HCSS is a conventional play (sand stone). The porosity and permeability of sand stone is very different to that of shale and as such the HCSS is being treated as a typical tight gas play. There are many of these types of wells in production. The sand stone would be expected to flow naturally for a long period, whereas the shale needs to be fracced every xx acres to maintain flow.
If the flow from that section is good enough, ignore the other zones in that well and hook it up to the DBNGP at a rate of $10-12 per Gigajoule to get some revenue coming in to fund other exploration. 1 Mmcfd would give around 1000 Gigajoules per day, so around $10-12000 per day.
While that's being worked on i'd say you would go on drilling vertical wells to prove up other areas / permits before doing the D.D and deciding to go horizontal. They may well just go straight to horizontal?
NWE Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
