[QUOTE=fish;270605]Last year the announcement was made at 9.24am.
Printable View
5c div record 9/13 pay 10/2
26/08/2009
MINE
REL: 0902 HRS New Zealand Oil and Gas Limited
MINE: NZO: NZOG takes 40% stake in Albacore permit
New Zealand Oil & Gas Ltd (NZOG) has extended its offshore drilling programme
this summer by entering into a conditional agreement to acquire a 40% stake
in permit PEP 38491, which lies in the northern Taranaki Basin.
PEP 38491 covers an area of 715 sq kms and is approximately 80 km north of
New Plymouth, in water depths of around 95 metres.
PEP 38491 is currently held 90% by Westech, a wholly owned subsidiary of
Energy Corporation of America and 10% by the State-Owned Enterprise, Mighty
River Power (MRP). Westech is the operator.
Subject to regulatory and partner approvals, the new participating interests
will be:
Westech 50%
NZOG 40%
MRP 10%
The permit contains a number of identified prospects and preparations are
already in place to drill one of those prospects, called Albacore.
NZOG will participate at 40% in the drilling of the Albacore-1 exploration
well by the jack-up rig, ENSCO-107. The well is expected to be drilled in
October/November at a total estimated cost of NZ$20-25 million.
Chief Executive David Salisbury says PEP 38491 is a further exciting addition
to NZOG's expanding exploration portfolio.
"Our assessment is that the central northern Taranaki Basin is a very
prospective part of the Taranaki Basin. There are three separate play
fairways within PEP 38491 - a Pliocene Fan and two Mangaa sands - and it
contains half a dozen interesting prospects. The first prospect to be
targeted is Albacore, which contains three separate target zones that may
contain hydrocarbons.
"The Albacore-1 well will target structures recently defined by 3D seismic at
depths of 1400 to 1800 metres, which could not have been mapped if only 2D
data had existed. It is the three dimensional resolution that enables a
degree of stratigraphical and sedimentological dissection that has identified
this as an exciting block.
"Having said that, exploration is always risky. The well will need to be
drilled to determine whether hydrocarbons have been trapped in any of the
identified structures. However, the potential is significant. NZOG's internal
analysis is that Albacore is more likely to contain oil than gas and, if
successful, could support an offshore development similar to Tui."
NZOG now has interests in seven permits in the offshore Taranaki Basin and
one in the Canterbury Basin. NZOG will be participating in the drilling of at
least four wells this summer.
End CA:00183969 For:NZO Type:MINE Time:2009-08-26:09:02:38
© Direct Broking Limited 2005.
Now that should make balance happy. Well it does me anyways. It is called grow the company. We now have 4 drills in the next 6 months.
amend 9/18 record
slight reserves increase as well from 50.1 mmbl to 50.5 mmbl not significant but a small change never the less
ppp paid 3c and has a growing sp
nzo pays 5c and will stagnate.
as for divi reinvestment...... why invest more in a company that doesnt reward its shareholders......... i wonder how many more millions of shares will be allocated to staff this year at massive discounts?
at least we get a 40% shot at a wildcat.........
Neopole
I agree with you, to me NZO management are very comfortable and reward themselves with far too many discounted shares.
IMO shareholders would be far better served if:
* PPP and PRC shares were allocated directly to NZO shareholders (what value does a shareholder have by NOG owning these as a middleman?) dam good work though buying PPP when they did.
* NZO took a leaf out of PPP's salary structure and downsized staff by 75%As they would need less staff to remanange what is already managed.
* and focused those staff remaining on using the $200 million raised form the rights issue to focus on growing oil and gas reserves.
disc. former holder
ppp got sold down at 5pm from 2 trades totalling 24000 shares.......... even though 500,000 odd went thru today.
games me thinks
There is no reason why NZO should be expected to stagnate. This has been an expected quiet year as Tui production tailed off, Kupe and PRC were still to start production, and drilling was prohibitively expensive due to last years oil price spike. Next year there is a lot to look forward to - Kupe and PRC production starting, a fair bit of exploration drilling, and possibly some further investment.
The graphs show that market cap has been increasing rather strongly - NZO is now in the NZX15. Shareholders have been rewarded through very good increases in the value of their investment, and with additional dividends as well.
been thinking about the results and the 5cent divi today.........
managment says one divi per year from now on, and yet we have a 40% wildcat drill and several other very promising drills just around the corner, we have kupe just about on stream and pike sooooooooon to be on line.
if albacore comes in.... its not a 10% play but 40% and potential to seriously lift nzo reserves......which makes me worry about hostile takeover of a stagnant NZO sp.
with the rest of the projects coming to head very soon, its a long time to the next end of year results and divis.
next years divi should be a very good one....... it needs to be to get shareholder support if someone tries to raid NZO with all its income streams in full swing.
the trouble is i could see a take over happening and not alot in the way of defence to stop it.
what with a 5cent annual divi which is below bank rates.
the only thing left is capital gain, and that only supports the traders and speculators not the long term investors.
to be honest, nzo should not of paid a divi at all if its less that 10cents, because 5cents is just an insult.
this time next year either the raiders will be happy or the shareholders.
after 5 years as a loyal shareholder, i will plan an exit depending what the board or the raiders plan for or before next august.
Sorry, Neo.
No such thing as a "loyal shareholder".
We're all in this (or not) for personal gain, not to show "loyalty" to either company or management.
:D
fair enough macduffy,
replace loyal with longterm.......
then take the longterm investor away, and whats left?
a share registry like a roller coaster and no cornerstone/s support.
.......in for the cash, any which way........
perfect for corperate raiding.
what nzo should of done IMHO is give the 10cent divi in anticipation for next years cash influx, which supports the sp and enforces defence of the coming cash wave.
Have to confess to selling quite a few today-during the day and another 25k at closing .
My emotional half (my wife ) said time to sell if they are not going to pay a reasonable dividend .
It just seems plain stupid to keep so much in cash in us dollars losing value .Also have not been impressed by prc-in particularly not keeping the market informed .
Fair enough Fish.... $1.65 is proving a tough nut to crack
I personally am quite happy with 5c divvy - they are still casting about for new investments, so why cough it out only to have to then possibly borrow to fund the 'right' acquisition.
If there's a cash bonanza from Kupe etc over the next 12 months, then I'm sure they'll pay the stated 'reasonable proportion of profits' next year
Hi Fish,
No need to apologise for selling a few shares. I to thought the div would have been bigger as i often said about 7.5 as bottom. You have turned out to be correct that the company would have been better to have given a 5 cents div way back in feb as by not doing so most got lost in the climbing NZ dollar. This is of coa-rse hind sight and if i were a director back in Feb i would probably done the same thing. All exporters are hurting and some much worse than us.
I do like the the company farming in to the two recent drills not far away--Hoki and albacore and am happy to have a smaller div to get on with the drilling. What pleases me mostly here is that the drills are in NZ where we know if we are part of the drill or just part of the expenses until a find is secured and then we are bouted out. Where PPPV is is a guessing game that could easily fall either way. This Romanian thing is somewhat like PPPV where it is just trust me[directors] and securing a successful drill is not the end of the story.Overseas drills too often end up being the end of the drilling company and the winner is the govt that controls the drill area. So i am happy to spend our money here in NZ.
How much is another TUI worth to find? There are probably another two or 3 out there waiting the drill bit and once found we do not have to worry about the find suddenly being someone elses.
A few years ago i knew NZO would have a slow year betweenTUI full steam and the other two projects. The year has been better than we expected back a few years ago even though we have had the biggest finanical crises since the 1920's. This really means that NZO has done dam well to be where it is today . 2010 will be the beginning of a number of successful years for nzo,so Fish do not sell any more than you have to.
Cheers.
I know that many posters bought into NZO a few years back for 25 - 35c. The latest divvy means half of that outlay has been re-couped in less than 18 months. That's not bad.
Real pleased we've got a few wildcats coming up to generate some of the old excitment.
Remember that nzo is wanting to expand and grow. It is very difficult and be irrespensible of the management to dish out too much in divvies and at the same time grow the net worth of the company. The problem with oil companies is when they find the stuff it doesnt last for ever so they have to keep reinvesting to mind more. Its not like a supermarket chain that have set up their infrastructure and know they will get a return for ever and a day.
Dont forget, the No1 problem for any co0mpany to grow is cash flow. No point in squandering what they have as the NZO management need to and obviously are looking well into the future.
Hi digger
I fully agree with your post-nzo has so much potential .
However I borrowed a lot to get into NZO in a big way and dont feel I can rely on nzo to give me the returns-either capital gain in the next few months or a reasonable dividend to pay the interest on my loans .
Final straw was the dividend date not being until october .
I Have the monthly margin loan interest plus a big tax bill to pay this week . I need a more predictable source of income -so bought more shares in several utility companies that pay predictable regular income-all with dividends in september!.
