o-2, page-53

resourcebull,

We knew it was going to be a tight reservoir (regulars will confirm). Ooraminna-1 only flowed 12Mcfd, and I don't think reversing any amount of formation damage was going to change that into 12MMcfd.

People are here saying that 100Mcfd is a bad result - of course it is, for a conventional reservoir. But for unconventional gas, from 5m of net pay, it's actually pretty good (assuming it can be sustained).

If this was a CSG well in Queensland LNG country, pre-frac, 100Mcfd from 5m of net pay would be a good well. If this was the Barnett Shale or the Marcellus Shale in the US, it would be a good well.

Let's wait and see what the final flow rate and the final GIP calculations are. If we end up with, say, 200Mcfd and 1TCF GIP, we could have a tight gas reserve, a mini Barnett Shale. Not to mention the implications this might have for Johnstone-1, a tight oil prospect.

Still risky? Definitely. But that 7c share price is looking pretty good I think.