Isn't it madness all this naysaying talk! Read the plain meaning of the words...
When one reads the words of the announcement and understands drilling reality, the announcement provides the basis of good news, not bad news! Who are the naysayers trying to fool??? The JV will test the top 3 zones ahead of drilling the 2 remaining zones. The JV will know about the existence of "hydrocarbon gas bearing formations" in 3 out of 5 zones. I wonder if an announcement around this news will be released? I think so as it appears a two stage strategy.
From the announcement itself:-
"...hole has encountered gas shows within each of the upper three objectives...
The well will now be sidetracked and drilled to a revised 9 5/8” casing point located just above the over-pressured zone. This will allow for wireline log data, including reservoir fluid samples, to be collected across the upper reservoirs before setting casing and drilling ahead to the deeper two objectives...
Neon Energy is encouraged by the presence of gas encountered in the zones drilled to date. The presence of hydrocarbon gas bearing formations will be confirmed after collection of reservoir samples during wireline operations, while reservoir deliverability will only be determined by production testing."
GLTA
NEN Price at posting:
34.0¢ Sentiment: LT Buy Disclosure: Held