After saying that I have no intention of selling anymore nzo .
boring ole nzo,no buyers cause everyones off chasing companies that maybe have found oil but really dont know if they own it,at least in nz the politics are more sound
Well NZO has thrown 5c to shareholders to try & ease the pain of there FX losses (which exceed this payment :eek:)
When i first mentioned the FX issues the USD/NZD was @ .57
At the end of the quarter it was around .64, now it's gone even higher
More FX losses coming this quarter, from the inept folk who justify there position with a weak argument "we are not currency speculators".
digger, from what little I have read about romania, I would say that once permits issued than thats it, with no issues like government having a say later on what additional share they get.
romania has already had its shakeout with OMV having to divest some of its molopoly
M
I only litended to it once but when it come to funding Kupe they have a facility to draw around $60 to $70m fot this project. At present they dont need to which makes me think they want to have cash ready in case of other investment opportunities whatever that may be.
ps. I need to listen to it again to read between the lines
The reaction through this forum, and as reflected in the SP (albeit some recovery today), seems to be a little morbid. Surely the focus now ought to be on imminent production form Kupe (which is on track), and the drilling campaign that is to commence in October. The regular commentary about the Forex gains and losses, and what alternative outcomes could have been achieved, does not appear to recognise one of the likely drivers for holding US$ i.e. that a significant acquisition or investment is likely to be in US$.
I note that the recent update by Andrew Harvey Green of Forsyth Barr (http://www.forbar.co.nz) has resulted in an upgrade of the NZOG. Some of that commentary is shown below:
New Zealand Oil & Gas (NZO)
FY09 Result Review – Expanding Exploration
Operating profit (EBITDAX) was in line with expectations at $85.8m. The main announcement with the result was a further expansion of the exploration portfolio with the acquisition of a 40% stake in the Albacore permit. This means NZO will now be drilling 4 exploration wells in the next 6 months.
What’s changed?
Earnings Impact: FY10 EBITDAX unchanged.
Valuation Impact: Minimal change, $1.92.
Recommendation: Upgraded from an ACCUMULATE to a BUY.
Four well drilling program provides significant upside potential
The acquisition of a 40% stake in the North Taranaki Basin Albacore permit area means NZO will now be drilling four exploration wells over the coming 6 months. Albacore will be the first of the wells drilled in October/November, with the other wells being Hoki and two near Tui wells. We estimate that there is a 60% chance of at least one of these wells being successful and hence we believe that the upside potential for NZO is significantly greater than the downside risk.
FY09 result as expected – no change to FY10 outlook
The FY09 operating profit (EBITAX) came in line with expectations at $85.8m. Whilst this is well below FY08 (-50.7%) that was to be expected as Tui production declined in line with forecasts and oil prices were also lower over FY09 vs FY08.
Our FY10 forecast is largely unchanged with a modest revenue uplift from a higher oil price assumption (+$US5/barrel) offset by an increase in operating costs and royalty expenses.
Investment View
While at this stage we view PRC, PPP and to a lesser extent cash as effectively dormant investments, we believe the potential uplift in value from the four well drilling program outweighs any negatives associated with these investments. We have therefore upgraded our recommendation from ACCUMULATE to BUY.
""We have therefore upgraded our recommendation from ACCUMULATE to BUY.""
i totally agree with this statement.
what i worry about is a corprate raider thinking about a taker over of nzo.
especially if 1 or more of the next 4 drills comes in, and a sp hanging around the $1.60s.
the lack of a bigger divi than posted, and the next one a year away, and lots of fruit coming to bear in the next few months, ....... would long term holders sell into a stand in the market?
or keep waiting for that profitable divi?
cash in bank, kupe income, pike sale, could really help fund a take over, albacore could just make it happen.
i think NZO is a magic company, with massive potential, but it seems to me that a raider could just snatch the golden egg just as things are really coming together.
which is why i thought a big divi would of helped long term investors hold on to their shares """if""" someone tried to go for NZO.
maybe im just fooling myself in thinking nzo could be taken over...........
with the long term investment i have in NZO i would hate to see it taken over and lose my future income stream.
Why the obsession with dividends????
They are tax ineffective and really are a waste of time for shareholders.
Do you really think that the share price will be hanging around the $1.60s if one of the 4 drills comes in? Do you think the share price will stay at current levels as drilling approaches? Do you think a takeover at anything like $1.60 would have any chance? If you do, then you should not be invested in this company.
NZO earned about 13 cents a share last year. That excludes a few things like PPP and PRC revaluations and shorter time to Kupe and Pike cashflows, so the underlying increase in value was more than that. Not a bad return in a year of major upheaval, and in what was always going to be an in between year for NZO.
How much of the income they choose to hand out in dividends does not affect how much the company is earning for its shareholders. The market might be slower to recognise the success, because there are a few people who see cash dividends as being the only tangible reward and some who sees retained earnings as carrying a degree of risk. But eventually the increased value will be reflected in the share price.
interesting news on the web:
NZOG reaches for Taranaki permit
(Friday, 28 August 2009)
NEW Zealand Oil & Gas has applied for another offshore Taranaki exploration lease, this time immediately north of the licence containing the promising Albacore prospect that will be drilled this spring.
Full Story...
M
""Do you really think that the share price will be hanging around the $1.60s if one of the 4 drills comes in? ""
past history shows that when they drilled tui the sp was as high and higher than now....
since then oil and cash has been flowing and the sp is where??
""Do you think a takeover at anything like $1.60 would have any chance?""
of course not, but this is the level the sp is now and is a starting point.
""How much of the income they choose to hand out in dividends does not affect how much the company is earning for its shareholders.""
very true, but those earning are sitting idle waiting for an opertunity, may it be an acquistion or used against NZO in a take over........ just like the cash sitting in PPPs accounts earlier, and the talk of take over, once a good divi was offered the sp moved up, and added defence to any takeover action.
""But eventually the increased value will be reflected in the share price.""
also true..... but who sees it first, the market,which is driven by traders, or a raider who sees a chance to grab an undervalued company with a big cash stream about to come on line?
2 years ago with no income the sp was as it is now, but now the coffers are full of cash.
maybe im missing something.........
what ever happens, i'll be around to see what happens.
Do you really think that the share price will be hanging around the $1.60s if one of the 4 drills comes in? ""
past history shows that when they drilled tui the sp was as high and higher than now....
since then oil and cash has been flowing and the sp is where??
The (adjusted) NZO share price was about 105c 2 years ago (average over 6 months). Even after a global meltdown and a fall in the price of oil, the share price is now around 160c. About a 50% return in two years. Around the time Tui was found and Pike looked like it might contribute in the near term, the share price spiked to about 120c (adjusted) - somewhat less than 160c.
""Do you think a takeover at anything like $1.60 would have any chance?""
of course not, but this is the level the sp is now and is a starting point.
The current share price is largely irrelevant in terms of a takeover. Look what happened to PPP (moved from 25c to 45c) when NZO bought just 15% while confidence was low. Think what would be required to pick up 50% of NZO now that confidence is improved.
""How much of the income they choose to hand out in dividends does not affect how much the company is earning for its shareholders.""
very true, but those earning are sitting idle waiting for an opertunity, may it be an acquistion or used against NZO in a take over........ just like the cash sitting in PPPs accounts earlier, and the talk of take over, once a good divi was offered the sp moved up, and added defence to any takeover action.
That is quite contrary to the facts. PPP share price was static at around 25c until December 2008, when NZO entered the market at about 35c. It then rose to about 45c by the start of February. From February thru May it was largely between 35c and 40c. The dividend was announced on 27 April, there was a brief increase in share price, then it fell back to the previous range. Things started happening in June, following announcements regarding the apparent success of the Vietnam drill. The NZO offer clearly impacted PPP share price, as did the Vietnam deal. The dividend announcement did not have any long term impact on the share price.
""But eventually the increased value will be reflected in the share price.""
also true..... but who sees it first, the market,which is driven by traders, or a raider who sees a chance to grab an undervalued company with a big cash stream about to come on line?
I don't see that a raider would pick up much of NZO very cheaply. It is not something I am worried about.
2 years ago with no income the sp was as it is now, but now the coffers are full of cash.
That is just completely wrong.
maybe im missing something.........
A share price chart would probably help you.
what ever happens, i'll be around to see what happens.[/QUOTE]
That statement will apply for many companies and shareholders but certainly not all -I do believe a bigger dividend would most likely have pushed the shareprice up .
A low dividend will result in those needing more income selling .
The market sp depends on so many other factors that you cannot rely on it increasing in the short term-say in the order of 1 year if money is retained .
As for tax inefficient I am not sure if this applies in current nzo cash situation .
