NDO - Nido Petroleum

[philly]

Mixwed bag of news coming out of NDO this morning - still encountering water problems at Tindalo, more delays at Galoc and most encouraging Shell farms in to the Gindara - 1 exploration well in the prospective Palawan Basin.

IMHO to attract Shell as a farm in partner is a major coup for NDO and demonstrates the high regard for NDO and its acreage in the Phillipines. The jigsaw is coming together nicely and the SP should slowly start trecking upwards.
A happy holder

 

[Wysiwyg]

most encouraging Shell farms in to the Gindara - 1 exploration well in the prospective Palawan Basin.

Early 2008 when the large prospect Gindara was targeted to be drilled. First half 2011 drilling means late first half to third quarter 2011. NDO has overcome adversity along their journey with partial success and in a years time we should see if the time & money spent has been worth it.

 

[jonojpsg]

Was a happy holder too until Tindalo showed water AGAIN! IMO if they can't fix it they may be in trouble, as costs were going to be $250k per day without all the extra costs of trying to fix it.

Atm they are producing net 2000bopd (25% of 8000) @$80/b is only $160k/d so they are losing $90k per day at least. Might not be much but if they can't fix it they will have to bail, leaving them in a hole that they may not be able to get out of given contracts signed, etc. Galoc production would have to tide them over until Gindara was drilled making it essential to Nido's future.

 

[philly]

Mixwed bag of news coming out of NDO this morning - still encountering water problems at Tindalo, more delays at Galoc and most encouraging Shell farms in to the Gindara - 1 exploration well in the prospective Palawan Basin.

IMHO to attract Shell as a farm in partner is a major coup for NDO and demonstrates the high regard for NDO and its acreage in the Phillipines. The jigsaw is coming together nicely and the SP should slowly start trecking upwards.
A happy holder

NDO has requested a trading halt pending an announcement regarding a capital raising. I wonder whether ordinary shareholders will get a look in either through a SPP or a rights entitlement or will the big institutions scoop the cream? Also how will NDO use the money? Any thoughts out there?

 

[philly]

NDO has requested a trading halt pending an announcement regarding a capital raising. I wonder whether ordinary shareholders will get a look in either through a SPP or a rights entitlement or will the big institutions scoop the cream? Also how will NDO use the money? Any thoughts out there?

Well my questions were answered by NDO this morning -

Nido Petroleum Limited (ASX: NDO) (“Nido”) announces that it will undertake an institutional placement of ordinary shares (“Placement”).
Proceeds from the Placement are intended to be used to secure Nido’s future exploration program, including the drilling of the Gindara and Aboabo prospects, for general working capital and partial debt reduction.

Merrill Lynch International (Australia) Limited and Patersons Securities Limited are acting as Joint Lead Managers for the Placement.

Nido also plans to offer existing shareholders the opportunity to participate in a Share Purchase Plan, details of which will be announced shortly.

Nido shares are expected to remain in trading halt pending completion of the Placement.

I am a holder.

 

[jonojpsg]

Well my questions were answered by NDO this morning -

Nido Petroleum Limited (ASX: NDO) (“Nido”) announces that it will undertake an institutional placement of ordinary shares (“Placement”).
Proceeds from the Placement are intended to be used to secure Nido’s future exploration program, including the drilling of the Gindara and Aboabo prospects, for general working capital and partial debt reduction.

Merrill Lynch International (Australia) Limited and Patersons Securities Limited are acting as Joint Lead Managers for the Placement.

Nido also plans to offer existing shareholders the opportunity to participate in a Share Purchase Plan, details of which will be announced shortly.

Nido shares are expected to remain in trading halt pending completion of the Placement.

I am a holder.

Yep, as my last post suggested, they need cash and they need it fast! With Galoc down as well, they are currently looking at around -$200k per day or another $2-3m before Galoc is back on line at least.

Just looking at Galoc as well, income from there is NOT enough I don't think to cover Tindalo costs at current production rates.

Galoc has produced approx 1800bopd to Nido this year @ $75/b = $135k per day total less costs (say $30/b) so only NET $90k per day.

As per last post, Tindalo's net cost atm are $90k per day, so only just breaking even without any down time or extra costs.

