Agree Hutch, ExM or any big players would have their eye on a...

Agree Hutch,

ExM or any big players would have their eye on a potential target thats gone in & done in the hard yards, unless they want to take in a position from the begining.

Galoc has become a revenue generating project for NDO.

For '09, I'd anticipate NDO to generate minimum sales revenue between US$11-16m for 200-300 prodn days.

Here's how:

1) Assuming prodn period of 200 days, Oil price of US$35, NDO's share: 2765 bopd, NDO's 2009 gross sales revenue is apprx US$19.355m (ie 200*35*2765)

2) Prodn costs are $15/bbl, so 200*15*2765= US$8.295m

NDO's Net revenue of 19.355-8.295= US$11.06m for 2009

However there is an upside to this figure.

1) Net revenue for 270 days, US$14.93m (A$22.96m) &
2) Net revenue for 300days, US$16.59m (A$25.52m)

In 2008, NDO received net revenue of A$5.992m from 67 days prodn. Not bad for a one off producing asset.

I'd wonder if analysts would b seeing potential in NDO despite the slowdown in prodn due to weather conditions.