This company will be an oil producer

the report this morning said,
Complete suspension of Dunnart-2 with casing and wellhead then integrate all data to determine if production testing is warranted.

then
The Dunnart prospect is a well-defined moderate relief fault closed structure with the top seal provided by the proven regional seal, the Kockatea Shale which is the source rock for oil discovered to date in the North Perth Basin.


If this well was a disaster then they wouldn't be running 7" casing and a wellhead would they.
The issue is that until more work is done then the flow rates of the oil are unknown and the eventual estimation of the recoveries is unclear. It might take a week or two to find out.
My take on the risk for KEY is simple.
1) Oil discovered at a shallow depth in a place where they were expecting it.
2) Key has 567M shares on issue and a mcap of 11M at 2.0c. 3M and a bit in the bank. EV of $7M.
3) this well has live oil . this will flow but we don't know how much.
4) If recoverable oil 1M bbls then Keys 44% is 440,000 bbl. If they get 50% net of costs and they get $100AUD/bbl then the net $50/bbl is worth $22M npat, 2M bbl then $44M.
5) this well opens up a new play in perth Basin ,

So Dunnart is just a start.
Risks are on the upside.