Ann: Mereenie and Palm Valley Reserves Upgrade, page-3

I've talked a lot about PV13 in the past, and it continues to impress. 2.6PJ in 13 months, and 13 months maintaining a plateau of 7 TJ/d is truly exceptional for what was supposedly a depleted field. It says PV13 will conservatively pay itself off by 18 months, so it will be comfortably economic. The comment about it jumping back up to 7 TJ/d plateau after only short shut-ins indicates the fractures are being recharged by matrix gas bleeding out of the tight rock, which means the decline curve should be nice and shallow and IMO it will produce good rates for several years to come. I'll have to look at how it's declining to be sure but it wouldn't surprise me if it ends up producing in excess of 5 PJ which is exceptional. About $25M revenue at $5/GJ.

And best of all there's every reason to anticipate there are other similar untapped compartments in the field that they'll find with these new laterals they plan to kick off from existing wells (which should mean they get two wells for the price of one PV13). PV Deep is exciting too, I am pretty confident the gas will be there though the risk IMO is whether the fracture network in the Pacoota (that gave PV the record for highest onshore Australian flow rate) is present and open in the deeper layers.