Cheaprice - unsure what you are talking about? "looks like its...

Cheaprice - unsure what you are talking about? "looks like its going under I'm afraid". Bold call my friend. I'm unsure if you have a clear picture on the strategy I see when I go back and look at all the releases NSE have made. The company is now a EF focused shale play. Thats pretty clear. The model seems to be farm-out or sell everything else that is high risk, high cost. The latest releases takes the burden away from NSE and places it on another group. Thats good news no? positive? farm-out? Hopefully a sale and exit of the WA Canning/Canarvon assets is imminent as well. Thats a big boys game. It was a tough run for them as they were hit with similar problems to Neon and Tangiers.....drilling costs and issues start spiraling out of control and you cant do a thing to stop it yet they are still here.

Now to today and where I make these guys out to be. Obvious they are cum raising - look at page 6 of last weeks NOM, resolution 9 "Potential Placement". Poor timing on that front. Look at the incoming and current board, pretty solid in my opinion. One would assume a few more wells are near spud date. So we have some news and activity on the way. To me the activity side reads well. But in reality none of this will excite anyone in the market at this current time. Oil price dynamics are potentially an issue for all the EF players. Im looking into the well costs and should be able to come up with an idea of what their cost per bbl is approx and relate that back to current pricing. But, not that any of us know what their actual current price is because????? they has a reserve based lending facility which they announced back on May 29th..the thing with these agreements is that CSFB will require them to hedge production as they draw down the facility. Its hard to get an idea on what price they will have in place but if you head back to the end of May oil was >$US100 bbl. So all the talk of this company failing is ridiculous in my mind if it is based on a falling oil/gas price.

Sure, look for price volatility if cap raising is on the way but I would not fear on current state of play in the medium term. I like this one and I'm doing more research and I like the fact that management are now focused on the single EF play.