The discussion re flow rates and water have been the source of...

The discussion re flow rates and water have been the source of market banter for several weeks now and yet, nothing has changed.

The market is aware that the gas is in place, water will be controlled under better engineering practices and, it will ultimately be commercial.

The bigger story will be in my opinion -

1. When will they have Alcoa commit to continuation of the program and,

2. What the results will be after fraccing 7 & 8

All the discussion about Alcoa pulling back because of US economic effect on the aluminium production should not be seen as having a major influence on the local project. They are still in urgent need to guarantee gas supply to their south west plants and, as was evidenced last year when the Varanus blow out knocked the State for six, they along with all of us were, and are vulnerable without the alternate sources being locked in.

The economics of extracting the gas will be played out in computer modelling but, the committment to stick with it, is a far more important decision and one that will drive this market.

The early market being set with the 1m buy at 0.023 looks like a good start to the week.

C'mon!!