OEL - (Otto) Multi based, Gambling Stock.

[jdg]

cheers, boysy.
given BHP are not under any great pressure to make a decision on SC55, i think we might have to wait a few months to get anything definitive from them. i have high hope that will go through, however. and that's a biggie. a free carried drill on at least one well will be a real filip - and success....well, we'll be celebrating for days.
let's hope the quarterly throws some light on SC51, the multiple targets at Argao would make the drill a great one to be a part of - but clearly not juicy enough for a farm in agreement (although i hope for a last minute white knight).
it just seems that everything is a bit on hold for OEL at the moment - and in that sentiment, where did you learn that Galoc is off line? i assumed it was with the weather, but OEL haven't reported it. still, given the great uptime that has been achieved in recent months, one can excuse them for pulling the plug during a typhoon.

-j

[boysy]

As per nido release about galoc being offline

Galoc Operations Update
Nido Petroleum Limited (Nido) has been advised by operator Galoc Production Company
(GPC) that due to adverse weather conditions at the Galoc oil field location arising from
Typhoon ‘Megi’, production has been shut-in and the FPSO disconnected from the mooring
and riser system.
GPC has further advised that Rubicon Offshore International, the owner of the FPSO, is in
the process of mobilising a support vessel and equipment to the field to assist in
reconnection and repair of the mooring and riser system.
Nido will provide a further update once the FPSO has been reconnected and production
operations have recommenced.

Yes i think otto are getting the work done behind the scenes with limited fanfare. Would be great to see SC 51 drilled in the sea but it looks to be a costly well and otto shouldnt empty the piggy bank on a ~20% POS. I think we are far closer to BHP decision either way than many people think as per the terms of a farmout we know what they will be if BHP decide to farm in and this alone should more than double the current sp. Lets hope we get a bit more info out of the quarterly than we are expecting. Perhaps a further update on Ottos own siesmic this could give some indication of BHPs shot siesmic .

[jdg]

. Lets hope we get a bit more info out of the quarterly than we are expecting.

i agree with that. and thanks for the info. let's hope galoc is back up soon.

-j

[jdg]

"it will take at least several weeks" to get Galoc up and running again. bugger.

-j

[boysy]

Yep a few weeks offline at least it will be a worry for other parties in the galoc field thats for sure. Lets hope the quarterly shows a bit of light on otto.

[jdg]

hey boysy, any idea how high up the priority list Galoc II is for NDO? looks like they'll have a few bucks in the bank shortly. it would be great to secure that to ensure the money keeps pumping in. a punt at north Galoc would be nice too.

-j

[boysy]

To be honest it wont be top of priority. Clearly getting Tindalo sorted is top of the list perhaps then Gindara and galoc phase #2 a distant third from what i have understood if the other parties want to proceed without nido they can and the benifit will be spread between them. It certainly does look like nido is going after more cash i winder how much more dilution holders can bear at this stage. Though they look to be going after funds to cover gindara costs repay debt and all the rest i wouldnt be supprised for 40-50% dilutuion to be honest then the would have 1.5-1.6 billion shares on issue.

[jdg]

if the other partners can go-it-alone at Galoc then i would be more than happy with that. in fact, a greater slice of the pie is ideal given the risks are presumably pretty low. sure, there's no mad rush, but it just seems to me that we are better off getting it under way and keeping the barrels per day up. i wonder how clear cut the prosess is for deciding how this would work in reality. i can't imagine NDO would be too keen to see their interest in a producing field drop.

-j

[boysy]

IF one party doesnt want to go for galoc phase #2 they maintain the original equity in the field as is but do not get the extra production from exploration upside of the new wells and reserves bought online. Im not sure why the JV isnt pressing ahead it could be down to the fact nido is in charge of the work about whether to progress or not on galoc phase #2. i would think there would be a clear conflict of interest as nido has tindalo to deal with in the short term but hey perhaps that is what it is like.

[jdg]

let's hope we get some clarity in the quarterly.

-j