Having had a quick look at the report on Paloma it looks as...

Having had a quick look at the report on Paloma it looks as though we have a bucket of shale to get out and all we need is a partner to start the extraction. My feeling is that OXY will be the the one to come in on this. If this does not happen then I suspect NEN will be approached by a company that wants to buy Paloma.

After all the Monetery formation covers the Paloma site. Either way NEN is in a good position and when the market digests this, I suspect the SP will move north. The shale play based on current returns and oill wells spaced at 15 acre intervals equates to 90,000bopd so even on a JV there is a good return available.

I think the Paloma saga has been a drain on NEN and in many ways has been like a cloud over NEN as there was certainly an expectation. Now we know at least how the land lies it comes with some relief. Also while the Paloma matter has been going on it has taken the light away from Vietnam, PV and the like.

If NEN has managed yesterdays release and the Vietnam signing then the timing was brilliant. More information as to the 3D seismic would be welcome and confirmation that the rigs have been secured, then it will be game on.

Although Paloma is not done yet, I am as most are, looking forward to Vietnam and what it will return!