galoc 2 business end, page-15

Shakinthat

100% of the current development spend is recoverable 100% upfront from sales, before any royalties or taxes are payable.

So first US$43M net to Nido of sales from Galoc will flow directly to NDO, and only after that will royalties and taxes be paid.

Production for Phase II is expected to total 12000 bopd, so NDO's share of 23% is 2760 bopd. At price of US$110 they are reporting, less perhaps some transport costs, say $100 gross a barrel at 2760 bopd = US$27,600 per day gross receipts at the start.

Assuming 330 days uptime per year, 1st year would bring in US$91M in one year (NDO's share). If costs are US$43M to recover, NDO should recover this in first 6 months of sales, after which they will begin to pay royalties.

So cash balance is going to grow rapidly and quickly if Galoc II goes according to plan.