arrowsmith 3, page-119

I suggest that you reread the Edison report in conjunction with the AGM Annual Report.

Then go back to where we were prior to September 2012 and then add up all the pluses that have been brought to fruition during the period to now.

It seems to me that some of you have little regard for the colossal work that was done to do the 5 stage fracc.
To coordinate with AWE so that we did not have to pay for standby time for Haliburton.
To have been flexible in our management of the fraccing process that we were able to accommodate the cancellation of the fracc by AWE and to continue with our fraccing program without loosing the Haliburton crew to another location and delaying the completion of the A2 well.

The discovery of OIL in the Kockatea section of the well.
There was no prior evidence that there was going to be OIL discovered from any section of the cores from A2, so it is unrealistic to expect that Management should have made provision for OIL prior to the discovery.
This meant that the regulatory authority needed to approve the flow back of the OIL. These regulatory processes take time to put in place.
It is illegal to continue to flow OIL without the permits to do so.
Getting this zone to clean up took a long time, not because NWE were not working to achieve the cleanup but because the well itself was behaving in a difficult manner.
The Kockatea 50 metre layer returned approximately 400mscf/d of gas and 20 barrels of oil, AP grade 37, prior to being shut in (Cemented).
Try scaling that up to a 1500 metre section of horizontal well and do the calculations and decide whether or not it is a positive outcome. Then multistage this to 8 or more individual wells at one depth, then consider redoing the same thing every 30 or 50 metres of depth.

Once you have your mind around this then do the same for the Caryinginnia as there are some interim results for it.
Condensate and gas flowing at approximately 350mscf/d with only half of the fraccing fluid being returned.

The issue then became the well not returning the fraccing fluid as quickly as we needed. That was when the joint decision was taken to install the packer and the 2 3/8" tubing. This caused delays to acquire the pipe, then the packer sticking at the wrong level meant that the cleanup of the fraccing fluid was again not proceeding at the rate that they wanted.

The team attempted to get the well to flow back with the packer in place but it seems that now it has been decided to drill the thing out and to flow back all the layers together (excluding the Kockatea) to try and get the fraccing fluid out so that we can get true flow rates.

Yes time has elapsed, but the company and their staff have been working to get this sorted out, not sitting around "fat catting" or irresponsibly spending our money as some detractors have alluded to.

This company is being run with 4 professional staff.
That is extremely lean management.

The allegations of sitting back and doing nothing are rubbish in the extreme.