re: playing defence - meerkat Well, what has actually been...

re: playing defence - meerkat Well, what has actually been announced thus far? To quote:

"1,000 gross feet of prospective hydrocarbon section in the Monterey Shale and Etchegoin formations’

The prospect well has also encountered good gas shows in a shallower secondary target located in the Echegoin Formation

Jack Hamar 1-13 encountered multiple significant hydrocarbon shows that will all warrant further testing"

This would largely substantiate assumptions made in this forum on reserves, but of course there are no guarantees, and none were made! And will the be proven to be commercial is another hurdle, but one at a time.

Now given that these same targets are ‘prolific’ producers in adjacent fields it would not be too far fetched to suppose that the same could be assumed for Nuenco’s acreages.
What exactly is in-ground is of course pure conjecture at this stage, but to project some possible scenario and attach a value to it, one could take the figures used by captain_salty and extrapolate a value for NEO.
Although you could be somewhat more conservative and use lower figures say US$2 gas / $10 oil, but then again will the market reflect this in its valuing NEO shares?

Well, it’s all exciting stuff and exactly what makes a market, uncertainty, divergent opinions and different objectives for investors.
Let the ones who want to sell now do so and be assured of their money at today’s price and those who have more ‘faith’ in their instincts and analysis go for the ride, hopefully upwards (skywards some would say).

If everyone took a more detached approach and focussed on the subject matter rather than the person then we’d all benefit from the different opinions expressed here.



Below extracts from NEO’s announcements:


24 September 2004
Current Depth: 2,395 feet

Current Operations: Running surface casing.
Mud logs have recorded substantial gas shows from 2150 feet in what appears to be Echegoin sands. The Mud Log was not to be turned on until we set surface casing but was turned on early when gas started pushing mud to surface.

14 October 2004
DRILLING REPORT - JACK HAMAR #1 WELL HAS REACHED TOTAL DEPTH. GOOD OIL AND GAS SHOWS ENCOUNTERED Nuenco NL (“NEO”) is pleased to announce that the Jack Hamar 1-1 joint venture has decided to TD Jack Hamar 1-1 at 9,730 feet and run electric logs and sidewall cores. The prospect well has encountered good oil and gas shows in the primary objective located in the hydrocarbon bearing Miocene age Monterey Shale located within the Antelope and McDonald Shale Members of the Monterey Formation. The Monterey Shale is a prolific producer in the adjacent Lost Hills Field. The prospect well has also encountered good gas shows in a shallower secondary target located in the Echegoin Formation.

26 October 2004
SIGNIFICANT POTENTIAL AS TESTING CONTINUES • 6 Monterey zones and multiple gas zones identified in Jack Hamar #1 Well. • Testing on Jack Hamar #1 to start as soon as possible. • Jack Hamar #2 possible spud in November. • Gas appraisal wells underway to be drilled in the new year. JACK HAMAR #1: Nuenco NL is pleased to announce the progress with respect to the Jack Hamar #1 oil and gas discovery well which encountered approximately 1,000 gross feet of prospective hydrocarbon section in the Monterey Shale and Etchegoin formations (these formations both being prolific producers in California). In the Monterey six separate zones have been identified and comparisons drawn with currently producing Monterey wells to the immediate north of the Jack Hamar well site. The testing phase will include hydraulic fracturing similar to what has produced successful flow rates at wells on adjacent properties. In the Etchegoin the multi gas zone discovery has stimulated the development of a multi-well appraisal program. Work on the design of the testing program on Jack Hamar #1 is now well advanced and we look forward to starting this process with a Service Rig as soon as one becomes available. This testing program will involve opening the respective zones and seeking to establish a stabilized flow rate in the subject zone which could take 10 or more days per zone.

31 January 2005
QUARTERLY REPORT FOR THE QUARTER ENDING 31 DECEMBER 2004
As announced in October last year, the drilling of Jack Hamar 1-1 was a success as it encountered
approximately 1,000 gross feet of prospective hydrocarbon section in the Monterey Shale and
Etchegoin formations (these formations both being prolific producers in California).
In the Monterey six separate zones were identified and in the Etchegoin, a multi gas zone discovery stimulated the development of a multi-well appraisal program to start in the first quarter of 2005 as noted in the September quarterly.


8 March 2005
INITIAL GAS SHOWS – JACK HAMAR 1-13 Nuenco is pleased to announce encouraging gas shows from the initial target on the Jack Hamar 1-13 well. These gas shows were encountered at 1,995 feet and have continued through to current depth of 2,150 feet.


10 March 2005
JACK HAMAR 1-13 WELL – UPDATE The Jack Hamar 1-13 well has passed the midway point and is drilling ahead. Nuenco NL (“Nuenco”) is pleased to announce that there have been multiple hydrocarbon shows while drilling in addition to the encouraging gas shows announced yesterday.

21 March 2005
The operators call to cease drilling on this well came after his assessment that important targets had been successfully penetrated with this well and in light of technical issues affecting drilling operations. Jack Hamar 1-13 encountered multiple significant hydrocarbon shows that will all warrant further testing and now the partners are assessing the completion and testing program on this well while the operator plans the next well in this program. Managing Director Anthony Kain now in California has noted: We are pleased with the results of our second well in which we saw elevated gas levels and hydrocarbon shows not seen in Jack Hamar 1-1. We look forward to developing our understanding of this potential in a multi well campaign targeting the shallow gas play that may extend across a large portion of our acreage position in South East Lost Hills. As I have commented in the past, the development of such a play would attach real value to the significant acreage position Nuenco has built up in the Lost Hills area.



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