From Post #644165.Warm regards to all & good luck ...: ) Company...

From Post #644165.
Warm regards to all & good luck ...
: )


Company Value.

Determining what is a fair value market capitilisation for NDO whilst the collective market is in the process of doing so for those of us that don't have a PHD in NPV calculations becomes some-what difficult.
Directly below is one attempt to illustrate a snapshot fair value breakdown using very lay, simplistic methods presented as a very plausible broker report post confirmation announcements.



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Nido Petroleum.
NDO.ASX

Shares on issue (m): 633.15.
Market capitilisation (AUD$m): 69.65.
Cash (AUD$m): 5.33
Debt (AUD$m): 0

Strong speculative buy - ($0.11)
Short term price target: $0.22
Valuation: $0.25.

Comments:
(i)Galoc field development confirmed & scheduled production from field Dec06.
Farm-in partner is the Vitol Group - major investment-grade company with market cap > USD$40b, one of the world's largest independants.
(ii)Further acerage awarded - SC5X, (1.26m acres), contains seven identified exploration targets, (three advanced).
High-impact exploration permit considered to be amongst the best in the highly prospective NW Palawan basin, (Philippines).

Investment case:
NDO remains significantly undervalued though the market is very quickly beginning to understand this in reflection to multiple institutions present already on her register. Management ability has surpassed all reasonable expectations having turned company fully around in under twelve months.
Broad diversified asset base - the company is by no means opportunity constrained & will emerge as a strong mid-tier producer by CY07.

Details:
Galoc field (22.279%) two well horizontal development projected flow rates @ 7,500 - 10,000 bopd each - CY07 NPAT between a)AU$58.35m & b)AU$77.82m based upon an oil price assumption of USD$50/bbl & PSC.
NPV Galoc p/e 2.2x forecast CYO7 NPAT a)$0.2024 & b)$0.2704.
NDO debt component for field development fully underwritten by Vitol

Producing Nido & Matinloc fields covering 114.3% administration & technical expenditure.

EV (pessimistic) AUD$23.142m - $0.0365
-North sea assets
-Cool Energy investment
-West Linapacan field (109mbl) development proposal presented to JV 25/05/05, Vitol may be farminee
-Coron nth exploration structure technically advanced

Cash = $0.0084
EV - = $0.0365
NPV(a) = $0.2024

Present Valuation (a) = $0.2473 - AUD$156.57m market capitilisation.

Cash = $0.0084
EV - = $0.0365
NPV(b) = $0.2704

Present Valuation (b) = $0.3153 - AUD$199.63m market capitilisation.