Forum Archive Index - August 2001

[Marilyn Munroe <who.c@res.co.nz>]

There has been some comment recently about the profit announcement due
from N Z Oil & Gas. The low N Z $ and high oil prices over the accounting
period should show some benefit.

Comment on profit levels might give the impression that N Z Oil & Gas is a yield stock. This is not the case. It is an explorer, and cash generated from past discoveries is poured back down into holes in the earth.

With the winding down of the Maui Field I had entertained hopes that the Kupe field would be brought on stream as a replacement (NZOG 16.5% interest). With the discovery by Fletcher>>Shell of the Pohokura field this now seems less likely.

A realistic view should also be taken of the drilling program in the Tui Field. It is a long way off shore. The discovery of a large quantity of oil will be necessary for production to be economic.

That said it is exciting to take a gamble once and in a while. The risks are high but the rewards if a good production field is discovered are likely to be spectacular. I look upon my holding of N Z Oil & Gas shares as a Lotto ticket.

Boop-boop-de-do Marilyn

Come 'n listen to my story 'bout a man named Jed
A poor mountaineer, barely kept his family fed
And then one day, he was shootin' at some food
And up through the ground come a bubblin' crude
Oil, that is, black gold, Texas tea

Theme song The Beverly Hillbillies Paul Henning

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