Ann: West Erregulla Update, page-16

Not sure what needs a IMO, it is a clear fact that JAWS is performing differently and not as well as STX Management had modelled and expected.

This was established a few weeks ago by comparing the STX model released in October to the latest actuals presented. Flows were well below where STX modeled for BOTH the time that had passed and the BHP shown.

It is also a fact that the drill nearly went belly up but they managed to save it, which was excellent work by Haliburton and STX.

A failure back then on JAWS would have been a disaster.
Remember STX is a company with a $115m Market cap and roughly $15m in the bank. That is $100m the market is ascribing to JAWS (which has huge potential but is not performing as expected) and WE which is simply an untested Exploration Well.

Plenty of upside or downside depending on what happens.

IMHO:
failure at both JAWS and WE will see a share price less than 1 cent as there will be no cash left and no real potential left in the acreage.
Success at Jaws and failure at the WE will see $0.50+,
Success at WE and failure at Jaws will see $0.30,
Success at both would probably see $0.80+ most likely $1+.

In 6 months both results will likely be known but from a current risk adjusted return perspective I am glad I reduced my holding when I did.