I may be wrong here but surely The company will pay company tax at 30% . This will enable full tax credits to apply to any dividend as long as the dividend is less than the equivalent tax credits held .
Certainly keeping 170 million or more in cash for over a year is not financially efficient . Surely future projects are better funded by ongoing income-in the case of the next 10 year s-kupe should produce predictable income for this purpose
A further point that in my view merits debate is that as the dividend can be taken as shares at a 2.5 % discount I would suspect the majority of shares in the company will opt for this . Hence the cost to the company will be very small-probably less than 10% of the annual profit.
A bigger discount -say 5% would probably result in about 90 % shares opting for more shares instead of cash . Therefore if the dividend was increased from 5 to 10 cents the company would actually spend less on the dividend and more tax credits could be handed out .
Would this be a win for everybody?-there is probably something I have missed here !
Looks as though the drilling around tui could be much greater than initially thought this release suggests up to 5 wells . This article of crown minerals
http://www.crownminerals.govt.nz/cms...ider-tui-field
AWE plans major development of wider Tui field
29 August 2008, Source: AWE and Lindsay Clark - Australian Worldwide Exploration is planning a major expansion of the Tui oil field next year.
The company has announced in a presentation to investors that it plans to accelerate the next phase of drilling in its Taranaki permits in a 6 to 8 well campaign over nine months starting in early 2009.
The campaign, costing an estimated A$300 million, would be a mixture of exploration appraisal and development wells. Timing of the drilling was contingent on rig contracting.
The campaign will focus mainly on the Tui field in the subtle low-relief Kapuni F sands within 1-20 km from the eastern and southern edges of the main Tui oil pool.
As many as four appraisal wells may be drilled in the area plus a previously announced third horizontal development well Tui-4H into the Tui pool.
In a presentation outlining it’s 2008-10 exploration programme, AWE provides a map showing four potential reservoir areas to the south and east of the Tui pool. They are named as Kahu Crest, Kahu Stratigraphic, Tui North East and Tui South East (which are shown on the map as linked together by a narrow “waist”) and Tui South West.
The map shows two of the wells would be drilled from near where the two present Tui wellheads (Tui-3H and Tui-4H) are sited. One of the new wells (Tui-5H) would go into the Tui South West pool, a 2-3 km wide potential reservoir extension to the main pool. The Tui-4H would be drilled to the north west part of the main Tui pool.
Three other wells would be drilled from a site six kilometres to the east to test three other potential reservoirs called Tui NE, Kahu Crest and Kahu Stratigraphic.
One of the presentation graphics has marked out an undersea terminal for a gas export line from the Tui field to the Maui gas field which lies less than 20 km from Tui.
Garry Marsden, corporate development manager for AWE in Sydney when questioned about this gas export line, would only say that there had been recent newspaper reports of discussions between AWE and the Maui Partners about linking pipeline networks.
Some associated gas produced with the Tui oil is currently used for processing on board the Tui FPSO vessel Umaroa and the remainder flared.
AWE said it also planned during its Taranaki campaign to drill an exploration well Hoki-1 into the Hoki prospect in PEP 38401 where the company has located a substantial closure.
Two other exploration wells are named on the drilling schedule for the second half of 2009.
Mr Marsden said the Malvern-1 was scheduled for PEP 38524 in offshore south Taranaki and the Bahamas-1 well shown on the list was not yet allocated to a permit area.
AWE reported its profit for the year ended 30 June 2008 was A$264 million, a 647% rise on the 2007 year profit of A$35.4 million.
Sales revenue rose to A$821.5 million, up 470% from the previous year’s A$144 million.
AWE said the significant revenue increases followed the “exceptional initial performance of the Tui oil fields”.
The company also reported that it had paid New Zealand income tax of $131.2 million in the 2007-08 year plus a New Zealand royalty, an accounting profits tax, of $73.8 million.
From the Stuff-up website
http://www.stuff.co.nz/business/indu...n-off-Taranaki
Oil and gas exploration activity will increase in Taranaki this summer, with two rigs working offshore.
The biggest rig will be the semi-submersible Kan Tan IV, which is due off Taranaki in a few weeks to begin operating in waters southwest of the region.
And another, the jack-up rig Ensco 107, will be drilling in the northern section of the Taranaki Basin off Awakino.
The first well to the west will be Hoki-1, 150km from New Plymouth, which will be spudded in October. After that the Kan Tan IV will drill at least two prospects near the existing Tui oilfield followed by another exploration well called Tuatara-1.
The first northern offshore well will be Albacore-1, an exploration well to be drilled by the Ensco-107 in water depths of about 95 metres, 80km north of New Plymouth.
The operator will be United States firm Westech, which holds 50 per cent, with the other shareholders being listed New Zealand Oil & Gas (NZOG) with 40 per cent and state-owned Mighty River Power with 10 per cent.
The well will also be spudded in October at a total estimated cost of NZ$20 million to $25m.
NZOG says an assessment of the central northern Taranaki Basin is that is very prospective. The first prospect to be targeted will be Albacore, which contains three separate target zones that may contain hydrocarbons.
NZOG's shares closed Friday at 162, up 3 cents.
Yep- the dividend taken as a share is still subject to income tax and as such the company will need to attach imputation credits to be used by the shareholders.
Anyway these shares instead of divs that NZ offer are a rort. Usually the discount is taken from the 5 days cum div. So usually it is better getting the net cash div and buying new shares ex dividend.
Blackcap who would take up the offer if it were 5 days come dividend? That would be like forgoing the dividend entirely. If anything it should be 5% for the 5 days post dividend. I will be taking the div in shares but may not next year if it is still in the miserly range of 2.5%
The Dividend Reinvestment Plan states that the additional shares are calculated based on the weighted average sale price for NZOG shares sold on the NZX on each of the first five business days immediately following the record date.
The 2.5% discount has been offered on the basis of advice received by the Board that 2.5% is the most common discount offered for DRP's in NZ.
In my experience the share price is generally affected 5 days before and after the record date, if it changes after the date you receive payment, up or down, has nothing to do with the dividend.
Regards the 2.5% discount, there is more than an even chance that you come out ahead, taking also into account B/ Fees.
You can take it or opt for cash, fair allround imo.
SKC implemented this concept in the last few years as well. For them it more more important to encourage reinvestment compared to nzo. SKC had a lot od dent to equity ratio (although improved recently) so it was a no brainer for them.
Similar but no so important for nzo to have the funds reinvested. Obviously the more reinvested the more leverage and opprtunity nzo will have.
overall its a very smart ploy and good for all parties.
Dividend reinvestment plans are great for small investors who don't do much trading because:
a) they don't pay brokerage for new shares.
b) it enforces the discipline of reinvesting back in the market instead of squandered the cash on beer, groceries and Pumpkin Patch childrens clothing (assuming that one doesn't rely on dividends to pay for beer and groceries in first place).
All the dividend reinvestment schemes I am subscribed to seem perfectly fair and the NZO scheme appears no different.
this is rather amazing, my two biggest stock investments nzo & kas are giving presentations here in perth - today being nzo @ the good oil conference and tomorrow kas at the africa down under conference.
notice the nzo presentation includes more detail on romania.
M
Over the years you guys have raved on about Gordon Ward - mostly good even though sometimes loudmouthing him
I had built up a picture in my mind of what he looked life in real life - something along the lines of the hardened old oil men who stopped the world when they made a prononuncement
There was a photo of Gordon in the paper the other day .... looked nothing like I imagined .... almost a babe in arms relative to what i thought .... and not what I envisioned an oil guru to look like at all
But then the world has changed a lot over the years
arjay - you are right
You guys must have been raving about Radford and somehow I associated him with Ward. Shows you how much I know about NZO then ... and how dumb
Apologies to Ward
Both NZO and PRC have true leaders then .... persona that fits their roles
Guys ... no more moans about communication ... they are the BEST
New Zealand’s top online business communicator named
http://www.nbr.co.nz/article/new-zea...r-named-109885
Well done NZO. Would have to agree that NZO is a top communicator especially given its an oilers.Compare this with CUE which when they have a cash issue will not even say in advance if the top holders would support it. NZO also take a proactive interest in what we are saying here on sharetrader and that is even after some posters comments do not warrant a reply and are deliberately negative.
Proud to be a holder in nzo.
The outfit that did the survey (Wired Internet Group) hasn't got it on their own website yet..tich tich tich ;)
However their Best investor website award for 2008 survey is there.
Could the Pr team whip down to the Blackball working mens club?
how does the distribution of shares work instead of cash when it comes to the credits?last year my dividends went in as income on my tax assesment but the imputation credits more than covered my tax cause its at a 33% rate and i only earned enough to pay 20%,im thinking if you take the shares instead what happens?do you only get the same amount of shares as the 5 cent divy would buy and still get the credits which can offset your liable tax?can you just sell those shares at a later date and therefore not class it as income,or is it the same tax wise no matter what you choose?
friedegg,
It is exactly as if you had received the cash and then gone to the market and bought shares with it (albeit
at a discount of 2.5% and no brokerage). You will still be credited the imputation credits and this time
there will also be some resident withholding tax (RWT) paid by the company on your behalf.
