Ann: South Erregulla Update, page-112

Just reading the very limited annoucement and trying to clarify it more.... which is hard.

The displacement of drilling and completion fluids from the wellbore and their production to the surface is a normal part of the well completion process. This is often referred to as the “flowback” stage. The goal is to remove these fluids to allow for the production of gas.The production of gas and formation water to the surface is also a common occurrence in gas wells. Formation water is water that is naturally present in the reservoir and can be produced alongside the gas.
The presence of formation water is not necessarily a bad sign, but it does need to be managed properly to prevent issues such as scaling, corrosion, and reduced gas production.The collection of samples of the gas and formation water is a standard practice in the industry. These samples can provide valuable information about the characteristics of the reservoir and the quality of the gas.
However, if the volume of water being produced is increasing over time, this could indicate water encroachment, which can reduce the efficiency of gas extraction and cause operational issues. In such cases, strategies to manage water production, such as water shut-off techniques or modifications to the well completion, may need to be considered.