Ann: Southern Cooper Basin Operations Update, page-5

Wow, a permeability of 25mD at 2000m is unheard of. With that gas content and coal thickness, it could work as a conventional CSG well with that sort of perm. Although it does say "up to 25mD" so the others are presumably lower.

They have flowed back over 80% of the frac fluid and not seen any sign of gas which is a bit of a worry, but if the reservoir is dry but overpressured, then it's still quite possible that as they depressure the reservoir to the critical desorption pressure of the coals, gas will start to flow. But it still leaves the question of what is causing the overpressure if the coals are dry? It presumably can't be free gas overpressure or they should have seen gas-cut fluids flowing back, and there is no mention of any sign of gas at all.

My nagging doubt is still that these coals are actually water saturated. Ordinarily that would probably be enough to kill the play (at the 0.1mD they were expecting), but at these permeabilities, it may still work as a conventional CSG type play even if it is water bearing.

If they flow back more than 100% of the frac fluids, that will confirm that either the reservoir is water-bearing, or they fracced into a water-bearing sand. If the well stops flowing back liquids and starts flowing gas, then we may be onto a winner. The next time they open the well after this pressure build-up test should give us the answer.