If the imputation credits are in excess of your tax liability then you can carry the excess forward to future
years and claim the RWT back from the IRD in your tax return. Details as per announcement:
The amount per security is calculated at $0.05139552. <--- the official dividend of which:
Resident withholding tax is calculated at $0.00139552. <--- this goes to IRD from above, claim it back!
Net payout or converted to new shares $0.05000000 <--- what you get in the hand
Imputation credits are calculated at $0.02322974. <--- company tax paid, additional to top amount
So the imputation credits alone work out at just over 31% of gross income received,
should more than cover your tax liability if you still are in the 20% bracket!
Last Thursday David Salisbury spoke at Canterbury University about technology in the oil and gas sector and he spent some time talking about the TUI oil fields, and Romania...
I was so gutted because I couldnt go, I had work...
But heres a very quick summary of what a friend told me...
This summer in the up and coming Tui drilling program, the seismics in the south (where the JV will be targeting) are similar to the North where production wells are flowing oil, they show the same structures and look encouraging for further expansion of this field......
David Salisbury has spent good time in Romania...
expect some activity in the region in the medium term...
I think this expanison is a positive...
on another note....
NZO is a great stock...
this up and coming drilling program offers a risk profile that we dream of, one that if we look around the oil and gas sector we rarely find...it is that of low downside, big upside to the stock... NZO had it a few years back with the drilling of Hector and TUI when I came back for a nibble at the options... this sort of risk return is back...
big upside is in the drilling results...
low downside is protected by NZO's cash backing, tui production, and kupe...
:cool:
.^sc
Hell you would have to be into this share wouldnt you ??
New Zealand Oil and Gas' share price could rally by half if four planned well explorations succeed, says Forsyth Barr, but another analyst thinks the boost will be higher.
NZOG plans to drill the Albacore oil prospect over October and November, and the Hoki prospect in December.
The two prospects off Taranaki were "pure exploration wells" but two other drillings to expand the Tui oilfield had a greater chance of success, Forsyth Barr said.
"If all wells are successful, we believe the potential share price rally could be in the order of 50 per cent but if all are failures, the valuation downside is only around -5 per cent."
The downside risk of the exploration wells was 8 cents a share but their upside potential was $1.03 per share, it said.
Forsyth Barr said NZOG represented an attractive opportunity.
"If all wells are unsuccessful, then our valuation will only fall -4 per cent, but if either Hoki or Albacore are successful then our valuation will immediately increase approximately 25 per cent and we would expect the share price to do likewise."
The chance of at least one of the four wells succeeding was about 60 per cent.
McDouall Stuart analyst John Kidd said the share price rally would be about $2 if all four wells succeeded, although this was unlikely.
"The odds of drilling in New Zealand are not that great. You'd be hopeful that one of the four would come in. Anything better than that would be a bonus."
Mr Kidd forecast in July another Tui-sized field would be worth at least 50 cents a share for NZOG. Another find in the Tui area would substantially benefit from drawing on Tui's existing production facilities, he said.
The potential of an exploration was determined by the level of equity held, the difficulty of developing a field and its liquid-gas mix with liquids being more valuable than gas, he said.
NZOG recently bought a 40 per cent stake in the Albacore prospect.
theres also the fact it goes ex divi on friday,i tried to sell my lot the day of the annual result release but only managed to get rid of about 40000 and left the rest to get rid of at 1.65 but it never happened so i rung the broker this morning to pull my sell order cause i may as well wait for the divvy now
Blockhead decided on Friday PRC was going nowhere in the meantime so bailed out of them @ 98c and topped up my NZO supplies @ 1.62, more likely upside in NZO than PRC for the next few months.
Will reasess PRC again in a month or two, in the meantime will eagerly await NZO's capture of a large elephant !!
I presume these guys are spruiking AWE -- haven't time to look further into it... but geez do you reckon they used to work for the Reader's Digest PR dept? Talk about a bunch of gasbags...
EDIT -- apologies for the excessive length of this!
----------
Investors: Here's how YOU could make
223% to 706% gains from the...
'Saudi of the
Deep South'
Studies reveal there could be 10 billion barrels of oil of the coast of New Zealand At current prices, that's $670 billion in untapped crude
And one tiny Aussie company will use a
revolutionary submersible drill to find it...
Drilling begins in November. Read on and stake
your claim in the biggest oil story of 2010
Dear Reader,
"Saudi-sized structures, they are that big."
https://webmail.landcareresearch.co....base/clear.gif That's GNS Science's David Darby's take on the oil reserves contained deep off the coast of New Zealand's Taranaki Basin.
"The deepwater frontiers of New Zealand beckon," says Darby.
He estimates up to 10 billion barrels of oil could be recovered.
That's more oil than Norway, Oman, India, Indonesia and the United Kingdom.
Of course, this oil has to be found first. And one tiny Australian company - stock selling for just $2.57 on the ASX - is leading the pack by a country mile.
This could be the best investment you ever make....
Drilling begins November 2009...
'Saudi of the Deep South '
If you own just one Australian energy stock, make it this...
50km off the coast of New Zealand, in water depth of about 120m, a tremendous new source of oil has been discovered...
And one Sydney-based company has already found and obtained the rights to drill for more than 55 million barrels.
It's obtained the use of a revolutionary new semi-submersible rig to extract the oil.
This drilling starts in November this year.
This story has come right out of leftfield.
Right now it's getting almost ZERO press coverage. But it won't stay that way for long...
If you're an investor looking to get in right at the bottom of what could be the biggest growth stock story of 2010, now is the time to act...
How Much Do You Stand to Make?
As you probably know, many of the world biggest and oldest oil fields have already peaked or are nearing peak production.
Right now - and in the coming months and years - the BIG money in oil will come from finds made in new or previously inaccessible areas.
If you can get advance warning of a company that a) has found a sizeable and previously unknown oil deposit and has the rights to pump the oil... then you stand to make great deal of money.
How much?
It's hard to estimate. Every oil find is different.
Take Heritage Oil...
The Financial Times got wind that this explorer had found a massive field in Iraqi Kurdistan. Shares shot up 25% in a day... and have risen 223% since February.
Or Givot Olam Oil Exploration...
This Israeli company struck oil at a site near Rosh Ha'ayin... and shares jumped immediately by 32% in a matter of hours...
Or Irish explorer Petrel Resources...
In 2003 Petrel was one of the first companies in the world to get drilling rights in post-Saddam Iraq. Shares steadily climbed an astounding 706% in just 15 months.
These are 'outside-the-norm' finds... and outsized gains for investors who get ahead of the rest on the developing story.
These kinds of stories will characterise the energy landscape for the next 10 years and more - and if you're an investor with speculative capital you're willing to put on the line, they're stories YOU will want to hear about.
I reckon I've found such a story for you: virtually on your front doorstep.
One that could easily outshine anything you may have heard about or profited from this millennium.
But you need to act fast on this.
At the moment, the Taranaki basin is still massively under-explored by world standards. Only a total of about 400 wells have been drilled so far, compared with the tens of thousands that had been drilled in the similar-sized British portion of the North Sea.
"Greater Taranaki has the characteristics of world-class petroleum systems around the globe," says Darby.
And this small explorer whose shares you can buy for $2.57 has a 42% stake in the area's largest oil field!
Intrigued?
I'll give you more analysis on the tiny Australian stock that's about to unleash the 'Saudi of the South' in just a moment.
First, though...
I'll Introduce Myself...
My name is Dan Denning.
I'm Head Analyst at an Australian investment advisory called Diggers and Drillers.
I've been in the strategic investment game a while now. I thought I'd seen everything. But while I saw this financial crisis coming, I really had no idea it would get this bad.
A good chunk of the world's banks have been badly - perhaps permanently - damaged by the global financial crisis.
And like it or not, the governments of the world have decided to step in and give them bailouts.
It's hard enough to predict the markets at the best of times.
But with governments launching new harebrained schemes every other day, and more nasty surprises potentially on the horizon, it's tougher than ever.
But there's one thing you can know with absolute certainty:
The Price of Oil - Eventually - MUST
Resume its Upward Trend
We're at a crucial crossroads for oil prices.
When oil went below US$40, dozens of projects around the world were shelved, many of them for good. The result is a shortfall in energy exploration now that could lead to an energy crunch in the very near future.
Cambridge Energy Research Associates (CERA) - a leading advisor to international energy companies - has recently pointed out that the 2008 oil price crash led to the cancellation of numerous oil projects. The result is that the world will find and produce a lot less oil than it expected just 18 months ago.
