Ann: 92 Feet of Gas Pay in Borba 1-7 Well, page-32

The next structure to test is a 4 way dip closed structure ie it does not need stratigraphic closure to contain the gas .
They interpret the 3D to mean that there is likely a thicker section of net sand than the only thin section encountered in the earlier well that penetrated the structure .

Seems to me the next target now deserves a much better COGS than given in the IRR .
Given the geology encountered so far more sandy than offsets and logged with gas and no indication of water.

Permeability and Porosity are independent properties of reservoirs but it is still usual for high Permeability to be associated with high Porosity .
The high porosities logged in the first zone as well as the on site description of the drill cuttings and the build up of a filter cake on the sands all bode well for the net sands logged to have decent permeability and good chance of commercial rates of gas flow.

Nothing certain until the zones are actually flow tested but imo there has been no bad news .
Their pre well expectations seem to have been been at least met to this stage.

The lower zones are still the big targets and if they come in they may not test the upper zone in this well at this time.
However even to this point no matter what else they encounter the well could already be commercial .