Originally Posted by
shasta
I meant Tui's upgrades & higher oil prices received to date, has meant the project is closer in size to Kupe. (Originally Kupe was to be twice the size, ie before Tui upgrades)
Ok, i'll back up my reasons for my original claim that "NZO" was better than PPP, & yes i'll stick with it*.;)
NZO didn't re-rate when first oil came to the extent we all thought, probably with AED in mind (any delays or production downgrades, & the SP gets smashed as institutions price in good news in advance).
NZO then paid a dividend & gave the market an indication of what it would look to do with it's cashflows (pay off Tui, pay down Kupe & potentially "assist" Pike River, as well as more exploration around Taranaki)
When the market caught wind of all this the SP started to appreciate, & even though i'm against O&G companies paying dividends, NZO has institutional support & thus they want a steady dividend stream.
Many on this thread were happy to receive back 5c per share, strangely after paying $1.50 to convert the options! (Since received another 5c)
Point being anyone can run a "cash box" & the market wants to see what PPP intends on doing with the cash, & i'm afraid the SP won't take off until the market knows what direction PPP is taking, & that they like it.
I'm all for Mgmt/Directors having a decent stake in the company, but to my mind PPP is run more like a private company, & the top brass are getting paid salaries & receiving options knowing they can't be taken out without them selling/merging into either a friendly bid, or a decent premium if hostile.
Where's the growth coming over the next 2 years for PPP?
With NZO we know Tui will still be ticking along nicely, Kupe will come into production, & Pike River will be in full swing & NZO may well realise it's holding "at the right price". There's always the exploration upside, in & around Kupe that can be tied back in as well.
* Now my health is sorted & i've now secured my next contract, i'll be attending the Auckland/Christchurch meetings next year, good opportunity to discuss the merits of NZO/PPP over a beer or two :D
(As a side issue OEL is roughly the same SP/Market Cap as PPP!)