pel/pela map nvg, lnc, ede, page-13

The additional angle to the interest here are the confirmed hydrocarbons from historic drilling...

As fpr the sell-off after the run to 5.5c...looks to me like selling to pay for options conversion.

Pretty much everything above 3.5c was taken during the day after the initial run.

Given the volumes, even after allowing for some significant churn, those inclined to sell to convert their options may well have already done so today.

I also noticed quite a few loading the sell side as the day went on...probably to help squeeze these sellers out and pick up their stock more cheaply.

Ultimtaly, the options conversion will be good for the Company, and of course good for those who got the options.

NVG traded almost 100m shares today, of a total of just 179m available on the register (much less in the float)...so clearly significant churn took place which was more than likely to facilitate selling above the options strike price (3.5c).

Also, there would have been some profit taking by all and sundry, not only from the recent share issues at 1.3c, but also anyone who bought shares in the last 8 months as they are now in profit!

Considering so many sources of sellng pressure, the stock actually held up pretty well, suggesting at least some are holding out for higher prices?

Probably an opportunity of sorts on the back of the selling, as without this we could have easily seen NVG approaching 10c today, purely on the back of the significant re-rate potential due to the ground they are sitting on and the market's current interest in LNC for similar reasons.

Instead, it appears the market collectively rushed at the opportunity to sell above the strike price...which seems a little odd to be honest...and wonder if there was a reason this needed to happen in one day?

Anyway...I suspect NVG is in for a rally near term...perhaps from Tuesday after weekend news and discussions...which is why I was happy to buy near the close in spite of what many will view as an ugly daily chart for the stock.

The likelihood of a lack of incentive to sell below 3.5c made this an attractive level for me...although I did buy a few pips above this to make sure I got the volumes I was wanting when the selling appeared in the last 20 minutes.

Good luck all...in terms of returns from current levels, NVG should be a stand-out stock for 2013.

Cheers!