This almost a similar type of situation that they had with Viking.
Get the reserves assessed, get another player to farm in for the capex costs and probably lose 2/3rds of your equity for a free ride. And the other parties gets 100% of capex back first up front before the non capex providers see any cashlfow
If NDO was a stronger more financial company then these deals could work so much better for them.
Given the borrowings they will owe once Galoc Phase II is done and that those borrowings will take at least 1 year to pay back, getting finance to try and keep their share of this development would be pretty tough going.
Perhaps if Galoc Phase II was a resounding success it might help, but we will have to wait and see.
This company has so much potential but way less grunt than it needs.
NDO Price at posting:
2.6¢ Sentiment: None Disclosure: Held
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