NDO - Nido Petroleum

[mick2006]

anyone else catch NDO's announcement last night, truely incredible. They have announced a median OIP estimate of 11.6 billion barrels in their Philippines leases. With oil on the rampage and NDO now opening up their books for a farmout, this will surely raise the eyebrows of the big boys.

With people now talking oil $150+ barrel surely NDO will be worth a punt to see how things play out.

 

[benwex]

anyone else catch NDO's announcement last night, truely incredible. They have announced a median OIP estimate of 11.6 billion barrels in their Philippines leases. With oil on the rampage and NDO now opening up their books for a farmout, this will surely raise the eyebrows of the big boys.

With people now talking oil $150+ barrel surely NDO will be worth a punt to see how things play out.

what an excellent day and the price held up and will hopefully close near the days high...

With production at Galoc and the farming in of a big player for the massive deep water permit I would say NDO is far from a punt..

The announcement adds huge confident to the management and the companies business strategy. The phillipines is going to become a new Oil and Gas region with the likes of NDO and OEL producing the goods..

benwex

 

[jonojpsg]

Woooohooooo!!! WHat an astounding announcement - 11.6 BILLION barrels of potential

Even if they hit 1% of that and have a 30% share in a JV with a major, that still gives them 35 million barrels of oil.

These must be looking at a serious run IMHO

 

[NomadAUS]

I'm only new to this forum, and to the Share Market, but thought this article will explain thinks a bit better what is going on at the Galoc field.

Hope I don't do anything wrong posting here.
This report I found in my quest for answers; hours of joy.


Philippine Galoc oil field startup delayed on equipment problem

Singapore (Platts)--19Jun2008

The startup of the Galoc oil field offshore Palawan in the Philippines
has been delayed yet again after the operator identified a subsea equipment
problem, an official with the Philippine Department of Energy said Thursday.

The Philippine DOE had last week announced that Galoc would begin
production on June 16 after a delay of over two months. The field was
originally scheduled to begin production in early-April, but delays with the
floating production, storage and offtake vessel kept pushing back the startup.

The official said the field might begin production next week, but could
not confirm a date for the startup.

Galoc, which is the Philippines' largest oil discovery so far and
the second-largest hydrocarbons find since the Malampaya gas field in 1998, is
expected to produce between 15,000-17,500 b/d of light, sweet crude oil. The
Philippines currently produces only about 300 b/d of crude from 15 marginal
fields and relies almost entirely on imports to meet its 200,000 b/d of crude
demand.

Oil from the Galoc field has an API gravity of 34 and will be mainly sold
to local refineries.

The field is located in service contract SC-14 in 290 meters of water
approximately 65 kilometers northwest of Palawan. It has proven and probable
reserves of 23.5 million barrels.

Operator Galoc Production Company owns 58.29% of the field, with
Australia's Nido Petroleum holding a 22.28% stake. The remaining equity is
with five minority stakeholders.

 

[Wysiwyg]

I'm only new to this forum, and to the Share Market, but thought this article will explain thinks a bit better what is going on at the Galoc field.

Hope I don't do anything wrong posting here.
This report I found in my quest for answers; hours of joy.
Philippine Galoc oil field startup delayed on equipment problem

Hi NomadAUS, thanks for that news clipping.NDO provide up to date information on the progress of Galoc and state the reasons for delay on their website.Also if you have access to company announcements you can get the information straight off the press.
Something I find with oil&gas exploration/production companies is that times are rarely met.Expectations being met are rare and when they`re not the share prices are usually smacked down accordingly.

Hope you enjoy ASF, it is generally a well informed forum.

 

[NomadAUS]

Hi NomadAUS, thanks for that news clipping.NDO provide up to date information on the progress of Galoc and state the reasons for delay on their website.Also if you have access to company announcements you can get the information straight off the press.
Something I find with oil&gas exploration/production companies is that times are rarely met.Expectations being met are rare and when they`re not the share prices are usually smacked down accordingly.

Hope you enjoy ASF, it is generally a well informed forum.

Thanks for the kind words, I was a bit woried about posting here since I'm really, really new to the market. However I spend my last 4 weeks researching potential companies and finally I got ahead in the news section.

Anyway, what is clipping.NDO ? and what forecast price top would you estimate NDO be eventually when they getting it up in running.

Only asking this question cause the GAloc Oil seem to be more likely to feed the Philipinien market rather then anything else. Also the royalties could go up ones the succeed based on Philipino past Goverments actions on major projects. Hope this is not to much for you smarter guys.

 

[nick2fish]

Hi Nomad, I'm not all that smart but I'll add to your conversation for what its worth.
You will find the market has already priced in Galoc oil production but in saying that NDO's share price has dropped slightly last week so it should rise back to the 0.50 mark when they announce flow and flow rate.

NDO has excellent local knowledge gained from over 20 years in oil exploration in the Philippines. This an important asset in determining success over their vast a exploration acreage they have.

