kakapo, page-9

"dmagnus=Agree serious upside available from this.
Slow and steady wins the race :D"


Usually I would agree dmagnus, but if NZO move any slower on Kakapo we may have to check for breathing and a pulse.

This should have been drilled last summer, but it appears they may have wanted a further farm-in before proceeding to alleviate the cost of the drill. I understand that, but am not happy about it. It may just be me, but I am quite happy for them to proceed as is.

Given the projected possibilities of 'this particular drill' for 'risk/reward ratio' I am also happy to go it alone (albeit with the 10% RAI contribution). If it is a duster, then it is a duster and we have lost the cost of the drill, which is not cheap, but is affordable with NZO's present fiscal position. I will hold no blame should such occur, that is the nature of the risk.

However should it be successful, then this may well be company altering for NZO. A >200 find is not to be sneezed at even for the majors and may see different numbers 'in front' of the present SP decimal.

Usually one farm-in's to alleviate the risk cost and one gets more drills for one's budget. Ordinarily I would agree, but as I have stated, I'm happy not to do so with this one.

Hopefully Management can actually manage to get a rig for this Summer, it's not as if they haven't had over a year to do so.

In the mean time I'm happy that the SP is gradually inching northwards, it's still undervalued by analysts..

http://www.nzog.com/analystcoverage