I totally agree with you. Take a look at Walyering. Years ago, the first wells were also disasters, but with shooting 3D and an optimized drilling location, it's now a pure cash cow. Even IF SE2/SE3 are water wet, the gas is there. With a better drilling location, the gas-bearing zones can refill a producing well. I believe there is still a lot of potential in South Erregulla, but it will take time to do the homework that has been missed (so far).
The biggest mistake of STX was, to drill SE2/SE3 back to back without flow testing. Based on the results of SE1 and our success rate at that time, we would defintively have drilled an additional well. But the other one could have been avoided, as well as the loss of money and time.
Ironically, the longtermers of us are knowing, that wether the SE2 nor the SE3 drilling success had added any value to the share price of STX at that time. And my calucation of MC value is very simple:
WE - is worth at least 500m MC (based on WGO T/O and operatorship) WAL - is worth at least 300m MC (based on cashflow and TPD MC) SE1 - the drilling success "standalone" added only approx 120m MC (~4 cents to shareprice, after a very small-hype)
a minimum of 920m MC from history - without all the other prospects, that normally would be rated between 40-60m MC on ASX (if it would be a standalone explorer)
to sum it up: ~35cents based on history
just my POV.
DYOR
STX Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
(20min delay)