asx on-market bids , page-5

It is also looking increasingly unlikely that shale gas in the CB is going to fix any gas shortages for the LNG plants.

Importantly STO has a deal to supply 140 tj/d of its portfolio gas to GLNG over 15 years. I presume that gas was to come from the Cooper Basin however you can see how it would make sense for them to get some of it from WCL or just
buy them.


STO's first couple of horizontal multi frac wells look to be duds and the commentary explains the complexity. Just one of these wells probably runs to $10 million.

"The first two fracture stimulation stages in the lower Patchawarra Formation of the Boston-1 vertical exploration well have been performed. Mechanical issues experienced during the first two stages are being evaluated and amongst the options being assessed by the Operator for recommendation to the Joint Venture are a modified approach to stimulation for the remaining 10 stages in this well or a substitute program in Boston-2. An alternate method may involve pumping stimulation fluid down a tubing string, similar to that which has been previously undertaken with success in Holdfast-1 and Encounter-1. Such work could be completed later in the year. The Operator is recommending that the existing stages in Boston-1 be flow tested to acquire zonal contribution data in the lower part of the target section. Mechanical issues were also encountered during the first stimulation stage at Boston-3, the second horizontal exploration well in the program. Evaluation is currently underway, and subject to an appropriate re-design and Joint Venture approval, then further stimulation of this well could occur around the same time as any further stimulation on Boston-1 / Boston 2.
The Nappamerri Trough subsurface environment is challenging in terms of both temperature and
pressure, with the Joint Venture applying the latest technology to advance the program. During this
exploration stage some wells will be more successful than others, but all are providing valuable data
as the Joint Venture moves towards the completion of this stage.
The successful introduction of a snubbing unit to the program is an example of improving operational
efficiencies by having fit for purpose equipment to assist with well completions and workovers. This
unit has successfully fished equipment from both the Holdfast-2 and Dashwood-1 wells.
The Holdfast-2 well has been constrained for reservoir management trials since February 27 and has
flowed 0.25 MMscfd on a 20/64” choke. Evaluation of the full potential of this exploration well is
continuing with the well to be shut-in to monitor the pressure build up response as part of assessing
fracture stimulation effectiveness. The well will be also checked for obstructions in the horizontal
section using coiled tubing and methods such as nitrogen lift may be considered to aid lifting the
stimulation fluid out of the well. These results will guide the forward testing program. Dashwood-1
is expected to commence flow shortly with a stabilised rate expected in the coming weeks.
The snubbing unit has now moved to Nepean-1 where it will carry out milling operations prior to flow
testing this well after which it will move to Marble-1 for similar work.