Ann: Daydream 2 Update, page-29

Regarding the pressures:
If the WHP is 3410psi, and we assume the column of fluid is 4,200m (i.e. the well is full to Lorelle) and is saline water with density 1.03g/cc then:

• The pressure (in kPa) due to the column of fluid is given by density x g x height = 1.03 x 9.81 x 4200 = 42,400 (approx) or 6150psi
• Adding this to the WHP gives a BHP of 9560psi - not that far from the 9,400 psi reported in EXR's WEC presentation (15th May, slide 11) and easiy explianed by slightly less saline fluid (fresher water at 1.0g/cc would match almost exactly), or some gas, in the wellbore.

Take the above with a pinch of salt, It's a really rough and ready calcualtion.

Regarding the source of the WHP: To me, it is way more likely that this is a leaky plug than anything else. A few reasons:

• The plug that might be leaking would be the one that was set just before the tool got stuck. It is not clear whether there were issues with setting the plug that also resulted in the tool getting stuck, or it may be that the plug was damaged during fishing operations. Neither of these things happening would be particularly unusual.
• The Lorelle Sandstone has been shown to flow (at low rate, but they have had quite a bit of time), while EXR previously thought the other perfed interval didn't.
• The pressures (see above) would fit with pressure connection to the Lorelle.
• EXR have a bit of history regarding presenting bad news with some associated positive fluff/spin (Tool stuck in hole, but "modelled flow rates look good")

Is this is big issue technically? For me, it probably isnt. It might take a bit of time/money to sort it out, but it's certainly not a killer.

Side note: Comparing this play to Waitsia doesn't seem all that valuable. Waitsia devleopement doesn't (AFAIK) involve any fraccing, so you are essentially directly comparing the numbers presented above with DD2's 1.3MMscf/d. It's good to dream, but I don't think the Waitsia is the dream here. I know EXR highlight the "clay rims" to try and draw parallels, but you have to remember that they are trying to "sell" the play. It's a bit like how shale explorers always compare their plays to the Marcellus!