Sydney - Tuesday - December 17: (RWE Australian Business News) - Neon Energy Ltd (NEN) today said buying in its shares this week could have been due to merger and acquisition speculation in the Australian oil and gas sector.
The company was responding to an ASX query over a rise in its shares from a closing price of 34.5c on Friday December 13 to an intraday high of 42c today, along with an increase in trading volumes.
Neon also noted the announcement made on December 6 titled, "Cua Lo Gas Discovery".
"We believe that the market has taken some time to analyse, interpret and adjust to the information disclosed in that announcement.
"The operator's preparations for production testing at Cua Lo are ongoing and the company will update the market with respect to this production test as soon as it has been determined," it said.
The shares were later trading at 40.5c.
NEN Price at posting:
40.5¢ Sentiment: None Disclosure: Held
