We differ on our opinions on the likely size of Flax / Juniper. I will be very suprised if it produces 12MMbbl. Only my opinion.....
Flax 1 produced 45,000bbl, of this 35,000 sales oil rest evaporated. needs to produce somewhere near three times as much to be economic.
Flax 2 flowed 240 bopd on test then stopped. Now requires a workover to remove frac sand. This adds to length of time until payback.
Flax 3 & 4 producing 100-150 bopd. compared with Tirawarra wells which have initial production of 1,000 bopd (big difference in economics). Cooper Basin wells decline on average 30%pa. INP has to reinject gas as they cant sell it, this may help recovery, but each injector well will cost money and compressors are $1.5 mill each.
Juniper tested 10bopd fm one DST and 1bopd from another DST. It'll take a big increase res properties to get that to an economic limit.
So, to summaries, I'd buy put on INP if they were traded.
INP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
