the Option date be extended?
Answer
The company is very conscious of the options and is working on a plan to increase it's awareness and shareholder value. Factors that could enhance the value of the company include
the emergence of Pike, particularly with a very strong coking coal price,
the strong Tui revenues at record prices and the potential for further Reserve upgrades
the Kupe drilling programme and in particular the drilling of nearby wells in the 2Q 2008
the addition of further expertise on the exploration front and
the possibility of an aquisition to acheive the target of 2mmbo per annum equivalent.
4. What is Tui revenue being spent on ?
Answer
See question 1.
5. What is the purpose of having all these subsidiary companies?
Answer
The company is undertaking an exercise to eliminate them by 1 April 2008.
6. What is the forecast and actual water cut rates at Tui?
Answer
Water cuts are expected relatively early as Tui production continues. To date NZO have experienced less water cut than forecast.
7. Enquiries to the NZO website apparently do not receive replies. Why?
Answer
There is one known instance of a reply not being received, and this is regetted. A new Public Affairs manager Chris Roberts has just been appointed and we will be working to ensure that enquiries are answered swiftly. NZOG has increased its total staff from 10 to 17 – mostly technical specialists - which means it now has the staffing resources to respond more quickly on a range of issues.
How are you going to acheive the 2mmb of oil per annum target?
Answer
This cannot be realistically acheived by exploration alone although it is possible. The Board have agreed to this target to introduce a new culture to the Company and in that regard aquisitions are being looked at.
9. Do you have any further contractual commitments with the Tui JV partners? Are you in discussions with Australian oil companies?
Answer No.
10. Does NZO have any desire to be part of the GSB.? ( I hope not! )
Answer The GSB is too capital intensive for NZO. It is high risk high reward and is not part of NZO's thinking.
11. Does NZO wish to explore the deeper Taranaki waters e.g Romney?
Answer
NZO have a lot of experience in Taranaki but exploration will be focussed in and aropund Tui and Kupe and others that have been highlighted
12. When do you think you will have a rig ready to drill Toke?
Answer
A lot more work has to done on this project before a drill is contemplated.
A whole host of other detail about NZO was thoroughly discussed and I applaud the Company for making the effort to do these very thorough Broker presentations.
If anyone is going to the AGM I would be interested to hear your comments and whether there were enough sausage rolls.
Exploration, Development and now Production. Well done NZO. A 15-20 year solid earning stream. The March 31 2007/2008 Financials will turn a few heads.
I should add these are my answers after digesting what David said.
Why are some investors so obsessed about getting dividends?
Quote:
Originally Posted by
boysy
Tui is the only project on line currently anyone could see that dividends would only becom possible after all three or at least two of the current projects are up and running. Sure they could pay a dividend but what is the opportunity cost of doing so . People who want a steady dividend income from a company should clearly not go near NZO for a few more years at least. I for one would rather see the money invested into projects which will not only further NZO but also increase the potential dividend stream in the future. The question which people should asking is will the positives of offering a dividend out weigh the negatives ?
I agree with your points, my boy. I don't want dividends from any of my investments if the payment of such dividend results in a negative for the particular company. If I want some cash to pay for the groceries then I can just sell a few shares. Simple!