Thanks for the posting the inteview. My rendition / paraphrase of the interview....
What's going on with NZ? Why volatility?
- The market is focusing on "what you are doing for us today" while NZ is focusing on exploration, production, building cash flows…therefore, patience is needed
- volatility is a result of its own success because NZ is one of the few successful companies out there and it is very liquid.
Building a "Billion Dollar Oil Company" (my favourite line)
- new company 1- 1.5 years old, has 8 wells
- In Taranaki Basin, two more wells to be in production soon
- Origin deal for TAWN on track for completion
……….. Waihapa production station has potential for revenue from 3rd party usuage
- Deeper formation such as Tikorangi & Kapuni formation have not been drilled. These have a potential for an "elephant" discovery which has a potential to produce 6000-8000 bbl/d
- Shale in East Coast have not been drilled…big potential here
- Mt. Messenger formation first two wells
…….. began at 1000 bbl/d but have settled down to 300 bbl/d to 100 bbl/d and selling at Brent price (which compared to Alberta= 80% sells 12 bbl/d and selling at discounts = NZ much better)
…… 140 targets have not yet been drilled
- Currently working at four different sites and 8 wells have been drilled
New Zealand Oil History
- historically, there have been about only 500 wells drilled so there have not been a lot of data to do analysis.
- NZ is learning everyday from its exploration and drilling activity; learning about its decline rates
- New Zealand is relative new to oil drilling compared to other parts of the world
AL K will be adding to his position in three days