Interesting summary. The key will be flow rate. Wells this far...

Interesting summary. The key will be flow rate. Wells this far offshore in in such deep water need rates over 20MMscf/d. The big risk is the reservoir quality. It is well known that Plover sands have very low porosities and perms below 3800m, so at 5000+m, the well may not flow. If this is the case, Karoon & Conoco have a big discovery of non-producable tight gas. It is basically not worth the cost of the 2 exploration wells. However, if they do get a good flow, then we will get the all important gas quality, including the CGR (liquid ratio), and then as they have recovered gas to surface, the JV can actually declare a discovery. Additionally, the correlation of the DST to the logs and then to the 3D will provide a good indication of reserves, and the shares will maintain their current strength. A fear moving around the traps given the depth of reservoir is the test will suffer "mechanical" problems and no flow rates will be released. This will be a sound indication that the well is a duster. One needs strong resolve at this point!