This is from 1 zone of a potential 9 totalling 56 mts.
2nd well (ZJS 6 testing) 15 zones and 80 mts.
This is an excellent result considering the early stage drilling and just 2 wells to date drilled by Frank Fu.
It's further derisked and validates the work programme that was brought forward.
Gas has already been discovered on 4 adjacent blocks and now gas has flowed on our block, between those surrounding blocks. I believe this greatly points to a substantial gas belt and further wells over time will deliver and the asset will create substantial value.
I believe the confident lead by example was set when PA picked up a further $400k of shares in quarter 1.
Further wells to follow and early tie in possible. I've no doubt we will find sweeter spots. This result is in line with a good number of the fracced zones that SEH have tested.
Considering the amount of capital the company has, plus the separate gold project, overall the asset target of $1.1b/£700m is substantial against an early stage value of £12-£15m.
LRL Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
