the problem with ndo..., page-47

re: the problem with ndo...salty Artse,

I'll reproduce the announcement headline and text once more for you.

I have read it carefully a number of times. If what you're saying is true, then DW has potentially misled the market (like the previous time regarding Vitol providing funding for Nido's share of Galoc development).

The announcement states categorically that: THE DECISION (to enter the second sub-phase) COMMITS Nido to a FIRM EXPLORATION WELL.

If Nido does not meet this COMMITTMENT, I expect that they will have to relinquish the service contract (subject to previous discussion on flexibility associated with difficulties in contracting rigs).

i.e. What is not fully clear from the announcement is whether the well has to be drilled by 5 February 2007 or whether there is some additional flxibility in this.

I happen to believe, however, that as long as Nido has shown serious endeavours to secure a rig, this will not be a significant issue.

BUT, stating that they have not committed to drill an exploration well in SC54 appears to be an untruth if this announcement is to be believed.

Cheers
OG

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Nido Commits to Exploration Well in the Philippines

Nido Petroleum Limited is very pleased to announce it has decided to enter the
second sub-phase of Service Contract (SC) 54 in the offshore Northwest
Palawan Basin in the Philippines. The decision commits Nido to a firm
exploration well with a minimum expenditure of US$6,000,000. Sub-phase 2 will
commence on 5 February 2006 and extends for a 12 month period.
The primary drilling target in the area is the Coron North structure.