NEO - Nuenco Limited

[Bonk]

About to commence SE Lost Hills well first week SEPT04. This is relatively unknown ; in with OPL . This will move . Has focused mgt with the aim to move share price . See presentations on sites NEO and OPL .

www.nuenco.com

 

[Bonk]

Neo : Nuenco NL

The action is at hand , spud next week after 13/9/04 , with SE Lost Hills well in the Sacromento Valley, Calif., USA.

NEO has 25% share , in this "elephant" sized well , shooting for 100mmbbloe. There is 2.6 billion barrels oil in the area........This is Chevron territory!

 

[johnsmith]

Re: Neo : Nuenco Nl

NEO has now increased to 37.5%.

Market has not re-valued accordingly.

Opportunity is knocking.

 

[canny]

Re: Neo : Nuenco Nl

Getting closer to results. I don't feel the price is moving accordingly, and soon we will hopefully see a large jump.
Insto's need to become involved with NEO and get back into OPL to really start the ball rolling again.
This weeks downturn in the share market was a bad time with good positive news coming out of California.

 

[doctorj]

Re: Neo : Nuenco Nl

The placement has placed a cap on the price, along with the general market conditions this past week. NEO traded at 4.8c, a discount to their placement at 5cps.

 

[el_ninj0]

Re: Neo : Nuenco Nl

The placement has placed a cap on the price, along with the general market conditions this past week. NEO traded at 4.8c, a discount to their placement at 5cps.

I dont know about the rest of you, but i see a drop before I see a gain again.
I wouldn't be buying any higher than 2.5c.

 

[canny]

Re: Neo : Nuenco Nl

el ninjo - if it goes as low as .025 I'll eat my hat!
Unless you're only talking about the options, then I believe that could be possible!
Too much support in the high 4's for the FPO's. If it drops to .025 it's a duster - and we already know they have found gas that is to be commercial this year. I have the estimates on the SPP application form.
Plenty of people have run figures and see the share price being over 10c before the end of this financial year. 100% is good enough for me for starters!

 

[mime]

Re: Neo : Nuenco Nl

What's the stocks PE?

 

[Porper]

Re: Neo : Nuenco Nl

This is a pure spec play mime, P.E doesn't come into it.If they find plenty of gas/oil she will fly, if not she will sink, simple as that.The signs are bullish, but without hard facts,flow rates etc. nothing will change much from the current price in my opinion.

 

[silverfox]

Re: Neo : Nuenco Nl

Folks,
The anticline these guys are drilling just to the south of the major lost hills field has a fault detected by the last drill. This indicates reservoir draining from nearby fields will not effect their southern allotments of the massive monterey and etchegoin formations where they have recently seen off the scale gas in their mud logs. THis mob are the best spec Ive seen and will fly soon.
Based on consevative calculations of gas and oil potential here a value of 40c to $1 per share by year end is possible. The issue is the gas flows being tested in the next week or so...nows the time they will start to fly or sink dismally. Im holding and praying.
No guts no gain!

 

[el_ninj0]

Re: Neo : Nuenco Nl

Folks,
The anticline these guys are drilling just to the south of the major lost hills field has a fault detected by the last drill. This indicates reservoir draining from nearby fields will not effect their southern allotments of the massive monterey and etchegoin formations where they have recently seen off the scale gas in their mud logs. THis mob are the best spec Ive seen and will fly soon.
Based on consevative calculations of gas and oil potential here a value of 40c to $1 per share by year end is possible. The issue is the gas flows being tested in the next week or so...nows the time they will start to fly or sink dismally. Im holding and praying.
No guts no gain!

What makes you think this will fly soon silverfox? 40C to $1 per share in a year is a huge gain, thats like a 10 fold gain minimum, do you really think thats possible??

 

[mime]

Re: Neo : Nuenco Nl

I've got a feeling they won't find alot but I will still buy some for fun and hopfully major gains. I don't know about $.40 to a $1 a share.

How many supplys are thought to be there?

It may have them same effect as CUE which went berzerk after a discovery.

 

[el_ninj0]

Re: Neo : Nuenco Nl

I've got a feeling they won't find alot but I will still buy some for fun and hopfully major gains. I don't know about $.40 to a $1 a share.

How many supplys are thought to be there?

It may have them same effect as CUE which went berzerk after a discovery.

But how certain is the discovery? They look like they have had some disapointing results before, slightly similar to RTM in the fact that they release predictions before they have any results at all. May be a good short term, but I wouldn't be holding for long term.

The chart for it is looking like going the complete opposite way to what you are predicting. It all depends on the announcement they make. If its not positive its going to hit 2cps again.

 

[doctorj]

Re: Neo : Nuenco Nl

Can anyone tell me what the expiry and the exercise price for NEOO is?

As commented here, spec oil + gas coys are all about finding commercial quantities in the ground. If they don't have an existing cash flow from other projects, their horizon to insolvency or another raising is always finite and given the number of dusters they often drill (see: BAS), the end is often nigh.

There are a few speculative energy plays going around at the moment that have company makers in the works. For those that are willing to accept the high risks, their returns may be massive, or they could end up being worth nothing.

Also, I'm not sure how much value there is in TA with these style of companies. They tend to charge up very quickly on news and drift in the periods in between. If anything is useful, watch for the volume during the periods they are drifting for an indication of market sentiment.

 

[silverfox]

Re: Neo : Nuenco Nl

El Ninjo,

Low side numbers crunched like this:

3 x shallow gas zones x 20bcf per zone = 60bcf

60bcf x inground value USD3/mcf = USD180m

NEO 30% (after royalties) = USD54m / AUD70m approx

Fully diluted 714m shares = 9.8 cps

The 'Deeps' are harder to assess without seeing the JH1 logs and knowing which zones are oil and/or gas prone.

However 6 deep zones may hold hundreds of bcfg (according to NEO) plus the black stuff..

So perhaps a further risked 100boe (x6) at least for NEO's share which would be worth 5 times the above valuation per share.

The oil at 10mmbbl (3mmbbl NEO share)would be worth an inground value of 5c/share alone , and 100mmbbl is obviously 50c/share inground. Then there's San Emidio .. 20mmbo = another 10c/share ?

All up best case value over $1/share for NEO but realistically I would predict 10c~15c per share near term valuation with potential for 50c by year end.

Neo have some merits given the location of their tenament. Its worth doing the due diligence on their presentation last year. Of course the caution and doubt expressed by some commentators is very understandable... :behead:

 

[canny]

Re: Neo : Nuenco Nl

the 'fault' is like a trap, so there is a larger resevoir of gas than initial shows, but silverfox is on target. (Estimates may be a bit high for this year)
Great speccie - but make sure if you're taking an each way bet that you have OPL as well. They tend to move alternately - one has a good day, the other is quiet - then they alternate.

 

[silverfox]

Re: Neo : Nuenco Nl

Re Those oil and gas traps..if any of you want to get up to speed when reading Nuenco's cryptic announcements with imbedded Da Vinci code...try this website and select the Oil and gas traps section....

 

[silverfox]

Re: Neo : Nuenco Nl

whoops too many rum and cokes...heres the website I left out of the last post:
http://www.abix.com/Main_Index.html

 

[silverfox]

Re: Neo : Nuenco Nl

(Few more rum and cokes later). Can any of you good people recommend a speccie as good as NEO. ...?..Looking for another source of rum if the test results dont live up to expectations...

 

[el_ninj0]

Re: Neo : Nuenco Nl

I cant see any turn around yet for NEO. I think it will just drop further tommorow.