financial model - ndo - investment bank analyz, page-30

Hello gents,

Ok have had time to audit my financial model.

Residual Reserves Million Barrels (start): is the total reserves of all fields that NDO gets a share in.

Oil Production per Day (NDO Share): is NDOs share of the 14,400 barrels per day that is being consumed from the field.

The Residual Reserves calculation is being done with the following formula:

=IF(F4-F5*(F6/0.22)/1000000>0,F4-F5*(F6/0.22)/1000000,0)

Essentially

1. I am taking the daily 3,345 barrels/day that NDO is consuming.
2. returning to the total volume that is being extracted from the oil field or 15,200 barrels/day (assuming a slight increase from 14,400 barrels/day) which is the total that is then split out to the different partners.
3. Multiplying this by 257 days (taken from their last quarterly report.)
4. Creating a field burn rate of 3,907,568 barrels per year.

So the total field of Galoc for 1P and 2P is 40.50 million barrels for 2008. With Tindalo & Yakal this validates the life of the model.

I am actually reducing the value of their new fields that they own a greater share (eg. more than 22% share for Tindalo & Yakal)

Ok everyone. I standby the valuation +/- what people want top use as a discount factor.

Cheers,
Par15