rig in tow, page-111

Times have changed. Management has changed. Technology has changed.

Most importantly our new management now are only taking a 10-20 percent interest in exploration / production sharing contracts.

With our core cash for the next 3 years of approx 50- 60 million free cash per year I.e. 150-180 million net to nido we are in a sound financial position.

Recap on the 3 Indonesian wells commencing as soon as we spud hopefully this week. Firstly the partner operating this well is Lundin petroleum who is a successful Swedish company refer to thier website for further details. These wells are known as Balqis-1 side track Boni and Gobi prospects.We currently hold 10 percent working interest and have invested 10 million.

Then we have the forth well which everyone is obviously aware of it's called SC63 sharing contract between PNOC and Dragon oil. I strongly recommend people who are not familiar with Dragon to view their website. They are also a very successful oil company head quartered in Dubai with intensive knowledge of the O & G off shore industry. dragon are known to develop any discovery very quickly.

The Baratang SC63 will be targeting a large amount of oil. Interesting to note in 1975 a exploration drill hole named Albion head wall was drilled and oil was found. Refer to my previous posts for link to this article. Anyone who has no access to the link please ask and I will repost.

The rig has been contracted and is building built as we speak In Singapore. The rig is expected to be ready in May and Spud in June this year 2014.

The cost of the Baratang SC63 drill hole will be nil to Nido and we will receive 2 million from Dragon oil for past seismic costs. Currently we hold 10 percent but management is working with PNOC to obtain a further 10 percent.

This is basically the story of NDO for 2014 as far as I can see it.

Now there are other items to note

1. Development of west linapacan oil field early 2015
2. Further development in the Galoc oil field.
3. Further BD opportunities

Exciting year ahead my fellow NDO supporters.

Thanks and Regards,