Based on SN's commentary today when he explained that SE1...

Based on SN's commentary today when he explained that SE1 Wagina flow rate dropp3s from its peak of 35mmCFpd down to 2mmCFpd within the test window, I'd say they are not confident in achieving a commercial outcome from Wagina-1. I think he mentioned that they would review the prospect once the current review process has run its full course but the way he discussed it suggests to me that Wagina-1 is going to be shelved for now.

I mught have been an attractive prospect if SE was a standalone development with all three SE wells pumping away and Wagina-1 could potentially have been a bolt on producer. But with SE1 being the only viable play and Wagina being potentially a tight play (I can see a few jokes being made on that sentence), perhaps the risk-adjusted ROC no longer stacks up.

Bear in mind that W7 drill cost is half that of a Permian well, and given the existing infrastructure there, the cost of monetising the gas is also incrementally low.

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