sandy, page-13

Some obvious errors in this thread. Philippines fiscal terms are the best in SEA.Even better than here in Oz and well ahead of the harsh terms of Thailand! Key point to remember is that contractors 'net take' in Philippines is 40%.

So calculating high-side of OOIP in the coming drills should look like this:

18mmboe x 50% (Nidos estimate of recovery) = 9mmboe

9mmboe x AUD100/bbl sales (after prod costs) = $900m

Drilling and Development cost estimate $100m

Net Revenue Stream = $800m , 60% Govt / 40% Contractors

40% of $800m = $320m

Nido's Share = $192m / Kairiki Share $128m

Per share to Nido circa 15c
Per share to Kairiki circa 20c

Remember two important points:

1. These first two drills will flow fast and die quick. Therefore cashflow and payback will be rapid (18months)
2. There are at least 20 of these mapped structures in SC54 that are 3D supported.

Really is a beautiful permit with the inboard easy-money and outboard monsters.

Both stocks should rerate accordingly.

DYOR