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