Ann: Southern Cooper Basin Gas Project - Update, page-6

Ok, not quite as detailed as I would have liked but it provided some valuable insight nonetheless. The key piece of info for me is not just the sustained gas flow but the ramp up in flow rate - especially at Klebb, which has seemingly produced at an increasing rate for 30 days (the test period). Technically, it should be reasonable to expect ramp up rate to increase once K2 and K3 is up and running to help with the dewatering.

The other good news is LC-1 had approached desorption pressure so quickly. This would imply that they may be able to get away with doing a frac size somewhere in between LC-1 and K1, and still be able to dewater the wells sufficiently quick enough and enjoy higher prod rate.

Agree with PSI regarding the permeability. Reckon the perm is probably closer to low single digit. Based on previous comms with the company, I believe a flow rate of 300mCFpd would be considered a good outcome. Mind you, this was long prior to the perm, water, and gas saturation being known. But my point is that they had considered, at one point, a sustained flow of 300mCFpd to be adequate for commercialisation.

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