Excellent outcome, everyone can breath again!Apart from being...

Excellent outcome, everyone can breath again!

Apart from being relieved that the cement remediation is successful, there were a few snippets in the quarterly that caught my attention.

NWE are conservatively stating the water contact is at 4500m TVDSS and by virtue keeping conservative at an estimated 66km2 aerial field extent. But, IMO still high chance it could be up to the 108km2 that their modelling has predicted when including further extensions down dip to the south and north east.

This caught my eye.... "The Company's preliminary estimate of gas resources within the Kingia 66 km2 area alone may exceed the Company's pre-drill High Case prospective resources for the Kingia and High Cliff combined."

So the 1.122TCF high case is likely to be exceeded in the Kingia alone. So then factor in the intervals from the High Cliff and Wagina / Dongara... the field could be quite huge. Plenty of upside here IMO.

Interestingly no mention of the oil column... maybe NWE are keeping that ace up their sleeve or MIN don't want to mention the oil - not good for ESG credentials. Anyway, we shall know once the production test is completed... by Xmas IMO.

As Seahunt said, NWE is in a very strong financial position, better than I thought. In fact when you think the options are likely to be all exercised, NWE's bank account will look very healthy indeed! "The listed options (ASX: NWEOB) have an expiry date of 24 January 2022, and an exercise price of 0.6 cents. Norwest anticipates that the remaining listed options will be exercised prior to their expiry, thereby further strengthening the Company's balance sheet by up to an additional $3,840,000."

Well done management, onwards and upwards.

GLTA