Ann: Galoc Phase II Drilling Update Number 6 , page-12

re: Ann: OEL: Galoc Phase II Drilling Update ... 1.How much would it cost for the development to be fully developed
Presentation of Nov 8 last year, gives indicative CAPEX at USD 100m to 140m gross. This based on a single horizontal well

2. Does NDO realistically have the money to do this?
In the Feb 14 interview PB refers to majority funding through Galoc free cash flows “though should we require debt funding Nido has established strong relationships with Standard Bank and Credit Suisse through the Galoc oil field debt facility and so I would expect we’d also explore funding options with them at the right time.”

3. Is the risk of developing it worth it?
The potential development is not without its risks. The field had an early water breakthrough in its previous production campaign but this time horizontal wells would be expected to be much more favourable. Potential recoverable reserves of ??mmbbls should be worth a very good look. (take your pick but I will go with 40 for the ??)

4. Do the other players in the licence have the money/willingness to do this?
Well Nido have 22.28% interest.
RMA have a 29.14% interest. Anyone who saw RMA’s site before it was taken down would have seen their enthusiasm for the project.
Pitkin have 29.14% free carried by RMA. I’m sure they will be happy to go along for the ride.
No need to look much further.

5. Are they looking for a development farm in partner to shoulder the capex burden?
Every indication of maintaining their stake – refer 2 above

As for $10/bbl, I hate one size fits all numbers. I have seen 15 and 20 used before - so many variables to kick it in one direction or other. One thing is for sure, it will be worth a whole lot more once we have it out of the ground...