strongy,From my perspective, I like this stock for the next well...

strongy,

From my perspective, I like this stock for the next well which is targetting shale. However, based on recent drilling by SXY in neighbouring permit, this could discover wet gas. That is gas which contains heavier hydrocarbons such as ethane, propane, butane, condensate. Extra rich shale such as primo Eagle Ford Shale can even yield shale oil, although no one thinks this will be the case hear.

These heavier hydrocarbons are very valuable when compared to dry gas.

No one, however, will know what the well will yield and there is no certainty in these matters. Failure can have very negative share price implications ( see NSE, BKP). Note OGYs share of well costs for this well will be paid by SXY.

I also like OGY as it is a relatively cheap counter in the shale space and it is widely speculated there will be a lot of consolidation in the Cooper Basin.

Anyway, this is just my opinion and I may well be wrong and certainly have been in the past. It is not intended as advice to you or others to invest in OGY which remains a junior, highly speculative play which could soon be worthless. For me, it is a punt and I am not punting more than I can afford to lose.

Will it take off? Not necessarily. Depends on the results of the next well and market sentiment.

Don't know the details of the well but imagine will be similar to Skipton well recently drilled by SXY.