Wingman, testing of the top 3 zones could be completed within the next fortnight.
Drilling on into the fourth and fifth tiers and testing should be reasonably soon after that....probably no more than two weeks. They only caution I would add is that testing periods are a bit like asking how long is a piece of string. Typically in a off shore well they test the "worst" productive zone first, knowing the other zones ought to perform better. However they may opt to do more than one zone in which case they will start at the lowest zone and work upwards.
As for the sp while this is going on all I can say is that the current price is adjusting for the fact this drill is now less risky than it was a week ago. How much more it goes up is really a measure of the markets tolerance of the new lower risk profile. Early 40's doesn't seem out of the question to me.
Positive news from the first 3 zones in terms of commerciality could double the sp to around 80cps. Confirmation of the bottom zones would add more as will a reservoir profile. The later should see the sp well past the dollar mark if quantities are at least at the pre drill target (which we expect to be exceeded given the 3D seismic bonus)
Pricing movements won't however be able to be isolated to the Cua Lo well given block 120 should start any day now and that California should have news flow over the next two months.
NEN Price at posting:
35.0¢ Sentiment: LT Buy Disclosure: Held
