August 1, 2005 Aussies Know Something That We Don’t?

Aussies Know Something That We Don’t?

The price chart below belongs to Nido Petroleum, an oil exploration company whose core operations are in the Philippines, particularly the Nido, Masinloc and Galoc oil wells and lately in North Sea, UK.

The company has a significant interest in the said fields. With the farm-in agreements concluded with its Philippine partners, the consortium is ready to develop the oil Galoc field which has estimated reserves of about 50 million barrels.

While it has secured a license to explore on North Sea UK, it appears that the core operations will presently come from the Philippines.

Nido Petroleum Chart Courtesy of netquote.com.au

So why has Aussie investors bid up on Nido? Does this represent a ‘writing on the wall’ for Philippine oil stocks?

Further, in yesterday’s classified ads we observe that Philodrill Corporation published a TENDER FOR BIDS for tankers which would service the oil lifted from the Nido platform terminal starting January of 2006. This means that Philippine Oil exploration companies would start to generate revenues from the current wells, hence the possible reason behind the build up of accumulation activities in the domestic market.

Philippine Oil Index Breakout!

Consortium Members: OV, OPM, APM, BSC and PERC