NDO 0.00% 9.8¢ nido petroleum limited

another jr oiler , longer term

  1. 5,451 Posts.
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    further to my earlier post on this coy, here is some further clarification based on research and discussion with gurus who know more about the co than me

    regarding 'new technology' , this is not untried stuff. the fact is that the philippines does not have an active oil industry and has not really had such since the early 1990’s. as a result the area lags behind in terms of application of recent, but accepted and tried developments within the oil industry, namely one , the application of 3D seismic and two the change in view of what comprises deep water operations.

    as for 3D seismic – In 1997/8 the first large 3D surveys were recorded in the basin ( it seems under an initiative by morgan ). The 3D has been available to ndo for some time and it has worked through the interpretation of over 2,200 square kilometres of data . ndo is now partnered by one of the world’s leading independents – unocal – to specifically reprocess a subset of this data (around 200 sq km of data) over a discovery which was made in 5 wells between 1981 and 1989, i.e. galoc, a discovery in a sandstone section.

    galoc flowed oil and/or gas from all its 5 wells. it was not developed for a number of reasons including that it is in 300 metres of water , this was considered deep until recently, but now with exploration going into ever deeper waters, 300 m is no longer a real technical challenge. another reason is the prior attention given another discovery made in 1992 – west linapacan – but this proved a failure.

    ndo is now using the most up to date methods in 3D processing and interpretation, and the most up to date methods in reservoir development to try to get galoc going. these processes are highly technical and require very large computing power. hopefully there will be an answer as to whether galoc can be economically developed in the 3Q of this year. the fact that unocal are involved is a positive sign

    as i surmised ndo seems well positioned in the philippines for what seems to be a renewed interest by the industry , including that by unocal . further involvement will depend on tech results . other companies are looking at the philippines – 4 new applications for service contracts have been made in recent times. the philippines department of energy is working to bring about the first ever bid round for the palawan basin (where ndo has its blocks), and are planning road shows for the industry later this year.

    ndo obviously needs to be in a stronger position cash-wise, but is reportedly seeking enhancements to the existing production which currently gives a small cash flow.

    there are a number of other medium to longer term projects underway which are described in quarterly reports. for some there potential financial backing waiting in the wings, e.g. for coron north where unocal and other companies have expressed interest.

    with the new management team came on board (which is not the same as west oil), there seems to have been a continuous effort to turn things around. but with so much data to work through the required effort is enormous and the lead times are long.

    the directors believe that they will be successful in this and continue funding of the company , most recently by underwriting the latest options issue.

    am still looking to top up ! DYOR ! !

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