financial model - ndo - investment bank analyz, page-28

I can't just pay out on a fellow poster and then not say anything constructive either :). I have a few comments:

* I totally agree with Chubbito on the discount rate being light. Even though you've used seemingly great sources for the discount factor, anything less than say a 15% return on equity wouldn't be worth the risk IMO.

* I've taken a look at your model and while a little hard to follow in pic form, it looks like you've got the reserves correct but then you only reduce it at NDO's share rate, when it should be being reduced at 100%. I now see the reason for your comment on reserves life.

Speculating on this company is essentially a bet on whether they can hit oil again within 3 years using $22M-ish + production revenue. This is a little harder to value.

Although if they're exploring in a previously proven area then it makes the bet more likely to pay off.