Ann: Operations Update, page-413

It could b a raft of factors, but primarily the basic ones r Reservoir pressure, permeability & prop embedmnt. Being thro' this scenario 10 yrs ago (perf, refrac's, recovery, N2 injctn, swabbing etc etc) b4 the stampede for land banking started in the EF & various techniques trialled by diff operators prior to crackn the EF flow code. So am not surprised at the initial outcome.

What's still not unknown at IW#2 is the Metres (or feet) perforated & the BBLS of fluid pumped downhole. In my view, pumping N2 thro the CT should have flushed out the wellbore & some fluids. If that doesnt work an Operator shuts in the well, monitors the pressure & lets the pressure equalise. Durng shut-in the fractures should start to close over this time & possibly expel some fluid in the wellbore.

That's what known as the 'breakthrough' pressure ie at what pressure does HC push back the water & ooze out. When they open the well its via the smallest choke size.

6 wks may seem a long time, but 88E should record Pressure incr or decline over that period (graph plotted is between PSI vs Days). HRZ should b a nano-darcy perm reservoir so wouldn't flow like a conventional well. Most conventional wells will flow straight away post perf'n or with some assistance from artificial lift.

Productivity from a shale reservoir is a function of:

- reservoir geology
- well design (vertical or lateral)
- completion effectiveness
- initial flowbk design (via smallest choke size not 'rock the choke' types).

These days we have benefit of hindsight after thousands of frac jobs across the States that have cracked the code in the Marcellus, Haynesville, Barnett & the EF each has its varying geology, depth, poro/perm & pressure gradient so it is very early days for the HRZ & the company should try std operative procedures to make it work. They actually need a representative HC sample from the test for further PVT analysis to justify the vapour phase theory. If they still dont get a HC sample, then there should be a plan-B mayb chase the conventional leads at Alpha etc via a farm-out.

PS: anyone with time on their hands should go thro' 2007-2010 ASX updates from Aurora days, all there.