6"Do you know what sort of flow rates for a horizontal well can...

6

"Do you know what sort of flow rates for a horizontal well can be extrapolated from vertical well flow rates."

Discussed this a number of times with management and again today actually.

As I understand it, we will need to wait till the end of fracking for a solid estimate so that they can factor/measure all the impediments for the entire process.

We did discuss and I do expect some type of conversion estimate will be offered as part of the fracking completion announcement.

"For instance if the 400m of vertical section flowed at 1mmcfd would a 1600m lateral flow at 4mmcfd or will it be more as the frac will be more extensive from the additional water pressure and other well efficiencies?""

Yes, it will be more as there are multiple factors happening 6.

Obviously there is the length that you mentioned which is a factor of 4, then there is the increase in flow relating to the full pressure blast as opposed to the lower pressure currently being undertaken. Then there is the more optimised diameter of the production well as well as the increase number of frack sections and the relative lack of concrete.

This is why they are being conservative and why in fact, we should be very positive given the way the shale has fracked in the Patchawarra. You may recall back when they were coring and they announced a bit of a hold up due to the shale being so hard. The market took this as a negative at the time and Rexsh posed the question, re. implications ..........

BPT told me at the time that the hardness may actually be a benefit when it came to fracking and now, given todays information, we can see that this was absolutely correct.

Hope that helps 6.