its time, page-10

Stapleman, the news from KAR this week is a very good and real signpost as to what Neon shareholders might expect with success.

Independent resource assessors had a pre drill target of 110MB mean. KAR effectively hold 65%, ie 72MB net to them.

Thats the equivalent of $5.87 per discovered barrel equivalent (note they use the 6 factor for converting gas to oil equivalent)

Neon holds a pre drill target at Block 105 of 25% of 3.9BCF. Net to Neon that is 162.5MBoe.

If we apply the $5.87 per discovered barrel Karoon achieved in the last week then thats a value of $953M to Neon or about $1.70 a share.

While that comparison is not exactly an apple with apples comparison given gas/oil mix and different gas markets its not hard to see that half that at least should be achievable.

And I repeat this is based on real figures achieved by an Aussie junior over the past week or so. A major difference is that Neon is coming off a very low price base so its leverage to success is much higher than the KAR scenario.

Very interesting stuff indeed.