today's agm

I?ve just returned from the AGM. My first since the name change. Others in my family were hoping that I?d get a new baseball cap to replace the faded Salinas one that I?ve often been seen wearing ? no luck ? they obviously don?t think that sort of promotion helps the share price a great deal ? and I should know.
I?m not sure that I can offer much in the way of new info. I?ve just revisited the Annual Report at the Neon site and this is far more detailed than the update we got today. What I can add are the impressions gained at such a gathering. I like to attend every advertised meeting of companyies I?m interested in as I think you can gain a vibe of what the culture is like.
In that regard there?s been a significant change to the previous Salinas meetings I?ve been to. Anyone having doubts about the company in the past should be pleased with the new management. I was especially interested to note that this is definitely not a one man band. When questions were asked of Ken Charsinsky the chairman was able to add significantly to the discussion ? in fact, he stood next to Ken and the two shared observations on each issue as it was raised. (I also spoke to other directors/management team and they seemed on top of every aspect of the company ? how I wish directors of other companies were similarly on top of their roll in the organisation).

Let me summarise from notes I took. Largely the company is using California as a financial source for what could (and should be) a game changer in Vietnam. That?s not to under play what is happening in that state. Management and board decided to re-look at all the Californian property. ?With the portfolio we have we don?t want to keep nibbling?. Among the announcements they?ve made they?re especially looking at unconventional targets that are quite commonly successful in California. This is why the North Paris Valley vertical drill is important. They think they?ll encounter seven targets any one of which they hope to commercialise. If and when they find something commercial they?ll be using horizontal drilling and steam from the outset.
Ken showed a slide (15th slide in today?s presentation) where you can see how effective steam can be in improving production. He emphasised that this was hypothetical in Neon?s case but it shows the steep lift in production that others have achieved.
(Speaking of steam, Ken has promised me that he?ll send me an email giving a site he found on the internet that diagrammatically shows how steam works in such situations. I?ll post it on this site as soon as I get it.)
You?ll have read about the frustrations they?ve had over exhaust restrictions in Paris Valley but they?re finally moving. They want to sample the oil to analyse the steam action. It will be a few weeks before an announcement will be made.
North San Ardo ? Drilling of Lombard17 was paid out in one month while Lombard 15 was paid out in two months. Nothing should surprise anymore but my eyes were raised on hearing Ken say that he was able to watch the drilling live from his Subi office.
Vietnam. The seismic work of 12th of May returned results a week ago. They expect to farm this out in the first quarter of next year.
I just looked up and noticed how I?m just meandering along. Let me finish this off.

Finally here?s some key statements that were made today. ?We have large ambitions but at this stage we?re working within budget. There will not be any capital raising in the near future unless we come across something very large.? They believe their game changing future is in S.E.Asia and are very excited about the Vietnam prospects.
The concession next to ExonMobil could be it. That organisation usually demands 3D analysis before they move but in this case they?re going ahead without additional info. Our company believes our concession has VERY similar qualities so for ONCE Ken is hoping the multi national has a huge success in its coming drilling programme.

And now for one last observation. (I?m not good at remembering names and I met a dozen or so people today ? in other words, I might give the wrong name here). Ken had mentioned that the gentleman sitting in the back row has been in the air flying to exploration sites more than he?s been at home lately. At coffee time I rushed over to ??..Dave Cliff. Briefly he commented on all the areas in S.E.Asia he?s canvassing. ?The whole area is under explored.? They won?t look at ?difficult? places like Myanmar and he?s increasingly disinterested in India. Vietnam and Thailand (as well as California) were mentioned as worth keeping a close eye on for prospects he hears about from industry ?sources? (I think he meant buddies). He seemed quite excited about East Timor.
He reminded me though that he needs to get in on the ground floor before projects are identified and put out to tender ? Neon can?t afford to be in an open bidding contest.

?We are a company that wants to ensure delivery over promises.? ?A great deal has happened that we have not been able to transfer into announcements but this will happen soon ? very soon.? Ken Charsinsky.
Regards, James
Ps. Perhaps one day soon I?ll get near my average share price of 23c.