Megagas : below from Coopgare on 7th May : Yesterday 07th May...

Megagas : below from Coopgare on 7th May :

Yesterday 07th May

I'm not sure if anyone picked up on this:

"The flow rate is very encouraging as it is water free natural gas, flowing through a 12/64" choke with flowing tubing pressure of 1140psi, and surface shut-in pressure exceeding 1300psi."

Three things:

1. This zone is normally pressured but we already knew this as it is field level reservoir.

2. This is one of 4 field level reservoirs so lots of upside.

3. Probably the most important point, the drawdown on the reservoir is pretty low (FTHP of 1140psi versus SITHP of 1300psi.

This means that this WILL flow at much higher flow rates if we reduce the FTHP to pipeline entry pressure of (I think) 140psi. It doesn't say they were constrained by the well test package on the RNS so I'm not sure why they restricted the flow rate to 1MMscf/d.

You can calculate a very crude productivity index of 6.25Mscf/psi/day by using the tubing head pressures. Therefore, initial gas potential could be around 6-7MMscf/d from this zone alone.

Finally some encouraging news.

Coop