After year end, the Company has advanced preparations for flow testing the Tamarama-1 well, which we anticipate will commence imminently. The well was recently shut down for pressure build up and we recovered the majority of the frac fluid and gas volumes increasing significantly.
Real Energy is well placed to deliver shareholder value in financial year 2017 and beyond through the further development and commercialisation of our Windorah Project. Our basin-centred gas play has now been proven with two demonstration wells and has significantly lower risk and with potentially higher returns than the deeper Nappamerri Trough. More critically in the current climate, this should also result in lower costs.
The gas resource upgrade is also an important milestone for Real Energy and one that should not be underestimated. To have independently certified prospective total mean gas resource of 13.76 TCF in place is significant for a Company of our size, particularly with respect to securing potential offtake and joint venture agreements.
To me it sounds they are very confident particularly when you read the second paragraph!
RLE Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
