Ann: South Erregulla Update, page-156

Measured depth is not necessarily a good measure of whether it is up dip or not .
The topography is never completely flat .
The depth needs to link into something like sea level that does not vary from site to site to accurately determine measured depth .
If faulting has resulted in wells being in separate compartments of the structure then that can make the G/W contact level different in the different compartments .

They did say SE3 was updip of SE1 so they will be looking hard for the reason that the well did not flow gas .
From the section you have posted above SE2 looks well updip of SE3 so even if SE2 and SE3 are in a compartment of the structure isolated hydraulically from SE1 , then SE2 has a much higher COS than SE3 had.

It will be interesting to see what they say has happened .
Other posters are inferring the water may not have come from the perforated interval or is a relatively small amount of perched water.
I would like that to be the case but fear it may not be .

I wait with a combination of hope and trepidation for the test on SE2.