With the speeding ticket from ASX, and the reply by Neon, it put to bed my view re capital raising before news on the testing of Block 105. So I will gladly eat humble pie on this fact.
So my explanation spin on what transpired today is very promising indeed. It gives me the confidence beyond a reasonable doubt that great news is coming soon.
If you apply the past history of Neon management team’s decision, when on the 5th of Sept 2012, the company did a presentation at the Good oil conference as per announcement history.
Trading halt and successful capital raising on 12 & 14 September 2012. Paloma results following thereafter.
However, this time around from today’s announcement, the directors are not going to pre-empt the results as a failure; they have indicated to the market as of today, that the results are looking fantastic.
They are going to back themselves in!
What my experience from a trading perspective, looking at previous trading history, I would expect over the next few days to witness a trading range between a low of 0.38 cents up to a high of 0.435 cents.
Tuesday next week could be a very merry xmas for all holders.
P.S. Kris Energy shares are not moving. Keep a watch out for volume breakout & share price breakout.
Kris Energy will be the most likely suitor for Neon Energy. The big boys could add substantial value. Cannot get any better, if we get great results.
NEN Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
