A lot of ifs and buts, but if the 16 July ann. is to scale, it looks like the Tirrawarra fracced zone is about 1/5 of the size of what has been fracced in the Patchawarra...decent upside potential just there, let alone any Patchawarra surprise.
Assuming they get a commercial result (looking very likely) it will be interesting to see how development proceeds. I'm hoping that they can do some sort of pre-sale deal with a customer that will fund an additional well or two.
As an aside, 4MMscf/d is roughly equal to 1.5 pj/a. I'm not sure what current gas prices are, but given that they were around the $10/gj mark pre-Covid I'd assume they'd be able to get net circa $6/gj...so $9m per annum gross, $2.25m net. Factor in 3,4,5,6 wells....not bad.
MEL Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
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