this stock is a santa comes early gift, page-14

"Galoc is uneconomic at $65/bbl with costs as they are (as you point out Carpo)."


Er, where did this come from, it's fiction.

At the end of April a quite lengthy Asia conference report was issued, and on page 13 it outlined in graphic terms that oil at $60 a barrel would deliver a pre tax netback to Nido of $47.44 a barrel, with $10.44 of the $60 assigned to costs, and the remainer of $2.12 to the government.

Now that's a $47 share at $60 a barrel to Nido, and yes, costs may have increased a bit since April, however, nowadays the price of a barrel is well in front of a $100, which more or less translates to well more than $80 for Nido's revenue. Also, Nido and the other Galoc partners are on recent record saying that the high quality oil from this project will be sold at prevailing market prices, with no special deals to the government, even though 100% of the offtake is heading their way.

And as for blending an OEL conversation into a Nido thread, I see no relevance. OEL have no direct exposure to Galoc, their interests solely remain in part ownership of a company that does, and are therefore subject to the whims of that company, as to when and where a few dollars might come of it.

In truth, I would see no obligation for that company to assign profits or revenue to OEL from a specific project. Rather, an annual dividend/profit sharing arrangement from the parent would be the expected revenue stream for OEL.

So regardless of glowing reports we might hear from OEL about Galoc, I don't buy their connection to it.

Having said the above, all that Galoc has to do from Nido's point of view is deliver projected/expected oil extraction results, and the rest is easy, where spectators to this game will see the share price taking care of itself. Indeed a new ATH high should be quickly surpassed, simply because, we can at last, see the money.

Now who can argue with this "see the money" logic. When/if it comes to pass, no one can.


It is my view there has been a lack of study on what this small company is about, and coupled with impatience for a fast dollar in the share price, presents a conundrum for stock market transients