howdy pardner

Came across an interesting comment in the presentation done just at the end of February by Chris Roberts, Public Affairs Manager for NZOG.

He made this presentation about NZOG on Feb 26 to the National Power New Zealand Conference.

In a section looking at NZOG's plans for the future these points are made :
"Looking to grow by the drill-bit and by acquisition
– Stream of opportunities being presented
– Priority opportunities being assessed
– Stability of partners now a crucial issue
– NZOG will not overpay for any investment "

This copy has not picked up the underlining of the phrase about "will not overpay" which is an interesting emphasis but what most interestede me was the note about "Stability of partners now a crucial issue"

Okay so we can look at that and say ..."Fair enough. NZOG does not want to go into a joint venture with some company and then find the other company collapses or can't keep up its end of the bargain and NZOG is left with a dud investment". That's one way of looking at that comment.

But then on page 12 of the presentation comes this comment associated with a map of the various basins around NZ.
"• NZ relatively
under-explored
• Level of
international
interest in NZ
relatively low
– A few big players
in GSB, medium
players in
Taranaki
– Active local
partners vital. "

Hmmmm !??? Active local partners vital ????? Howdy pardner ! Who is a suitable local pertner ????

Then in the Summary page at the end we have these comments :
"• The Global crisis a serious challenge for the
E&P sector
– Offers opportunities for a company like NZOG
– Many barriers remain to investment
• Oil demand will increase again – will the
supply side be ready?
• NZ has good remaining prospectivity
• A local partner has much to contribute
• NZOG pursuing sensible growth – both in NZ
and overseas "

Aha ! "A local partner has much to contribute " ??????

Now there seems to be a lot of emphasis on the "partner".
Is this a reference to AWE ? Or am I being a little too cute in suggesting that perhaps PPP is seen as the "local partner"
The 15% strategic stake was just a pre-emptive strike to lock in NZOG's interest and ward off any other prowlers. Then that 15% can be extended, as it is suitable, to make the fit between NZOG and PPP even more of a "partnership". NZOG may go to 20% or even arrange a bit of a share swap to get to 50% of PPP (if such an arrangement is still possible under the current takeover code - not sure on that point - anyone enlighten me ?)

Will be interesting to see if there is anything in this "partner" reference in relation to the PPP issue.