Plans going forward

First phase = frac, complete and collect flow and reservoir data with range of in-well adjustments

Second phase = drilling 6 more wells by end of 2014 to reflect lessons learnt from first phase and further refine fracking and completion technique while also further delineate field extension.

I am assuming they will be testing into the Moomba pipelines to collect revenue rather than waste the gas via flaring. The money can then be used to fund further drilling in 2015 as they approach FID prior to full field development (if we get there that is).

Really good to see the work ramping up in what I have always said to be the crown jewel of our asset inventory simply due to its sheer size and closeness to pipelines. With gas price now supported in the medium term (maybe even long term) by the pressure exerted due to Gladstone, the economic is also there to now realise its full potential.

The thought of a predator crossed my mind last night (not that it's the first time I have thought about it), but I am quite convinced with our board members and the likes of Carnegie holding a decent stake and knowing the full potential of this asset, it would require a huge premium for them to sell out. So on that front, I don't think we have much to worry about.

Regarding volume, I don't think I can ever recall (even going back to Rayburn days) when we opened with over 2 million shares traded at the opening. Some decent momentum swing. Given it is still early days in the evaluation process, I don't expect this run to keep going. Suspect somewhere between 14 and possibly 18 (61.8% retracement point) to be the trading range for now - until we get further news (good or bad). Still burnt by EFS flop, a successful completion and flowback would be a good start before we should even think about flow rates.

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