NDO - Nido Petroleum

[jonojpsg]

Well an announcement finally Still not what I was hoping for I'm a bit concerned that the flow is not what they were hoping for hence the "extensive drill stem testing"...any experience oilers out there who care to comment??

Hoping that instead it is the company being cautious/careful/measured with their announcements and that we'll see the flow rates we were after within the next week

 

[pilots]

Well an announcement finally Still not what I was hoping for I'm a bit concerned that the flow is not what they were hoping for hence the "extensive drill stem testing"...any experience oilers out there who care to comment??

Hoping that instead it is the company being cautious/careful/measured with their announcements and that we'll see the flow rates we were after within the next week

They could be testing each zone, they will want the best one on line, they won't run them all together.

 

[RP_Automotive]

jonospsg: Drill stem testing, or DST's enable people to isolate any given part of a well from top to bottom, at virtually any interval and flow it to surface.

NDO would be looking at their wireline logs and seeing where the oil 'shows' are throughout the well. They will then tell the DST company to test each zone. E.G. 150m - 200m, then 213m - 240m, then 500m - 513m. This way NDO can see what is coming from where and select the best zones as their 'production' zones and block out the crappy/water zones.


The main purpose of a DST is to determine 'Permability', or in laymans terms, the wells ability to flow in a particular section. You can also determine flow rates, size of formations etc etc depending on the analysis you do. DST's are essentially a production test, but in only one part of the well.

 

[jonojpsg]

jonospsg: Drill stem testing, or DST's enable people to isolate any given part of a well from top to bottom, at virtually any interval and flow it to surface.

NDO would be looking at their wireline logs and seeing where the oil 'shows' are throughout the well. They will then tell the DST company to test each zone. E.G. 150m - 200m, then 213m - 240m, then 500m - 513m. This way NDO can see what is coming from where and select the best zones as their 'production' zones and block out the crappy/water zones.


The main purpose of a DST is to determine 'Permability', or in laymans terms, the wells ability to flow in a particular section. You can also determine flow rates, size of formations etc etc depending on the analysis you do. DST's are essentially a production test, but in only one part of the well.

Thanks heaps RP Given that they were really only looking at one interval, albeit 119m, any idea about how long testing should take?

 

[RP_Automotive]

If it was only 1x test your looking at ~24hrs max. Having said that there are alot of other things that may need to happen before the DST happens. I wouldn't expect anything untill Thursday/Friday.

 

[jonojpsg]

Looking good folks, steady rise since the oil started flowing, Morgan Stanley now on board with 11% after buying 74m day before yesterday at 16.5c. IF we get flow rates as expected...like I've been banging on about for the last few weeks...we'll get a nice run up to mid 20s IMO.

 

[Dink]

Great volume already today - 10+ mil. Tried to get some at 0.185 but missed out. Couldn't resist getting some at 0.195. Now we just the wait until the DST results come out...

 

[Dink]

Trading halt... love it when you time it well... obviously assuming the news will be good... better than expected well production? Could they have found an oil major to assist in exploration of their acreages?

 

[jonojpsg]

Trading halt... love it when you time it well... obviously assuming the news will be good... better than expected well production? Could they have found an oil major to assist in exploration of their acreages?

Yep, the waiting is almost over...when I saw trading halt I wasn't too confident, thinking that flow rates must be lower than expected...but we'll wait and see I guess

WHatever the news, I am going to try and be right on top of it, as I'll need to bail if lower than expected, and will want to pyramid up if better than expected

tick, tick, tick...

 

[philly]

QUOTE=Dink;559541]Trading halt... love it when you time it well... obviously assuming the news will be good... better than expected well production? Could they have found an oil major to assist in exploration of their acreages?[/QUOTE]

Yep, the waiting is almost over...when I saw trading halt I wasn't too confident, thinking that flow rates must be lower than expected...but we'll wait and see I guess

WHatever the news, I am going to try and be right on top of it, as I'll need to bail if lower than expected, and will want to pyramid up if better than expected

tick, tick, tick...

I am confident that the news will be positive
The trading halt was announced at 11.47am. At that stage the SP was up one cent on volumes of more than 15.9 million shares. That is a pretty busy 2 hours of trading. Seems to me whispers may have got out.
An hour and a half later at 1.17pm NDO announced that the trading halt was sought because it would be making an announcement regarding the drill stem testing results from the Tindalo-1 well on Monday.
I am a happy holder Good luck to all holders

 

[Miner]

I think the announcement will be a positive. As KIK also having a trading halt at the same time and both of them saw some little oil flow (reported probably lower than actual so that the people are known can pile up enough stocks as typical in industry).

