This is potentially massive for EEGSantos has drilled one hole...

This is potentially massive for EEG

Santos has drilled one hole and quotes below "better than expected"

“Also in the Northern Territory, better than expected gas flow rates from the ongoing Tanumbirini-1 vertical well test are very encouraging and an important step in Santos’ appraisal of the significant resource potential of the McArthur Basin.”

This is great to see them exceed their own expectations on their first hole in a new basin, based on the US experience it took years and megabucks to sharpen the process and get any let alone million plus flow rates.

When Santos go horizontal into the sweet spot of these Velkerri shales they should be getting a 5-10X multiple of these flow rates, so extrapolate that, if the first well gets 6-12mmcf as they understand the geology and whats required better they should end up at 20-30mmcf

This is a great result and the news we have all been hoping for.

"Santos’ appraisal of the significant resource potential of the onshore McArthur Basin (Beetaloo Sub-basin) in the Northern Territory re-commenced in November with a four-stage stimulation program at the previously drilled Tanumbirini-1 vertical well. Production testing is ongoing, with test results confirming a gas discovery in the Middle Velkerri shale gas play. Gas flow rates of rates of over 1.2 mmscf/d have been recorded, exceeding initial expectationsfor the vertical well. Preliminary gas composition analysis indicates >90% methane, less than 5% total inert content and 3% ethane.

The results at Tanumbirini-1 provide critical data to inform the next phase of appraisal, which is expected to include the drilling and multi-stage stimulation of two horizontal wells commencing in the first half of this year."