Damo I think I'd be in major breach of a few ASX rules if I were...

Damo I think I'd be in major breach of a few ASX rules if I were KC or any of the Neon team. For me its just part of my risk management to keep in contact with the company.

To answer your question there was nothing about Vietnam. But I did get some info on NSA, Glau and Paloma.

Glau and Paloma is pretty much as we know. ie Glau is getting close to finalising seismic analysis. Paloma is still being courted so discussions are active. Should these go nowhere Neon will put existing wells on production. Not such an exciting outcome if that occurs but it will boost existing production.

NSA was interesting. They are still resolving technical issues but progress is being made in terms of upping production. The cyclic steaming is producing notable results but the non productive soak period reduces the overall average production figure. What Neon is waiting for is a tipping point where so much cyclic steaming has occurred that the average temperatures in the reservoir rises on a long term basis.

Currently the cyclic steaming provides a short term boost to reservoir temperature but that temperature falls away, however the average reservoir temperature is creeping up so the tipping point will ultimately be reached where oil flows far more freely to the surface. Evidently this process takes alot of time from what they know of Chevrons activities next door at San Ardo. The more you steam the more the long term heat builds up.

The upside of reaching the tipping point is twofold. Better flows but more importantly higher recoveries. We are running at about 35% recovery where as Chevron are achieving 70% from the same geological play.....they have had a lot longer to get heat into their reservoirs.

KC did say they were milking it with oil prices at current levels. Overheads easily paid for.