Ann: South Erregulla Update, page-222

For what its worth,

MoneyTalks: Goldman says Strike Energy still a Buy despite gas well issues, targets 50c fair value

“We consider the 25% sell-off an overreaction,” said the note out of Goldman Sachs.
Goldman says that it had already assigned a 50% risked weighting on the South Erregulla contingent resources to begin with (up to 271 PJ 2C gas associated with the SE-3 and SE-2 wells).
“While all appraisal activity carries high levels of uncertainty and risk, we are surprised by the interpretation of a possible gas-water contact given petrophysical properties observed in SE-3 were considered similar to SE-1,” noted Goldman.
STX now expects to move to the up-dip SE-2 well, which is ready for production testing, with flow testing to begin soon.
Goldman believes that SE-2 is generally considered lower risk with higher quality reported reservoir properties than SE-3.
“Given the depth being tested  [in SE-2] is shallower than SE-3, results could potentially identify the gas-water contact level and provide an improved understanding of reservoir pressure gradients and fluid volumes.”
“We remain Buy rated with our 50c price target accounting for risked conversion of resources to reserves, though look for updates from SE-2 testing to assess South Erregulla resource conversion success.”