Ann: Hydrocarbon gas recovered & evaluation program forward plan, page-504

After a good re-read of the announcement this morning and listening in to the zoom call, key points for me:

- We have a discovery in the Pebbly A. which although at the location of MK-2 is likely residual gas, it proves movable hydrocarbons so in other parts of the field where there is a 4-way closure at the Pebbly A. we may have significant accumulations of gas that we now know can be produced. This is great news since it is not the primary target.
- Hole falling apart seemingly due to the casing shoe being set too high (next time will be set at top Upper A marker) and us drilling too deep in the end so having to increase the mud weight and effectively killing the well in the shallower Upper A sections. I remember saying here that I thought it would be best to just stop drilling instead of going deeper in the Lower A and grab a sample but I guess at the time we never knew of the incoming overpressure below.
- Overpressure in the Lower A. is fantastic news for a future development. Can't wait to see the flow rates when they test these reservoir intervals next year.
- I didn't think we'd need to sidetrack and would wait and just do a well test next year instead but I guess by the end of the sampling attempts, the hole was in poor condition to run the liner and a lot of drilling fluid pumped in to the reservoir anyway so no choice in the end.
- Apparently fully funded for the sidetrack but it now means we'll need to raise again next year for the well test. I was hoping no side track as it would have meant we'd be more or less funded for the well test.
- Seems they'll accelerate the sampling this time in the wireline run sequence so we get as clean a hole coniditons as possible.
- Still on the table to drill deeper in the Lower A once the Upper A and part of Lower A have been drilled and sampled with the liner set in place. So we still have this upside on the table.
- I'd really like to see an announcement with net reservoir expected now that they have the wireline results...
- A lot of panic selling today and impatient people exiting... frustrating to see but the share price will do its thing as we tick the boxes by Christmas and then again next year when we flow the well to see the full potential of what we have.


Overall a frustrating result but at the same time we've ticked many boxes that are very positive for the future of this company. Would be adding if I wasn't already up to my eyeballs in this stock.