warning...oil may fall to $20, page-12

"The oil price dropping anymore is no go for ndo. Profit from galoc is getting smashed everyday. The galoc money is to be used for exploration. That means less exploration in future. The companies strategy is slowly but surely going to get destroyed if oil keeps dropping. Chances of getting partners in this environment would be just about nil, as capital spending by majors is getting slashed."

Snake, the successful supermajor oil companies do not see these prices lasting for very long, and nor does most of the worlds population. Successful oil companies have made billions in the past year with the over inflated oil prices but they have budgetted their capital works projects at far less than those inflated prices. Likewise, the current decline in oil prices will not be of much bother to them as they know this will reverse within the next 6-12months.

The super majors have budgetted for oil being priced at approx. $60 - $80 a barrel and look long term, i.e. over 5yrs or more. Anything that fits into this range is of interest to them.

Imo, NDO is sitting on potentially 11billion of oil most of which can be drilled at a cost that is not unattractive.

NDO is still very on the radar of a number of major oil players, imo. We will see in the next month or so when the strategic partner is announced.

Submission of final proposals was on 4th December, if I remember correctly.

DYOR