stating the bleeding obvious....., page-6

re: stating the bleeding obvious/nikki I think I know the story now.

If you check back to the story OPL/NEO gave right after the first hole was sunk, there was mention of 'tight' gas formation. This little word 'tight' also got a mention a couple of more times here and there in later announcemnts.

So, here we have OPL last year - with a number of very prospective projects and NEO with only one. It was really important for OPL/NEO that they encountered clear gas flows, volume wasn't critical but those holes needed to flow gas steadily - THE FACT IS THEY DIDN'T.

The fact is that every hole in the JH series need fraccing - not the dusters among them which were NEVER highlighted. So if you are OPL, knowing the vagaries of fraccing, and considering you've got your own u-beaut projects to follow up, what do you do? Obviously not much on the JH holes - why bother? you can always come back to them if need be.

On the other hand, if you're Kain, what do you do? you know that the JH holes have no priority for OPL, you know that the JH holes are never gonna be big gas producers without being 'tickled' - and probably not even then either - so you have no recourse but to bullsh!t and hype whatever good things you can say about them to keep them up there in the public eye on the off-chance OPL might find the time to do some work which MIGHT stimulate gas flows......

.... but I must confess I have no theory for the building of that pipeline which Kain KNOWS cannot be filled this side of doomsday...... I guess when you're desperate enough you'll do anything to promote your cause, but that's all it was it seems to me.

The FACT THAT OPL/NEO HAVE NEVER MADE ANY SERIOUS ATTEMPT TO MEASURE GAS FLOWS ACROSS THE JH SERIES OF HOLES IS THE MOST TELLING FACTOR OF THERE BEING NO GAS THERE - AND THEY KNOW IT. NOW WE KNOW IT.

And what a measure of confidence it is that Kain has just taken a punt on a neighbouring wildcat in favour of promoting his own company whose options are about to expire worthless - the money from which might have secured NEO's continuing existence. I mean who's gonna put in for an spp now? or a placement? certainly not at these prices. If there is a placement to sophisticated investors it will be at 2c. Shareholders shafted again.

I thought at one stage the villain was OPL, I don't think that anymore. It was just circumstances. The JH holes just didn't flow gas and OPL just didn't put their resources into a time wasting effort on them.

NEO might not disappear, but it will be a long time before NEO's stink has left the nostrils of current holders, not because there was never any gas, but because of Kain's deception about its prospects. He should have copied Freddie's disclaimer saying "My announcements on NEO are over-optimistic, blah, blah, blah....." Instead, he chose to lead punters down the garden path with his talk of 20-100 bcf - I don't think he knows what it means actually. Another name for my director's blacklist......

and nikki, no I didn't follow up with NAD, but they've been going a whole lot better than NEO.