The Rancho well result on the sugarloaf project might help to convince doubters that AWE got a good deal in taking over ADI. It's very possible IMO they'll move on the other two Aussie companies (AUT and EKA ) at a later date.They also benefit from the horizontal drilling technology which could help upgrade their shale oil prospects. This technology might also be useful for Cooper basin producers who drill multiple vertical wells with low production rates. DLS and INP come to mind.There are many others .Horizontal sections of the order of 5000 feet have been achieved in the US which can improve production dramatically with the associated fraccing.
AWE Price at posting:
$1.75 Sentiment: Buy Disclosure: Held
