Hopefully we don't have to wait too much longer to get an...

Hopefully we don't have to wait too much longer to get an indication that gas is produceable from the target coals. The announcement was too carefully worded for my liking. Here is the good news and here is the bad news! Frankly I don't see the point in announcing what they did. It just created uncertainty and the market hates uncertainty. We already know the coal is permeable,  DFIT tests prior to fraccing indicated this. Incidentally they modified (scaled back supposedly) the frac based on the DFIT and still got it 1000% wrong which just goes to show how much uncertainty and ultimately trial and error is involved in the oil and gas business. I sure hope we don't get a "sorry we under fracced Klebb" style announcement.

The Bell Potter Research has made some feel  better. Hopefully Strike upload a link to  their website in the near future. In the meantime long term holders like myself will hang on their seats in anticipation and I don't care what the DT's do!  

Quote from announcement 17/6/14
"To enable the fracture stimulation design to be finalised, the deepest stages at both Le Chiffre 1 and  Klebb 1 have been perforated and diagnostic formation injection tests (DFIT) undertaken. Results  from these tests have indicates that formation permeabilities in these zones are in excess of the  Company’s expectations and the frac design will be modified accordingly. Formation permeability  across all coal intervals is a key factor in the potential commercialisation of our gas resource."