DEFINITELY need to fix Tindalo or could be grim

Note: Yes they have cash reserves, but not sure how these have been drawn on over last few months, and they also have debt to cover too. Will be watching their quarterly with some interest!

 

[philly]

On 28-10-10 after completing part 1 of the CR NDO announced to the ASX that it also plans to offer existing shareholders the opportunity to participate in a Share Purchase Plan, details of which will be announced shortly. Record date for the Share Purchase Plan will be 26 October 2010.

A week has passed and no announcements have been made. Is this normal? Is there any reason to worry? Usually SPP can take several weeks to to be completed. Need to move along before Christmas otherwise my cash will be spent on Christmas presents Any thoughts why the delay

 

[Wysiwyg]

Gindara 1 does look like a fine BESBS trade next year to me. Maybe BESBS Player (the poster) has an opinion on this? The estimated BOIP, cost and effort that has gone into this target is all very interesting and a long time coming around. Can someone alert me next year when the share price starts to reflect the target potential please.

 

[Wysiwyg]

DEFINITELY need to fix Tindalo or could be grim

Grim indeed. Death to the Tindalo venture is confirmed. Don't know when the next probe is scheduled.

 

[jonojpsg]

Grim indeed. Death to the Tindalo venture is confirmed. Don't know when the next probe is scheduled.

Hmm, saw that Wys... glad I jumped out before it got this bad Assuming they now have enough cash reserves and Galoc continues producing as it is they will get through to drilling Gindara - BUT if that's a duster they're goners I reckon. Also could be a company maker though, you never know.

Definitely worth a look as a BESBS play though, especially with SP depressed as it is.

 

[JAMESLEE2042]

Why I choose NDO?

Two fundamental reasons –
1. Huge oil assets – Billions of oil potential.
2. Shell’s successful experience in this location, and world-class development experience and access to cutting edge technology

NDO's assets lie in the North West Palawan Basin, east of Palawan Island and across the highly prospective fault line between the Sabah and Palawan geological provinces. This part of the South China Sea is better known for the hotly-contested Spratly Islands, which are due west of NDO's acreage. While a lack of exploratory drilling means there are no proven reserves on the Spratly Islands, a 1993/1994 US Geological Survey estimate put the reserves at a potential 28 billion barrels. That's multiples higher than Australia's 1.5 billion barrels of proven reserves.

NDO has significant interest in several exploration assets, namely Service Contracts (SC) 54, 58 and 63, all to the west of Palawan Island, with a net acreage holding of 14,641km². 1P and 2P reserves certified by Gaffney, Cline and Associates (GCA) as 6.8 Mmbbl and 14.7 Mmbbl gross, respectively as at 31 December 2009; NDO have applied the latest seismic and interpretative technology to identify a total of 112 targets with potential unrisked oil in place of some 11.4 billion barrels;

Gindarra offers the largest upside, is the most advanced and de-risked and will be company-making for Nido. Gindara Prospect (SC‐54B) significantly upgraded: unrisked mean oil‐in‐place increased to 1,000 MMBOE in 3 targets - the Nido limestone, Miocene clastics and deeper Mesozoic plays.

Shell is amongst the largest and most experienced oil and gas companies in the world. It has had over 96 years of operations in the Philippines and a deep understanding of its oil and gas sector. The Malampaya Project operated by Shell Philippines Exploration B.V. (SPEX) - SPEX drilled five wells to determine the amount of gas available in Malampaya. The findings confirmed the presence of a formidable power source 80 kilometers northwest of Palawan island–about 2.7 trillion cubic feet of natural gas reserves and 85 million barrels of condensate, located some 3,000 meters below sea level.

Gindara lies approximately 50km immediately south of the Shell operated Malampaya gas field in SC38, the largest discovery made in the Philippines to date and currently on production.

High Exploration Drilling Strike Rates within NW Palawan Basin - 70 exploration wells drilled with 76% yielding oil or gas shows also give Gindara a good sign.

Gindara is scheduled to be drilled in May. With 1 billion barrel oil prospect to be drilled in near term, and Shell’s successful experience in this location, and world-class development experience and access to cutting edge technology, this should be a VERY interesting in the coming couple of months.

