price prediction of another sort

Not sure if this has been discussed in recent times, if it has i'm not aware of it.

I'd like to get some price predictions on the NEO share price as at options expiry date in mid Feb 2006.

Obviously I have a bundle of oppies which I have held since last Sept so I am interested to get people's thoughts on this issue. Furthemore a great deal of extra cash for the company hangs on oppies being well in the money come expiry so I think it is an interesting question all round.


I am tipping a shareprice of around 9 cents.

There is no hard and fast formula for this figure, my reasoning is based on the following:

- Cashflow should have been flowing from the pipeline for a number of months at this stage with all holes tested hopefully pushing up the flow of gas from the field considerably higher than it now stands.

- More shallow gas holes should be drilled (as per their plan) yeilding more gas flow from the field, increasing capacity further towards the pieline limit and maximising cashflow.

- Gas prices should remain at current levels or be even higher levels given the peak North American Winter

- By Feb more work should have been completed proving up JH1 deeps and possibly drilling more "deep holes" to determine what is down there.

- San Emidilo planning may start to come onto the radar?

I believe if the above scenario (or something simialr)does indeed occur, then it will be hard for the market to ignore any longer and the sharepricewould have to sit at double it's current level - hence 9 cents.

If the energy market hype continues, then insto's may move down from the likes of majors like WPL and mid caps like OSH to explorers turning producers like Neo?

This summary may not be very scientific, so I would appreciate opinions from other more learned than me on my rationale and your indeed your predicted share price.

I welcome all opinions.

Thanks

Angus1