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Hi harry
Good post on energy Harry
I'm interested in the direction of energy
production over the next 10 to 20 years.
So we can forget about hydrogen for
now.
Cheap oil is expected to run out by the end of this
decade or sooner.
Wind ,solar and tidal will play their part in the
future but currently produce
less than 1% of total energy used.
I think gas and coal will play a bigger role in the
medium term
Both these sources are well dispersed around the
world.
Gas is clean energy source and the tecnology to
eliminate the emissions from
coal will beat new age energy source
technology.
In NZ we will probably see more small privately own
hydro schemes such as the
one near Motueka wich will provide power for up to
50 homes.
So the way I see it ,we have just got to use what
we already have to solve
energy shortages.
Mick.
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Issuer Code: NOG
Listing
Date: August 1981
Web Site: www.nzo.co.nz
Registered Address: 9th
Floor, The Shortland Centre, 51-53 Shortland Street,
Auckland
Phone: (09) 300 5495
Fax: (09) 300
5499
Share Registry: BK Registries, P.O Box 384,
Ashburton
Registry Phone: (03) 308 8887
Dividend
Details (Latest Year): Nil
Major Stakeholders (at
30/06/02): NZ Oil & Gas Ltd (11.5%);Resources Trust Ltd
(6.8%)
BUSINESS: Oil exploration and
production.
OVERVIEW: NZOG was listed in 1981 after a
public issue of 40m 50c shares at par. The group has successfully
established a wide range of production and exploration interests in
New Zealand and Australia. Major NZ interests are the Ngatoro field
(35.4%) - the major contributor to cash flow and profitability,
where proven reserves amount to 2m barrels (the field being one of
the lowest cost producers in Australasia), the Kupe field (16.5%) -
offshore Taranaki, where proven and probable reserves amount to
264bcf of gas and 16.3m barrels of oil and condensate, with initial
development planned for the next few years, a number of exploration
prospects (onshore and offshore Taranaki), and the Pike River coal
resource (72%) - for which regulatory approval of development
proposals is being pursued. Australian interests previously held
through a 58% stake in Pan Pacific Petroleum NL, were distributed to
NZOG shareholders in December 2001 via a Scheme of
Arrangement.
PERFORMANCE: Recent performance and cash
flow has been underpinned by profitable production at Ngatoro,
supplemented in 2001-2 by a non-cash gain of $5.4m on the
distribution of Pan Pacific Petroleum NL shares, and after writing
off drilling costs on the Opito and Makino wells. Ngatoro revenues
totalled $6.1m (down 26% on the previous year), reflecting average
oil price receipts of $47 per barrel (compared with $65 per barrel
in the previous year). Following the Pan Pacific share distribution
to NZOG shareholders, the company's results ceased to be
consolidated from 19/12/2001, while additional investments in
exploration permits totalled $5.6m during the year. These were
funded by operating cash flows of $5.2m. The group's financial
position remains strong, with cash and liquid investments totalling
$8.9m at 30/6/2002. In the medium term, significant boosts to
revenue are expected from the Kupe project, which is now scheduled
to have gas on stream by 2005. An early development decision for
Pike River could also add substantial value to the group, while
recent acquisitions of additional exploration permits should
underwrite ongoing drilling activity. The company's stated objective
is to fully fund exploration costs from production revenues, which
has been consistently achieved in recent years. For the six months
to 31 December 2002, the company reported a net profit of $491,000,
down 82% on the previous corresponding period. Revenue was down 73%
to $3.3m. The overall profit result cannot meaningfully be compared
to the six month corresponding period to 31 December 2001, which
consolidated former subsidiary Pan Pacific Petroleum NL, shares in
which were distributed to NZOG shareholders in December 2001.
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