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
NEO Price at posting:
0.0¢ Sentiment: None Disclosure: Held