Been re-reading that last Achillees Heel annmnt AGAIN. I didn't...

Been re-reading that last Achillees Heel annmnt AGAIN.

I didn't realise just how GOOD a read it is.

Well when one sits and contemplates what the IRR is going to be like.

http://clients2.weblink.com.au/news/pdf_1\01723580.pdf


Phase I: Highlights – All Three “Achilles’ Heels” Substantially Mitigated


Brittleness:

o Analogous to Haynesville and Marcellus plays

o Highly amenable to fracture stimulation operations  


Hydrocarbon Phase / Thermal Maturity:

o Volatile oil vapour phase with higher liquids content than forecast 


Bottom Seal / Overpressure:

o Elevated pore pressure materially above hydrostatic gradient 


Matrix Permeability:

o Analogous to Haynesville & substantially higher than Eagle Ford 


Porosity

o Excellent by comparison to other successful shale plays, including Eagle Ford


And the KICKER:

The Company believes that Icewine #1 cored a new kind of hybrid resource play that appears to have numerous similarities to reservoirs known as Low-Contrast Low-Resistivity (LCLR), or Low Contrast Pay (LCP). These reservoirs are characterised by production metrics and peformance more commonly associated with conventional resources (Bodnar, 2015).

**EVERY CATEGORY IS COMMENTED ON AS BEING BETTER THAN OR MUCH BETTER THAN IN ALL CASES**

I was a little concerned with some espousing sub $40 bbl breakeven, and I still am to a degree, but I tell You what, I'm certainly now convinced its a possibility. I'd be extremely surprised if it isn't very close to $40 bbl given all we've chatted about the last few days.

d.