The current share price $0.105 is grossly undervalued.

If successful in finding oil /gas, NDO share price can go over 50 cents.

Good luck to all NDO holders!

 

[jonojpsg]

Hey BESBS, you planning on jumping in on this before Gindara? Definitely been some upwards movement in the past couple of weeks, discounting Japan. Now that rig's secured and May/June is firmed up as spud date, should be some interest given that Gindara is the big one for Nido.

Certainly keeping an eye on it - although that said, they DEFINITELY need Gindara to have something IMO - without it, I believe the cash burn from Tindala failure and Gindara combined might put them on the chopping block?

 

[Wysiwyg]

High risk/reward is not everyone's cup of tea but the long awaited spud of large mid water prospect 'Gindara' might see some price action to the upside finally for NDO. The company has obviously spent a great deal of time and money organising this well. Personally in for sum of 5k at .11 & .115 with a strong push to .12 today. Anything can happen, up or down, between now and mid May with 5 wells in total planned for this year.

 

[jonojpsg]

High risk/reward is not everyone's cup of tea but the long awaited spud of large mid water prospect 'Gindara' might see some price action to the upside finally for NDO. The company has obviously spent a great deal of time and money organising this well. Personally in for sum of 5k at .11 & .115 with a strong push to .12 today. Anything can happen, up or down, between now and mid May with 5 wells in total planned for this year.

Hey Wys,
Am kicking myself that I didn't jump in at 10.5-11 when I last posted Really was a no brainer that interest would pick up as Gindara approached and with obvious news feed coming up to well spud - ah well, might still get in if I can between 12 and 13

 

[Wysiwyg]

Hey Wys,
Am kicking myself that I didn't jump in at 10.5-11 when I last posted Really was a no brainer that interest would pick up as Gindara approached and with obvious news feed coming up to well spud - ah well, might still get in if I can between 12 and 13

How did you go Jonojpsg? Price has come off as usual after that rise with support at 13.5 - 13c to be tested. Was tempted to take short term gain but see more upside with a (so far) good entry price av. of 11.4c.

 

[jonojpsg]

Nah, I smashed myself trying to second guess the AUD - major brain fade

So now I'm left with very little capital in the game and watching Nido push on up Was strong up to around 15-16 and I think it might stick around these levels until something definitive comes of Gindara (maybe will run a bit higher as people try and jump in with little supply?)

Nice average price (as you say, so far)

 

[Wysiwyg]

Nah, I smashed myself trying to second guess the AUD - major brain fade

So now I'm left with very little capital in the game and watching Nido push on up Was strong up to around 15-16 and I think it might stick around these levels until something definitive comes of Gindara (maybe will run a bit higher as people try and jump in with little supply?)

Nice average price (as you say, so far)

Yeah I was trying to get the consummate peak of the AUD/USD too but the so n so's kept pushing higher. Always pushing higher than anticipated. Ready for another go this week above 10750.

With NDO, sentiment will be unpredictable but regardless I am looking for an up trend with the 5 well program and meanwhile Galoc is producing oil over $100/bbl. If the majority are out, so am I.

 

[Wysiwyg]

Was strong up to around 15-16 and I think it might stick around these levels until something definitive comes of Gindara (maybe will run a bit higher as people try and jump in with little supply?

Gee the foundations are looking shaky after the 17c intraday high. Demand started drying up last week even though a few large individual trades (several million) were supportive. Nothing much on screen at 12.5c or 13c so common ground maybe.

This month is the drilling of Gindara and I still have not my crystal ball (s).

 

[Wysiwyg]

Not the best of general market conditions to be trading a small cap. though this oiler has attracted enough interest to move price up again in anticipation of Gindara oil. Spudded today with a few share take ups as well.

Holding one account parcel at average 11.4c and another account parcel at 13.5c.

 

[pixel]

Not the best of general market conditions to be trading a small cap. though this oiler has attracted enough interest to move price up again in anticipation of Gindara oil. Spudded today with a few share take ups as well.

Holding one account parcel at average 11.4c and another account parcel at 13.5c.

KIK is their partner in crime; I reckon that's got even better leverage.