no matter how you look at it its aint good, page-33

Picko99 the best poster of the day IMO

Here is the issue

Poseidon-1 uncovered three gross sand intervals of about 10 metres, 67 metres and 139 metres.

K1 so far has 40m gross over 460m which “means lots of thin sandy streaks which are not ideal for offshore production”.

Roughly 110m to go, therefore the last 110m would have to be quality pay dirt to call K1 a success.

To again quote Picko99, “However, in my mind, I would have expected some elevated gas readings at surface if this was the case, which was not reported” Hence IMO K1 will not be a success.

Why the SP has been smashed – “Karoon has said the well has the potential to provide a discovery of equal size and magnitude to Poseidon-1” which clearly will not be the case (according to the above figures). I estimate the market factored in Approx 5tcf for K1 and may have been the basis for the $12 SP.

Although the disappointing news today KAR, IMO, is still a stock with huge upside potential and there is no doubt Poseidon-1 was the company maker (estimate 7tcf).