california, page-38

Tanjung Aru appears attractive at this early stage of its exploration.

Right now it is not worth a lot as value is yet to be added. The proposed seismic study which is to occur this year will be a critical milestone as to whether TA is worth pursuing or not.

The analysed results will determine whether or not the area warrants any drilling effort or additional seismic. A decision to drill will see farm out activity which will mean the blocks value ratchets up in proportion to the jv financial terms.

Until we get to that point TA will remain an interesting prospect that has relatively little value given risk is yet to be reduced.

I can only imagine timing but say seismic this year complete with analysis. Drop or continue decision by late 2014. Drilling 2015 at the earliest but probably 2H or 1H 2015.

Neon has changed TFD. There is risk associated with the drilling cost of Vietnam that has yet to be addressed and probably won't be for a while yet. If they get on top of it without significant asset dilution then Neon still looks like a very interesting junior. For now its a question of time which in this case is very much an allay for Neon. Time allows the issue to be addressed with sound strategy rather than a fire sale approach.

Their announcement this week highlights a strategic approach which is indicative of intelligent problem solving.