100 day wrap up report ...

For those interested ...
Warm regards!

: )




I hold NDO/NDOO.



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ASX ANNOUNCEMENT
December 16, 2004
100 DAY WRAP UP REPORT
Dear Shareholders,
It is my great pleasure to report on the progress made over the “First 100 Days” at Nido
Petroleum. I adopted the 100 Day plan to focus our efforts towards developing a growth
strategy for the Company, taking a hard look at the strengths and weaknesses of our
Company and our assets in order to capitalize on our strengths, identifying the risks
facing us and to develop plans to mitigate those risks. From my perspective and that of
my team, it has been a great experience albeit an exhausting one.
100 Day Milestones
We have achieved a number of key milestones for the Company since Day 1 (24
August). The award of the UK acreage on Day 23 gave Nido a second core area. Our
blocks have gas discoveries on them, in the midst of major gas fields with substantial
infrastructure at a time when the UK demand is outstripping supply. A good time to be in
the gas business in the UK.
On Day 31, the Philippines Joint Venture Partners (JVP) farmed down their interest in
the Galoc field for a carry of their development costs. The farminees have a 90 day
window, ending on 22 December to propose a funding plan acceptable to the joint
venture. I feel it is unfair to comment on the status of this farm-in initiative and other
potential development options Nido is considering until the 90 day exclusive period
expires. On Day 64, the Philippine JVP adopted a new operating philosophy based,
which has resulted in a substantial increase in the liftings of oil from the Nido and
Matinloc producing fields.
On Day 87, we announced a share placement raising $3.4 million. This gave Nido the
resources to complete the technical work on all of our assets and equally as important
welcomed two large institutional investors, one in London and the other in Hong Kong to
our share registry. On Day 93, Nido’s share price reached a 6 year high of $0.073 with
turnover in the stock showing a 7 fold increase.
These key events have given us a solid foundation for 2005. I am pleased that we have
been successful in increasing the profile of your Company both in the local and
international investment community as well as in the Philippines. The number of calls
and emails from shareholders, which I have personally answered, has been a great
education for me. This increased level of investor communication has indicated a
heightened level of awareness about and interest in the Company’s future and
confidence in the management team.
We are pleased with the success to date however are committed to continue to work
diligently to grow the positive relationships we have built, to deliver the value we see in
the assets in the Philippines and the North Sea and perhaps come up with some
interesting Value Creation initiatives in 2005.
The attached presentation can be downloaded from either the ASX website or if you
would prefer the technicolor version from our website at www.nido.com.au.
The website is under review and is updated regularly to reflect the Company’s activities.
Respectfully submitted
Dave Whitby
1
“The First 100 Days”
Day 100 Status Report
“The 100-day plan was successful in focusing
our efforts, developing our strategy, identifying
the strengths and capitalising on them, and
understanding the risks and mitigating them.“
David Whitby
Managing Director
December 2004
2
100 Day Milestones
3
100 Day Milestones
�� Day 9: 1 Sept Board strategic workshop
�� Day 11: 3 Sept Extraordinary General Meeting approves appointment of new MD
�� Day 23: 15 Sept Awarded North Sea licences: Blocks 47/9c, 48/1a & 2b (part)
�� Day 31: 23 Sept Philippine Joint Venture Participants farm-out working interest in Galoc for carried cost
�� Day 44: 6 Oct Norwest Energy farm-in to North Sea blocks 48/1a & 2b & sign area of mutual interest
�� Day 64: 26 Oct New operational philosophy for Nido/Matinloc – increased liftings
�� Day 84: 15 Nov Exercised option on North Sea blocks 48/1a & 48/2b
�� Day 87: 18 Nov Share placement raised $3.4million, 88% to major international institutional investors
�� Day 88: 19 Nov JV approval of Nido/Matinloc optimisation plan
�� Day 92: 23 Nov Palawan Basin prospects & leads work commenced
�� Day 93: 24 Nov Share price reached 6-year high of $0.073
�� Day 100: 1 Dec Galoc geological modelling completed
4
Impact on the
Share Price
5
Nido Share Price
�� Share price peaked at
$0.073 on 24 November
�� Turnover increased
over seven fold
�� New international
institutional investors as
major shareholders
�� Market capitalisation
increased four times
from $7.9 million to
$31.6 million
Source: investorweb.com.au; asx.com.au (7 Dec 2004)
Moving average excludes volumes traded on 15 &
16 Sept 2004 – anomalous high turnover days
$0.00
$0.01
$0.02
$0.03
$0.04
$0.05
$0.06
$0.07
$0.08
1-Jan-04
15-Jan-04
29-Jan-04
12-Feb-04
26-Feb-04
11-Mar-04
25-Mar-04
8-Apr-04
22-Apr-04
6-May-04
20-May-04
3-Jun-04
17-Jun-04
1-Jul-04
15-Jul-04
29-Jul-04
12-Aug-04
26-Aug-04
9-Sep-04
23-Sep-04
7-Oct-04
21-Oct-04
4-Nov-04
18-Nov-04
2-Dec-04
16-Dec-04
30-Dec-04
Share Price (AUD)
0
5
10
15
20
25
30
Shares Traded (millions) - 90-day moving avg
Day 1: 24 Aug 04
Share Price: $0.02
Volume: 1,596,737
6 July 2004
Announcement of new
management team.
