I'm sure that there is plenty of non public information around the what went on at Tindalo and the rest of the goings on at Nido.
What is readily observable from the outside is some simple errors and departures from "good oilfield practice" that happened to cost a lot of money and left Nido in the position having spend that money of not being able to answer the question - is it reservoir or is it the well.
Anyone can accept a bad outcome where the reservoir is at fault - what we appear to have is a well which has definite problems and Nido saying that the reservoir is also at fault. Had Nido drilled and completed a good well in the first place they could be certain that the problem was the reservoir and they could have demobilised the equipment months earlier, avoiding a large part of the $40 million dollar write-down.
This would have also required a more intelligent contracting strategy which allowed sufficient time to evaluate the reservoir performance before exercising the option to extend the contract - but again, Nido made their own bed there...
In speaking with various Nido folk they still seem blind to all of the mistakes beyond drilling through the oil-water contact. Yes, that was a mistake - but the rest of the operation was not exactly text book (far from it).
In this game the only viable strategy is to learn from the mistakes of others, Nido seem determined to make all the mistakes themselves and even then they don't acknowledge them which makes them prone to repeating the same mistakes.
p1000, Michael Pope, Candidate for the Board!
NDO Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
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