Nominal dividend is a good idea, mostly to continue regaining accounting credibility.
New leases would be great. As far as I know, the current leases cost NEP no cash, simply the royalties, increasing to 40% in 2012.
More likely, the fast growing cash coffers can be used to buy existing wells. This has the very, very significant advantage of immediate cash flow, as well as the potential for more income from further drilling investments.
Looks like cash coffers may get a swift infusion not only from $10m+ quarterly income, but also exercise of $6 and hopefully $8 warrants.
Hope the story is explained in with the next conference call, if not a preceding reserve improving acquisition announcement.