The Dongara probably isn't too different to WE-2. 6m of pay means 144m of rubbish rock. Concern here is that the gas seen in the well is coming from fractures and that in the reservoir will not be moveable on production. Volume wise, this will be immaterial if the Kingia comes in.
The discussion of the Carynginia is interesting. Don't read anything into there being gas in the Carynginia - it is a source rock that generates gas. The Overpressure means it has no where to escape which could be bad in that it's not connected to good quality reservoir, or it can be good in that the faults seal and it provides a good seal to the deeper section.
The fact they paused to circulate out gas is a major concern as it means one again, the Strike drillers under-estimated the pore pressure and took a kick in the well as they did at WE-2. While it is poor drilling practise (and very dangerous for those on site), it could indicate a bigger gas column below the Caryngina than they expected.
The next 800m will be difficult drilling and higher risk of getting stuck if the mud weight isn't managed properly. The signs are good if the drillers can get to the Kingia.
WGO Price at posting:
22.0¢ Sentiment: Buy Disclosure: Not Held
