baragatan-1 well to be re-spudded nido petrole, page-176

Lets look at what is infront of us if there is a duster.

I've already commented my thoughts that we are undervalued, and why he is buying.
But lets look at retail psychology and how that may play into his hands, and what we can do about it.

i thought we had 70m roughly, if we did nothing else, didnt spend on exploration.
This bloke thinks the same. And if he can take over NDO, sell off the rest, he can have a payback of a year or so, and milk pure profit until galoc runs dry. I dont know if he would develop west L, or sell it off to as his down payment into the takeover of NDO.

So, firstly he has capped the sp at 3.4-3.5c, he does this by placing accumulation buy orders at 3.4 and 3.3, then caps at 3.5 so that any seller, impatient will just sell into his lap at 3.4

If we have a duster, where is the next up side coming from? so will i sell because the sp is stuck in mud? Will the herd think the same, and sell? will he then hover them up at 2c like some suggest?

1. Its only stuck in mud because he is capping, some suggest 68mc is fair for a 1 asset producer.
Really, RRS has one producing asset at 600 bopd and 140m mc. Some peer analysis is required to validate what 2100 bopd ought to be worth, with West L standing by.

What can we do about it?
2. NDOs 70m pa net margin. MC capped at 68m.

It depends on whether we are just going to let this continue, and eventually this bloke will take it over cheaply, as NDO holders have lost patience with a capped share price.

So we either sell and move on?
Or we suggest that West L be the last development, as stands a good chance of increasing our cash cow fleet to 2.

THEN, we call an EGM, and propose that all future revenues, from Galoc and West L, probably 120m pa, be paid as dividends to shareholders.

If we standby, and say we have nothing to look forward to, but a capped sp, and let him take us over cheaply, then we all will lose all NDOs future prospects for probably 4-5c takeover.

If we EGM on dividends Galoc, West L, then that is 6c dividends per annum decreasing, 6c, 5.5c, 5c, 4.5c, 4c, etc, until the fields are dry. (thats what he will do if its taken over)

In the mean time, the sp will have doubled to 10c for punters wanting some of that yield.

He may only be accumulating until he gets to 20%, at which he has to instigate a takeover offer.
But, 80% can accept 4-5c offer, or they can accept all the divs above.

There are options, and if we are aware of just what a gem Galoc and West L are, as he is, we need to avail ourselves to the same value he sees.