Ann: Historic Bedout Sub-basin Flow Test-CVN.AX, page-157

AoverT,

It has long been the exploration potential that has been the reason that I would not like to see us sell out preproduction, as no-one is going to pay us enough for the blue sky component. Of course if someone made us a stupid offer like 30 cents with today's poo and everything else still untested, my mind changes, but of course they won't.

Now I might be more agreeable to just selling the area that forms the production license which would be awarded, but even then imho the butter and the jam are in any tie-in discoveries, so perhaps just reducing to 10 or 15% in the area of the production license would be better. I suspect the most likely buyer would be Quadrant or a gas off take buyer, the later perhaps not so interested in the surrounding blue sky anyway, or concerned with the small stake.

If we can get our sp up then a CR for the full 20% isn't such a bad idea. Development might not cost as much as originally mooted, with high well productivity meaning less wells.

I really expect there will be another couple of wells in the area before we have to decide what to do.

Cosmo, I think you are wrong about gas reinjection making a lot of difference to PS recovery. The reservoir is already pressured up with gas like a 7000 psi coke bottle anyway. IMHO there must be other factors behind the low recovery.

EL