One step forward, a big one back. Senecio-3 well looks very good...

One step forward, a big one back.

Senecio-3 well looks very good with Company quoted figures of 40-130 Bcf of gas (AWE 50%) in the main target. The deeper section wasn't drilled in the earlier wells but have encountered "a significant gas discovery" (AWE's words) In my book 70-130 Bcf doesn't register as this, so the upside for the deeper section looks to be one to watch.

I'm not sure that the market noted the significance of these words, so keep an eye on this.

In China, AWE reported a dry well. At a cost of up to USD17m to AWE, it will eliminate any profits for the half.

I know its a risk game, but these wells in OS jurisdictions are not helpful. At least dry holes in NZ and Aus have a tax shield.

Cheers, Al