****make up your mind****

hi guys

just a follow up on previous postings re: value of oil in ground.

firstly David Whitby said that AUD$20bbl would be in the ball park.

worth noting also, David Whitby is the person that knows all the details re: cost of production etc etc etc, NOT SOMEONE SITTING IN HERE.

so i got a second opinion from Simon Ashton M.D Strike oil..(see below).

imo after reading his comments, i'd say that Blue Griffins simple valuation of AUD$20bbl is very much in the ball park.

i'm more then happy holding Nido long term..

here is the e-mail from Simon (note last paragraph)

Steve,

If the price were to stay at US$55/ barrel or more then the net present values of “oil in the ground” (assume undeveloped) clearly vary depending upon the quality of the oil and the ease ( ie cost) to develop). A possible value range at these prices could be from AUS $10 a barrel for a “high cost” development and low end production rates to over AUS$ 25 a barrel for “low cost” high production rate fields. A typical range for acquisitions at present ( that is equivalent cost per barrel is around US$8 TO US$14 a barrel ( say AUS$ 11 TO AUS$ 19 a barrel) These transactions would generally assume a lower sustainable oil price than US$55 a barrel but this gives you a guide. Remember it is difficult to use “ rules of thumb” to value oil because there are numerous variables even to the point where the oil is worthless almost at any price.

To cut a long story short a “ reasonable” figure for good quality reserves would be AUS$15 to AUS$20 a barrel ( even as high as AUS$25 a barrel for exceptional reserves ) if the price stays at US$55 a barrel. But as I mentioned before people generally would not pay this in an acquisition because they would not assume necessarily that the price would stay at such a high level.

Hope that helps.

Simon Ashton