Coverage from SMH todayNeon keeps deliveringAnother small cap...

Coverage from SMH today

Neon keeps delivering

Another small cap hopeful that has spiked after weakness is Neon Energy (NEN), which is up more than 22 per cent since Under the Radar mentioned it last month. Although at 42 cents, Neon's shares are well below their levels last December of close to 60 cents.

Yesterday the company said it had completed drilling at one of the wells in its Paloma Deep onshore project in California. This prospect could deliver 30 million barrels of oil. Over the next six months it needs to demonstrate commercial flow rates, and then it could be off to the races for shareholders.

It also has its big offshore Vietnam gas prospect, which has the potential to deliver 14 trillion cubic feet (TCF) of gas, based on reports.

To give you a yardstick, when Woodside Petroleum began producing from the North West Shelf it had a reserve base of 12 TCF.