All evidence to the contrary. N8/9 flowed up to 200,000cfpd before the wells stopped flowing. This was caused by several factors, go back and read to find out why. N9/10 are being tested by slowly dewatering now that the company has learnt from N8/9. This is wildcat territory, no one has tried CBM in Mongolia successfully in the past. TMK energy, who started their pilot after they saw the issues with N8/9, are dewatering their pilot very slowly. Brendan Stats has stated the flow test period could take up to 12-18 months. Slow dewatering is the key. These wells may not reach peak gas flow until 1-2 years after dewatering, so the CBM project is a long term investment. Our Chairman has said commerciality will be determined by the end of this fiscal year.
We have the opportunity to see short term outcomes with Grandis, mid term with the CBM project and long term with Gobi H2.
EXR Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