CERA estimates that 52% of the potential net growth in liquids production capacity from 2009 to 2014 is at risk of deferment or cancellation.
This represents about 7.6 million barrels per day (mbd) out of total potential future net growth of 14.5 mbd from 2009 to 2014.
That means that nearly half the new oil supply that markets expected just a year ago will no longer be available!
Take the Athabasca Tar Sands of Western Canada. The International Energy Agency estimated last year that the Canadian oil sands would account for nearly 70% of the increase in nonconventional oil production between 2009 and 2030.
Not anymore.
With the price of oil where it has been, investment has been cut way back.
Already, the Canadian Association of Petroleum Producers has revised its forecast for investment three times. It's cut it from $20 billion to $10 billion currently.
It begs the question: Where will the oil we need come from?
These swing producers, like the Canadian oil sands, can't stop and start very easily. They take time. And these swing producers need a higher oil price to entice them to invest in new projects.
That's bad news. The global economy will need that oil when it recovers.
And Australia needs it more than most.
Take a look at this chart...
How will we make up the shortfall
when oil becomes even scarcer?
Australia's oil production peaked in 2000 and has fallen o a cliff ever since.
Australian consumption now more than doubles our production.
For many years, Australia was a net exporter of oil. For this reason, we have not had to build a strategic reserve, other than account for products held at refineries, which the Federal Government, through the IEA, would control during times of serious supply disruptions.
This is a mind-blowing mistake.
"On top of this," the Independent reports, "there is the problem of chronic underinvestment by oil producing countries, a feature that is set to result in an 'oil crunch' within the next five years."
Here's what this means...
Power Shifts to Producers
Take a look at the chart below...
Australia's annual oil import bill is predicted to soar from just under $4 billion now to more than $20 billion by 2015.
But will we find anyone willing to sell it to us?
Australia's Oil Endgame
Australia now finds itself in a desperate position.
Its own oil production is falling. It must compete for oil with mega-buyers like the U.S. and China. And that assumes the oil will be there for the buying.
Don't be so sure...
According to a recent article in Britain's Independent,
"The world is heading for a catastrophic energy crunch that could cripple a global economic recovery because most of the major oil fields in the world have passed their peak production."
The report quotes Dr. Faith Birol, the chief economist at the same IEA I mentioned above. She told the Independent that, "global production is likely to peakin about 10 years - at least a decade earlier than most governments had expected."
The IEA provided a detailed assessment of 800 major world oil fields.
Those fields account for more than 75% of the world's proven oil reserves.
The IEA concludes that that production at most of the biggest fields has already peaked and that, "the rate of decline in oil production is running at nearly twice the pace as calculated just two years ago."
You see, the IEA concludes that the market power of a very small number of oil producing countries with large oil reserves is about to get much greater. They have the largest reserves. As global production falls, the biggest players become even more important.
Australia is not one of those players.
Historically, the countries that produced a lot of oil - Saudi Arabia, United Arab Emirates, Iran, Mexico, Venezuela - haven't used much oil.
That's changing - fast.
As these countries have moved into the 21st century, so have their oil needs.
The chart above shows that net oil exports from the world's top 20 exporting countries have been trending downwards since mid-2005.
Those Who Have the Oil Have
Seen the Writing on the Wall
They figure in a world where oil is getting harder to come by, it may just be a good idea to hold onto your reserves instead of sell them.
The IEA now estimates that oil production from existing fields will decline by 6.7% a year. In 2007, it estimated production at the major fields would decline by just 3.7% a year.
This raises a critical question...
Could oil production fall even quicker than the IEA is now expecting?
I think the answer is "yes."
But one fact is clear:
Australia will be one of the first countries hit hard as big producers start producing and selling less oil. That's not me talking. It's straight from the mouth of Kjell Aleklett, a physicist from Uppsala University in Sweden.
He told the Sydney Morning Herald recently that Australia's relatively underdeveloped public transport system leaves the country more vulnerable to a downturn in energy production. "Australia is very sensitive to such developments. Much of your industry and transit is dependent on oil, and supplies will decline."
He also warned a Senate committee that the International Energy Agency had wildly overestimated oil production, lulling nations such as Australia into a false sense of security. Rather than oil production rising by 20% by 2030, he says production is likely to fall 11%.
Will the Government wake up and act?
NO WAY!
Canberra Won't Save Us
Canberra has no policy in place to deal with what's about to happen.
The assumption is that there is enough oil for the long term... that Australia will find its own new sources... that new sources of energy will fill the gap... that there will always be someone willing to sell us a barrel of their oil when we need it.
Those assumptions are fairytales.
You might have heard people say the world is running out of oil. It isn't. There will be oil for decades to come. But 'easy' and 'cheap' oil is going to way of the dodo.
Australia must create a national energy policy that takes this into account. It has not done so. It's not helping oil companies find alternatives to the tapped-out Bass Straight.
Nor has Australia researched steps for instituting national programs researching liquid fuels to replace petroleum. There is no policy of energy conservation... no programme to make our farming techniques less reliant on oil... no means of protecting what energy assets we do have from foreign takeover.
As investors, consumers and citizens, we're on our own.
If we're really lucky, Australians can learn to live with less oil. Things will change. Australian economic affairs will eventually reorganize at a lower scale of transport, activity, governance, civility, and economy - level where this is simply less oil available for our existing way of life.
But every week that passes where we fail to recognize the nature of our predicament thrusts us further into the uncharted territory of hardship.
Here's the thing...
While this is a frightening prospect with major societal and economic implications, it's also one with significant potential for profit...
The Trade of the Century
Pretty soon, normal supply and demand factors will assert themselves in the oil market... sending oil back to triple figures not in years... but months or even weeks.
I'm not talking about another rally above $100.
I'm talking about a permanent, sustained new crisis that will make the petro-busts of the 1970s... even the last two years... look small in comparison.
Right now, oil prices are still dragging well below the trend line... so the looming supply problem is no longer an issue. Even as it quietly becomes more urgent.
As an investor, right there is your opportunity.
If you're savvy enough to see this now - when most investors are still spooked and energy stocks are dirt cheap - you stand to make a great deal of money from when the market wakes up and sees what's coming.
I've researched several ways for you to play 'Australia's Oil Endgame' for profits.
The "Saudi of the South" recommendation is the first. There are three more opportunities that could be equally as profitable.
I suggest you move in them quickly.
Because whatever happens in 2010 and beyond...
Owners of Energy Will be the Winners
As the last easy oil flows out of the ground, cash will flow to those who own it. The coming scarcity of oil (and natural gas) will be the rising tide that will carry all energy forms to higher prices (coal, uranium, wind, solar, hydroelectric, bio-mass and more). Moreover, owners of long-term supplies of energy (20 or more years) will be much bigger winners than owners of short-term supplies.
In other words: invest in those companies who OWN or are in the process of FINDING long-lived energy stockpiles... and hold for the long term.
That is the modus operandi of my own investment newsletter, Diggers and Drillers.
See, most energy companies, with few exceptions, have seen their stock valuations plummet in the last 12 months.
This, of course, is tied to big falls in oil prices in 2008.
As breathtaking as that was, I believe it also presents you with a very special - perhaps once in a lifetime - opportunity.
I've compiled full research on four such opportunities in a brand new profit report.
And, with your permission, I'd like to share the results with you - FREE OF CHARGE...
Profit From Oil's 'Long Aftershock'
The glaringly obvious trade here is a play on mid-tier oil and exploration companies - many of which are trading at half last year's price or less.
Of course, it's still risky. Some of the stocks I've picked are mid-tier companies. They've had a rough time in the last year. If you don't have capital to spare, you'll want to give this a miss.
And there's the fact I might be wrong. (Heck, part of me hopes I'm wrong.) But I have seen nothing yet to convince me otherwise.
You might remember that four years a pair of hurricanes blitzed America's Gulf Coast oil and gas refineries, bringing oil production to a crawl.
That alone forced the oil price from $50 to over $70 per barrel, virtually overnight.
Here you can see first-hand just how sensitive the oil markets are to even the tiniest supply bottleneck. Now it's about to happen again. And the smart money's already placing its bets...
Dan Denning founded and edited the financial newsletter Penny Stock Fortunes in 1998 and edited Strategic Investment, from 2000 to 2006.
Via his high-level, macro-economic and stock-market forecasts in these newsletters, he led over 35,000 subscribers in 70 countries to profits.
Dan's analysis for The Daily Reckoning is read by more than 500,000 people regularly. Dan is also a regular columnist for MoneyWeek, a London financial publication.
In 2002 Dan spent a year observing U.S. markets from Paris before relocating to the London offices of Fleet Street Publications. In 2004 Dan spent six months travelling the globe in search of investment opportunities. This trek resulted in the New York Times bestseller, The Bull Hunter (John Wiley & Sons).
