Ann: Hydrocarbon gas recovered & evaluation program forward plan, page-977

Acknowledging that much of this content is from Dan Ashcroft - many thanks Dan!

IVZ retail Investors have been under illusion that just bringing a sample to surface unlocks the MC value through SP appreciation… but that is so far from the truth.

The prevailing retail investor thinking was … drill MK2 and bring a sample to surface… declare a discovery and SP goes through the roof.. wrong, wrong, wrong.

Plenty of companies find shows, or even pay, but that’s not enough. That’s often because they haven’t shown any evidence of reservoir/seal pairs, pay thickness, reservoir properties etc. to the market, or revised resource volumes and statements on commerciality.

Saying there is, isn’t the same as showing there is. Showing some graphs and bags full of gas is great, but more is needed. Showing logs showing substantial pay units, along with pay summaries could help. They then need to demonstrate that they have commercial size accumulations, and that the rocks can deliver commercial flow rates, which involves integrating the seismic and well data, plus likely more wells.

A success at M2 only proves that fault block. Running a flow test to look at connected resource volumes can also help demonstrate commercial volumes.

The questions IVZ have been investing to address through their logging/sampling program to truly unlock the value :
1. How many formations are commercially viable?
2. What is the evidence?
3. What is the net pay for each?
4. What is the composition of each and where is the evidence?
5. Can these be extracted commercially?

Behind all these questions are equations which have variables which require input. inputs which the logging/sampling operations are designed to produce.
So how many equations do we have? How many inputs do we still need?
Right now it appears that the MK2 drilling program has provided a lot of input for those questions. The main gap is fluid and rock samples.
They have logs to show the arrangement and some properties of the rocks.

The fluids is the main thing here. And that’s why it is NOW a priority.