price chart - where to from here?, page-33

Nen has bounced up to the 46 cent mark a couple of times now and not powered through, possibly due to bluegold selling, if that is occuring, Onetonne if you get a chance could you please give us an updated chart. I think volume levels have been interesting when comparing to the asx all ords for example. Is the lower than expected SP due to the fact that the stock just needs a catalyst to push the 46cent point and power above 50cents?

Surely the reduced risk from Europe and strong performing US economy have improved risk sentiment and its time for NENs SP to reflex fairer true value (when factoring in all prospects and producing assets). Though, I guess this could be said for quite a few stocks on the ASX, few energy explorers benefit from the unique position of the level of prospects NEN has in Vietnam and also producing assets. Not to mention debt doesn't seem an issue any time soon with the JV reducing much of NENS costs in Vietnam.

One depressant on the SP i think may have arisen from the JV announcement which saw a lower percentage maintained by NEN for the agreement. I think many investors may of thought if the company was willing to give away such a large share they may not be expecting as large of a discovery as had been predicted.

The other side of that argument is it is that management believes it MAY be large but the 25% share is a win considering the below info from the recent presentation:

I think they key concepts are clear above but as follows:

1. At minimal cost to NEN (drilling is still very risky 10% average chance of success)

2. Two 3D surveys to maximize potential of success and find the optimal location.

3. Exposure to 4-14 Trillion Ft.3
recoverable gas plus (Block 105) and 461 – 1,311 Million barrels of recoverable oil*

Management has a track record of being conservative and maximizing shareholder value ( see corporate strategy on slide above).

Now the naming of the JV which is above seen in "Endorsement of the prospects by a well known E&P company", may be the catalyst everyone is waiting for.

OR will there be a boost to the SP when the AUD depreciates perhaps over the next coupe of months if the RBA moves to cut and the US keep restating the unlikely situation of more stimulus money printing ?

This scenario would attract foreign investment on our market which currently is too expensive for overseas investors, especially considering the historically high AUD that may soon depreciate and therefore pose a serious risk for foreign investors at the moment.

The future for NEN still seems bright.