Not until they have successfully flow tested it @Spockie :) The...

Not until they have successfully flow tested it @Spockie The data looks good but after SE2/3, it would be wise not to count the chickens just yet.

Assuming W7 does indeed contain 34PJ of additional reserves as per stated by STX previously... from a risked NAV valuation perspective, 34PJ is about 6mmBOe. At $30/BOe (successfully appraised producing 2P reserve), W7 will add 170mn in risked NAV to STX. From a DCF perspective, it all comes down to when the DBP interconnector can be brought online (the sooner the better) and how much the field can produce on a daily basis. At 24TJ/d, I have a DCF of 223mn. At 40TJ/d, that increases to 444mn.

Obviously a much-needed result after the disappointment of SE2/3 and the ensuing (exaggerated) market reaction. Hopefully the flow test produces the goods which, as JD has pointed out, should remove doubts regarding STX's self-funding capabilities. The next drill will be massively high impact to say the least given the targeted 278PJ of potential reserve. Given its proximity to WE3 and Lockyer, it's a good one to bet on

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