have not even reached rancak , page-8

Indeed, the DST is the only way to tell if the well will be commercial. It's all about flow rates - will you be able to get enough product out of the ground at a fast enough rate to make the huge capex investment pay off.

However, the area surrounding Kurnia is littered with gas, oil and condensate discoveries. Wortel, which is only 10km from Kurnia, found gas at around 1,300 meters (similar depth to COE's discoveries). The gas discovery well flowed natural gas at a rate of 18.5 million standard cubic feet per day through a 56/64" choke. Condensate was produced at a rate of four to five barrels per million cubic feet. Given the proximity of Kurnia to similar (economic) discoveries you'd have to be feeling pretty confident that the Kurnia sandstone has a similar porosity and therefore highly likely to flow at a commercial rate. This doesn't mean it's in the bag but it's looking damn good.

As far as potential value goes, the recent Veritas broker reports have put a 256Bcf gas discovery value at Kurnia at 23cps. This does not include any value for condensate, which looks likely in this case. If deeper drilling through Rancak and Kujung finds nothing further but the three oil/gas zones already discovered flow at commercial rates then COE will be re-rated. As it says in the Veritas broker report: "A gas discovery alone would provide a significant re-rating to the Cooper share price. Indonesian gas prices range between US$2.50 to US$3.50/mcf compared to prices in Australia of around A$3.00/mcf."