https://boardroom.media/broadcast/?eid=59dad43643412343aeab2e2a...

https://boardroom.media/broadcast/?eid=59dad43643412343aeab2e2a

“We will start at the bottom of the well, and we will test from the bottom up, and as soon as we’ve got sufficient gas to meet our commercial needs we’ll stop and then we’ll flow test that over some time to give us a better idea of what the well is capable of, how big an area it might be draining, it will also give us an insight into other zones in the well, and we can then start to make decisions about accelerating other activity in the area to increase production across the structure as a whole.. this is a big structure, we expect based on regional information and our drilling results to date that we will be producing sweet dry gas... we expect a fairly simple operation... all we need is approval of the gas quality from the pipeline operator...”

And this is what has happened per Friday's announcement.

They have stopped to now flow test via extended production testing, helps them measure the size of the zone and the Dempsey structure.

Implies GJ believes the CURRENT ZONE has enough gas "to meet our commercial needs".

Which of course is why he said on Friday:

"This zone is interpreted to be a significant gas discovery..."

"The Dempsey well is a very significant gas discovery..."

In other words the zone is a significant gas discovery unto itself.

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From my SGC post: https://hotcopper.com.au/threads/an...3898397/page-22?post_id=29509583#.Wi2pqVWWbIU

Readers would do well to ask themselves which they would have preferred to hear:

(a) Non-commercial gas flows, plug and move up to the next zone; or

(b) High pressure zone (6000 psi) being a “significant gas discovery” unto itself, low-permeability hence time to get fracking and connect to sales for extended production test.

These two outcomes were the only realistic ones we could expect from this zone IMO and we got the most favourable outcome!

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Congrats to XST holders on the $33M+ summary judgment, well-deserved.

PS. Strachan's reported comments are deductive analysis, not insider trading.

All opinion only, Dyor

nb. The first quote above is a transcript of the interview that I have done myself, readers should listen to the audio to confirm for themselves.