1 dollar in 3 to 6 months discussion thread, page-5

It's just back of the envelope stuff remember.

50 mil number came on 3000 barrels per day (more like 3300 if you take 22% of 15000 forecasted for Galoc) and 80 dollars recoverable (but remember oil is almost double that).

On those assumptions you get 75 mil, and you substract another 20 pct for other things they may have to pay for like capex, development, etc etc.

So you get around 50 mil. There's about a billion shares on issue after that placement, so round it up call it 450 million market capitalisation at 41 cents (including unexercised and unlisted director options).

50 mil on 450 market capitalisation = PE of 9 (EBITDA of course).

So you're buying Nido right here, at 41 cents, and placing ZERO valuation on exploratory upside.

Again back of the envelope, and assuming the blasted well flows as the company expects in their last few presentations.

But your numbers of 1.50 are ridiculous. For that to happen, Galoc would have to generate in excess of 30000 bpd, leaving Nido with about 7000-8000bpd share, putting it on a revenue generation exercise of a quarter of a billion a year.

Thats some pretty big numbers, and at 1.50, the company is smack bang in the sweet spot of emerging oil and gas companies which have gone bonkers lately.

As I said earlier. 1 billion shares is not a laughing issue, its ALOT of paper. Then again....11.6 billion barrels of oil is ALOT of oil.