recovery of the frac water ...

I've been doing some research the past few days & I understand that there is approx. ~2.5-3kms of water slowly being pumped out from the well. The flow rate (from my understanding) was around 10 barrels of water per day and now, thanks to our aforementioned mechanical intervention, is (I understand) around 20 barrels of fluid per hour (that's a MASSIVE improvement). I'm sure PM will reveal the accurate figures at the AGM tomorrow.

I was looking at the Hartley's & Westpac's BR from earlier this year in respect of EP413's unconventional gas which (if successful) values NWE @ 16cps.

IMO that valuation, based on low/non-existent acreage deals & unrealistically low demands for gas in the Perth market (imho it should be way higher), grossly undervalues the NWE sp - even the DMP predicts a shortfall in the Perth market. Given that EP413 has the potential to hold around ~5.6tcf of unconventional gas in place. So @ ~55% (ie; Bharat/NWE share) that = 3tcf which should reveal a value of around ~A$1.25B imo.

You can work out a risk adjusted value of the sp yourselves.

Of course it's not just straight income - we have to consider gross margins & expenses too.

Capex costs like pipeline to the nearby existing Bunbury/Dampier line, I wouldn't particularly worry about as pipeline infrastructure companies like APA and end users like Alcoa will happily pay for and arrange construction and amortise that cost into the product. I wouldn't be surprised at all if these Companies have already spoken with Norwest.

Also, forecast of gas prices are estimated to rise to ~$10 per gigajoule (ACIL Tasman and Tweets & Co.'s discussions with various participants in the 'Excellence in Oil & Gas' conference 2012)., and this takes into account increased production from the US potentially diluting some overseas markets. But this is a long way down the track & we've already got a tacit supply agreement to India (as per NWE's announcement the other day). And remember, we're only talking about EP413 here - TP/15 etc is a whole other story.

I'll be very interested to hear what else Peter has to say at the AGM tomorrow and look forward to some feedback from those that attend.