IMO today's exciting news is nothing but a beat up.
To get excited about this recent ann is also misguided.
NIDO and JV partners have to date April to Sept) spent millions of dollars of shareholder value.
They have wasted it. Plus the cost of the work-over. Nido And Partners DO know what this has cost because they have ordered the hardware and they are scared to release that to the market, because it will spook everybody. PLUS don't forget nido debts of US$18 mil due b4 the end of the year. That is on top of the nearly 6 months rig and FSO hire costs which will already be racked up to $45 plus million dollars to date. 180days x 250,000/day = $45,000,000.00 . Its a huge numbers. its scary IMO.
Its that simple. You do not need to be Einstein to calculate that one. Its simple primary school mathematics.
IMO and I stress this is my opinion only based on previous NIDO trading history,
We have a very large holder of convertible Nido Notes waiting in the winds of good news to take another dump.
And they have even more reason to dump this time around. All of Nido's wealth creation from Tindalo will be going to the above items.
Paying back tindalo costs, paying back work over costs, Paying back its debt, and might have just enough in the kitty to pay admin costs for a cap raising.
So they can go to Gindara!!!!!
And what of the Koreans?????
As i stated b4. Koreans are great negotiators, and NDO and JV partners are not. Look at the history.
Also NIDO were very very quick to exercise the rig option. At what price???
According to lots of recent reports, rig costs have come down dramatically in price. Wounder what great price Nido managed to lock in. Aqua marine driller owners must be laughing all the way to the bank.
Thats if nido and JV partners can manage to pay the bills.
NDO Price at posting:
15.0¢ Sentiment: ST Sell Disclosure: Held
