"ENI and even Kris have the financial resources to plan for the future, NEN, by virtue of it's lack of financial strength, will struggle to stay in the game. Don't forget that any future wells will, all things being equal, be funded in proportion to the participants respective interests from dollar one."
I've heard much over the past months about our fantastic management. We're about to find out how good AS & KC really are...
I'd actually appreciate a suspension so that KC can prepare a more comprehensive announcement, including technical information, budgets & financial arrangements. I've waited months. Many have waited years. What's a few days?
If we get the same non-chalant ann. as was delivered by Kris, then sh capital is going to take an unnecessarily bigger hit, which is why the trolls are out. To say NEN is now only worth 10c, based on US assets only, is an over reaction.
I agree with Ariante that tomorrows range is likely to be 14 to 18c. That in itself is a blow. I took a large position with the understanding the SP could quadruple or halve. It is what it is. The cook isn't talking to me, and she doesn't even know yet!
A successful prodn test would have resulted in a CR to maintain our WI of 25%. But now I expect a further Farm down to pay our drilling bill, and current Cash to be retained. *It's not the end of the world*. This is also more realistic moving forward as we can't afford to pay our way in the JV. Blocks 120 & 105 are not necessarily worthless. As SB alluded, there's still Rua Bien and Ca Lang.
NEN may still be an attractive T/O target for both JV partners. In particular Kris who holds 43% of the indonesian Tanjung Aru PSC, and NEN 42%.
Whilst the herd mentality will determine the extent of capital destruction in the ST, I don't believe its over for NEN. Some strong management from KC & AS and NEN may bounce back quicker than many expect.
Think twice before handing your hard earned to a troll or trader tomorrow.
NEN Price at posting:
28.5¢ Sentiment: None Disclosure: Held
