is this in line with expectations?, page-2

The flow rate required to constitute a commercial gas well in Ukraine is in the region of 400,000 cfgd. The well was always expected to be commercial.

The question is was the flow rate in line with expectations?

If you remember back to 201, Hawkley expected the flow rate to be 4 mmcfgd and 150 bblcd. These were reasonable expectations given the reservoir performance and production at 110 (keep in mind 201 was a twin).

202 has been drilled further south of the 201 location and the reservoir performance at this location does not appear to be as successful as 201. Its important to remember that Hawkley are still in the first stage of the testing phase and inert gases are still flowing back. Flow rate could settle somewhere between 0.9 mmcfgd and 1.2 mmcfgd. Increase in choke size to 6mm or 8mm should see a commensurate increase in flow rate. One can expect flow rates in excess of 2 mmcfgd, being realised from this well (on 8mm choke).

202 does not appear to be a 201, so it bring into question the companies ability to optimise well locations. It's all about identifying sweet spots with excessive natural fracture networks to achieve superior reservoir performance. Does it really matter that its no 201? Not really, as it is still commercial and will provide significant operating cash flows to Hawkley.

Having their own gas plant is only going to add to the value of the field.