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07/09/18
16:04
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Originally posted by Boggies
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Chili - RLE already has GAS as you put it. Have look at the video of the flare if you doubt they have gas. Tamarama 1 flowed at up to 2mmcf/d – T2 & T3 have good gas pay and baring some sort of operational mishap they will flow gas. The question is how much will the flow rate be.
In July RLE announced that its reservoir modelling suggests initial flow rates should exceed 3 MMscf/day in Tamarama-3. I personally take it as pretty good sign they were prepared to put this out but everyone will have their own views on this.
This contrasts with some of the other gas developers I have been following. GLL (Mkt Cap $129M) its Glenaras 10L well is flowing water with the gas rate too small to measure. I know it is early days but hard to get excited with this sort of flow rates. Or STX (Mkt $140M) their well Jaws 1, apparently the largest frac in the Cooper, but no mention of flow rates (in fact I have never seen any flow rates from them).
Apart from RLE my favourite gas developer is COI (Mkt Cap $236M) although they have a big run since Jan 17 up from about 7 cents to close yesterday at 34 cents. They reported that their Mira 6/2 wells are flowing at 1.4 mmcf/d. I think they will become a producer but the upside from here is going to be harder to achieve. For RLE shareholders it is potential model for how things might go if T2 & T3 shape up as expected. DYOR and best of luck.
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yes when you compare to our peers RLE CR stuff up has really pushed us into oversold territory... no reason on good flow results RLE couldn't be much higher than the likes of these peers