The water in itself isn't the issue as it can be handled at...

The water in itself isn't the issue as it can be handled at surface. What is a problem is if the water is actually being pulled into the well from below the GWC which puts a hard floor on the base of gas at WE. If it turn out to be the case, this GWC is considerable higher than STX has previously predicted and therefore reduces volumes at WE and more significantly at SE which STX assume is connected to WE in the gas leg.

Sanding is a minor problem, probably made worse by the water ingress but again this can be designed into the completion design.

Regardless of water, sand and the disagreeing JV, the well has proven 35 mmscfd. Not as high as WE-2 or some Waitsia wells but if you're managing water you won't be able to open it up higher. For a start, the flowback ponds only hold so much.

The sell off seems a bit harsh - it will impact STX more than WGO because they have reported much high gas-in-place numbers than WGO (remember the last public spat where WGO put out their more credible volumes).