Yes, this is what I am trying to say. NPV could well be $4.50ps or $12 for that matter, but the SP getting there is another matter over the long-term.
ENI are capable partners, I am not questioning that.
What is questionable is how NEN gets there. To bring the Vietnamese assets to production will be costly for a company of NENs size and there will likely need to be a large dilution factor to maintain NENs current interest. That or the interest will need to be farmed down... All options when the time comes. Certainly it has been communicated to me that NEN wants an initial high working interest to give it scope to farm down in the future. But again, this is just an option.
By the time a decision needs to be made, hopefully we will have regular and predictable cashflow from our lower risk assets so as to put us in a position of strength if we want to maintain the current JV-interest.
NEN Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
