I suspect that we may have received as much as the company is able to provide and as much as we are able to understand/handle. A bit of Jack Nicholson's "you want the truth?...you can't handle the truth". IMO. I think most of us are likely to be more confused by the geological specifics of insights gained, than we are to be enlightened by them. There may also be commercial reasons to not publicly release the data at this time. I am happy to take DW's depiction of them as being positive, at face value. For now at least.
The company has told us that although they did not get to the desired state of achieved material HC flow rate from 2V, they have gained sufficient knowledge, data and insight to be of sufficient interest to potential farm-in partners for the unconventional. While they have understandably not divulged the geological details to the financial markets, they have gone so far as to infer that the data is pointing to an insufficient connection between the stimulated fractures and the hydrocarbon reservoir within the HRZ shale. A further inference that I pick up from their communication is that the data supports the value of proceeding to a horizontal flow test from the IW2 well bore via a sidetrack (for which we know the permit is already in place). Clearly we do not know the timing of this next stage well....but we do know that the company believes (at this stage) that securing a farm-out partner for this is a pre-requisite....and that this process is underway. I am not sure what further can be announced on this until a deal is done. Till then, IW2 is suspended, though discussions may be active. I believe that is the near term HRZ forward plan. We are in the twilight zone between exploration mode and appraisal mode here and those seeking clearer distinctions between the two are, IMO, being unrealistic. Even with a successful farm-out and a successful 2H campaign, we will be doing a multi-well delineation programme that will still straddle the divide between exploration and appraisal. The 'labels' are just academic, IMO. The key being the nature of funding secured to advance the play. That will tell the story...and that will inform those who are primarily here for the unconventional, as to whether the risk/reward equation and the time frames still fall within the zone of comfort. No wrong answers here...each to their own.
But we also know that the company is also active with the other strings to their bow. Whether these are considered icing on the cake, or a means to an end, or the only cake of interest is another matter. But we do have there other stings to the bow that are also part of a forward plan that we know about and have been communicated about. Namely: interpreting early product from the IW Western Fairway 3D seismic survey (and potentially sharing with prospective conventional farm-in-ees); finalising the Nanushuk farm-in deal and also planning the upcoming winter drilling programme for it, as lead for the first drill; and getting ducks lined up for Yukon Gold next steps pending the finalisation of 3D analysis for that acreage, later this year.
Long ramble short - we have the plan and not sure what more we can be told till some deals are done. I am not expecting any more drilling this calendar year (i.e. 2H). If we do get some, it will be a bonus on the upside.
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