Day 100: 1 Dec 04
Share Price: $0.056
Volume: 3,777,816
6
Value Proposition
At Nido
7
Nido’s Value Proposition
VALUE I. Optimisation II. Realisation III. Creation
What?
More oil in the tank from Nido &
Matinloc
Develop existing reserves in
Galoc
Exploration in Philippines &
North Sea
Impact
• Increase short-term cashflow
• Stretch target of 4 liftings per
month in 2005
• Cashflow/share price impact
in the medium-term
• Significant cash flow
• Medium/long-term growth
• ‘Big hit’ potential
Vital
Few
Actions
�� JV adopts new operating
philosophy – liftings increased
�� Improve commercial terms of offtake
agreement
�� Test wells & determine optimum
production cycle times
�� Master lifting plan
�� Install artificial lift, as required
�� Reinterpret seismic; remap fields
�� Develop optimum field depletion
plans
�� Philippines partner farm-out
�� Geological modelling
�� Reservoir simulation
�� Certify reserves/project financing
�� POD approval
�� Drill development wells
�� Regional seismic
interpretation
�� Successfully tied seismic to
well data
�� Generate prospect maps
�� Prospects & leads inventory
�� Grade opportunities
�� Prepare drilling programme
�� Complete
�� Ongoing
8
Nido’s Core Areas
Scotland
Ireland IRISH
SEA
NORTH
SEA
England
Shetland
Faroe
Islands
Nido
Matinloc
Galoc
Nido’s Working Interests
47/9c: 50%
48/1a: 50%
48/2b: 50%
Nido’s Working Interests
Nido: 22.486%
Matinloc: 28.283%
Galoc: 22.279%
Philippines North Sea
9
I. Value Optimisation
Nido& Matinloc
�� Work programme
�� Change operating philosophy - completed
�� IPR* test on Nido A - completed
�� IPR test on Nido B/Matinloc - ongoing
�� Derive field IPRs - ongoing
�� Determine optimum production cycle times for
each field - ongoing
�� Maximise liftings through a well coordinated lifting
schedule - ongoing
�� Install artificial lift (jet pumps), as required
�� Identify bypassed reserves by revisiting seismic
interpretation and remapping fields
�� Develop optimum field depletion plans
�� Identify infill & near field opportunities
�� Nido 1X1
Nido’s Working Interests
Nido: 22.486%
Matinloc: 28.283% * IPR = Inflow Performance Relationship
10
I. Value Optimisation
Liftings
�� JV adopts new Nido/Matinloc
operating philosophy
�� Liftings have increased:
�� January - June 2004
�� 3 liftings
�� 32,714 bbl (gross JV)
�� July - November 2004
�� 7 Liftings
�� 90,099 bbl (gross JV)
�� New oil sales contract finalised
with Shell
�� Transportation contract review -
ongoing
�� Stretch Target: Increase liftings
to 4 per month
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Oil Volume (bbl)
Cumulative Lifted Oil Volume
Nido Cumulative Share
Lifting
Forecast
Nido’s Working Interests
Nido: 22.486%
Matinloc: 28.283%
(approx 14,000 bbl)
11
II. Value Realisation
Galoc Development
�� Key features:
�� 3 wells in the structure; drilled off crest
�� Damaged well produced 4,400 bbl/d
�� Oil Gravity: 35º API
�� Column height: 45 m
�� Porosity: 16%
�� Philippine JVP farm-out
�� Work programme:
�� Geological modelling - complete
�� Reservoir simulation – ongoing
�� Project financing - ongoing
�� Optimise plan of development
�� Reserves certification
�� POD submission & approval
�� Contract rig & services to drill wells
�� First production
??
