Ann: Mereenie Development Well WM28 Completed, page-4

Certainly seems to me to be price sensitive!

Finally some good news coming out of CTP. The Stairway is tricky, the fracture distribution can be mapped and predicted with some accuracy but picking where the fractures are infilled with mineralisation and where they are open and productive is another matter. Here they've lucked onto an area that's open, whereas the two previous horizontals they drilled targeting the Stairway encountered mineralisation and were expensive failures. I don't think they will be able to get a bulk conversion of the 2C to 2P due to this issue, but when they have a successful interception of productive Stairway they should be able to get some local 2P upgrades which is bonus gas nobody has been factoring into valuations.

Still no word on the results of the four recompletions other than to say one is producing water from a zone they are going to try and shut off. From the AEMO data for Mereenie it appears that all four combined added less than 2 TJ/d. But they say the two new wells will increase field production up to 40 TJ/d which would mean these two are expected to add about 9 TJ/d, which is great. And that's only really for one and a half wells as they are not going back to sidetrack WM27 and get the second reservoir.