talk about coming out "smelling like roses".Gindara is a world...

talk about coming out "smelling like roses".

Gindara is a world class prospect with approx OIIP 500MMBLS. Shell's interest approx 270MMBLS...

Shell aren't even paying for the first well to be drilled. nor even a second well if the first is successful.

Nido should have been TOTALLY REIMBURSED FOR PAST COSTS IN FULL. MAYBE EVEN A FEW EXTRA BUCKS AS A SWEETNER.

Shell's Contribute 75% of the Gindara-1 exploration well cost up to a maximum well cost of US$24 million;

much will it cost to drill Gindara.????..not much change from US$40mm. Nido's going to need some bucks.

? pay US$2.5 million towards past seismic costs; and

what % is that from total seismic costs..????..couldn't get Shell to reimburse prior costs.

? pay its pro-rata share of the 2010 and 2011 Work Programme and Budget from the date of signing.

once again for a world class prospect Nido puts it's hand in their pockets.

plus just imagine what the capex costs will be for development.

Shell management must be sitting back laughing. if they'd been dealing with another super major they wouldn't be so lucky. Nido forced to sign on the dotted line.

i'm pretty sure you'll see Nido farming out more 1) reduce it's risk, 2)reduce Nido costs.

if Nido had of got what should have been a great deal, then it wouldn't need to farmout as much OR MAYBE NOT AT ALL.