Tui, I prefer the term risk management.Theres certainly been no...

Tui, I prefer the term risk management.

Theres certainly been no shortage of effort to minimise risk on these two Neon wells. They are about as derisked as its possible to get for offshore exploration wells.

Historically it used to be that the probability of a frontier well coming in was about 1 in 10. Seismic improvements semm to have dropped that nearer to 1 in 8. Add the discovery of an active hydrocarbon system within the geological area of your drill (both 105 and 120 have this) and you odds improve dramatically.

At the extremme end of success I quote this from Ophir last night (note Ophirs founder and significant shareholder is Neons Chairperson):

"Nick Cooper, CEO, commented:

"The successful Mkizi-1 well is our ninth discovery in Tanzania and continues our 100 percent strike rate in country, adding further resource to our existing discoveries in Block 1.

9 in a row, now thats amazing. Lets hope we can emulate this by achieving commercial success at both our wells.