Ann: Glenaras drilling update, page-4

Depends how you look at it. From a short term persective yes it is good if they can finally get the well in the centre to start producing meaningful amounts of gas... but then if you zoom out and look at how many shielding/water wells are needed at close spacing surrounding this centre well.... you start to wonder how hard it will be to replicate at a full field development scale...

Saying that there is excellent lateral connectivity is usually a good thing in CSG as it means you don't need the wells to be as closely spaced together to still be able to access the gas in place.... but in this case it is almost a negative as it means wells are connecting to water from far far away from the wellbore... if the lateral connectivity was poorer then at least there would be better chances of dewatering/depressurising a smaller area... but this now means you lose the normal advantage of good CSG lateral connectivity and have to keep a tight spacing regardless to drain the water and create a kind of shield/barrier of wells to support a centre well. Very tricky for development.

To me there is low risk that there isn't gas there. It is clear. The risk (which is well known/published and imo why no bigger player has ever wanted to farm-in here, despite there being many rounds of data room from GLL wanting to bring a partner in) is being able to lower the reservoir pressure enough to actually produce it economically. The pilot is great but look at how much capex spent on sacrificial/shield wells just so that one in the centre may produce. Look at the well spacing of the pilot and then extrapolate. This is a very challenging development.