Hartleys research report clearly states (given the prevailing...

Hartleys research report clearly states (given the prevailing industry view the deeper reservoirs would be tight)

PANCONTINENTAL OIL AND GAS NL (PCL) 2018 –Fasten Your Seatbelts 2018 is set to be an exciting year of news flow for PCL. Californian Drilling Review To date, results from the Dempsey Project have been underwhelming in our opinion. However, it was not unexpected (given the prevailing industry view the deeper reservoirs would be tight). A number of shallower zones remain to be tested, with the JV expecting that reservoir quality may improve as testing moves up the well. In our opinion, the JV will have to show materially increased flow rates post stimulation and/or improved natural permeability in the shallower zones to get the market to re-rate this project. Tulainyo remains the key focus for us and the most likely (based on the result of Tulainyo-1, location and reservoir targets) to naturally flow at high rates. A flow test targeting multiple zones is expected to commence in the coming weeks.

DYOR