CJ, totally agree though the immediate shortfall is easiest dealt with by a CR. This one does not need to be big just enough to top up the bank account to see us through the next 6 months. (ie cost overruns on 105/120, Indo seismic, Glau and PV drilling q1/q2)
By that time they will have a development plan for 105 and 120 which will be quite bankable. Not to mention a range of options that include selling one or other of the fields to finance the other. Or to sell the immediate site but retain 25% in the remaining prospects of the licence area.
Along time ago KC said to me if 105 comes in as big as we think then Neons biggest risk/reward is a takeover soon after the discovery. At the time he thought this to be a very real possibility. If 120 also came in he felt a t/o would virtually be a forgone conclusion. In that instance he felt one of the jv partners would be a most likely suitor. I favour Eni given their strong relationship with both the Vietnamese govt and Neon. Eni have major plans for Vietnam so they will be keen to secure supply.
Incidently so would Shell given their current negotiations with the Vietnamese govt regarding operations from supply to retail.
NEN Price at posting:
39.5¢ Sentiment: LT Buy Disclosure: Held
