Hi Mick, not sure where SP will end up if flow rates arent commercial, NEN currently has 3million barrel resource in production, that alone is worth more than the current market cap.
The testing will take a few weeks before we really know how commercial Paloma deep will be. They will start testing the Fruitvale shale which is the deepest part of the well and then move on to Lower stevens (here alone they encountered 200 feet of continous oil pay) each section is independant of each other, ie if fruitvale shale doesnt flow that doesnt mean Lower stevens wont.
What I like about NEN is that they are producing already, so healthy cash flows are coming in, they are about to test Paloma deep and their exciting prospects in Vietnam and the newly awarded Indonesia block. The charts also look very nice and institutions want in.
DYOR
NEN Price at posting:
52.0¢ Sentiment: Buy Disclosure: Held
