waiting for galoc

Trying to calculate what Nido is worth today isn’t very easy as there are too many assumption and guesses that need to be made. What is far easier is to calculate what Nido could be worth once Galoc is developed within the next 12 months. Forget about West Linapacan A, West Linapacan B, Bonita, Galoc Deep, Cool Energy, Virgo etc let just assume that Galoc is developed in 12 months time.

Assuming WTI @ US$56 per barrel Galoc oil will be worth US$50 per barrel. Cash flow pre tax will be US$39 per barrel . Nido’s share for the first year should be US$48 million. Assuming A$1=US$0.75 Nido should finish with > A$40 after first year of production. After recent placements there are a little over 762 million shares on issue, so should be earning about 5c per share. If reserves of Galoc are somewhere between 17 million (Gaffney/Cline est) and 44 million (Nido est) should still have a share price around 50 cent in 12 months time.

I am happy to sit and wait and see what DW and his team have in store for us, there should also be some news in the next few months about Rapid oil development according to Nido’s presentation from last year.

Unfortunately the big boys didn’t to their calculations 12 to 18 months ago, so they are trying to get set now, so I am afraid we will just have to wait for them to get their fill and hopefully by then Nido might have some news for us.