new research cannocard, page-15

Bilo I agree the farm down scenario is less than ideal but it can be a necessity for juniors as was the case when oil tanked not so long back and debt and share finance was hard to achieve.

The debt raising I have to disagree with you. A draw down facility is quite common in the US and works much like a property developer stepped loan. A provision is made for a maximum amount. A formula for releasing partial amounts of the full loan is made on the basis of completed project milestones and independent registered valuations at each construction milestone.

In the oil case the formula can be geared to staged proven reserves which could be a very good structure for Neon.

Reserves will be able to be proven from the first well, with further additions to that reserve figure made as appraisal drilling occurs and is confirmed with independent resource asesments. Draw downs would be available accordingly.

I am not saying this will happen but its a banking structure that is an option for Neon to consider.

At the end of the day I expect we might see some sort of hybrid arrangement where elements of CR, debt finance and farm downs emerge.

Its very hard to see Neon attaining sufficient funding to develop both 105 and 120 assuming both are successful. I would think at least one project would be sold......if Neon itself isnt taken over.