to me the report seems to have a lack of excitment - as if nzo downplaying it a tad.
maybe once awe confirm the drilling the hype will happen.
M
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Hi Machine. My view is rather different. NZO has a very strong cash position. Opportunities for consolidation will strongly favour nzo as many exploreres will go bellly up this year.
They have played down Pike which is understandable but aside from that we should be in for a great year considering the current economic situation
Yes, look after number one digger...you and your family...Quote:
digger----Burmuda,Shrewd Crude and other oilers
Sadly it looks like i had better not risk having a BBQ on 7 march or for a good time afterwards. My wife has had one epidural about two weeks ago and has an appoitment for possible another on next friday.Still living on pain killers so we have decided that our first concern has to be to get her right before we make committments of any sort.I am sure you all understand and have passed on your best wishes.
Digger
all the best...
:cool:
.^sc
awe quarterly sounds a bit more promising about drilling round tui in the near future later in 2009 they want to drill 5 wells.
NZOG ‘inundated with opportunities’
Neil Ritchie, New Zealand
Friday, 30 January 2009
THE flood of investment opportunities opening up for New Zealand Oil & Gas is consuming a lot of the listed mid-cap company’s time and energy in sifting the good from the bad.
The Tui Area oil project
NZOG chief executive David Salisbury said at the release of the company’s December quarterly results this morning that the Wellington-headquartered firm was “literally being inundated with opportunities”.
The global financial crises and low oil prices were combining to open up more opportunities for NZOG than ever before, with some exploration and production (E&P) companies now under enormous pressure to raise funds or reduce debt.
However, for well-placed companies such as NZOG, “it is a time of opportunity to create greater wealth for shareholders and we are looking to use our strong position to secure attractive new ventures”.
“NZOG is in a strong position to take advantage of investment opportunities. Price expectations are lowering and industry consolidation is starting to happen and is likely to gather pace.
“New possibilities are continually being identified. These are thoroughly and systematically assessed, and those which meet our criteria are being actively pursued.”
NZOG is debt free, having repaid its debt facility associated with the $NZ1.2 billion ($A944 million) offshore Taranaki Kupe gas-condensate project in mid-October, and has a war chest of almost $212 million, with just over two thirds of these funds held in United States dollar denomination accounts with NZ-domiciled banks.
“We are getting a new opportunity a day, people approaching NZOG with a proposal, and we are spending some serious effort eliminating the poor quality, and some are very poor quality, from the good.”
Having said that, Salisbury added that NZOG was currently “actively reviewing and pursuing at least six higher graded opportunities”.
NZOG’s operating revenue for the December quarter was $30.9 million, with a total of $19.7 million invested in capital projects, mostly the Kupe development.
Last month NZOG spent $30.7 million acquiring just under 15% of Tui partner Pan Pacific Petroleum and has Australian Foreign Investment Review Board approval to launch a total takeover bid for Pan Pacific, though Salisbury today declined to say if his company would do so.
Salisbury also said the offshore Taranaki Tui Area field continued to perform well and be profitable, even at low oil prices.
A barrel of oil sold at $US42 (about $NZ80), which was roughly the price received in mid-December, yielded a net profit – after depreciation, marketing and production costs, taxes and royalties – of about $NZ24.
NZOG’s Tui revenue for the six months was $103.2 million, about $72 million of which was earned during the September quarter and only about $31 million in the last quarter, when oil prices declined further.
As expected, field production is gradually reducing, though all four wells continue to produce strongly.
Total Tui production for the December quarter was 2.4 million barrels, at an average rate of over 26,000 barrels per day, compared with the 3.1MMbbl produced during the September quarter.
The more northern Kupe project is now over 90% complete, with commissioning due to start during the second quarter of 2009 and commercial gas flows during the third quarter.
“Kupe will begin providing a significant new revenue stream in the second half of 2009,” added Salisbury, though he said he did not know what proportion of total company cashflow that would be.
The Tui partners are operator Australian Worldwide Exploration (42.5%), Mitsui E&P NZ (35%), NZOG (12.5%) and Pan Pacific Petroleum (10%).
The Kupe partners are operator Origin Energy (50%), Genesis Energy (31%), New Zealand Oil & Gas (15%), and Mitsui E&P NZ (4%).
Going by what DS says NOG is putting around $624,000 in the bank every day, can't be too upset about that !!
i think your figure is a bit out there mate where did u pull it from ?
Might have got it wrong, I picked it up from this in DS statement at release of quarterly
A barrel of oil sold at $US42 (about $NZ80), which was roughly the price received in mid-December, yielded a net profit – after depreciation, marketing and production costs, taxes and royalties – of about $NZ24.
And based on this many barrels a day
Total Tui production for the December quarter was 2.4 million barrels, at an average rate of over 26,000 barrels per day, compared with the 3.1MMbbl produced during the September quarter.