RLE (ASX) Ann: Tamarama 2 &amp; 3 Operation Update

Originally posted by Kipper01 ↑

Gentlemen (and Ladies, if present ) …

With all the discussion about BCG vs CSG and likelihood of success and no certainty etc. I'm wondering "Well, why shouldn't it work?". Why "because it's different" should that lessen the chances of success?

Facts are, it seems that everything so far is going as well as could be wished for ….

…. We have decent widths of gas (I gather) good looking rates gas coming out of the ground, even with the wells still full of fraccing fluids, no water from surrounds to deal with … and preliminary indications giving good flow rates. How strong and how long it goes may take a considerable time to establish, but if flow rates start out very healthy, that's one helluva good beginning, is it not? That'll certainly do me for starters.

T1 to 3 should enable a commencement to establishing a certifiable reserve/resource and a program to commence production we know can begin with that alone. Sounds bloody promising to me!! Further wells will be planned/drilled next year, but we are (would be) off and away and running.

My source (sounds vague, sorry) says geo's he has spoken to say it can work. The problem our market has is it's not common place here as a methodology. But so what ... it's not uncommon, elsewhere!

Why if it looks like a duck and sounds like a duck, couldn't it actually also BE a duck??? I suspect we have our hands on a very likely forthcoming gas producer here, only the size of which will take some time to be determined. Everything so far points to this distinct possibility.

Bon soir,

Kip

Expand

"Why if it looks like a duck and sounds like a duck, couldn't it actually also BE a duck???"

Or a witch!!!!......sorry kip (off topic) but couldn't help thinking of that scene from The Holy Grail

Back on topic......given that BCG is "the new kid on the block" so to speak, any form of re-rating will only be results driven. I don't want to be a wet blanket but I'm of the opinion that we most likely won't see fair value for some time yet ie. until these (somewhat hopeful, yet increasingly derisked) results transform into production/revenue. CBM operations can be somewhat extrapolated by the market to determine estimated results, whereas we need to prove beyond doubt our concept works. We're tracking along nicely and with each new well there's been a steady increase in performance and invaluable data. Bringing these wells online and into production is a key step and further evidence that this concept will work at full scale......having 9 wells online in phase 2 is where we'll start to see a larger % of this value unlocked imo, as the market starts to gain confidence and understanding.