It would be nice, but they will need to do some more appraisal to determine the size of the play before they can justify a new plant.
There is a huge variation between the low side and high case for Hornet. The high side would probably justify a new plant, but the low side wouldn't.
Also flow rates etc still need to be proven around the field, and at least one horizontal will have to go in to it (probably kicked off from Hornet-1, maybe a vertical intercept). All in all there is probably $50M or so of expenditure still needed to de-risk it before taking FID on anything more than the 1C zone... hence why SXY is looking for a partner, no doubt!
But even if it turns out to be only the low side estimate that's still almost 200 bcf of gas and we all know where the gas price is headed... due north! Santos by all accounts will be looking for gas themselves, so 200 bcf a stone's throw from Moomba would be a great result. Just need that lateral.
SXY Price at posting:
73.0¢ Sentiment: None Disclosure: Held
