Drilling fluid losses occur where you have zones of higher permeability but it doesn't automatically indicate a high perm sand. Drilling across faults and fractures can also induce fluid losses. Not enough information to really say which is the case here. A high res seismic section would be useful.
Ditch gas shows and drilling breaks can be indicative of favourable porosity but they are not good indicators of permeability. A gas charged vuggy limestone will give drilling breaks and gas shows but because the vugs aren't connected permeability will be low
IVZ Price at posting:
34.0¢ Sentiment: Hold Disclosure: Held
