A bit overdone, we would say…
See the PR here.
- This test was not about the gas, some might have seen the 11MMcf/d flow as a disappointment, but it’s not. The choke they used is minute compared to the one they used in the big flow test (a 3/4″ choke versus a 4 3/8″ choke in the big flow test)
- Apart from that, the most of the gas zone has been isolated, so that 11MMcf/d really isn’t remotely meaningful
- The DST is about the liquids, or more specifically, the liquids/gas ratio. This came in 15% higher than at the top (where it was already surprisingly high). Not a stellar number (more like mildly good), but it’s not the last word on it:
- This is only the first ‘liquids’ DST. They’re going to (after coring) do another one lower, likely in more heavily liquids zone, so there is room for improvement
- Oil has not been tested yet, that’s lower still. We got to have some patience.
Today’s news is mildly positive, with still all to play for. Use the sell-off to accumulate a little more.