The following is not investment advice and readers should do their own research.
Thought it would be a good idea if I summarised the latest Glenaras drilling update in my own words.
- Put Simply we have successfully drilled "2 ½" out of the 3 wells.
From the ASX announcement:-
“the drilling difficulties we are encountering are consistent with good quality, cleated coal and we are very confident that the two laterals will be sufficient to achieve our objectives and book first reserves for the Glenaras Gas Project.”
- IMO the portion of Glenaras 11L that was not drilled will not have any significant impact on the drainage model, which is supported by the definitive statement above.
- The bottom hole assembly is insured and it’s loss would therefore not have a cost impact on the project.
- My understanding is that we are under budget and there are sufficient funds to achieve the reserve certification without the need to raise further capital for this project.
- I have interpreted the announcements very encouraging and understand that Jemena are undertaking significant preparation works in relation to the FID (Final investment decision) for the pipeline to market.
Best Regards
OGP
