drilling update from emr, page-4

It was reported that at the EMR AGM they mentioned that Arq's interpretation of the pressure gradient indicated gas, so this appears to have been their position all along. I believe of all the JVs, it was only EGO that mentioned oil at all as a possibility but more or less as a potential deeper leg (from memory). I don't see a lack of flow post formation damage / well bore blockage as being negative to gas charge. I still hold that there may well be oil at depth or further downdip. Certainly there were strong oil shows at Pt Torment.

EMR's excitement about the Nullara is such that they forgot to even mention the Anderson this time, which they felt would produce a few hundred bbls a day. Bob's getting old and forgetful...

EMR and ARQ are both clear bargains at the meoment. You may be able to get them cheaper still given the current market, but ARQ certainly won't be at this price long and I expect that spudding offshore Perth may be the first simple news to change their price direction. And EMR will be double today's price just prior to re-testing SB.