mackellar value, page-9

Porker

I beg to differ with you on that comment.

Most tight gas doesn't flow on test from a straight vertical well. Some of the largest gas fields in the US are tight gas or basin centred gas plays. Given MEL has already said that the Gatton has tight gas no-one should be expecting free flowing gas from this section. The Rosella well is important because it will delineate just how large this play might be.

If you're expecting an amazing flow rate from the Gatton you can expect to be very disappointed. Its still a very valuable energy resource though that can be brought into production. Over 20% of gas production in the US comes from plays like Mackellar.

The intriguing question is what is below the Gatton? They only tested a few meters of sand and they are going deeper I assume. Not that the Company has given any detailed information to shareholders on what their plans are.

IMO we get two important bits of information from Rosella:
1. Does the field extend that far north?
2. Is there free flowing gas below the tight sands we saw in Kingfisher?

So, its NOT all about flowrates.

I wonder if the Chinese will come and make a bid for MEL - its alot cheaper than WCL.