nsa nearfield 12,000 acres, page-8

There are a few things I like here.

The first is that we continue to develop a great mix of assets from low risk / easy return "oil farming" at NSA and PV through to mid tier Paloma type developments to the real high risk / high return frontier deals in Vietnam et al.

All the time the team are using their technical knowledge and relationships to add value and de-risk the deals. As T shirt said a few months back something was happening around NSA and now yesterday we start to see what it it with two new bits of dirt being revealed.

The beauty in all of this is that we know NSA has roughly 15mil barrels in place and a very low recovery factor in place to give us an asset of around 3.6m barrels left. Now we have additional technologies being thrown at it, we know that the larger more mature heavy oil fields in the region are getting to 50 - 60% recovery rates so we have upside in NSA. We now have more upside in the additional dirt which is close to the NSA infrastucture so its development cost is lower than a stand alone field.

NSA (with new developments) could become either a linchpin asset for a small player like us in that it will cover far more than just the admin expenses e.g. could start to fund some Paloma activities when we start to need the bigger $ amts (so less farmdown etc) or it could in fact become a far more valuable asset to then sell off / sell down to help fund Paloma.

Either way if you have (which I do) a 3 - 5 year window to hold Neon then you are sitting in the best seat in the house. The only other company I value and have as much respect for at the moment is BURU as both of them have similar strong management and deliver on the plans, rather than play to the market with rubbish daily releases to the ASX etc.

Shame I didn't deviate of the coast road and meet these guys a few years ago when I was driving from LA to San Fran.