Even if you're only half-convinced yourself, I urge you to get all my latest recommendations and research in a new report called The Long Aftershock: Your Second Swipe at Triple-Digit Energy Returns.
Inside you'll get my very best ideas on how to turn the coming crisis to your financial advantage. You can claim it for FREE by going straight to the end of this report and filling in your details.
The "Saudi of the South" stock mentioned at the start of this letter will be the first recommendation you read about.
I'll tell you a little more about these Aussie oil frontier explorers...
They're Spending Up Large
While Competitors Hibernate
Not only does this company have a major stake in one of the most promising new oil finds on the planet. It's also a "mega cash box".
While many oil outfits have squandered their revenue from triple-digit oil prices, this one has been prudent. It has $340 million net cash reserves in the bank.
If you're a resource company, cash is your lifeline during a credit crisis. It means you don't have to go cap in hand to banks - most of which are refusing to lend anyway - in order to keep your business going.
That's a second reason you should like this stock.
Third: This company is not only maintaining current exploration plans off the coast of New Zealand... it's EXPANDING. It has got the big picture in mind.
BP boss Tony Hayward said recently: "When the economy picks up, demand will pick up very fast and we will quickly run into supply problems."
As you've seen so far, that's something of an understatement. This Australian explorer knows what lies ahead. So it's doing its damndest to make sure it's first in line to fill the supply gap when it arises.
Recently the company decided to start deploying its war chest of cash, announcing plans to expand its drilling operations in New Zealand from 120,000 barrels per day to 180,000 barrels per day.
The Oil and Gas Journal reported:
"The upgrade will enable more oil to be recovered at a faster rate from the currently producing reservoirs and also provide the flexibility to tie-in any future nearby discoveries."
And then went on to say...
"...is now confident it can extract the remaining reserves without the extra development well. There are five attractive prospects near the three producing reservoirs which in total could contain another 50 million bbl of oil."
Look, I've done my homework on this.
And you're just not seeing announcements like these from oil companies these days.
What's more, despite the global downturn, this company is making enough revenue to fund development without digging into its savings. It made $140 million in the final quarter of 2008, despite the sinking oil price.
And there's one final great reason to own this company now...
It Recently Handed Investors $52 Million
Income from your investments is crucial during recession. Investment legend and author of Stocks for the Long Run, Professor Jeremy Siegel, calls dividend-paying stocks "bear market protectors."
Earlier this year, for the first time ever, this company became a dividend payer - announcing a 10% per share special dividend amounting to a massive $52 million.
That takes some chutzpah at a time when revenues are down, oil prices are low and cash is scare.
To me it shows two things: 1) this is a company that respects its shareholders and 2) it's confident it can ride out the storm and start making a killing at the end of it.
With a healthy bank balance, there's every chance it might issue another dividend at the end of the year. Especially if the stock price itself stays cheap.
But you know what? I don't think it will.
Stock in this "Saudi of the South" explorer trades around $2.60.
That's 24% lower than the share price was a year ago."Remarkable. True. Hard-hitting."
Through his Diggers & Drillers newsletter and commentary in the Daily Reckoning, Dan Denning has a loyal following of think-outside-the-box' investors. Here are some recent words from some of them...
"Dan, this is one of the most remarkable, truest and hard hitting articles I have ever read. Your readers should listen, certainly I am. Thank you for the privilege of being one of your readers."
-- Luigi Soprani
"Love your website, and have started cc-ing my friends and associates. What is scary is that your views make so much sense but are so different from the hype coming out of the mainstream media."
-- Mark
"...a real change to the hype and deceit common in other economic news and speculation. Your articles used to be almost a solitary source of speculation about our current economic bubble and it seems that now what you have been saying all along is pretty spot on."
-- Pete
"Dan, Just writing to let you know I really appreciate your views - always makes me think about something that I hadn't really appreciated. Thanks for the good work!"
-- Paul
"Dan, I find your mixing data and literary economics as an interesting way of explaining what are very complex issues... currently you are the only decent site on the net offering insights like yours... there are plenty of places that other goldfish brain investors can find "BUY!" or "SELL!"
instructions. Keep up the good work."
-- Edward Martin
But it's recovered well above the 52-week low of $1.75. I believe it's a matter of weeks, maybe DAYS before investors who sold out realise their folly and buy back in... and other bargain hunters start buying as well.
$2.60 is a flat-out bargain.
I believe you'll see the share price at $5 or more in 2010 - even if the oil price yet hit triple digits. After oil prices recover - and they MUST - you could see this company trading at $8 to $12 in as little as three years.
You can get full research on this company by claiming your free report: The Long Aftershock: Your Second Swipe at Triple-Digit Energy Returns.
You can do so by going straight to the end of this letter and filling out your details.
But this isn't the only promising oil play you'll hear about...
Down-But-Not-Out Aussie Explorer Set for a Comeback
Two and a half years ago, this company was doing brilliantly.
It had just broken its production record, and had assets running at an all-time high extraction rate of 12,000 barrels per day.
Then, production started declining.
The company, at the time, was under poor management, and it made a cardinal error: it hadn't planned ahead. It simply didn't have enough reserves under the ground to maintain its valuation. It's like a grocery store running out of bananas, only much worse. Without more oil in the pipeline, the prospects for future earnings turned dim quickly.
The stock bottomed out at a bit above $1.50.
Then this explorer started to get its act together and cleaned out management.
It now has oil and gas exploration interests totalling nearly 13,000km2 in over three different countries; Australia, New Zealand and Brunei.
This company has no oil hedging whatsoever, and a market cap of only $111 million.
That's good, because it leaves the company fully exposed to a big, upward oil shock.
And it seems this outfit is already starting to reap the rewards from oil's recent rally.
In fact...
It Just Got a 'Speeding Ticket' from the ASX!
In June, this explorer got a speeding ticket from the ASX.
It shot up 53% from its low earlier in the year.
When the ASX sends a "speeding ticket" it asks a company to explain unusual price action in its share. And a 53% rise that comes without any accompanying announcements or material changes to the company's prospects IS a bit strange.
The company said it's not aware of anything that might explain the big move.
I can think of something that would explain it.
Someone is buying the stock. It could be a lot ofinvestors. Maybe they know something we don't. Frankly, there are a lot of moves like this on Australian listed stocks. It happens, and then a few days later something comes out from the company that was obviously known privately a few days before. I'm not saying that's the case here. I'm just saying it happens a lot.
So what is it in this case?
Well, when you rule out the known unknowns and the unknown unknowns, that just leaves the knowns. And what we know is that crude oil is rising. We also knowthat this company's share price fall from peak-to-trough was nearly 75%. The stock was deeply oversold at fifty cents.
But it is not yet fully valued at the current price of just over $1.
I like this company's prospects. I expect it to do extremely well with oil above $60... and spectacularly if we get near $100 again (as I'm positive we will).
You'll get full details on this company in The Long Aftershock: Your Second Swipe at Triple-Digit Energy Returns. You can claim it now - for free - by going straight to the end of this letter.
Finally, this 'jack-of-all-trades' is involved in BHP's much-hyped Olympic Dam expansion plans.
'Jack-Of-All-Trades' Lands $150m Middle East Contract
This company focuses on four different profit generators - all oil and energy-related.
In fact it's got a finger in some of the fastest growing pies in the world.
It's one of only a handful of firms in the world with the capacity and expertise to handle complex energy projects.
Expanding production at existing oil facilities (on and o -shore) is big business for these guys.
In fact the company has just revealed that it has won a Program Management Consultancy contract for an integrated gas development project in the Middle East. It's worth US$150 million, and the task is to manage six engineering, procurement, and construction packages. This is just one example of many such contracts in regularly wins.
The productivity of the world's oil and gas fields depends on a high level of experience. This is one of the few companies in the world that can offer this kind of soup-to-nuts project management.
The company has contracts for both conventional and unconventional energy projects. They are spread out all over the globe, giving Australian investors a bit of diversification in the company's earnings profile.
And although it remains unpopular in Australia, the world's nuclear build-out continues. This company has a piece of that action as well, and is investing in its nuclear expertise.
In fact this outfit has a portfolio of power projects that includes: solar, nuclear, new coal, and one of the more popular - but expensive - power projects of the next 50 years, the Integrated Gasification Combined Cycle (IGCC) coal plant. This is a greener form of coal with fewer carbon dioxide emissions than a conventional pulverized coal power generation plant.
First-half profits were up 29%.
I think that's just the beginning. If, as I believe, the oil price keeps rising, it should again see an expanding order book.
This stock has been set back by the market crash. But its core business is remarkably strong.
I'll give you everything you need to know in your free report, which you can claim at the end of this letter.
