STX 4.35% 22.0¢ strike energy limited

Ann: Jaws Stimulation Success, page-87

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    Of course it will need to trump the Klebb threshold - Klebb wells were verticals. Jaws is horizontal, much more expensive and should have much higher productivity.

    Nobody can really give a flow rate that's necessary to be economic, because a) it's EUR that really determines economics, not peak gas rate and b) we don't know what the full costs and revenues will be so we can't even really estimate required EUR with any accuracy.

    Flow rate is dependent not just on reservoir productivity but on drawdown, which the company can control by adjusting pump speed. A well that only peaks at 2 MMscfd might actually be better than one that sharply peaks at 6 MMscfd then declines. This is particularly true with horizontals because, due to their very high productivity, you can get sharp peaks in gas rate if you want to. But it's better to run a horizontal more slowly to avoid stress effects which might reduce your EUR in the long term. I'd rather see Jaws sustain rates at 2 MMscfd for a year than hit 6 MMscfd for a month.

    The new team have shown they understand this very well. I don't expect they will be flogging the pump trying to get a headline peak gas rate to impress the market.
 
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