re: how long? - reply to bmd BMD, thanks for the kudos. I don't...

re: how long? - reply to bmd BMD, thanks for the kudos. I don't mind sharing my insights because it is in all our interests that this well is properly understood.

The info you seek does not reside in a single public database, and is normally only released to the market through disclosure by publically-traded oil companies.

Monteray zones, which were the primary targets in thsi well are prolific producers. Wells normally only produce at at 200-300 barrels per day, but these rates can be substantially increased through fracturing the rock or by drilling horizontal sections downhole. However the great thing about the Monteray is once is starts producing it will produce at these rates for decades. Similar wells in adjacenet fields have been going for 70+ years. NEO and its partners will need to drill more wells, and that is just part of any developemnt program. Therefore the posts I have read today that have expressed worry over this fact are unwarranted. It is a positive, not a negative.

The shallower Echegoin discovery is very significant. Firstly they have excellent flow rates, and are normally substantial in size. At current gas prices I estimate that this zone alone could pay back the cost of the well many, many times over. More importantly it opens up a new potential gas play on the acreage which could mean more gas discoveries in the near future. Developemnt of this zone will be cheap since depths are very shallow. I would expect NEO to focus on developing this as a prioirty since it will provide valuabel cash flow. Therefore don't think they are ignoring the Monteray if they focus on the gas first - it is the right thing to do.

All in all I think we have a very strong discovery here. I wouldn't be overly concerned about today's price action as closer inspection of the trades confirms all the sells are coming from 1 seller. I have my theories as to what is going on here, but I have confidence that the price will resume an upward trend very quickly indeed.