And there's one final play on rising oil prices I want to fill you in on...
Aussie LNG Producer Teams Up With Exxon
Your last Aussie recommendation is cornering a lucrative new energy market in Papua New Guinea (PNG).
It has a 34% stake in Exxon Mobil's large $11 billion liquefied natural gas (LNG) project in PNG.
That project is targeting delivery of its first LNG cargo in late 2013. In April of 2009, the company told the ASX that a Chinese company (probably PetroChina or China National O shore Oil Company) has agreed to buy LNG from the PNG venture.
Whichever state oil company it is, it has agreed to buy two million metric tonnes of LNG a year.
The company's managing director says more off-take agreements will be signed now that the first one is in the bag. This is a company with great revenue prospects even if energy prices stay flat.
But it's a stock you'll probably want to move on quickly.
Talks with banks on final project financing will start this month, according to Bloomberg, after key terms were agreed with export credit agencies late in the second quarter.
This company is in good financial shape, too. It ended the first quarter of 2009 with US$402 million in cash and no debt.
That bad news is this company has just reported an expected fall in first half revenue thanks to the weaker oil price. However second quarter revenues were up to US$116 million from the first quarter figure of $71.4 million.
This outfit is a key Aussie player in the most advanced LNG project going.
At a price of around $5.59, this stock is already up 11.13% since I first tipped it in April.
If you're betting on higher energy prices, this stock is a great punt.
You'll get my full research on this company - future projects, financials, target price and more - by claiming the free report at the end of this letter.
Do Not Delay In Getting This Information
The whole world needs oil. Australia needs it more than most. From here on in, it's going to get harder and harder for us to extract or purchase new supplies.
You've had a glimpse at the gathering storm clouds. A great game of chess is being played by oil multinationals and countries around the world.
Against this background, investing NOW in oil and energy doesn't just look attractive... it could almost be deemed mandatory for anyone who wants to grow wealth and preserve capital.
You can get my four best opportunities by claiming a free report: The Long Aftershock: Your Second Swipe at Triple-Digit Energy Returns.
Of course, you're probably wondering why I'm giving invaluable research like this to you free of charge.
Well, with your permission I'd like to send you something else for free as well: a trial subscription to my newsletter, Diggers and Drillers.
When I say "trial", I mean it. I wouldn't ask anyone to commit to anything in this environment without giving it a good test-run.
If you don't like my analysis, we can part ways. And you can keep my just-published profit plan: The Long Aftershock: Your 'Second Swipe' at Triple-Digit Energy Returns - with my compliments.
However, I'm willing to bet you'll find Diggers and Drillers an invaluable ally in the trying months ahead.Here's why...
How to Make Money on the Markets: 2009 to 2012
Now is the time to start owning real assets.
The unprecedented moves by central banks in the last 18 months to stave off collapse are likely to further destroy what little faith remains in the U.S. dollar and many other paper currencies.
If the dollar continues to struggle, a diversified basket of commodities would likely appreciate (in dollar terms) and retain purchasing power.
The solution? Own tangible assets.
If you accept this trial invitation today, I will go about helping you acquire and accumulate the best, most oversold tangible asset investments I can find on the market, both locally and abroad. I'm talking about gold... steel... oil and energy... agriculture...
The kind of stuff that retains value - even if paper currencies burn.
The aims of Diggers and Drillers are twofold...
- To give you the best possible chance of seeing positive returns on your portfolio WHILE a recession or even depression is still in place. And,
- To build, at a discount, a rock-solid portfolio of investments that will take off like a rocket after the credit bubble has deflated.
Capital Preservation and then Profits
That's the Diggers and Drillers manifesto for 2010.
I can't promise you we always get it right with our share tips and market calls. This market, frankly, is the most bloody treacherous I think we'll ever see in our lifetimes.
But I'm pretty sure you won't find better advice on the subject, anywhere in the world. I'm not boasting. I've looked. You either get the 'party line' from some brokerage whose job it is to promote a company... half-baked advice from some hack needing to fill column inches... or anonymous posts from random resource nuts in the blogosphere.
No one seems to take a step back and look at the big picture.
And what serious pundits there are seem happy to talk-up companies or projects without doing the due diligence. But this is what we do here!
And, if I may say so, we do it well.
Our work is not compromised by any conflicts of interest or other agendas. We don't produce hype-up fear stories just because they sell newspapers. But, on the flip-side, we don't shy away from telling it how it really is. We publish our best investment ideas and we don't get paid a cent by any company to promote it. And there's never been a better time for you to get hold of this kind of investment intelligence.
But don't take my word for it. Try my analysis in Diggers and Drillers out for yourself.
If you do, here's what you'll receive...
Your Trial D&D Subscription Package
In addition to your free report, The Long Aftershock: Your 'Second Swipe' at Triple-Digit Energy Returns,you'll be sent:
"Your readers should listen. Certainly, I am!"
More praise for Dan Denning:
"Your readers should listen, certainly I am. This time we may witness the "perfect storm" when all bubbles pop at once. Over many years I have seen liquidity come and go several times: it builds up slowly and then decreases and collapses suddenly, leaving a trail of destruction and misery which affects almost everybody. Thank you for the privilege of being one of your readers."
-- Luigi Soprani
"Your Articles have positively driven my investment decisions in the Aus. share market. Thank you for sharing your knowledge of the world markets, your articles make for far better reading & understanding then the AFR..."
-- David Brand
"It's not easy to make someone, smile, grin, chuckle, laugh when reading about subprime, CDO's, the value of the USD etc. But you do!"
-- Liz Barrett
"I am semi new to investing and find your articles totally fascinating. I really like the approach you take to markets/advisors (fairly cynical), it offers a real change to the hype and deceit common in other purveyors of economic news and speculation. I also like the reality check you tend to give. Your articles used to be almost a solitary source of speculation about our current economic bubble (apart from your sources, of course), and it seems that now what you have been saying all along is pretty spot on."
-- Pete
"I just want to thank you in advance as you may have saved/made me a lot of money. I love reading The Daily Reckoning, if nothing else it is a good read, but obviously enough of what I read prompted me to put my entire Super in the cash option on 1/7/07.
"We will see how it pans out but I agree that the worst is still to come and I'm sleeping FINE. If I put it back into shares now I will be in front but if I'm patient this could really work for me. Thanks again, I am truly grateful..."
-- Colin Raabe
- 12 monthly issues of the Diggers and Drillers newsletter: Packed with fresh, thoroughly-researched opportunities, market analysis and in-depth forecasting. You won't find a better resource stock advisory in Australia... or anywhere for that matter.
The stocks I will recommend have intrinsic value... unlike financial operations, as you've seen recently. The global credit squeeze isn't going to melt away. Diggers and Drillers is one of the best tools to help you play it for profits.
- Peak Soil: The 2 Aussie Stocks Racking Up Millions from an Agricultural Shortage: Ourstrategy for the Aussie agriculture sector is simple. It's very long-term, and perfect for an investor's timeframe. But really, it has less to do with Australia's agricultural industry than it does with China's and India's.. If you're looking for great returns three to five years from now, you'll want this information.
- Gold Mania: As recently as the late 1970s goldsoared when government deficits exploded and the world economy went into recession. Gold becomes a "safe haven" for investors seeking protection from falling stock prices. In this report, you'll find the case for gold in pictures AND words, including Australia's Five Cheapest Gold Stocks for 2009 and why they should benefit from the coming gold mania.
- How to Buy and Sell Shares For Profit. Thisconcise guide answers the most common questions beginner investors have about buying and selling shares. You'll learn how to place orders with your broker... which type of brokerage is right for you... the importance of using limit orders... how much to invest... three ways to reduce tax on your profits, and much more. Even experienced traders will find something of interest in this valuable resource.
You don't pay for any of these four FREE reports. They are yours, on-the house.
And there's another aspect you'll find useful...
Every week, I'd also like to send you a FREE 'state-of-play' investment update, straight to your e-mail account. This will bring you hot-off-the-press news... as well as developments relating to your current holdings. Plus other hot opportunities I have percolating on the stove.
And remember, this is a 'no-obligation' invitation.
Take the next 30 days to test my analysis. Follow my predictions for the market. See how my analysis matches with events that are unfolding. Track my tips for the next three months. If you don't like what you see... for any reason... then contact me for a full, unconditional refund.
And you can keep all the reports I send you with my compliments.
That's a pretty fair deal, right? With that in mind...
What Will You Pay If You Decide to Stick Around?
If you could get this calibre of research from other publishers (and I don't believe you can) it would cost you anywhere from $700 to $1,500 dollars.
You'll be pleased to hear an annual subscription to Diggers and Drillers will set you back just $134.
