east coast gas and the santos gsa, page-2

LT originally had reserves booked of 324PJ of gas, written down and depleted to 137PJ on 4/4/12 by GCA. The GSA covers 83PJ ??.
Conceptually !!!!!the plan is to target 300-400 PJ of new reserve to underpin a 20 year plus producing asset. LT4 will access unexploited sands. LT5 will emulate LT3H passing through 6 separate reservoir sands. These are relatively high probability wells particularly based on what has been learnt from past production.
Gemfish alone is a 200PJ target, is distinct and separate from the LT field whilst being in proximity to LT has geological properties closer to KIpper (esso/bhp/santos). Grayling is smaller but high CO2 levels are already known and are a problem.
CONCEPTUALLY if a LT program can prove up 300PJ, at $9 unit prices as opposed to previous $3.50 , LT could generate $120m operating cash flow.
All subject to success with the drill bit but you would have to think that there Is a reasonable chance of success, some degree anyway given the location.
NXS problem is that there is tremendous potential but who is going to value that potential given LT history of disappointment and again NXS is a known seller. NXS have played hardball with pricing on Crux, presumably they value LT as a prize too.
Fact of the matter is that they have to sell something and then concentrate on the development of the other asset.
Where is the strategic review ???? Due Sept end, in 1 form or another it has been years in the making.