Fido, I don't really think the market appreciates at all the time frames involved in a Paloma development. The market has certainly expected a quicker appraisal period than we have experienced but putting that in perspective from what I know of OXY's (The major CA player with acreage and time in the field exceeding Mobil-Shell and Chevron) comparable appraisal of the Lower Stevens sands OXY have been no quicker than Neon was with either PD-1 or PD-2.
With 2800 acres coverage and at least one producing sand extending over this full acreage I would expect it could take 5 years to get to the point of full field development. Even then, with potentially 4 productive shale zones it could extend beyond 5 years.
The important part for us right now is booking resource/reserves and getting the endorsement of that appropriate partner.
As a relatively new company Neon does not have much direct unconventional experience behind it but it does have team members experienced in CA and other shale areas.
Like you say " a tantalizing and promising play".
NEN Price at posting:
24.5¢ Sentiment: LT Buy Disclosure: Held
