It looks to me as if Neon aim to reduce inrastructure costs by integrating P-3 gas with production from PD-2. A smart move that would improve free cash flow from P-3 gas.
The fact they are looking at gas sales contracts not only underpins success at P-3 but implies a very high liklihood of gas from PD-2. As PD-2 is more weighted to oil one could also assume oil production as well.
Team I think we are getting very close to a statement on commerciality for Paloma. It may be as far away as testing Fruitvale/Lower Stevens within PD-2 but, may be brought forward if the current testing of the McDonald Sand is a success by testing completion late next week.
NEN Price at posting:
38.5¢ Sentiment: LT Buy Disclosure: Held