As a small holder only bought before the announcement (thanks to Keith Neilson of Inside Traders for a change) I hope NDO should not announce it on Monday. Market will not appreciate after DOW jones dived by more than 3% on Friday.

DYOR

 

[jonojpsg]

I think the announcement will be a positive. As KIK also having a trading halt at the same time and both of them saw some little oil flow (reported probably lower than actual so that the people are known can pile up enough stocks as typical in industry).

As a small holder only bought before the announcement (thanks to Keith Neilson of Inside Traders for a change) I hope NDO should not announce it on Monday. Market will not appreciate after DOW jones dived by more than 3% on Friday.

DYOR

Au contraire Miner, I reckon the market will love it Monday - it'll be the only thing going and day traders will JUMP on it if it's good! IMO if flow rates are good, it will be a prime time to sell at about 11.30am after the traders have pushed it to about 29c then it'll drop back to around 26c by the end of the day...there you go, there's your crystal ball for tomorrow

 

[Dink]

Flows over 18500 bopd surpassing expectations!!! Can hardly wipe the smile off my face..............................

 

[jonojpsg]

Flows over 18500 bopd surpassing expectations!!! Can hardly wipe the smile off my face..............................

Yeeeeeeeeehaaaaaaaaaaaaaaaaaaarrrrrrrrrrggggghhhhhhh Oh yeah, oh yeah, oh yeah, oh yeah...gotta love that Loading up for a wild ride this morning but this makes the waiting all the more worth it

 

[Dink]

I can't help but keep watching the trades happen... vol over 9 mil and it has only been 5 mins and sellers drying up quickly... can hardly contain my excitement...

 

[pilots]

I can't help but keep watching the trades happen... vol over 9 mil and it has only been 5 mins and sellers drying up quickly... can hardly contain my excitement...

This is this is only the first well, wait until they drill 3/4 more. The 3D is telling them just the spot to get the max oil.

 

[Dink]

The most telling point in the announcement was that the "Maximum oil rate was achieved on natural flow and was hardware limited". Who knows what it could have been! We will have to wait until more wells are drilled to find out.

 

[jonojpsg]

I'm surprised that SP has stabilised where it has - maybe day traders jumping in and out for 0.5c tick gains? IMO it should run at least 2-3c higher than this over the next week as news gets out, especially with flow rate being at the top end of the range.

Will the EWT results be another kicker, giving some idea of recoverable reserves?

 

[Dink]

I'm surprised that SP has stabilised where it has - maybe day traders jumping in and out for 0.5c tick gains? IMO it should run at least 2-3c higher than this over the next week as news gets out, especially with flow rate being at the top end of the range.

Will the EWT results be another kicker, giving some idea of recoverable reserves?

I am astonished that this hasn't run further. I was thinking mid to high 20s. Flow rate was not at the top end of the range it was above the expected range and this was "achieved by the unassisted, natural energy of the reservoir and did not require use of the installed ESP to provide artificial lift" and this was "hardware limited." Who knows what the flows could have been? The announcement was extremely optimistic about the future too. We can't blame the overall market as it is up. We can only hope that most are taking profit today and that it will hold value over the next few weeks. Overall this is a very good stock with plenty of potential. Lets not forget that this well "transforms [NDO] into a fully fledged oil production operator."

It will be interesting to see if the top 20 shareholders will change as a result of todays trading. Plenty of volume with what appeared to be a couple of very big buys.

 

[jonojpsg]

Crazy

Cannot understand why people would be jumping off at this stage? With over 6000bopd net to Nido, that is 3x their current production from Galoc and gives them close to 8000bopd production, with costs running at about $25/b.

So they are generating net cash of $400k per day at $75/b oil price, or $140m+ a year. Even if Tindalo only lasts 18 months at this flow rate, Nido will have enough to pay off debt, drill Gindara, bring other DISCOVERIES online, etc etc.

IMO there is no way they should be valued under $300m or 30c per share, and potentially much higher now that Tindalo has given them greater confidence in their other wells and targets.

We will wait and see what the market does hey