Ann: Bauer-19 and Stunsail-1 update, page-17

Hey themuzak,

sorry for the misunderstanding. From my reading through all the reports, my (very general) view is that the SACB wells are getting better results, considering the wells are shallower than in the deeper Nappamerri trough, plus less fractures (except for 1 or 2 wells). That being said, for now, the results are clearly very mixed when you look across the whole cooper basin. In some of the older wells, on the fringe, some have hit conventional traps to boot.

As you say, it is blatantly obvious that the J/V has not wanted to spend much on ATP 855 (with hardly any fractures in the wells, which considering the costs of the wells far outway the fracs.. seems like a lost opportunity to me). I think that is simply because they have already drilled more than enough wells in PEL 218. Also, because ICN has a decent stake, they probably prefer to focus on their wholely owned PEL 218 (Chevron & BPT).

As for Regs words, he is trying (and has been for a while now) to manage expectations in regards to the flow rates etc. Which have, really been underwhelming. I know he has mentioned that U.S players view the results as good. But I am still a little unconvinced. He is also trying to tell the market that they need to be more patient, as this whole project is a slog, not a sprint. The only issue I have with this, is that they never explained that at the start. So the market has since, been waiting... and waiting for real, conclusive results.

I guess we just have to wait some more. It will all become a little academic if the price of gas shoots up as expected. But if it does not, BPT is trying hard to make sure it has a backup plan, i.e. the presentation tries to show it has many other avenues of growth, but keen followers know that BPT has not thrown $200-300 million at Vic, or its virgin NT acreage....