Hi 62strat, I do agree that it was really nothing more than a...

Hi 62strat,

I do agree that it was really nothing more than a teaser I am just trying to get my head around what it is standing in the way. And while the most likely scenario would be the GFC it seems a little odd to me. After all the companies we'd like to be dealing with will surely be looking at any opportunities to grow their reserves and aren't focused on the now but forever looking at the longterm. It was only a few months ago i read some articles which suggested the biggest companies were going to continue spending in anticipation of the next surge demand.

And when you consider it would probably cost them less than 45m for a two well program once the rest of the JV has contributed i wouldn't think was too much. They could also decide to drill one well only and defer the second, though this wouldn't be quite so economic. So it just makes me wonder, are NDO;

- Being too greedy in the farm down / equity ratio.

- Not prepared to talk seriously until the prospects in
SC63 have been matured and would rather deal with 1
partner to get more bang for their buck.

- Feel they need to have some success to look as though
they are a serious player.

- Management aren't up to the task.

From the other side;

- The prospects are not big enough to interest them or
they don't like the geology.

- The share of the equity is too small, ie would only
consider if they could have say 70%+ of the permit.

- Don't want a small company like NDO to ride on the
coattails of a major.

- Bigger and better prospects out there at the moment.

Anyway just a few thoughts that cross my mind every now and then, and as much as I'd like a JV I wouldn't mind a few more shares either.