Ann: Wagina Gas Discovery, page-398

You made the right statement but have a gap in your logic flow: how can they confirm pay if they cant confirm permeability? Based on what was released, due to hole conditions they are only prepared to stand behind porosity numbers over a small section of the Wagina. Permeability is inferred (not measured) because they had an influx (kick) from here presumably. It will take a well test to confirm that this is capable of a sustained commercial flow. If they want book it as pay thats fine - its their call, after all there is no competent person sign off required (a minerals exploration release would have a responsible signatory for example) but shareholders should understand that making the pay statement at this stage is not the same as money in the bank.

The point of my various posts is not cast doubt on the credibility of the releases, its to point out that although the well certainly looks interesting, in assuming commercial success at this stage you would be taking on some risk. Each potential shareholder needs to make a decision on what that risk is. More risk than i want to tolerate at this stage but to each his/her own - thats the beauty of the market, you can tailor how much risk you want to take on provided you understand what the uncertainties are.