TSV transerv energy limited

re:significantly better gas flow , page-24

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    Hi Mitis, there are a number of factors that enter the equation but generally the production rate will determine the commerciality because it will determine the amount of wells to be drilled. However, with tight gas fields, the gas production per well declines quite quickly compared to an offshore well where the permeability is usually a lot higher. Anyway, as the Warro wells start declining you might only have less than 50% of your original production by the end of the year, so this means that you must be constantly drilling new wells to keep your production up and satisfy sales contracts .So the higher your initial production rate is ,...the better the economics will be.
    To be honest I am a little disappointed with the result so far but this week will be interesting and if they can get it up to between 4 and 5 million cu ft per day then my gutfeeling is that will be a very good result. If it hangs around where it presently is I think the sp will be crucified because, in my opinion, it will make the economics difficult. Therein lies the rub. TSV has nothing else going on and if this doesnt work we are all in for a world of pain.
    Occam
 
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