is stx a buy at 12 cents?, page-31

Last night (15 Jan) I emailed David Wrench to clarify the main points which came up in yesterday’s HC discussions in regard to the recent update. The response was waiting on my desktop this morning.

The points raised….
From my understanding the gas lift is installed, but is not yet operational. Is that correct? If so, what is the reason for this?

From my limited understanding, tests will need to be carried out in regard to gas injection to attain the optimal gas flow. How long do you estimate these tests will take?

Is it fair to assume that the gas lift will improve the current oil/gas flow?

What is the situation in regard to water/ frac water?

Does Strike Energy plan to extend significantly its acreage in Eagle Ford area?

When do you imagine the next update will be announced?

Reply …..
Provision for gas lift has been installed although not commissioned yet - the well is flowing currently unassisted as noted in the release. The well came back on line unassisted which was pleasing - gas lift will be commissioned in due course - I have not had an update on this timing from the operator yet as it will depend largely on the well's unassisted performance. The well has only been back on line for a few days so far so it is difficult for me to comment on performance potential with gas lift assistance at this stage but clearly we expect it to improve production rates.

I am in the US meeting with the operator this week and will be able to provide further updates once the forward operating plan is confirmed.

We are still recovering frac fluid although it appears that the water cut has significantly reduced.

At this stage we don't have plans to significantly increase our Eagle Ford acreage position.

Thanks and regards

David Wrench

end of email .............

I hope this information is of use to some people. I found it very affirming.

It’s also exciting to see today’s CMT update.
Cheers.