bloomberg news, page-4

Obviously the market took it badly,

I don't know how Macquarie worked out that a flow of up to 4 MMscfd was to come about. This well was an experimental well for testing.

The only commercial well so far has been Moomba 191 which drilled and stimulated the REM.

Both Holdfast 1 and Encounter 1 drilled and stimulated the REM formation.

Moonta 1 and Streaky 1 are the only wells (i believe) that BPT has drilled the full depth into the Patchawarra.

Considering that the Patchawarra is a hodgepodge of tight sand, shale, coal etc under what scenario could Macquarie believe that it would deliver up to 4 MMscfd. Who has stimulated this Section before?, Beach hasn't so who has?? why such a high expectation from a formation not previously stimulated??? Anybody know, I would really like to know.

Unless I'm missing something, it looks to me that Beach has shown the BCG play does exist where one was only surmised to possibly exist before. Also considering only one section of the Murteree Shale was stimulated that leaves the rest of the Murteree and the rest of the REM to stimulate for a result on Moonta 1.

Going on Encounter-1 and Holdfast-1 both which had peak gas flow rates of approximately 2.1 MMscfd One would assume that a stimulation of Moonta 1 REM would produce at least 2.1 MMscfd or more from a vertical stiumlation, add in the Patchawarra flow and you have close on 3.5 MMscfd. And this from vertical wells before any horizontal drilling and stimulation. Is it not reasonable under this situation to expect a lot more flow from a vertical and horizontal well down the track. Surely it would have to be going very close to commercial on just a vertical stimulation of the whole formation, if not surely under a vertical and horizontal stimulation.

It seems to me that some had to high expectations maybe. IMO it looks more promising then it did previously, IMO bodes very well for the future .

In any case the results from Streaky 1 and some update on Holdfast 2 (horizontal) should be just around the corner.