When developing a new field to commercialisation obviously...

When developing a new field to commercialisation obviously capital input is a must. My expectation would be that if the Tamarama well is deemed a commercial success that they will be looking to target 2-3 production wells which would be strategically placed to allow the cheapest pathway to market while also proving reserves outside of the already proven Tamarama and Queenscliff resource zones. Queenscliff would likely be reworked with a production completion and pipeline connected leaving 2 to drill, complete and connect. With somewhere around $7m left in the kitty we likely have enough to complete and connect Tamarama and Queenscliff or drill and complete a new well or at a stretch 2 new wells.

Management have more skin in the game than most so will aim to minimise dilution as much as is practical while allowing for access to capital required to add value to the field.

The recent MoU with the $6m prepayment from Weston is a very smart move as it allows them to further develop the field without any shareholder dilution. With strong signals given for further MoU's I would anticipate that they will be targeting similar deals that may unlock the capital required to complete the 2-3 well campaign that commercialises this field. If they are not able to access that capital via prepayment of partnerships then I would expect that we will see some hefty promotion to try and push the SP as high as possible before announcing a production drilling campaign.

On the subject of Queenscliff, the logs to my eye appear to indicate better seals and larger traps so despite the lower unstimulated flow rates I wouldn't mind guessing that this will produce better than Tamarama when a production stimulation is completed.