Listen, I can say with complete confidence you won't get this level of investment intelligence for anywhere near this price anywhere else in Australia. As reader Don L emailed to us recently:
"The services you provide - Daily Reckoning (plus Money Morning) together with Diggers & Drillers and Small Caps - provide by far the best means for keeping up with things that I know... I will be continuing my subscription on an annual basis."
Frankly, if $134 seems like a hefty sum, these investment opportunities probably aren't your cup of tea.
If, on the other hand, you like what you've read so far and would like to get invested in the next big bull market, I'd like to hear from you.
Click here to signup to Diggers and Drillers
Sincerely,
https://webmail.landcareresearch.co....base/clear.gif
Dan Denning
Diggers & Drillers
PS: I can't say for sure when the coming oil supply crunch will occur. But I can say this: it will happen QUICKLY.
Markets are forward-looking beasts. As soon as people start realising the oil we're going to need two or three years after the credit crisis ends just won't be there... well, who knows what will happen?
But you can bet it WON'T be cheaper oil.
To find out my best plays on profiting this now, simply click here to try Diggers and Drillers!
PPS: The Australia Association of Peak Oil says it's a case of 'when' not 'if' petrol prices here soar as high as $8 a litre.
have not read the article - per chance was there a nigeria connection in it.
as for new revolutionary rig - kan tan IV was built in 1983.
awe finished down today
but am aiming to buy some, decision due when my last 20,000 PPP tick over 12 months and 50% capital gains tax kicks in - thats 3weeks away
M
Built 1983 - cripes, there will be shareholders not born when kt IV was launched (If that's what you do with rigs).
SP holding onto yesterdays gain quite nicely, good to see it hasn't gone too wild as well, would be nice to see it 'drift' up as drills and Kupe get closer rather go into wild speculation territory. Might be opportune to quietly accumulate (?)
nzo are XD on asx so that might take a cent or two off the sp
am going to be spending my dividends
M
recent burst of activity due to div ?
amazing, nzo ex div on asx and sp goes up
M
This in my inbox today, dont know how they figure a div of 7.46c, my info suggests a div of 05c but as it is "expert" advice who am I to disagree.
September 16, 2009 EQUITY IRG SHAREINFO MONEYONLINE
INVESTOR SERVICES
New Zealand Oil and Gas
New Zealand Oil and Gas share price could rally by half if four planned well explorations succeed, according to analysts. NZOG plans to drill the Albacore oil prospect over October and November, and the Hoki prospect in December. According to analysts the downside risk of the wells not succeeding is 8 cents a share but the upside potential is $1.03 per share. Furthermore NZOG will go ex dividend on the 21st of September, meaning that you have until Friday to purchase the shares and pick up a dividend of 7.46c representing a respectable yield of 4.5%. NZOG is a cornerstone share for oil and gas exposure in any NZ share portfolio.
To discuss this share please call Nick O'Boyle on Auckland 304 0233 or 0800 437 8489. You can Nick an email by clicking
is the fall ex div usually mechanistic, ie comapny worth 5c less per share, it follows that SP drops exactly 5c on Monday on open?
plus, if I sell today, I doubt I will be on the register on Friday to collect my div, I wonder out loud if it follows that selling today will keep me on the register for Friday, so I get a cum div price, and a div?
whether its div day -2 or -3 Im not sure I bought 100 ANZ some months ago to get in for their share placement, but though bought 2 days prior to due date, later found I was not on the register when it mattered, and NatBAnk or DB not sure which, posted a message that you had to buy the Tuesday to be counted on the Friday.
so my post should actually have SP dropping 7.46c on Monday...
shawsie you will find that all that gets sorted out in the wash. If you are on the register on 5pm on friday you get the div,if not you don't. The people who sell on late friday may get away with it for some short time as i once did with another share,however in the end you have to pay it back through the registre or broker. So no free lunch here.
And what to he-l do you want to sell for anyways with so much about to start happening after such a long wait. Think we have waited since 1986 for KUPE and within 6 months will know for sure how big the greater TUI field is. What a ride and you talk of selling.Do you not like great things?
Digger, thanks
was looking at an arbitrage around div time is all.
but as you mention it, 3 things stick in my throat...
1. if i wanted pan pac shares i would buy them.
2. ditto prc.
3. great to have working capital and no debt, but monster bank account?
so nog gets a reasonable cap, but 1/2 of it is vapour-capital (that might just be my contribution to the traders lexicon)
gogogo gadget kupe, albacore and friends, i hope the kantan4 doesnt have vietnamese made caterpillars ....
and mgmt, you cant buy ppp anymore, its too big, and pike needs to stand on its own two feet, why not give us the shares to do with as we see fit?
Another good solid rise of 3c ahead of going ex div.....
The old drilling fever must be taking hold.Would say it is the punters lining up for Abacore which is suppost to start next month. So with the actually drill about 1/3 finished expect the punters to pull out again and the price to retreat a little as with the old pattern
Mind you KUPE has to be nearing the start line so maybe starting to get factored in.With gas prices world wide falling we might be thankfull the contract has only an inf;ation adjusted clause in it and not a world average price.I remember some years ago i thought this inflation adjusted clause as being a bad outcome for us but it has turned the other way.
The ever shrinking dividend will not have much effect on the SP next monday when it is X as the price is going up faster daily than the div value.
Ok, I will stick my neck directly on the block here; come ex div - the price will at least remain on par if not continue up. There are too many good vibe things happening or in pipeline (excuse pun) - more specific reasons:
1 - For some odd reason NZ shares often go up after ex.
2 - Multiple drills - at least one is a near dead cert.
3 - Kupe, (of course) - with lots of liquids as extra cream.
4 - Generally rising market (slight doff of hat to mcdunk).
The sky may be the limit - but NZO is turning into a high altitude aircraft.
CDE are you backing your neck extension?
there are 100k shares for sale @ 174
if at worse SP flat then sell @ 174 Monday = free carry $5000?
its not quite $5000 anymore though,i think it depends whether monday is a positive one all round as to whether it holds todays closing price or drifts down,probably a few like me that pulled thier sell orders this week cause the ex date was so close and may resume selling next week
Shawsie….Still leaving neck out. Ok, 100k shares might gum up the works for a while - but we're only 2hrs in on days trade and who knows how the depth may change during day.
Neck extension is based on broad-brush factors - details and actuals always ruin a good theory.
I'll check the market mid Monday to see if my head is still on.
Last week was the time to top up as at 5 cents a share you would be ahead on Monday and even paid for your brokerage.
$1.68 on Monday and then North to blue skies with the scramble for everyone to get on board for Albacore. :)
I'm hoping for a dip next week. The lower the share price, the more shares I'll be issued with via the dividend reinvestment plan!
The blue skies can wait for another week...
What a narrow,self serving greedy post that was. The same idea had crossed my mine and will be happy for future SP rises to wait for another two weeks.Yeh,greed and self interest is the order of the day and you can be sure the cash dividend investers are hoping for a hugh rise so they will have their cake and not pay with too much dilution.
Only 4.8c dividend now.
New Zealand Oil & Gas Ltd (NZOG) has recalculated its 2009 dividend payment and issued new details to the market.
NZOG announced a dividend of 5 cents per ordinary share on 26 August 2009. On 3 September 2009 it advised the market of the following details:
• The dividend amount per security would be calculated at $0.05139552.
• Resident Withholding Tax (RWT) would be calculated at $0.00139552.
• The net result being that shareholders would receive cash in the hand of 5 cents per ordinary share.
In taking this approach, NZOG intended that the company would meet the RWT obligation, to ensure that all New Zealand resident shareholders received a minimum net payment of 5 cents per ordinary share.
Different tax treatment arises because of the difference between the new company tax rate of 30%, and the RWT rate payable on dividends, which remains at 33%.
Like many companies, NZOG is currently in a transitional period, where it has some historical 33% Imputation Credits, and has accumulated 30% Imputation Credits under the new corporate tax legislation. This means that a "top-up" of RWT is payable on the portion of the 2009 Dividend that has 30% Imputation Credits attached.
NZOG has now received advice that it should pay only 5 cents gross per ordinary share, with the consequence that the net cash dividend received by most New Zealand resident shareholders will be approximately 4.8 cents per share, due to the payment of RWT. This is in line with the practice of other companies.
If the Resident Withholding Tax rate remains at 33% and the Company Tax rate at 30%, there will also be RWT deducted from future dividends.
It took them long enough to wake up to that, but why take it out of our pockets. They made a dividend announcement and they should stick to it. What the heck, they have got a big enough coffer, enough to fly Salisbury to Oil Conferences all over the place.
Shame I Say!:eek:
Actually they ae not taking it out of your pocket. They are leaving a tad more in the piggy bank for you. If you want that extra little bit then simply sell 2 extra shares for every 1,000 you own.
Personally i thought the dividend represents a very good ROI compared to what other investments are offering and nzo retain enough capital to grow their company further.