HZN released a report to fund managers today. It sold half of...

HZN released a report to fund managers today. It sold half of PRL 4 to Talisman for US60 million. This permit is right next door to NGE's PPL 269. Talisman is a US$20 billion dollar oil company with a major focus on New Guinea.

HZN has 1,125,600,000 shares on issue capitalising it at $293 million.HZN has 2 permits in New Guinea and has interests in NZ and China.

It made much of the outstanding prospects of New Guinea and the heightened interest that now exists in this area.It is going to start producing in 2011 in the stanley area (prl 4). It makes a lot of sense to tie up NGE which has major areas right next door. Talisman needs to fill up its soon to be built Stanley gas pipeline.

Michael Arnett, the executive chairman of NGE is the ex head partner of Deacons lawyers so you can just imagine the delay is due to the dotting of eyes and crossing of t's for this company making announcement due out tomorrow.

Just a rough guess but if NGE has 6 permits and one of HZN's sold for US$60 million for half then we have considerable more upside yet. Thats probably cheap for the what appears at this stage as the jewel in the crown being PPL 267.

Good luck tomorrow but I have good feeling we will all be dancing around like Jed Clampert. I am looking at 40 cents plus !