Mick, one of the good things about Neon is that there is action on many fronts. In the unlikely event all 8 zones were not commercial we have pending news on the Vietnamese farmout which will give a new value figure for the Vietnam acreage (value of the deal). At the same time of drilling Paloma we have also participated in Kettleman Dome, a $US10.5M 3 drill project. The operator, a private company has been very tight on news but we should expect something before to long. Then theres Paris Valley which is set to drill once staff free up from Paloma.
Oil/gas drilling is about percentages so the fact there is hydrocarbons in 8 zones suggests the odds are very much in our favour for one or more of the zones being commercial. Commercial production in some of the zones has occurred elsewhere within the field.
Its probably going to be the end of January before all testing has been completed so we can expect a drip feed of results between now and then which will influence price according to their positive/negative nature and the size of individual commercial reservoirs.
NEN Price at posting:
50.0¢ Sentiment: LT Buy Disclosure: Held
