Ann: South Erregulla Update, page-211

Totally in agreeance. In fairness to STX it is probable that the ASX release yesterday was perhaps in haste forced upon them by the please explain and events of the previous week. In situation such as this communication is the key – but it needs to full, open and transparent. I'm not looking for heads to roll as the situation at hand is obviously unique and to look for such at this time would IMO be counter productive. In previous announcement STX referred to mobilize of nitrogen but in most recent release the terminology is of bring in more equipment which to me infers something of a larger scale. An expansion of what is being considered as against a generic statement would however help contain risk of rumors to something more factual. Instinct suggests issue is a sealing issue – but a reservoir issue rather than cement and casing issue. With issue obvious across two successive well I find it highly improbably that the issue was a cement – casing – completion issue but rather a vertical geological fracture issue which in itself is to always a bad thing if enough data can (has) been gathered to learn and counteract. Nitrogen may still be an option to fully relive the hydrostatic pressure of the production string or its use in combination with something like a coiled tubing unit. All is not lost. There is gas down there. The challenge now is to retrieve. For those not familiar, this video provides good learn and overview :

https://www.youtube.com/watch?v=kTD2N83aN3o