NEN 0.00% 22.0¢ neon capital ltd

amplitude extent, page-10

  1. 459 Posts.
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    First time post on NEN thread and want to start by thanking posters such as Tshirt, Timber7 and Ya etc.

    Great news for Neon, hopefully more to come with testing

    My interest has now moved to what may happen now, if / when positive news is released regarding testing and further news re block 120. I have checked the sites for both Kris Energy and Eni and am now extremely overwhelmed with where Neon may fit into this puzzle as / if things move on. Atm shares on issue are fairly reasonable and dilution is something that is expected. Plenty of room to move, hopefully they may consider a rights issue to faithful holders.

    My interest is now in figures I have seen for Kris Energy and Eni as follows:

    Kris:
    Revenue 3 months to 30 Sept '13 US$13.63m
    and for 9 moths to 30 Sept '13 US$50.39m
    cash & Bank Balance US$ 306.95m
    They raised US$203.6m in July '13

    Eni:
    Net profit for 2012 of EU$8,673m speaks for itself.

    I am thinking, wholly crap - NEN is an absolute minnow, a shadow of or a minute speed hump to these other two companies.

    With development of these fields requiring a large number of drills (I have read a field which Kris Energy is involved in requirs 20something drills, I have the following thoughts:

    1. How much would Neon have to contribute (cash wise - we know they're in for 25% atm) and would it be viable for this to occur comfortably or would it cause a lot of grief ?

    2. Would one or both (Kris Energy or Eni slow down development due to other interests, causing problems for Neon to stay viable while the process runs its course. There may be legalities preventing such behaviour but this is often manipulated ?

    3. Would either Kris Energy or Eni just swallow up Neon without a hiccup ? I am thinking this is a strong possibility (and quite a likely prospect). So with this, is anyone aware of similar situations occurring with farm-in's and also more specifically with Kris Energy and Eni.

    The thought of a complete take-over is interesting.

    Thanks all.

 
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