OH2 is drill ready now. Not quite sure what specifically doesn't fill you with hope. Q4 was flagged as a possible drill window because it would give the new CEO (which we now know is PS) some time to get a clear picture of the company priorities, financial position, etc before deciding on capital allocation priorities. PS may just decide that OH is an immediate priority and should be drilled as soon as we get approvals from DMIRS.
Even though this is an "appraisal" well, it is still the first up proof of concept well. So their focus will be placed more towards maximising chance of success and less towards optimal location for production. So while the well may be completed as a producer if successful, it will likely require several other wells to maintain a half decent daily output. Exactly how many wells will depend on the productivity of the reservoir at OH which is obviously unknown at this stage.
Given the aerial extent of the OH gas field, I very much doubt 3 wells will prove up 300PJ. It will likely be made up of several compartments similar to Walyering and will require quite a few appraisal wells to prove up the 300PJ. That said, these are relatively shallow wells (compared to Kingia formations anyway) so will be much cheaper to drill. Also, we don't need to try and prove up 300PJ upfront. It can be more of a natural progression where we drill appraisal/production wells to prove up a certain amount of certified reserves and bring those into production, which will inject cashflow into the company and can be used to either drill more OH wells or fund other initiatives.
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16.0¢ Sentiment: Buy Disclosure: Held
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