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aaa stock of the week Stock Yard

Stock of the Week
Nuenco ASX Code (NEO)
52 Week High/Low $0.059/$0.033 Closing Price 03/02/06 $0.036
While we do not want to make a habit of using a speculative stock within the
Stock of the Week headline, we believe that it is too hard to overlook this
opportunity. We have watched Nuenco very closely since November 2004.
Over this time, the combined group of advisers through AAA Shares offices’
have recommended this stock to many clients. Admittedly, the majority of our
clients (including ourselves) are currently in a loss position as we have bought
at share prices higher than the current price.
Nuenco’s main asset is an interest ranging between 37.5-50% in the highly
prospective South East Lost Hills Block a large block adjacent to the giant
Lost Hills Oil Field (2.6 billion barrels) in California.
Drilling of wells was conducted throughout the early stages of 2005 where
numerous targets of both oil and gas were identified.
There are three wells in particular that Nuenco are currently testing in a bid to
progress to production, in a progress report sent to the ASX on the 31st
January, Nuenco announced that first oil sales have commenced from their
flagship well the Jack Hamar 1-1, (albeit minimal) A pumping unit has since
been installed to this well to enhance production, it will be very exciting for the
company if Nuenco can announce a consistent flow of oil to be pumped from
this well.
We, like the rest of the market expected these milestones to occur mid to late
last year. As time went by and the company failed to lodge these
announcements that were expected, the shares were sold down heavily to
under the $0.04 level.
Recent announcements have led us to believe that an investment into this
company still provides for some exciting times, although having said this, any
stock that is focussed on drilling holes in search for oil or gas does not come
without risk, which this stock has plenty.
We believe this stock has the potential to provide plenty of upside growth
should everything go to plan. Any investment in Nuenco however should be
with absoloute risk capital.
The
We have collated many reports over Nuenco, which can be viewed at our
Morphett Vale Office, should you wish to call in.
6th February 2006