what's the real odds of success at cua lo b105, page-11

Hi Staples, Its so hard to second guess these things, all the more so with the possibility of two discoveries in independent areas.

The strategy if only one block came in I suspect would be quite different to the two blocks coming in. The scenario of developing two blocks simultaneously would require enormous capital given the prospective targets. It would be easy to sell one as an undeveloped proven discovery in order to finance the other field development to production and beyond.

In any case nothing is likely to happen until after both drills are complete and tested.

Success at either ought to raise the acreage value given the massive sizes of Neons permit areas. They are so big they could harbour 2-3 seperate field discoveries on each.

Rigs won't be hard to source in the event of success. There will be a stand down period before further work on site as it will be necessary to go through various approvals before a field development plan is approved and able to be acted upon.

During the stand down period it would be possible to contract rig(s)for any field development work and any ongoing appraisal. Not unlike what Horizon/Roc have recently done at Beibu Gulf(China). With Eni's clout, rigs will be easy.

I don't think Ophir would be likely to take an interest in Neon but that may change depending on what is discovered. Ophir prefers to build up production from scratch via unproved acreage.

Stein on the other hand will providing a wealth of knowledge and viable contacts for whatever strategy may evolve. Hes a huge asset to have on boardd the good ship Neon.