SE2 and SE3 compartments look like too hard buskets in terms of...

SE2 and SE3 compartments look like too hard buskets in terms of a commercial development at this stage. That may change once they get all the information back. Personally, I think those compartments are too tricky and risky to be sinking tens of millions without any certainty of a commercial outcome or returns.

The same applies to SE Wagina. Even though there may be productive Wagina reservoir at another location, it is quite low on their priority list in terms of getting the best return on capital.

SE1 compartment looks to be much cleaner and simpler. Therefore they are focusing on how best to optimise the monetisation path for those gas.

As invertedva mentioned in his summary, the company will be looking at growing within its means (organically via Walyering cashflow) rather than raise more capital. Therefore, it is only prudent for them to allocate the capital to items that will have the highest possibility of generating good returns.

OH looks to be going up the priority list. Walyering was, in some ways, a small proof of concept for OH. With the success at Walyering, and the relatively shallower depths of the target reservoir there, they will start to discuss with other energy companies to see if there is appetite for sharing a cost of mobilising a mid-sized drill rig. Obviously a successful seismic data and firming of a drillable candidate is a precursor to any rig being finalised.

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