expect 50mmcf per day in june

50 MMCF PER DAY


First of all, I am pleased that NDO recovered its SC54B interest to 60%, this is very positive IMV.

NDO announced on 15,Dec, 2011, "the completion of Pawikan 2D seismic surveys on 10 December 2011."

Shell decided to quit SC54B on 30 DEC (actually the decision should be made much early than this date, may be in Nov)

Even if Shell made the decision on 30 Dec, there is only less than 13 working days between 10 Dec to 30 Dec, which means
there is impossible any conclusion can be made by interpreting the 2D seismic data.

SC 54B Pawikan lead still has the 2 billion bbl of oil potential as NDO announced on 3 Jan that "the Preliminary seismic
data from the Pawikan survey is encouraging"

?e remain optimistic on the prospectivity of the block especially by the potential
exploration upside identified in the large Pawikan Lead"

Logically, it's unlikely that NDO made above comment if Shell quit Sc54B due to the 2D seismic data analysis.
NDO also announced ON 15,Dec, the interpreting of 2D Seisimic data will take 4-6 month. How can Shell know?

So all in all, no need to worry about the Shell's decision, I never count on it to invest on our second well.


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SC 63 --- proven >50 MMcf gas flow per day!


Aboabo re-drill (370 mmbbls) in 2012, SC63 combined prospective resource potential of 1.5 billion bbls.


"gas discovery at the Aboabo A1-X well (Phillips Petroleum Ltd, 1981) located in the southern sector of the block,
reported to have flowed gas at an estimated rate of 50 million cubic feet per day on test."


Even if the first drilled well "off-structure", the strong flow rate (50 Mmcfpd) indicates gas reserve should be much more than
1 Tcf and after the Detailed seismic interpretation of the Kawayan 3D data to be done, the next drilling's successful odds
should be very high (85%). I have no doubt that we will encounter plenty net gas pay, and flow rate is much higher than
initial 50 MMcf per day.


SC 63 potential to be the next company maker, I reckon SP will be 8-10c before drilling and 35c+ if drilling successful.

Optimisticly, NDO's SP may break $1 per share if Aboabo'success(>50 MMcfpd) fully verify the previous 2D/3D seismic data.

This is because:

"Apribada prospect ?1000 mmbbls" is just less than 2km to Aboabo, Aboabo's success means the 3D seismic
of Apribada prospect (1 billion bbls) is highly RELIABLE!






SC 14


SC 14, has produced circa 47 MMbbl of oil so far, highest flow rate form Nido-B reached 29,000 bopd in 1984.
Currently SC14 still remain huge development potential.


At block C1- Galoc field,There is still 11 MMbbl recoverable oil reserve left (at 2p level) and Galoc North field has same
or much higher potential. (supposed to be up to 13MMbbl recoverable oil)


Block C2-The West Linapacan A and B, A produced 8 MMbbl in the past(NDO reckon half reserve left), and B flow test indictaed
2900 bopd but has never been developed (due to the low oil price at that time?) NDO decided to drill in 2012.


Block A,B,D which produced 30MMbbl in the past, also remain high redevelopment potential.

Bock A produced 18 MMbbl in the past, NDO will drill Nido 1x1 in Block A in 2012, I believe the success rate is quite high
due to the high production rate in the past.





SC 58 > 3 billion bbls


SC58 is located very close to "Shell operated Malampaya gas producing field in SC 38-- 2.7 TCF"

Deepwater block with Prospective Resource
potential >3.0 billion bbls** (Nido reservoir only). In which, Balyena Prospect leading drilling candidate:
?Prospective resource 1.3 billion bbls** (Nido reservoir only); and
?Well required before Jan?3.

IMV, NDO's major decision in 2012 is to exercise its option to drill Balyena Prospect. I hope NDO can farm out 30% of
its SC58 interest to reduce its drill cost.

SC 58 alone, NDO already has higher potential than peers like NEN--2 billion (2D seismic), and WHN--3 biliion (2D seismic)



SC 54A/B

Focus :

Pawikan 2 billion bbls potential.



1.5 billion +3 billion + 2 billion= 6.5 billion bbls all involved in 2012 drilling porgramm.

limited to my trading experience, I believe NDO is very similar with NEN, whose SP soaring from 9c to 55c recently.

However, you can never find another bargin like NDO.




As for me, SC63 drilling success is a "done deal", 30 years ago, the field flowed gas 50MMcfpd, gas already there and no any more
reason to fail ,after 30 year's drilling technology development.

SC 63 drilling will trigger 10-30 baggers rerate for NDO's SP. As I said, another 1 billion bbls is just next door.