just another comment. originally WCL had a reserves target "near term" of 250pj @ 2P and 1000 pj @ 3P. theys till have that target, but now it is called an "objective" and the time frame is pushed-out. HOWEVER, they now have a clearer target of 111 pj @2P and 1,710pj @ 3P for 2010.(page 2 slide)
I think they also are hoping to get some of that 2P sonner rather than later. The target was delayed because of blockage in 8a lateral at tilbrook. I thought in ASX announcement they said that blockage was fixed, but it is not. they will try again to unblock it by using water jets I think. Importantly they said that dual lateral (8a and 8B) was ramping up well, and was up to 340 scfd until blockage. Other lateral is still producing - the level of gas they need to achieve to get the reserves upgraded from 3P to 2P is 500scfd. So they plan on proving up the prod lateral, and use those prod'n to show that well 8 can achieve the desired 500scfd. they say they are very pleased with performance. AK pointed out that Arrow Morandah wells had about 50% blockages also from fines. he thinks 8a blocked because of "spoon" (slide 11) which is the dish shape, plus all the misdirections of the steering (they are the "tails" in that graph). he said they had learnt a lot about the completion of the wells for future. when they restarted 8b again, it ramped up straight away.(page 12).
there is new info in slides so it is a good read.
WCL Price at posting:
35.7¢ Sentiment: Buy Disclosure: Held
