Hi Cara, the company is expecting to get the reserve numbers next quarter. The company will not say the project is commercial before the cap raise even if they announce a better flow rate. However, they may say things like 'encouraging results', 'looks a like future producer' etc. etc
The commerciality of the project depends on: The gas flow rate The gas price received Cost of drilling the well and access to infrastructure The well decline
Once the peak flow rate is reached, the well will decline quickly as other fracked wells. The decline rate is yet to be seen. It may be as high as 70% in the first year. The lower the decline rate the better it is.
MEL Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
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