I have it risked at 50% in my risked NAV model on the basis that it is on trend with WE3 and NED1. We know there is a good source kitchen, and ED1 is almost certainly along the migration path. It's just a question of trap and sand quality for me. One would think that the STX geo team obviously thought there is good trap there, or they wouldn't be drilling it. The sand quality has consistently been decent throughout all the WE and Lockyer wells, so it would be sound to speculate the same can be assumed for ED1.
Just my take of course. Time will tell as always And I don't buy the "the well must be a dud because the share price is falling" theory, or the opposite. Otherwise, if the price rises and falls from one day to the next, it implies the well has gone from a certain dud to a certain success and back to a certain dud in the space of 3 days? I'd suggest leaving tea leaves reading to those living in fantasy land.
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And I don't buy the "the well must be a dud because the share price is falling" theory, or the opposite. Otherwise, if the price rises and falls from one day to the next, it implies the well has gone from a certain dud to a certain success and back to a certain dud in the space of 3 days? I'd suggest leaving tea leaves reading to those living in fantasy land.
(20min delay)