Yea, disappointing but not totally unexpected post quarterly...

Yea, disappointing but not totally unexpected post quarterly comms:

"Palm Valley field production was lower than anticipated, averaging 7.4 TJ/d, limited by performance oft he existing wells. The field currently supplies gas from three wells, Palm Valley 2, 6 and 7 which are producing below initial forecasts and are exhibiting natural decline. Attempts to restart a fourth well,Palm Valley 1, were unsuccessful due to suspected downhole restrictions from sand. The viability of a cleanout or recompletion of this well is now being considered."

https://wcsecure.weblink.com.au/pdf/CTP/02100578.pdf

3P disappeared due to low permeability areas (?) but presumably, the 2P moving to 2C can be split into:
1. PV1 and economically remedying this well. If they can't do this economically, then the 2C will disappear.
2. Increased compression to get the gas out of the low permeability areas. Again, if they can't do this economically, it will disappear. Given the elevated gas prices, it would make sense to do this now...rather than risk and wait.

"The main driver for the adjustment is that the extended shut-in and recent production performance following the restart indicates that there is a lesser contribution from the low permeability portions of the reservoir. It is worth noting that the 2P reduction has been reclassified as 2C. These volumes are now contingent on economically viable projects to restart existing wells and install additional compression."It's good to have guidance on expected PV field performance; it feels conservative but it should at least provide a base for management to outperform. I would expect that the $2.5m quarterly sustaining capex quoted in the recent webinar accounted for some of this remedy here?

"With no further development, the Palm Valley field is expected to decline from around 12.5 TJ/d to around 5 to 7 TJ/d after two years, and then slowly decline thereafter. To offset this decline and better utilise Palm Valley’s production facilities,Central intends to investigate options to convert 2C into 2P and review additional Palm Valley drilling opportunities to further increase total field reserves."Onwards and upwards...here's hoping for a good result with Dukas. Lots of news internationally on Helium at the moment. Could be added strategic interest given what's going on in the rare earth element battles at the moment (although it's the opposite to other rare earths where US holds most Helium reserves and production, not China)