Gidday PSI,
I don't have the geo-tech background but it was surprising at the time to pull out so early; I thought if they drilled beyond the reservoir, they wouldn't perforate along the non-productive section of the well and plug the end? Maybe I'm thinking too simplistic but to save a couple million when there was a good chance of increasing reserves in a sweet spot seems odd. Or perhaps their geo modelling got recalibrated when they were drilling through targets (but didn't communicate that).
In anycase, we do have PV13 coming online soon, however I don't believe the company expects PV to fulfil its max plant capacity for long? The last bit of this PV update from the quarterly suggests there is some conservatism.
"Notwithstanding a solid gas sales performance during the quarter, Palm Valley field production was lower than anticipated, averaging 7.4 TJ/d, primarily limited by existing well performance and attempts to restart the PV1 well being unsuccessful. Whilst this is below initial forecasts for the field, we anticipate a material increase in production when the Palm Valley 13 well (“PV13”) comes online. The PV13 well is on schedule to start producing in May which is expected to bring total field production significantly closer to the plant capacity of 15 TJ/d."
If CTP instead said "...expected to bring total field production to plant capacity of 15 TJ/d..." that would have been cleaner, than saying "significantly closer" IMO.
Still, it's happy days.
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