NZOG to release investment plans
http://www.nzherald.co.nz/section/3/...ectid=10529718
extract from the article
4:00AM Saturday August 30, 2008
By Grant Bradley
New Zealand Oil & Gas hopes to release details of new investment "shortly" after announcing a full year profit of $97.2 million on spectacular revenue from its Tui oilfields.
Chief executive David Salisbury said the company was looking to grow but not for the sake of it.
"We have some projects which we would expect would come to fruition shortly and others we had screened out for a number of reasons."
NZOG had not bid for any onshore Taranaki acreage but was looking for exploration opportunities offshore in the province and overseas - believed to be in Australia and south Asia.
"What we are looking forward to is the Government opening up some offshore acreage because we think we'd have a much greater appetite for that. We are looking offshore, we're not looking just at New Zealand," Salisbury said
Welcome to the Wonderful World of IFRS
There seems to be some confusion around the taxation of NZO and I thought that I should add to that :)
Firstly prior years results reported under GAAP can be very different from the IFRS equivalent and it is not safe to compare. (F'rinstance last year GAAP saw a tax expense of $400K, whilst the IFRS version has a $3,747K tax benefit :confused:).
But essentially the $41M dollars tax expense on page 1 is 'paid' by two separate
means. Firstly by using about $22M5 of tax benefit from previous full year losses and secondly by paying the remainder has real money to the IRD.
Going forward what tax benefits appear and for why I would not care to speculate but I am sure the accountants will be getting excited about them even now.
regards
Paper Tiger
Time for a company name change ???
Quote:
Originally Posted by
Chippie
http://www.nzherald.co.nz/section/3/...ectid=10529718
New Zealand Oil & Gas hopes to release details of new investment "shortly" after announcing a full year profit of $97.2 million on spectacular revenue from its Tui oilfields.
Chief executive David Salisbury said the company was looking to grow but not for the sake of it.
"We have some projects which we would expect would come to fruition shortly and others we had screened out for a number of reasons."
Something Ive been thinking about for a while, is it now an appropriate time to consider a company name change ?
New Zealand Oil and Gas is a bit of a mouthful, and a bit stale in my opinion after 25 years. I still refer to it as NOG, the old ticker symbol, which is easier to say.
Look at our top companies, their names are a brand - Telecom, Infratil, Fletchers, Nuplex, Rymans
Our energy companies have names like Genesis, Contact, Vector, Meridian
NZOG is listed in NZ and Oz, so its not really solely a NZ owned company anyway, and if we are to start investing offshore then the NZ is even less appropriate. In fact it may even discourage some of our aussie friends from investing in the company.
I worked at the New Zealand Dairy Board for many years. They merged with the main dairy companies to form Fonterra, and are now one of the top 5 dairy companies in the world. Im sure the name change helped, and they now have a worldwide brandname.
NZOG in the last few years has moved into the NZX 50, and could soon be in the top 15. This company should be a household name - something like Caltex, Shell, Mobil ....
What do you others think ?
latest tui production figures
Have just taken this from the nzog website-
Production Performance
Production began on 30 July 2007. Total production in FY08 (year ended 30 June 2008) was 14.2 million barrels. NZOG's share of production was approximately 1.78 million barrels
Oil Production since 1 July 2008:
1 July-31 August: Approx 2.25 million barrels. NZOG's share of production approx 280,000 barrels.
Tapis Benchmark Crude - the weekly average Tapis price per barrel
Week ended
Average Tapis Price
NZ$ Equivalent
22/08/08
US$121.18
NZ$170.99
15/08/08
US$123.38
NZ$174.54
08/08/08
US$129.89
NZ$184.24
01/08/08
US$135.03
NZ$183.71
25/07/08
US$139.87
NZ$186.49
18/07/08
US$151.97
NZ$198.39
11/07/08
US$148.64
NZ$195.83
04/07/08
US$148.60
NZ$195.53
nz dollar has weakened,oil price should be strong with about 20% us oil production shut down , 5 cent fully imputated dividend-hopefully we shall see this reflected in a rising sp
Nice article on Pike this morning
Nice article on pike this morning
Quote:
Coal price stokes Pike outlook
By JAMES WEIR - The Dominion Post | Thursday, 04 September 2008
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AdvertisementPike River Coal is expecting good prices of more than US$300 a tonne for its export coal, with India desperate for coal and China becoming a net importer for the first time this year.
Some brokers are forecasting a near doubling in Pike's share price in the coming year on the back of high world coal prices, even though the mine is still a month away from actually hitting its West Coast coalseam.
Pike River is in the "last dash" 120 metres of a 2.3km tunnel to its coalseam, with production expected to ramp up to one million tonnes a year from June.
The tunnel should be complete at the end of this month, Pike River chief executive Gordon Ward said.
Pike River's coalmine is about 100m below the surface in the remote Paparoa Range, about 50km northeast of Greymouth.
"It is tiger country," Mr Ward said.
The international price of coal is about three times the conservative level forecast in Pike's prospectus last year, which predicted prices would drift off to the mid US$70 range over time. Instead, world coal prices have boomed, with broker reports suggesting prices above US$300 (NZ$444) a tonne next year, up from US$150 in the past year.
On that basis, broker ABN Amro has just given Pike a 12-month target of $3.87 a share, Mr Ward told the Australasian Institute of Mining and Metallurgy mining conference in Wellington this week. "Potentially a healthy increase," he said.
Pike River shares have risen from $1 at the share float last year to $1.95 this week, the best performance of the NZX top 50.
World coal prices rocketed after Australian production in Queensland was affected by flooding and power stations in South Africa could not get enough coal.
But the long-run key is rapidly growing demand from China and India.
India, where most of Pike River's coal is destined, is hungry for coal and is expected to need an extra 15 million tonnes a year during the next five years.
China used to export coal, but for the first time this year is a net importer of both thermal and hard coking coal.
China has also just increased the "export tax" on thermal coal from 5 per cent to 10 per cent, matching the 10 per cent tax on coking coal, adding tension to supply and demand, Mr Ward said.
Pike expected "good [coal] prices for a number of years".
Contract prices are adjusted during annual price negotiations, taking the lead from BHP price agreements.
ABN Amro and Citigroup are now forecasting coal prices next year of more than US$300 a tonne, with spot prices as much as US$370 a tonne.
"The consensus from about six brokers is much higher prices forecast for much longer. Citigroup [alone] sees coal at US$250 a tonne in five years' time," Mr Ward said.
Bullish brokers said the fall in the Kiwi dollar from US80c to US70c was also a positive in New Zealand dollar income.
About a third of the Pike River mine's operating costs are for power, but Pike has locked in fixed price hedge contracts for about 18 months. Wholesale or spot market power prices skyrocketed this winter and Mr Ward admitted the company would be exposed to rising prices in future.
There was some potential for Pike to produce its own power from coalseam gas at the mine, which could reduce the overall power bill.
Export coal is exempt from the Government's emissions trading scheme