financial model - ndo - investment bank analyz, page-54

Hi Opt,

"The true future value of this company lies in its exploration portfolio."

This is exactly right for the assets Nido holds at this stage of her development as an oiler, but therin lies the problem for a current valuation model, dependent on your investment time horizon outlook.

Six analysts could probably give you 8 to 12 methods (or more) for putting a value on an exploration portfolio, but then there are tenements, and there are tenements, if you catch my drift.
And on top of that, the tenements can be in old established and well produced oil fairways, with a good chance of finding oil, but not an elephant, or they can be in relatively unexplored fairways, like NDO's Pines assets, and carry all sorts of chances.

One could go on and on about this, but it serves to point out the difficulty in allocating what is a very subjective portion of a company valuation.
Nevertheless, there is a value there, and any model will change in this regard as the company proves up or drills dry on the targets in the portfolio.

An enjoyable thread to read for long term holders...as opposed to the short term trading type topics, although no doubt some of them got a kick out of Par15's initial valuation.

Compliments to all contributors.