Optiontrader, while I share your enthusiasm and the desire to up production my thoughts are that increases are most likely from NSA short term and Glau medium term.
The Paloma scenario is complicated by the deep zones now being confirmed as shale. To overcome the viscous nature of the oil heat is the likely application but getting heat to the depth of the large Paloma zones is difficult to say the least. We're talking 4-6X NSA depth.
Experts in thermal enhancement like Chevron, Aera and Oxy/Vintage are fortunate that their operations are in shallow zones similar to NSA. For these parties to look at Paloma they would approach it expecting a large discount as it would be an experimental play albeit with the possibility of large upside.
The short term solution for Neon is to develop the shallow Paloma gas zones which can be brought online quickly and cheaply. There is already a gas sales contract in place.
As we know Neon is canvassing interest and previously held direct interest from third parties but so far the right deal has not come to fruition. Ideally that changes very soon.
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