upside potential, page-6

That’s not correct, Shell had been interested in the Canning over the last 15 years or so, planned major expansion in 1996 only to be cut off at the pass by New Standard Exploration who gained control of a large proportion of Southern Canning.

Shell only drilled one well, Looma 1 which is an E-W orientated structure formed post peak oil generation and migration and found no recoverable oil. Farm out their acreage and the farminee drill three small and questionable prospects, not huge monsters.

The Southern Canning only has a handful of well drill into the sub salt section. Of these only three drilled on a valid structure, all have intersected oil, one tested with oil recovered, one with a 20m (not tested due to financial problems) and another with a 16m oil column open hole tested but no oil recovered due to drilling reservoir damage.

So to say the Canning a “dog” is based on incomplete information.

I call the southern Canning, a really exciting oil play, if the Canning was onshore USA there would be over 1,000 well drilled instead of less than the current 20 or so in 300,000 sq km.

Unfortunately the problem for ARQ is that they do not control the prospective oily bit of the Canning, they should either farmin into the two private companies or just pray that the deeper E-W structures in the Northern Canning have retained there hydrocarbon charge and not leaked. Lots of the E-W structures play in the Northern Canning have already been drill, with poor results.

So I would agree that the Northern Canning has never worked and should be called a “dog”.

Good luck to ARQ, Canning venture, I will be watching closely for their drilling results.