TSV (ASX) Ann: Testing Operations Continue at Warro-5 and 6

Originally posted by Joelsmith2452 ↑

I just sent and received the following corro from TSV: Make of it what you will

Hello,

I am an investor in TSV and I have been following the Warro 5 & 6 progress of late. I was wondering whether you could clarify something for me?

TSV is releasing flow rates for the wells but not divulging the flow targets for commercialization of these wells. Can you give any indication as to what would constitute a successful flow rate?

Also can you confirm that the current flows are quite low due to the fact that the wells have only been fracced to a small extent for calibration purposes?

Cheers,

REPLY

Good afternoon Joel

Thank you for your email. Mr Keenihan advises as follows:

As we emphasise in our various releases we are very early days in our testing programme. We cannot yet judge the potential well performance while the wells are cleaning up and using jet pumps. Once the wells are allowed to flow naturally we will be able to ascertain which zones are producing gas and start to establish the expected flow capacity of each well. We have previous stated a sustained flow of 1-2 mmcfd from each well would be an “encouraging result” depending on the amount of associated water, if any. Remember that we have not stimulated the entire reservoir section in either well.

Kind regards

Expand

Exactly what I have been banging on about...

"Remember that we have not stimulated the entire reservoir section in either well."

To be exact they have only perforated 20m in W5. This is smart capital and risk management given the complications in W3 and W4. Why would you risk fracing the entire column in W5 and W6 before you determined if the theory used to drill W5 and W6 was correct in avoiding the water ingress. Once they analyse the tiny test fracs they will decide if a full frac of the column makes commercial sense. This staged approach reduces their capital losses if W5 and W6 are deemed uneconomic after extrapolating the flow rates from the tiny test fracs over the entire net pay. Good to see they are learning from W3 where they spent a huge amount of cash fracing the entire column at once only to eventually conclude W3 had failed due to water choking the well.

Marxist