For future sp movement look toward their shallow water drill prog starting October.
As for the govt I not sure but Nido advertise on their farm out offer that the govt is very company friendly.

It can always be a risk as governments change as with policy but while it makes economic sense for the Philippines to expand their oil potential attitudes will remain pro-active.
Have a look at OEL too another good story IMO

 

[NomadAUS]

Have a look at OEL too another good story IMO

Had a lock at OEL and now I'm confused, both NDO and OEL lock very good.
(future wise).
Which one would be a better company to buy in?
Or should I just devide my capital and invest 50% in each of the company's instead

 

[benwex]

On a day like today, NDO have come out with an anouncement from there
Yakal-1 well currently drilling in SC 54, located in the NW Palawan Basin, offshore the Philippines.


"Wireline logging over the weekend has confirmed the presence of at least a 66 metre gross oil column"

I wander how big this could be in potential 2P reserves???? As no one can pout in an order this announcement is yet to be priced but I think it is an excellent result..

Benwex

 

[cg_factor]

at last!

 

[Wysiwyg]

They say near 20000 bbls/d. which is around 4000 bbls/d to Nido.Wonder what price/bbl or contractual arrangements they have.

Nothing much at Tindalo 1.

 

[nick2fish]

Pretty damn good for a 15.5c company and I think its Tindalo 1 will make ity 2 for 2......

 

[nick2fish]

They say near 20000 bbls/d. which is around 4000 bbls/d to Nido.Wonder what price/bbl or contractual arrangements they have.

Nothing much at Tindalo 1.

Ah well actually there is .... but its testimony to a pretty sad and pathetic market when a oil find results in zero sp movement

Nido’s Chief Executive Officer, Mr Jocot de Dios also remarked, “We are extremely pleased with, and excited about this second discovery in Tindalo-1 which comes right on the heels of our earlier Yakal-1 discovery. Our success today is a testament to the dedication of the Nido and Kairiki drilling and subsurface teams that worked on this program, the Philippine Department of Energy and the WilBoss rig and her crew. Following a drought of 14 years in the sector, these twin discoveries speak eloquently about the Palawan Basin as the premium destination in the Philippines to explore for oil and gas. With Nido holding the dominant position in this world-class Basin, we consider ourselves perfectly poised to execute our greater plans for this area. We remain firmly committed to our exploration program in the Basin and to the country’s energy independence initiatives.”

 

[nick2fish]

Here is quiet an informative investor presentation for the SC54 shallow development field courtesy of the KIK website
http://www.kairikienergy.com/system...cuments/20081030_Sydney_Review_30_Oct_083.pdf

Underlines the serious potential of this area and I am quiet happy to accumulate NDO at these sp price levels Cheers

 

[MS+Tradesim]

Well, I'm becoming a fan of NDO. It looks to me to have interesting parallels to CVN's story. Both are set to become significant producers in countries which have large net import demands. CVN's opex and capex are lower but NDO may have significantly greater oil reserves when they're proved up.

 

[S73417H]

Not a lot of chat about NDO for a while. Obviously NDO has taken quite a hit since its May 08 high of 0.60, however my feeling is that this company still has a lot to offer us.

What are other peoples thoughts?

 

[J.B.Nimble]

Not a lot of chat about NDO for a while. Obviously NDO has taken quite a hit since its May 08 high of 0.60, however my feeling is that this company still has a lot to offer us.

What are other peoples thoughts?

I think this has amazing potential - a 100% hit rate on their drilling program, potential of 11 billion barrels oil in place, etc, etc - but we have some psychological hurdles to be overcome first. First hurdle is to see Galoc production resume after the FPSO riser incident (too many memories of the delayed start to production with similar problem last year). Second hurdle is to see that production pay back the Galoc development.

With that behind us we then can start looking ahead to what might come from the Yakal/Tindalo discoveries and even to the prospect of farm-in agreements for the deep water targets.

Don't even bother mentioning the POO - we're profitable as long as we can keep producing. POO will sort itself out sooner or later and I doubt it's short term position is a serious consideration for people who have studied the potential of this company...

Loaded and waiting...

 

[nick2fish]

ditto........and I am thinking takeover/merger at these prices. A farmout arrangment certainly must be close and that will mean cash for NDO as unlike OEL they have the 3D sesmic work all done

 

[S73417H]

First hurdle is to see Galoc production resume after the FPSO riser incident (too many memories of the delayed start to production with similar problem last year).

Surely the new riser hookup has to happen within the next week or so? Hopefully with that back up and running we will see some production and in turn some added value.

 

[J.B.Nimble]

Surely the new riser hookup has to happen within the next week or so? Hopefully with that back up and running we will see some production and in turn some added value.

Yes. You are right - the indication was for production to be reinstated around the end of January. It will be good to see that happen - I'm sure they are still ruing the delays with last years riser damage - what a difference those few months of high priced oil would have made...