NEO nuenco nl

Ng prices in the Us are about 6 times higher than here in...

  1. 397 Posts.
    Ng prices in the Us are about 6 times higher than here in Australia. The potential bonanza that awaits Neo holders is still being missed by the masses.
    Is it all really that hard to grasp?
    Nasty charts, lack of cash and the option headache will one day be history.
    Future cash will underpin development of the deep oil.
    For those that still don't get what the hold ups are all about, look no further than NEO. OPL are sitting twiddling their thumbs (on jh oil) while they wait for NEO to get the cash. Why else would the jv decide to overlook the expensive to develop yet more rewarding oil.
    OPL can only advance as NEO is able. Despite being the poorer brother here, NEO's cash/option position has dictated where this project has gone.
    Is it any wonder that we hear stories of tensions between the jv partners.
    Having said this, as a positive, NEO are by far exposed to the greatest sp leverage in this project which will eventuate as cash flow and resources are proved up.
    As a negative, this waiting has seen the share price bob around like a cork in the ocean.

    Is the strange behavior starting to make sense?

    I'm happy to wait for progress reports (possibly mean't)to draw cash from oppie holders and then see it used to further progress the project. The future wealth of neo holders is relying on this process.

    One day hind sight may just see this view all make sense. The pain of today will be the pleasure of tomorrow.

    "Right now USA gas is arguably the best energy play in the world." See below.

    **THE OPINIONS EXPRESSED ABOVE ARE ONLY OPINIONS based on nothing more than an enlightening experiance after downing a dozen Boags. So please don't expect them to be backed up**

    Extract from AUT report.(see post #125122)

    Background This is a USA natural gas play. Why is gas in the USA attractive? The USA is the worlds largest gas market and a quarter of all US energy is from gas. In the year before the Hurricane-induced super-high prices of the past two months, US gas prices have ranged between $US6 and $US9. This compares very favourably with Australian gas prices of around US$2.25. The current US price is about $US14. Demand for gas has continued to rise and is outstripping local and Canadian supply. The supply shortfall is proposed to be filled by imported LNG but due to the major infrastructure required and the strident environmental protests, the cost of this gas will be high and it will take years. Basically imported LNG will end up putting a floor price on natural gas, which will benefit gas producers in the USA. Aurora’s Texan projects are surrounded by infrastructure, and have the best pricing environment in the world. Realise that the current spot price is $US14 that is about six times, repeat six times, the price received if you say found gas onshore Victoria. Right now USA gas is arguably the best energy play in the world.
 
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