re: Ann: New Hartleys Research Report - Warro...
A bit of a confusing day today. I thought 450,000-650,000 cu feet per day was a good result. Bought in after the announcement at 3.6 cents and watched it sink like a stone. I thought I must have read the measure wrong and that 0.6mm was really only 65,000 cu feet per day, thus the panic. Which was why I rang the company to find out exactly what the gas flow rates were.
I personally thought that 0.4-0.65 mm was a good flow rate as it represented only one of the six zones that were tested in Warro 3. My way of thinking was 6 X (.4/.65) indicated a possible flow rate of 2.4/3.9 mm cu feet per day. Good stuff. No one else seemed to think this, they were selling like crazy.
In Warro 3, two years ago the peak rate of 5mm cu feet of day only lasted 6 hours and then water inflow interferred and production stopped. My understanding is that this hasn't happened this time as the gas has flowed for a week in zone 4.
Exactly why things have slowed down and nitrogen is being reintroduced I don't really know. Part of the teething problems with the initial establishing of successful production in new fields.
In the hartley comments they said that the Zone 4, never flowed in Warro 3, so in this regard we are way ahead.
I notice a lot of commentaters on HC are calling this a dud. Certainly a set back but don't think we can call it a dud.
Am looking forward to Zone 4 flow rates once the slick fluids are removed.
It's a very good location to sell gas as it is close to pipelines and only 200kms to Perth, which has gas prices that are nearly double those of the USA.
Saltbus
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