nicolay no 1 drilling update , page-7

Couple of things,

The previous NSE announcement specified the likelyhood of dry gas. It's strange that people thought it was still going to be wet (although there was a chance further down - or perhaps they thought there was going to be flow or oil). Thats why O&G is such a great area to invest in. You can count on the market to be clueless. If everyone knew what they were doing it would be harder to make money.

The Ambrose prospect is updip from Nicolay and therefore more likely to be wetter (although we're operating in a dearth of information here as to exact specifics)

The Goldwyer in the Cyrene is likely to be much more exciting given the oil prospectivity. It's likely there will be oil shows given the Goldwyer oil shows in Hedonia (this won't neccessarily mean anything until cores have been fully examined but it should excite the market) and if people start doing sums based on KEY's acreage using oil shale metrics things could be a lot more interesting than just the conventional target.

The next NSE drill looks to be potentially intersecting a conventional reservoir on top of the unconventional objective. There was an anticline very close to Nicolay they chose not to drill that might have provided the same. This might provide a bit of a boost especially for the guys expecting flows, wet gas, oil etc from what was historically supposed to be a shale gas play.