re: email to the company

Dear Aditya



Thank you for your email.



We advise that the commissioning of the processing equipment is ongoing and we will be providing an update to the market once the reservoir management plan has been finalised or when other material information becomes apparent.



As per our release on 30 April 2010, we advise that we are actively pursuing farmout opportunities which we believe will have the most strategic impact for the company and in this context Nido isn't just focusing on multi-national companies.





Kind regards


Here is my email -

Hi there,



I am a Nido shareholder and am writing in hope of this email reaching the CEO.



Firstly, I would like start with congratulating the team on the successful drilling on Tinaldo. I understand that there is a technical glitch which has made the market very worried (Stock price has nearly crashed 40% in the past few weeks). I have full confidence in the Nido team and I am 100% sure that the glitch would be fixed soon.



I would like to draw your attention to a comment made on the Hot Copper blog, which has drawn a fair bit of attention on the blog.



The blogger claims to have a fair understanding of the oil and gas industry and has suggested the below -



"......Firstly this is all based on guesswork, another poster has stated that he has heard from NDO that the water is due to fracture highways or flow behind the pipe. I was responding to this post.

Secondly I tried to call NDO a week or so ago to discuss this water issue with them. Too busy to call back apparently. I don't blame them too much for that as the Company can't be run by back seat drivers however I stand by my comments that Well Engineering performance has been poor for quite some time. As another poster mentioned do we really want to trust the current incumbent to deliver Gindara? No. There is also no way a major will allow NDO to operate any drilling so all of this we 'will go it alone' is a smokescreen in my opinion.

Thirdly, not sure what fracture highways mean? The formation is very vuggy which means that it will be difficult to get a good cement job. If the water is flowing up behind the pipe then the recourse would be pull the completion, shoot holes in the liner and squeeze cement to try and form a 'seal' to prevent water from flowing upwards. This often doesn't work as the cement will tend to squeeze following the path of least resistance i.e. all to one side.

So if then have to pull the completion anyway why not:

1. Set a whipstock (wedge) in the well.
2. Mill a window in the casing above the reservoir.
3. Drill a short inclined 8 1/2" hole section.
4. Install a cemented completion (ESP not possible with this) or even consider a pre-drilled liner, as if they have stopped well short of the oil / water contact they may not have a need for selective shut off later on.

The current rig could do all of this without an issue in less than 10 days once all the kit was available.

Not sure about the water cut increasing as is. also it has been stated that the separation equipment can handle 16,000 bbls/day of water from 20000 bbls / day of produced fluid. My maths tells me that if they do get a huge water cut then the maximum BOPD is 4000 not really enough to pay the spread rate.

All speculation and easy to criticise from afar but I stand by my comments and maintain that even with the heavy insto selling if we were flowing at a steady 15 K per day we would not be at 15 cents and looking to go lower. Whichever way you look at it the reason we are not at 15 K/day is poor performance in terms of broken kit (from the last vendor on most people's list for Welltest kit) and possible poor initial job design.

cheers,

Oilman ...................."



Now personally, I do not have much understanding of the technicals of the O & G Industry. So, would really appreciate if the management can comment on the things suggested above.



Secondly, I would like the CEO to pay attention to the link pasted below.



http://www.bloomberg.com/news/2010-06-30/india-losing-to-china-in-africa-to-kazakhstan-to-venezuela-oil-purchases.html



I hope and wish that the team at Nido isn't just focusing on multi-national companies like Shell,BP,Exxon Mobil , etc for farming-out Gindarra. There are a lot of oil companies in South-East Asia which are hungry for oil-blocks. This article clearly states how desperate India and China are for overseas assets. What our unique selling point is how closely we are located to the these countries and also how favourable the Pines fiscal policy is. Companies like ONGC, Oil India, etc have always over-paid for over-seas assets. This is a perfect opportunity for Nido to present to these companies what Pines real potential is. I hope and wish that you consider this email in all fairness. I invested in Nido almost 18 months ago and have not since then seen a dime of capital appreciation. I understand and accept the risks of capital markets but I think you as the management do hold some responsibility for wealth creation for shareholders.



I hope I do get a response from the CEO.

moderator - i have emailed them saying i am posting this convo here / as there is no personal/confidential information here, i hope the posting is ok.

cheers