Gindara was a body blow for NDO after Tindalo, but the cause,...

Gindara was a body blow for NDO after Tindalo, but the cause, the cause goes on.

All is not lost, every cloud has a silver lining. To investors, look at Monday's confirmation of no hydrocarbons as an opportunity to average down.

While Gindara was disappointing, it was not fatal for Nido. Including revenue in the first two quarters of this year (with TAPIS close to $120/bbl) and Shell's Gindara drilling contribution, NDO may be able to avoid a CR. If that is the case NDO is back in the game.

Now it is time for common sense to prevail. While electing Mr Pope and having an experienced true independent voice for shareholders on the board would have been a great start, let's keep looking forward (by admiting failure on Tindalo and electing Mr Pope it would have showed strength not weakness imo). Let's get back to basics.

A simple way forward imo would look like -

- Cut overheads now including the amount of directors - if you don't have room for Mr Pope on the board you obviously have too many.

- Consolidate and reduce the risk profile - stop hunting elephants and monetize assets where NDO already has oil in the ground - Galoc Expansion, West Linapacan (what the hell happened to that anyway - if that doesn't work at $120/bbl it never will), Signal Head.

- Build cash - if it takes longer to do this slow the program down (and again reduce overheads).

- Work out what went wrong on the inboard - the oil is there - work out how to get it (if you don't know, ask Mr Pope). We stuffed Tindalo, but it doesn't mean we should stop trying in what should be a lower risk sector - but again don't drill exploration plays until you have monetized oil we already have.

- Wait for good farm-in terms for the deep water. If you can't get them, let it go to the big boys with deeper pockets. There will be other opportunities if NDO is patient.

I know NDO will probably end up paying McKinseys or some other high flying consultants to do an independent review of the way forward but why don't they just employ some common sense as per above. If you don't know your own game and turf get out and get people in who do.

Written at times as if I was still a holder. A previous long term holder looking to get back on board.

OK