I just spoke to Ken about BP, he said that there is nothing more to it than the fact that the Analyst has left. He was in Bell Potter 3 days ago and there was nothing there to suggest anything negative was happening or about to happen. In response to the questions, heres a quick run-down.
Q- Has the company considered dual listing? A- Yes we look at that from time to time, but its currently not a viable option, or more so would not be as effective as it could be if it happened now.
Q- If 105 is unsuccessful, is there a plan B? A- Yes, the great thing about having large fields like 105 and 120, is that there are multiple anomalies. That will be considered after the drilling, there is no concrete plan yet, but one of the major hurdles to extending the lease is to do a 3D seismic, which has already been done.
Q- What plans to drill the 105 oil accumulation? A- Of course, maybe 2 years away though.
Q- How long is 105 expected to take for initial drill, total depth and testing completed? A- There will be results as the drill goes down, that will show some things but not others. It is unlikely that the market will be updated regularly while the drilling is happening, simply because even if there are a measure of hydrocarbons, flow rates will not be known until after the rig is gone and analysis is complete, so there is really no point putting out announcements that will prove very little.
Q- When is 120 spud? A- August 2013
Q- What is the progress on H2O injection well at NSA? A- Still a couple of weeks till the engineering testing is finalised. The field is currently being ramped up, but still takes some time to analyse.
Q- Was mgmt hoping that investors would forget about California. A- Of course not. However, Cali is very small by comparison with Vietnam, so the main focus at the moment is Vietnam.
Q- When will the market be updated with resource estimates on Paloma? A- When news comes to hand, there is still a lot of work happening with various contractors and calculations, and its very hard to say at the moment. The resource size may not change, however the flow rates will more likely be what makes or breaks it.
Q-Was there much interest from 3rd parties with specialist knowledge in Paloma? A- Yes, there have been many interested parties. There are confidentiality clauses so can't say who is interested. Some have looked and lost interest. Others are still interested. Others are yet to take a look. Market will be updated when a deal is struck and not before.
Q- Has the company considered involving itself with Solimar? A- Not at all!
Q- Is the company looking to enter new leases in the next say, 6 months? A- The company is always looking for new areas. There is some blocks on the radar, which for one reason or another may or may not lead to something in the next 6 months. Neon will only attach itself to blocks with certain fundamental aspects, such as can the block be farmed out, and is there a good chance of success drilling? Probably a dozen other things to consider as well, but we didn't go into that one much further.
As requested I stayed mostly away from the biscuit tray (just one) and there was a distinct lack of mints of any variety. However being a Friday afternoon, we did venture across the road to the nearest pub, where I managed to squeeze a couple of beers out of Alan. Both Ken and Alan were very professional and also very upbeat about the situation where Neon sits at the moment.
Hope that clears a few things up. Scubadubadu
NEN Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
