you say "So at the current MC of $11m, it looks like a pretty good prospect for a major rerate if they can get decent gas flows. As it isn't an exploration well, but an evaluation one, the odds are stacked our way. "
Exploration/evaluation distinction is confusing.
the well will be cased and flow tested,because it is in a known coal field (many seams) which have not been tested at depth, the ground may be waterlogged as it is a previously undrilled part of the coal region. All known evidence to date suggests that a good gas flow is likely and increasing after dewatering (standard practice).
To get to 20mmcf could take upto 20 wells IMHO,but this could be drastically reduced if the coal seams are capable of some laterial drilling.
The need for a blowout preventer is most essential ,particularly in a new aera.
TNP Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
