merlinleigh:conventional potantial increasing

Now, let's look at the second gem on the report;

It is the Merlinleigh Project.

Conventional potential is significantly increasing and coming to the levels that they could start drilling for conventional plays first!

"Scoping study confirms potential for conventional prospects to add significantly to development potential of larger unconventional resource potential."

"The findings of the scoping study have highlighted the value and economic attractiveness of the conventional prospects as an initial development scenario to underpin the larger unconventional potential resource play within the Merlinleigh portfolio."

They already have results of geochemical analyses; high TOC levels and thermal maturity model confirmed


"New geochemical analyses were undertaken on the Early Permian source shales from the Kennedy Range-1 well, and this has confirmed excellent levels of Total Organic Carbon (TOC 2% to 6%, average 3%). These source rocks have reached
high levels of thermal maturity and are at relatively shallow depths (wet gas window >1700m), highlighting the potential for both conventional and unconventional gas that can be exploited by cost-effective drilling."

The work undertaken to date has highlighted the significant potential value of the Merlinleigh Project and the geological similarities to the Perth basin remain encouraging in the light of progress that is currently
being made by other operators in the region."

They nearly decided the drilling location

"Further field work was also undertaken during the quarter with the progression of environmental requirements and the completion of heritage surveys over the Condon #1 drilling location.".

Farm-in Partnering in Demand, but do they think to drill alone?
They may be drilling alone. I think they are assessing that. What I understood from what they said; they may start by drilling for the conventionals as they have great confidence for them. After the success, they may start drilling for the unconventional which is much costly than conventionals. Then we even don't need to use this big rig Century MB #14 for drilling conventional targets.

"During the quarter potential partnering discussions with a varied group of interested parties continued alongside additional desktop technical work carried out internally"

"The Company continues to receive enquiries from parties demonstrating an interest in partnering on the Merlinleigh Project and these discussions will be progressed in conjunction with further assessment of a revised exploration program.."