I expect that they will either farm down significantly in SC54a or sell it off - someone will go after the pinacle reefs there, but maybe not NDO. If NDO stay in they will do it in such a way that it is only token $$ at most that they put in (my guess / opinion). I'd like to see them do it as operator with a big % but don't think it will happen that way (through a mixture of embarrasment and fear resulting from Tindalo).
They need to drill the Aboabo well - that will cost them around $10 million their share.
They must pay 100% of the deepwater well to earn their 50% in the block - they have already said that they are going down to 10% target equity - that should see the ~$60 million well drilled on a 2:1 basis at a cost of $12 million to NDO - they could do a little better than 2:1, especially with the work they put into the block. Maybe a 5:2 would be the best they could get which would be a free well.
I think that the Aboabo well will happen in the Dec 11- March 12 timeframe the deepwater well is subject to the farm-out (as it is a $60mm well).
p1000
NDO Price at posting:
4.5¢ Sentiment: Hold Disclosure: Held
