investors, page-28

Kookaburra re flow rates

Is this another planted post to see if we're on the ball?

"So I am happt to plant an occassional post to see whos on the ball about fundamentals"

Of course flow rates matter!
All the work they've done at CC this year is aimed at getting stable flow rates. This is required to get the best price for their reserve. A gas field that flows at 10mmcf is more valuable than a similar sized (reserve) field that only flows at 1mmcf.
Jeff Clarke in the latest BRR mentions "very important" about 3 times in a space of about 10 seconds, when talking about getting the wells onto maximum flow rates.

http://www.brr.com.au/event/47683 (at the very end)

Yes its an asset play, but no one is going to buy 1P reserves if the wells don't flow. In fact one of the definitions of 1P is that it has to be economically recoverable.

For sure the new wells they drill will not need to be put on stable production to get the 1P credits as long as the other wells are producing as tested.

As for the IRR, I can't see it coming out this Quarter.
They will obviously wait for the results of the 6 extra wells they're drilling.
Remember they will drill 1 at CC + Helper THEN drill the 2nd & 3rd depending on results.
The quickest well they've drilled (spud-TD) was about 1 month, I wont mention the slowest. So 2 wells = 2months+, etc

Somehow I think they're purposely dragging their feet getting these wells producing. Why wasn't 8-19 fracced 2 months ago, especially considering they seem to take at least 3 months to produce at stable rates??