I have been looking at that this morning as well, fancy that, (release 21&28, June). I am not a geologist however I have been looking at the rock formations and I think the market may have missed an important point in its assessment. That the Paloma field is a anticline structure covering some 124 sq km., and what this means in relation to the current discoveries on foot and that Neon are sitting on top of it!
If I have this completely wrong then I will stand corrected. But this means that it has the oldest beds at its core. Now this is covering an area of 19.3 x 6.4 Km and (let me tell you if you walk around the perimeter you will need to take your lunch with you) Link this to the 1:10 spread of wells @ 350,000boe for shale and the numbers change dramatically to 95MMboe (high case) on shale alone.
Couple this with the announcement yesterday from Ken (I assure you he is not a person that throws stuff out there to see a reaction) and the unrisked volumes of 300mmboe all we need to do is sit back wait. Also don't forget the gas play..... and that being patient is a virtue in this game.
Had to buy some this morning given the price!
NEN Price at posting:
32.5¢ Sentiment: LT Buy Disclosure: Held
