ESG 0.00% 86.5¢ eastern star gas limited

patersons research note, page-24

  1. 4,234 Posts.
    h/Brenden,

    this is exactly the point. the high flow rates achieved from the Namoi will mean they can payback the well and infrastructure at a much higher rate. Well life will not be as long .

    I think average flow rates from wells, here in the states anyway, is actually more like 50Mscf/d. Naturally the way the projects are conducted is vastly different to the way ESG are out there drilling with the large schramm rig...but at least it gives you an indication of how high the flow rate is.

    The 2MM flow rate is only an initial one with dewatering at 3500bwpd. Once they get that head down we will really know what kind of a beast we are dealling with. Arrow have reported those kind of flow rates from their SIS wells in the Bowen. They were at the higher end of the scale though, and if this rate was something we can expect as an average from Namoi ...then holy guacamole!

    I have a sneaking suspicion that we might actually be able to achieve some better rates out of multilateral pilot, but this remains to be proven. I indicated a few weeks ago during the SPP that I thought there were some other issues which are causing them flow problems. They have never elaborated as to what they are and only ever focused on the rods as being the problem. If you read the OB again, they distinctly mention 'other associated issues' or something like that.

    Anyway, the point is, the project economics improve drastically when you match a high producing asset with a good long term producer together. This offsets the cost of drilling and infrastructure in the near term and the juice you get from Bohena is then money for jam!

    Very happy holder!

    Cheers,

    SF
 
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