There is still conflicting thoughts about Beach's 40% J/V deal...

There is still conflicting thoughts about Beach's 40% J/V deal re 855. Hopefully, this will clarify it.
This is a most important issue. It is a critical component for both companies.

The J/V deal that was made to settle the dispute in Court, (the "second" deal) was later changed,for very good reasons, mainly timing and cost.

From the "second" agreement, Beach had to pay for both the vertical and the horizontal drilling and ICON had to pay their share of the fraccing and testing.

Beach and Icon wanted to "accelerate" the programme, for very obvious reasons, and due to the unavailability of that rig that was still stuck in the U.S., and the required cost to Icon, money that they really didn't have, it was mutually agreed that Beach would drill the vertical well, plus, pay $7.5 million to frack and test Halifax-1, about the equivalent of the cost of the horizontal, which could then be proportionately funded later on.

Beach will have earned their 40% when the testing is satisfactorily completed.

That's why they won't be rushing into it, but, doing it as perfectly as possible. VERY much is riding on the outcome for both companies.

We must all realize that if Halifax-1 can produce flow rates that are commercial from the vertical well, which seems to be the case from Encounter and Holdfast-1 and Moomba-191, then Icon is in the "gas supply" ball game and Beach is another giant step towards the 2P.

We have been told that 855 should replicate 218 and consequently, the results from the horizontal wells in 218, Holdfast-2 and Streaky, should reasonably be able to be "translated" into Halifax-1 (without the cost). The actual horizontal for Halifax-1 can be done later. Makes sense.

Let's just see how these wily blokes like Reg Nelson and Ray James, play this out. It is a seriously important time for both companies.
I am sure that they are not just sitting on their bums hoping that "it will all work out in the end."

(Back to cmonaussie soon)