Meeting overall was good but could have done with more detail on the technical aspects of the laterals and flow rates and also on the actual marketing intitiatives.
Will post detailed comments later but just quickly on flow rates:
They are happy .. so we should be. All wells at the Bibbelwindi pilot are pumping and the rates are increasing early which is important. They are very confident bthat the rod failures "and all other technical issues" are behind them. Water production remains at >3,000 bowpd which is also encouraging. DC said the 470,000 scfd is good for being only 40 days into pumping. Gas production will increase quickly he said and JA said "exponentially". I expect that they are hopeful of > 1mscfd at least in time.
Peter Lansom said afterwards in a conversation that the economics of a vertical plus a lateral for them (given the area drained of 1 sq km) is actually better than for verticals for a number of other companies, also partly because ESG has comparatively low overheads??
I'm happy it wasn't me that asked about the OIP/GGX merger ... which ended the mjeeting on a sour note .. but I will be at the OIP AGM tomorrow and will have a question or three!
HC attendees that got together before and after were Hardmano, Yaqona, Paradigmshift, Porker, Soj66, Mattocks, Some Guy, and tommyvegas. Shame that Portfolio Plus didn't make himself known .. would have liked to meet you.
More later.
H
ESG Price at posting:
85.0¢ Sentiment: LT Buy Disclosure: Held
