Queenscliff was drilled as an exploration well to prove up the basin centred gas play was as mapped. The flow testing proved that there's recoverable gas in place and that the geology matched expectations. It is much further from infrastructure than Tamarama meaning that development to production would likely be more expensive than Tamarama hence the focus there. Queenscliff will likely be developed well down the line after RLE become a producer from the Tamarama area. The 9 well Tama step out program could well see initial production capacity of 30mmcfd or higher (~$240k/d of sales gas or ~$88m/y) so will likely have the capacity to add the most bang for buck over the next 2-3 years. Depending on how far they take this before buy out they would logically reinvest any funds into expansion of reserves with the queenscliff area being revisited next. The other area that would make for a solid target would be the north western sector nearby STO's marama field which has infrastructure to get the gas to market without the need for any significant process plant.
RLE Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
