transforming nse, page-31

Held this stock since the first excitement about canning and have never been so disappointed.

I invested in NSE because they like BRU were first movers in one of the most prospective and unexplored areas in OZ if not world for UOG. Simple plan raise some cash drill some holes to prove up potential of the Canning and farm out to big boys as only way to make this commercial given giant CAPEX required, huge areas of land, expensive drilling etc etc which NSE knew at the start (but apparently have now only just realised...and are also now claiming this is now a reason not to drill the canning...what?? ey??).

For peer comparison BRU are sticking to this basic plan and have a consistent strategy and message to investors (although noted that SP is also down). They are now after well planned drilling program an oil producer and next year may be a gas producer also. This I would argue is a reasonable success.

Compare this to NSE who have in the same time drilled 1 well and 3/4 of a well, found nothing commercial, not released the modern data set they set out to obtain, and are now about to go gallivanting around in the US...

NSE strategy has been perplexing

Drilled first hole.. not in the most prospective area (although this was not publicised until after the drill was done..? noting Anatol informed us) and found nothing to excite the market....how surprising if the location was not that great??

Drilled second hole..in a better location (why not drill first?) but had drilling failure.. then sacked drilling company and abandoned the location and never completed the hole and never released full data of the drilling, again noting it was down to Anatol to provide some data (why if it was a key aim of the program to provide comprehensive data surely this is hypocritical on a grand scale?)

Then suddenly changed focus to completely different area away from canning because of better prospectivity (so why not drill this first before canning??)

Then just before the drill was going to start again change focus to other side of the world and spend most free cash available because apparently now it is better to risk a large portion of available funds to(try to..)generate small amounts of free cash flow rather than explore the most prospective onshore basin in OZ where NSE have millions of acres of land and have big boy joint venture partners.....

And then to rub salt in the wound chuck in the comment that they have been thinking about this for quite a while so it should not be a surprise to us (when has this ever been mentioned before, when have NSE ever made the slightest mention about going off to be a small time producer in the US??)....if this was such a great idea why not do this before even starting in the canning??

Sorry for being blunt but the reasoning given for each of the changes to strategy is completely retrospective (i.e. the reasons were concocted after the event) surely this is obvious or am I missing some announcement?? Where was the announcement about how NSE planning is carried out by a team of bipolar schizophrenics??

There has either not clear planning going on or the management are not keeping to one if it exists, or the plan is so devious that dr evil would be proud of its cunning as I certainly cant make any logical sense of it...

To my simple mind cash backing now is all but redundant as all cash will be gone before canning is even drilled again??

from looking at comments from cmonaussie (my interpretation only)it looks a possibility that the "free cash flow" from this sideline US project is barely going to generate more cash than it will take to complete the whole exercise of drilling the wells and purchasing the land?? So what is the end game, what is the plan, what is the point??

All I can see is a repeat of many many small OG juniors who drill a hole somewhere "proespective" don't find anything and then for fear of drilling another blank have to have a magical re-direction to a new and exciting and more "certain" prospect somewhere else to try and generate some more cash from investors to throw at half baked plans...

FYI if you want to see how hard it can be for small juniors in the US with a few million $$ on fracking projects look at SUR. They drilled wells in prospective and "certain" areas, 1000 BOPD wells were previously drilled only 100s of m away from the SUR ground, and geology was the same so it was all but a given that they would drill a hole and oil would gush right?? Well no actually some wells were technical disasters, others produced nothing more than water with an oily sheen, best they got was a few hundred BOPD. After spending all their money they had to complete another significant dilutionary CAP raise at a low price to go back to "try again"

IMO NSE will be prime to be taken out once they run their cash down on the US venture and are unable to raise large amount of cash from market to get done the canning work that is needed.

Note also that BRU are not likely to be doing NSE's work for them as they are full steam ahead in northern areas so NSE are unlikely to be able to leverage off the work of big "bruther"

IMO NSE is worth a takeover at double or more current SP just for millions of acres of NSE tenements... but then if you were a major why buy it now when you can wait 6 months and get it from a distressed seller for less...(see DML, AMX, SDL as recent examples of failed takeovers, and TOs of of distressed sellers at rock bottom prices where buyers waited and waited until the distress cries were pitiful).

IMO NSE seem to be in the position of DML and SDL a year back which was to reject any thought of a TOs as being low ball at current SP...only for the SP to fall much further and then regret not taking a TO when the SP was higher....

Excuse the rather negative ranting I have been a firm believer in NSE for a number of years but have just turned heretic im afraid and had to get out some frustration my stress ball does not cut it anymore with this company