Doug, this announcement is not about the numbers though IMO. This is about us finding out a little more on our acreage and actually receiving some feedback and positive outlook.
You say about the low numbers of Aus & Gretel and our low WI in Abercombie, however what this announcment shows is that the company has the view that the majority of our FP land (south of the fault zone) will be productive, the announcment clearly uses Gretel as a backup for this. Our first two wells have done their job IMO, yes we haven't had earth shattering numbers but it shows oil is there, they have learnt about the geology of our acreage and when you get the well design, drilling & fraccing right you will get productive rates as per Abercombie.
As for SOA, yes there is still risk and there are a few words pointing to uncertainty, but IMO we got oil from swabbing (about 50BOPD if you extrapolate) and swabbing is a much different practice then pumping then coupled with a frac and I'd hope we see around the 50BOPD. This iMO is a positive result for a conventional well with a much flatter decline and a fair few spots to drill.
This is all IMO, sorry for being positive.
SSN Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
