ndo recommendation, page-4

Nice volume, been holding NDO for awhile, a very neglected stock with substantial holders selling down in the past.

Perhaps green shoots are growing, with awareness spurring around the world of the potential the Philippines have. After all, reserves around the world are slowly depleting, oil discoveries are getting less and less, and operators have to look for oil at more and more remote areas and deeper waters. Surely future supply issues will cause traders to drive up oil prices, for higher oil prices will be necessary to cover cost for expensive drilling, and operations at these areas.

For those interested in reading the analysis of NDO, Paterson published an excellent report, stating:

"We are upgrading our recommendation to a BUY
with a price target of $0.26/sh but highlight this is
speculative due to ongoing issues at the producing
Galoc fi eld. While the reliability of Galoc frustrates an
otherwise undervalued proposition, the end of the typhoon
season and the substantial upside from the opportune Tindalo
development makes a compelling investment opportunity.
Our analysis of the development incorporating Tindalo/Yakal
provides an NPV of ~A$70m ($0.06/sh) with further upside
from further look-a-like structures.."

http://www.horizonoil.com.au/investor-centre/documents/PatersonsOilandGasReviewNov.pdf

Strong Positive Cash Flows. And, a possibility to double the cash flows in 2010 with Tindalo coming into production early 2010. Something holders can look forward to, and hopefully refrain from selling NDO down.

All the best to all holders

LM