good time to buy?, page-3

Pierce that depends on how long the market wants to punish neon and secondly the size of the drilling debt (an unknown at this time).

Those aside it is then about the entry point.

In Neons favour is that it has a good producing asset in NSA bringing in $2.5M a quarter and growing slowly due to cyclic steaming.

It has also permitted 6 wells in California, 3 near NSA at Glau, which if succesful could be tied back to NSA production facilities.

3 at a new site south east of Bakersfield called Mountain View which we have little data on as yet.

They also have 3 wells pending at Paris Valley which would prove up 9MB which the market is yet to factor in. This is an appraisal scenario.

But, this all depends on cash available as these CA wells while cheap will still be around 500k a piece.

Taking a starting point sub 10c then CA could provide a healthy upside.