NEN 0.00% 22.0¢ neon capital ltd

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  1. 2,408 Posts.
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    Timber that sounds like a good policy for NSA. I know when it was in Salinas hands production would spike up to 1000bopd when a new well came online before quickly tailing off.

    Better to manage the wells at a set rate than risking the production complications of over and under production.

    Something many have overlooked regarding NSA is that the steam enhancement, which if successful (which it seems to be)will not only lead to greater production but it will allow Neon to extract more oil than is currently certified. OIP was a little over 15MB so current certification represents a 23% recovery given stated reserves of 3.5MB. Chevron is achieving 70% recovery at the adjacent San Ardo field from extensively using steam.

    I know its not great when comparing to whats at stake in Vietnam but it could mean 2P reserves at NSA nearer 10MB.
 
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