He had a quick look at the anns and maps yesterday before todays ann, unfortunately hes not back until Saturday arvo but he said he would do further analysis over the weekend.
He basically said that there were good indications from his experience that there could very well be production potential and that he had even done work in the general area some 5 years ago and knows the area fairly well.
He said that people who thought it would be dry must be off their rocks and uneducated in regards to gas formation. I think he said something about rock formations in the area, something like that.
Anyway he said there is definately a fair bit of gas in the area, no doubt about it, also he thought they may have to drill further than expected (not sure why he didnt elaborate) something about at those depths the area and formations can change very quickly. changing the drill bit was a definate positive in his view and getting closer to the target area this would be done only if the drill operators have some confidence.
He did say these things can be hit n miss but he also thought that although it could be a production area, he also thought the odds of it being a gusher would be surprising given the depths but did also say that oil would not surprise him at those levels.
We only really heard about oil today didnt we??? Maybe he does know what hes on about.
Hope this helps, he said buy more Warnie and nearly fell off his chair when I showed him the SP at 88c
Imagine what he would say after todays selloff.
Anyway he said its definately worth a punt
He will give me an actuall full detailed analysis over the weekend and im happy to post it once has been able to see the new anns and all the other info.
Cheers
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
