getting better, page-3

For those who liked the last post with a little bit of real information here is some more info on the NDO prospects from one of the best oil and gas rated analysts of the last 20 years - note the profit forecasts which were current at the end of October. (BTW Galoc has since reopened and is producing fine)

? Shell Farms In to SC-54B Shell?s farm-in to Nido?s offshore Philippines permit (SC-54B) is the ultimate endorsement of the potential of the permit which hosts a large exploration prospect named Gindara, to be drilled early next year. Attracting a company the size of Shell to join its offshore Philippines exploration campaign is a real ?coup? as Shell is the recognised leading E&P company in the Philippines and currently operates the large Malampaya field in the adjoining permit.

? Gindara, a Potential Company Making Prospect ? We rate Gindara as one of the better exploration prospects to be drilled in Asia. Gindara will test three exploration objectives: Nido Limestone (primary objective) and two secondary objectives, which include a Miocene clastic reservoir similar to the producing Galoc field where Nido has a 22.879% interest.

? Galoc & Tindalo Updates ? Nido has also provided a market update on Galoc and Tindalo, both of which are currently experiencing production issues. Galoc has been demonstrating good and sustained production rates all year but bad weather has now resulted in the field being shut-in for what is expected to be a short period. Tindalo has been problematic since production started in May. However, the recent update provides positive news as Nido has indicated that the water influx problem is mechanical in nature and hence can be fixed, rather than a reservoir problem which would be much harder to manage.

FORECASTS & VALUATION

? As a result of the production problems at Galoc and Tindalo, we are downgrading our profit estimates from A$25.1m to A$11.0m for this year. Our valuation is unchanged at $0.50 and retain a Positive recommendation.

? The positive news on the Shell farm-in more than outweighs the production disappointment as the big potential upside for Nido is a function of exploration success in its big prospects. Nido is now working on farming out its SC-58 permit which also contains several billion barrel targets.