DJ Carmichael Report - 23rd Jan 2018...

DJ Carmichael Report  - 23rd  Jan 2018

https://static1.squarespace.com/sta...302507313d36af/1516757712042/REL 23012018.pdf

"Our View The Porosity is good but what about permeability? The fact that the sands are gas saturated and display a reasonable level of porosity is in our opinion an outstanding result. While the well shows encouraging levels of porosity, the level of permeability is uncertain because the JV did not recover drill core from the well for laboratory testing. The primary goal was to successfully drill and complete the well and coring activities would have complicated matters on an already challenging well. In the absence of drill core, the result from the flow testing program will give a good indication of the permeability of the sandstone in the reservoir."

Porosity has increased from 10% to 17% to 15% to 20%
Milli-Darcy 1 to 5 permeability mD

Not long, wait and see approach

Note: Alvares has a 60% chance of flowing gas according to SGC last presentation.