2013 market context and nen, page-8

It’s great to hear from passionate investors with their different views.

The facts are black and white. Management has not delivered on the hype they have created.

In the year of 2011, Neon had a breakout year. Share price opens at 0.14c and closed at year end at 0.51c. Big pats all round. We all like a winner; and why the breakout in price in 2011-Due to good production figures from North San Ardo AND management consistently gave the market updates on the production front. In other words, management was very happy to keep the market informed on how they were slowly increasing oil production. They even fed us fancy names of each well.

What changed in year 2012?

In the Year of 2012, Neon hit the ASX board running at full steam with a Bang Announcement. Paloma flowed oil at 226 Bopd. Share price opens at 0.535c and closed at year end at 0.255c.

What went wrong? Why are the big brokers and large capital investors selling down throughout 2012? From memory, a non exec sold a huge amount of shares? Why? This can add to a decrease in the uptake of shares, because when a company exec non or otherwise is selling out, Big Boys don't see favourable to this type of action. That's the cold hard facts of the market.

Management is rewarded for their breakout year of 2011, by gaining options and pay increases. Will the hand that feeds in 2011 give back on 2012 performance? I don't think so. The chart shows a continual downward channel for the whole year of 2012.
As an example, if you are holding one million shares at ave of 0.45 cents, you are holding BIG LOSSES.

Do the Math; everybody is holding losses with Neon shares. Take the capital raising at 0.30 cents-no short term return for those guys. We are all LONG TERM HOLDERS. lol

2012 was not a good year for Neon; it was a disastrous year in fact. Management stop updating the market in 2012 like it did in 2011. Why? Production figures reached a peak at North San Ardo, and retreated in Bopd. Production was in decline, hence share price decrease.

As for Paloma Oil Field, from an accounting point of view, the cost has reached its peak of risk. I don’t have the time now, but I do know they have spent many millions on Paloma in 2012.

I am hopeful that management will sell down a portion of the Paloma Oil Field to a Big Oil Company that have the technical skills and equipment, with the knowledge that can bring the oil and gas to production in the future. If Neon can get free carry up to two Wells, this announcement would be huge for Neon.

Let the experts take control, and Neon can reap the benefits of future production. This will free up management to get back on track and fix up the problems at NSA and start the new drilling at Glua


If you are serious about your shares and the direction that the management is taking, I would suggest everyone sent an email outlying your concerns.

My opinion only

DYOR