I was privy to a recent broker presentation by AK. Very interesting. NEO is taking the deliberate unorthodox approach to developing JH. Rather than spending big dollars and taking much time on 3D siesmic etc. they see that getting cashflow early is the way to go backed by the local knowledge on the fact that these fields are probably more than economic in size. Development costs are so cheap relatively speaking and that they are confident that there is a lot of gas & oil in JH. Rather than testing and burning gas they will test into the pipline and sell the test gas. I have had my concerns quelled as I thought the no P reserve numbers was becuse they were hiding something - this not the case as they just don't know enough to put any P numbers out on reserves. The potential numbers they are thinking of in terms of values in ground etc. are very exciting. They will assesed and issued as P numbers in due course but don't expect them soon. Kain came across as credible and knowledgeable. If it comes off as they expect/hope NEO will be worth many many x more than what they are valued at now.
NEO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
