matter of time, page-12

Hammers,

That should tell you that proven reserves do matter..they are future earnings tucked away.
That is why the big boys like BHPP try to increase their proven reserves YOY.

MAD is in the process of acquiring more tenement and drilling and proving up reserves, the production will be ramped up later...the mkt is rewarding them for proven future earnings.
They currently have 3 drilling rigs working, and another 3 to bring into service.

Reserves tucked away also have quite a bit to do with what multiple the mkt will loosely apply to a co.'s earnings to determine sp.

NDO may or may not be undervaslued by the mkt currently...perhaps your perspective is coloured by part ownership, as is mine, although over the yrs I have learnt to temper it...there used to be no bigger cheerleader than me, save for maybe Sandy.

I would suggest to you that a better comparison for NDO would be OEL rather than MAD.
NDO and OEL are both in the same region, with similar assets, and are both producers from the same asset, with proven reserves commensurate with their % holding in that asset...has the mkt got them both wrong?

Pretty much all jr oilers are at very low valuations in the current mkt due to the world outlook of suppressed oil demand..that will eventually change and oil stocks will come back into favour.

NDO is unloved because management have brought it upon themselves by NOT DELIVERING on their previous claims to fame.

The reason rests in a single line I put in an above post..

NDO 30/7/1999 to 18/6/2012 1P 1.27 mmbbls (proven reserves)

The fact is, even if Viking open up Tindalo, Yakal and Nido 1x1, it will still not add significantly to proven reserves (these are small fields), but it will significantly increase the daily cash flow which will be the lever for something like Pawikan...which the mkt will reward handsomely, if wet.