glass half full?

The latest announcement gave some clearer indication of what NEO’s acreage holds in terms of oil in place.
The recovery rate is a more typical 5, 10 or 15% in the Monterey, so extrapolating a figure of oil in place points more to 1 to 2 billion with recoverable oil therefore at anything up to 200m barrels of oil.
The matrix below provides for these figures with an assumed, conservative, US$10/ barrel.
Why is it relevant to calculate the value of in-ground oil in this way?
Simply, there is value in having oil discovered and ready for extraction, and companies are valued on this basis all over the world.
Major companies are producing in the San Joaquin valley and are making good money from it.
Also, there are major’s that are buying up companies that have done the hard yard in terms of risk exposure and exploration and have reserves in place.

Well, is the glass now half full or half empty?
Only a lobotomized gnat would want to sell out at this point in time and forgo the significant upside potential that will be unlocked in the coming months.
Gas sales will happen in the near future and that will give NEO a significant boost and good income.
At current HH gas prices a production of 10mcf/day gives NEO an income stream of close to AU$10m/pa.