Cougar and Cmon - dont lose site of the bread and butter of this...

Cougar and Cmon - dont lose site of the bread and butter of this play. Canyon Sands. Thats the focus. Thats the cheaper and easier play. Taking a well into the Cline to get a look is a good idea. Logs and SWC's - all good for the IP of the project and future potential development. Same applies to the Ellenberger. Also not the main play. It makes sense to look, test but not rely on. Cheap to drill with AFE's in the < $US1mm range.

Im not seeing any talk of drilling horizontal Cline wells. So no need to focus on that at all. maybe in the future if Devon or whoever buys that play works the recipe for Cline out you would look at that scenario of risk. I think PYM have had enough of the bigger and higher risk plays for now after Turner Bayou.

I also noted that the PYM team also elected to play it safe and tone down the capex outflow by not electing to acquire a greater % of the project. This is smart thinking in the current environment. If this project ends up needing 100 wells to develop it then a 45% WI and operatorship is a solid position. I like this demonstration of fiscal responsibility. Its obviously a hard decision to make when they are having some success and they could have been blinded by that and pushed on. I think, based on current climate that its a wise call.

Also see that there additional wells are permitted and the next well Id assume is right near spud. News Flow in a sector that seems to have fallen very quite from a company that has a lowish risk play is another good thing to note from an on market perspective. We should also be getting an update on flow rates from the next well in near future if you use well # 1 as the analog.

Honestly, I couldn't really care what the SP is doing right now. Its almost irrelevant. Sector looks sick, time to acquire the good names and prospects. Low cost producers never go out of style in my mind.

Started looking around on the home front for Comps with exposure in the Perth Basin based purely on the marco gas story in Western Australia. At $A8 per mcf and the potential to dramatically increase over the next 3-10 years I like this play. Outside of AWE all the companies in the basin appear to be small cap listed or private companies. Or, those willing to take on the risks. While the prospect of exploration onshore Australia makes me shudder , I think there are some interesting prospects in there. ( btw, makes me shudder because to drill a 10,000 ft well will DHC you $10mm compared to US @ anywhere from $2-3mm USD.) It is definitely a shame that in Australia we have horrendous bureaucratic issues and this has to be a reason the multi nationals are not readily found here bar a few. Still, the economics and dynamics of the play in my mind are looking more and more compelling. I've been asking around and appears there could be as many as 5-6 wells drilled this year. WHile that dosnt seem a lot ( PYM could drill 5 wells this year and nobody in Sweetwater would blink an eye), its a massive uptick. So , I like the play, just have to work out the names outside of AWE who I refuse to invest in. Better be off, some lines dumping into my station that need some attention.