Nido’s working interest: 22.279 %
12
III. Value Creation
Palawan Exploration - Philippines
�� Regional seismic interpretation -complete
�� Tie seismic to well data - complete
�� Map potential prospects & leads - ongoing
�� Prepare prospects & lead inventory
�� Select high grade opportunities & prepare
basin strategy - complete by Q2 2005
�� Develop drilling programme
13
III. Value Creation
North Sea – Block 47/9c
�� Awarded block 15 September 2004
�� Nido UK subsidiary formed; Corsair to operate
�� UK gas market & infrastructure study
commenced
�� Work programme:
�� DTI issue licence - Dec 2004
�� JOA/work programme - ongoing
�� Acquire 3D seismic - ongoing
�� Well analysis - complete by Q2 2005
�� Structural mapping - complete by Q3 2005
�� Well design & planning - complete Q3 2005
�� Develop drilling programme
�� Drilling window Q4 2005 Nido’s working interest: 50%
14
III. Value Creation
North Sea – Blocks 48/1a & 2b
�� Awarded block 15 September 2004
�� Farmed out to Norwest Energy 6 October 2004
�� UK subsidiary formed: Nido Petroleum UK to
operate
�� Work programme:
�� DTI issue licence - Dec 2004
�� Acquire 3D seismic - ongoing
�� Seismic processing - complete by Q2 2005
�� Structural mapping - complete Q3 2005
�� Well analysis - complete by Q3 2005
�� Well design & planning – commence Q4 2005
�� Develop drilling programme
�� Drilling window Q1 2006 Nido’s working interest: 50%
15
III. Value Creation
UK Prospect Fair 2004, London, 14 December 2004
Paul manning Nido’s booth
Nido’s Head of Exploration, Paul Quaife, presenting Nido’s UK Strategy
16
Corporate
17
Corporate
�� Share placement
�� Major international institutions
�� $3.4 million raised
�� Company Secretary appointed
�� Mr. Andrew Chapman
�� Corporate governance
�� Policy development & implementation underway
�� New accounting system in place
�� Board activity
�� Strategy workshop
�� Two board meetings
�� A programme of hiring the brightest & best
�� 2 Reservoir engineers
�� 1 Reservoir technologist
�� 1 Geologist
�� UK based Ambrian Partners Ltd appointed as
financial advisors
Bryce Martin (Head of Operations), David Whitby (Managing Director) &
Paul Quaife (Head of Exploration)
18
Summary
19
Summary
Major Achievements in our First 100-days
�� Nido’s strategy based on value optimisation, realisation & creation in place
�� Elevated Nido’s corporate profile
�� Raised $3.4 million; attracted institutional investors
�� Significant share price appreciation
�� Developed ‘in-country’ expertise in Philippines through relationship management
�� Increased production through optimisation
�� Initiated technical & commercial activities on all assets
Go Forward Priorities
�� Opportunistically acquire acreage in the North Sea
�� Government approval to proceed for Galoc development
�� Further optimisation of production from Nido/Matinloc
�� Open Nido office in Manila to increase local presence
�� Identify prospects & leads in the Palawan Basin
�� Geological modelling of UK blocks
20
Backup Slides
21
About Nido
�� Fully paid shares: 433,115,438
�� An additional 30 million shares awaiting shareholder approval at EGM on 17 January 2005
�� Options on issue:
�� 144,131,052 options exercisable at $0.02 on or before 30 June 2005
�� 3,000,000 options exercisable at $0.03 on or before 30 June 2005
�� 5,000,000 options exercisable at $0.02 on or before 30 December 2004
�� 18,500,000 options exercisable at $0.03 on or before 30 June 2005
�� 10,000,000 options exercisable at $0.05 on or before 30 December 2006
�� Office:
�� 3rd Floor, 41-43 Ord Street
West Perth, Western Australia
�� Phone: +61 8 9321 2844
�� Fax: +61 8 9321 2544
�� Website:
�� www.nido.com.au
22
Top 10 Shareholders
31 December 2003 30 November 2004
Shareholder % Held
Seaspin Pty Ltd 9.03
Nefco Nominees Pty Ltd 5.22
Toltec Holdings Pty Ltd 4.28
Mr. C I Burton 2.74
Mr. N Botica 2.16
Mr. B Byass 1.73
Nordana Pty Ltd 1.71
Walthamstow Pty Ltd 1.61
T Lamada 1.61
Mr. J Boyton 1.52
Shareholder % Held
Westpac Custodian Nominees Ltd 10.063
Nefco Nominees Pty Ltd 7.702
Seaspin Pty Ltd 6.476
Yandal Investments Pty Ltd 4.617
Petroleum Ventures Pty Ltd 4.086
Toltec Holdings Pty Ltd 2.373
ANZ Nominees Ltd 1.732
Westpac Custodian Nominees Ltd 1.443
Samson Exploration NL 1.154
Bremerton Pty Ltd 1.154
23
Why the Palawan Basin?
�� Underexplored basin
�� Strong source rock
�� Covered by 3-D seismic
�� Major gas discovery
�� World class fiscal terms
�� Cost pool: increases contractor share
�� Basin historical success rate:
Malampaya
3.2 Tcf
118 MMbbl
Nido
Matinloc
Galoc
Potential
18%
Developed
22%
Dry
14%
Shows
34% Non-Comm
12% Total: 50 Wells
24
Jet Pump Schematic
Venturi
Reservoir Fluid
Power
Fluid
Locating
Nipple
�� No moving parts
�� High volume capability
�� Suitable for deviated wells
�� Multi-well production from single
surface package
�� Low pump maintenance
Operating Depth 1,500 – 3,000 m
Operating Volume 300 – 4,000 bbl/d
Operating Temp. 38º – 120º C
Fluid Gravity >8º API
Wellbore Deviation 0º - 90º hole angle
Surface Facilities