proper analysis of oel vs ndo

This is how to compare OEL vs NDO. Through proper fundamental analysis.

Both companies really only have 1 'live' asset at present and that is the Galoc oil project. Both companies do have a lot of 'what if' and 'if only' and 'nice to have' assets and half pie projects dotted about the place, but RIGHT HERE RIGHT NOW Galoc is all they really have that is working for both companies.

MARKET CAP of Otto is $91M. Cash on hand is $33M and Project debt drawn to 30 June is $17M.

So the EV of OEL is 91-33+17 = $75M. OEL own 33% of Galoc


MARKET CAP of NDO is $81M. Cash on hand is $30M and Project debt drawn to 30 June is $10M.

So the EV of NDO is 81-30+10 = $61M. NDO own 23% of Galoc

OEL has EV of $75M for 33% of Galoc. If Otto only owned 23% of Galoc, its EV would be 23/33 x $75M = $52M


NDO has EV of $61M for 23% of Galoc.

NDO is currently overpriced compared to OEL. Smart trade if you own both would be to sell NDO and buy OEL.

So there you have it. Some proper fundamental analysis. I am certain there will be a lot of naysayers banging on about this NDO project or that OEL project, but for my money 'what ifs' are valued at a big fat zero.

And none of this "oh NDO is share price is lower than OEL share price, so NDO is the better bet" piffle that I read on this site in recent weeks. Similarly, none of the "oh Saturn has gone behind Jupiter" piffle either so buy one or the other etc.

Proper factual fundamental analysis - figures straight from the quarterly reports of both.

I own shares in both. That is changing.