Don't shoot the messenger (Wilto), he should be praised for...

Don't shoot the messenger (Wilto), he should be praised for having the initiative to ring the company.

The drilling should have cost $35m of which NENs share would have been $2.5m. Because of typhoons, various delays and questionable project management it has cost approx twice as much. If excess costs are not absorbed by the Rig operator then NEN's share of the cost over-run will be approx $8.5m. In total a cost of approx $11m.

That means the company needs to fund future activities in some way. Obviously they do not want to do a cap raising at these levels so that leaves asset sales as the way to go - either USA producing assets or one or both of the Vietnam blocks.

Should asset sales not eventuate a placement will occur.

Not great news but at least the company has options and will be a going concern.

Moral of the story - don't invest in oil juniors drilling wells.

This is only an opinion based on research, hunches, winks and nods and conversations with all and sundry and should be relied on in any way.