ppp and nzo, page-9

to reply to corran:

"I think what would do it is if they announce a dividend with the ex-dividend date being just after the options expire. I'm not sure if that is feasible though?"

This is not feasible. Firstly they do not have any imputation credits to attach to the dividend. Secondly, with their Kupe capex commitments and Pike River oblugation to provide working capital there, I fail to see where they would get the money from.

"Or perhaps a big share buy-back?"

It would appear for the same reasons, they will not have the cash for this. also to buyback your own shares in order to make an options exercise is surely against the ASX rules.

"If there is some unexpected good news coming out of the Kupe drills or if there is another big increase in the Tui reserves that should get the options in the money."

Given there is no drilling planned at Tui, cannot see how they could increase reserves. Kupe may be different with drilling there.

"But I think the main problem is that NZ investors (both small and institutional) have been put off NZO by it's past management failings. Even though the news has been all good recently I reckon it will take another year or so before they can win the trust of most investors again."

Absolutely spot on

"Buying the options has been a big learning experience for me. I bought in at 0.15, the price had collapsed from 0.30. Given that Tui had just started producing I thought they were going to head back up again but they've continued to slide down. However I think they'll be in the money in a few months time."

A lot of NZO option holders are having some sleepless nights at present. I only own the ords. There is a long way to go to get to $1.50