follow up volume, page-82

The cobbling together of the loans vs the drawdowns vs the qrtly reports is a good discussion point.

And I do recall that OEL are on the cusp of getting payment for two lifts in the current quarter we are in now, so the same should apply for NDO as well and this should give a booster.

I am not altogether sure however that proving that they will have $12M leftover after the completion of Galoc Phase II can be equated to blowing the entire $12M on Bargatan just for the sake of it and/or to prove a point. I still think this is far too much for a company of NDO's size to risk on one well and unless something really significant was found it leaves little money for follow up work and/or development.

Also bear in mind that once the Phase II money from Galoc starts to flow, most of the initial cashflow would be committed back to the lenders until those loans are paid off (rule of thumb is usually 90% of cashflow to lenders and 10% to company).

I still reckon that they are looking for someone to farm in.

Also one point that has not been addressed is that can the other 50% partner in the well also afford its $12M share of the costs. I think a large farm in for (say) 100% costs for 75% of the equity or some similar ratio is where this is heading.

I could be wrong. Good healthy discussion all the same.