The share price today was horrific, however I put a fair bit of blame in the lack of information in the quarterly.
Firstly there are some very odd posts stating 12 mill is due. The company doesn't know the final figure and is not legally allowed to come out with an unqualified estimate. Further there is an assumption that the entire supposed 12 mill needs to be paid. Your forgetting that Neon paid it's share when bills fell due for both blocks, the final figure is just the residual owing - so your not going to see anything close to 12 mill, the company knows this and is confident to state guidance around this re the CR not being needed short term.
From an asset perspective if u just look at the producing Californian asset it's making 10mill+ per year and this will grow as the quarterly points out productions levels are now over 300bpd and should continue to climb.
Today was very dissapointing as I beleive further clarity from the company would have avoided the fall instead there was pure panic today. Based on valuation alone it will be a telling sign when support does come in.
NEN Price at posting:
4.1¢ Sentiment: LT Buy Disclosure: Held
