good news re: galoc, & answer galoc questions, page-34

for those interested ... Evening all ...
Apologies that I can't hang around to elaborate other than to say that I agree with Capt Salty & Owngoal on this thread.
It has literally taken half the night to find the definitive links necessary to confirm what I believe NDO was telling us in the announcement, they are as below.

I see it as being quite clear that there is a third company now involved with Cape & Team.
That company, according to the announcement, qualifies with the criteria pasted below & the reference that it has major weighting by European standards, leads me to believe that it must be capitalised in the billions of Euro/GBP.
The implications (in my opinion) are as good as it gets at this stage of the game & cannot be perceived otherwise.

For those following this thread wondering what speculative calcs for a production rate of 25,000 bopd, 22.279% net to NDO may be worth, I have pasted 'assumption reward table #4' (***) from prior post #520666 at the very bottom.
If one were totally confident that oil is going to be greater than US$50bl by the time Galoc is up & running;
change part i) AUD$15 net value per bop to AUD$30;
follow same formula as shown in part a) but apply price earnings ratio of 5 times & the potential market capitilisation identified may still be a conservative variable ...

Anyway, many thanks to all in the thread, hope this helps in some way & I will await further detail from the company with weighted impatience!
Probably sleep in now & miss pre-open!!
: )

Warm regards & good luck to all ...
: )




Standard & Poor link, '2005 Corporate Criteria Book, Nov 19, 2004', pasted excerpts from;
*Page 11 - Investment and Speculative Grades.
**Page 13 - The Rating Process.


*Investment and Speculative Grades
The term “investment grade” originally was
used by various regulatory bodies to connote
obligations eligible for investment by institutions
such as banks, insurance companies,
and savings and loan associations. Over time,
this term gained widespread use throughout
the investment community. Issues rated in the
four highest categories—‘AAA’, ‘AA’, ‘A’, and
‘BBB’—generally are recognized as being
investment grade. Debt rated ‘BB’ or below
generally is referred to as “speculative
grade.” The term “junk bond” is merely an
irreverent expression for this category of
more risky debt. Neither term indicates which
securities we deem worthy of investment,
because an investor with a particular risk
preference may appropriately invest in securities
that are not investment grade.
Ratings continue as a factor in many regulations,
both in the U.S. and abroad, notably
in Japan. For example, the Securities &
Exchange Commission (SEC) requires investment-
grade status in order to register debt on
Form-3, which, in turn, is one way to offer
debt via a Rule 415 shelf registration. The
Federal Reserve Board allows members of
the Federal Reserve System to invest in securities
rated in the four highest categories, just
as the Federal Home Loan Bank System permits
federally chartered savings and loan
associations to invest in corporate debt with
those ratings, and the Department of Labor
allows pension funds to invest in commercial
paper rated in one of the three highest categories.
In similar fashion, California regulates
investments of municipalities and
county treasurers; Illinois limits collateral
acceptable for public deposits; and Vermont
restricts investments of insurers and banks.
The New York and Philadelphia stock
exchanges fix margin requirements for mortgage
securities depending on their ratings,
and the securities haircut for commercial
paper, debt securities, and preferred stock
that determines net capital requirements is
also a function of the ratings assigned.

**The Rating Process
Most corporations approach Standard &
Poor’s to request a rating prior to sale or
registration of a debt issue. That way, firsttime
issuers can receive an indication of
what rating to expect. Issuers with rated
debt outstanding also want to know in
advance the impact on their ratings of the
company’s issuing additional debt. (In any
event, as a matter of policy, in the U.S., we
assign and publish ratings for all public corporate
debt issues over $100 million—with
or without a request from the issuer. Public
transactions are defined as those registered
with the SEC, those with future registration
rights, and other 144A deals that have
broad distribution.)
In all instances, Standard & Poor’s staff will
contact the issuer to elicit its cooperation. The
analysts with the greatest relevant industry
expertise are assigned to evaluate the credit
and commence surveillance of the company.
Our analysts generally concentrate on one or
two industries, covering the entire spectrum of
credits within those industries. (Such specialization
allows accumulation of expertise and competitive
information better than if junk-bond
issuers were followed separately from highgrade
issuers.) While one industry analyst takes
the lead in following a given issuer and typically
handles day-to-day contact, a team of experienced
analysts is always assigned to the rating
relationship with each issuer.



***Assumption Reward Table #4.

Each horizontal development well flows at 12,500bls per day.
12,500bls X 2 = 25,000bls.
25,000bls X 0.22279 = 5,569.7 bopd net NDO.

i) 5,569.7bls X AUD$15. = AUD$83,545.5 per day X 91 = AUD$7,602,640.5 per quarter X 4 = AUD$30,410,562. per annum.

a) Price earning ratio application of 8x = market capitilisation of AUD$243,284,490.
AUD$243.2m divided by 650m fpo = 37.4cents per fpo valuation.
b) p/e/r application of 10x = m/c of AUD$304,105,620.
AUD$304.1m divided by 650m fpo = 46.7c per fpo valuation.
c) p/e/r application of 12x = m/c of AUD$364,926,740.
AUD$364.9m divided by 650m fpo = 56.1c per fpo valuation.
d) p/e/r application of 15x = m/c of AUD$456,158,430.
AUD$456.1m divided by 650m fpo = 70.1c per fpo valuation.

ii) 5,569.7bls X AUD$18. = AUD$100,254. per day X 91 = AUD$9,123,168.6 per quarter X 4 = AUD$36,492,674. per annum.

a) Price earning ratio application of 8x = market capitilisation of AUD$291,941,390.
AUD$291.9m divided by 650m fpo = 44.9cents per fpo valuation.
b) p/e/r application of 10x = m/c of AUD$364,926,740.
AUD$364.9m divided by 650m fpo = 56.1c per fpo valuation.
c) p/e/r application of 12x = m/c of AUD$437,912,080.
AUD$437.9m divided by 650m fpo = 67.3c per fpo valuation.
d) p/e/r application of 15x = m/c of AUD$547,390,110.
AUD$547.3m divided by 650m fpo = 84.2c per fpo valuation.

iii) 5,569.7bls X AUD$20. = AUD$111,394. per day X 91 = AUD$10,136,854. per quarter X 4 = AUD$40,547,416. per annum.

a) Price earning ratio application of 8x = market capitilisation of AUD$324,379,320.
AUD$324.3m divided by 650m fpo = 49.8cents per fpo valuation.
b) p/e/r application of 10x = m/c of AUD$405,474,160.
AUD$405.4m divided by 650m fpo = 62.3c per fpo valuation.
c) p/e/r application of 12x = m/c of AUD$486,568,990.
AUD$486.5m divided by 650m fpo = 74.8c per fpo valuation.
d) p/e/r application of 15x = m/c of AUD$608,211,240.
AUD$608.2m divided by 650m fpo = 93.5c per fpo valuation.