share consolidation, page-59

My thoughts: Firstly for NDO to do it alone would mean that they carry a high degree of risk. One well can cost 20m dollars to drill, if NDO decide to issue more shares to raise capital and carry 80% of the risk, then this would be detrimental to the share price if the first one or two wells contained nothing.
Consolidation is only good to tighten the registry and create less shares on good news the shares have better leverage.
Let’s say they issue 20% to raise capital. Assuming a conversion price of .80c then we would most likely see the shares drop to 60c.
One or two dry wells, a retrace to about .25c . That’s 2.5cent before consolidation.
How do we feel about that? especially those that paid 50c or eqivilant to $5.00 for their shares.
To do it alone is suicidal as the oil industry is high risk in nature.

If the NIDO management had any brains they would conserve cash and farm out as much as they can, especially in this environment.

As I said before If the big guns thought the NIDO’s deep water average had some potential to be low risk then NIDO would have announced a partner by now.

Chass