• First 2 SIS Wells already in the Top 10 Producers • Sales/Production Achieves Record for the Quarter • Positive YTD EBITDA; • Sales per period of $1.88m; • Revenue YTD exceeds $5.3m • Grant of PPL5 Doubles Area Under License • Nominal Installed Compressor Capacity 26 TJ/day • Actual performance may exceed this. • Two Drilling and One Coring Rigs Contracted • RPTP Operating at 99.7% Uptime
Strategic Plan – Camden Development Camden Development – Stages I - II • Wells to date: • 103 Drilled of which 68 are Producing; • 3 Completed but not tied in; • 4 Awaiting stimulation & completion; and • 17 to be Fracture stimulated from late May-Sep. • JV Approved further 13 production wells • SIS well program: • 3 drilled; • 4 approved; • >10 SIS wells being discussed for new JV Program • 12.6 TJ/d Ave Quarterly Production (Instantaneous up to 14 TJ/d) • Compressor Capacity boosted to 26 TJ/d • Higher performance up to 36 TJ/d may be possible • Decommissioned RBTP on 5-Feb-07, after 5 ½ years.
Exploration Review • Reviewed almost 50 years of exploration in the Sydney Basin Identified a potential conventional reservoir: Marrangaroo Conglomerate, which is a poorer quality sandstone (~3mD; 1–10mD), underlying the coals at Camden.
• A total of 43 well intersections have been used to define the base of Marrangaroo sequence within PEL2 for both reservoir thickness trends and zero edges. (It’s a pinchout structure, tilting upwards to the south.)
• Several of these wells have demonstrated natural gas: 3 produced measured flows, 2 mud gas shows, 5 gas saturations from log analyses: Well Name Year Exploration Type Gas Rates (Mscf/d) AOG Mt Hunter-1 1961 Conventional 20 – 32 AGL Picton-3 1986 CSG 51, then water affected 12 SGL Mt Taurus-9 2004 CSG 430
• We are evaluating a potential trap of up to 300 Bcf (GIP) and are aiming to drill the next target (EM31) during May. We will also be prepared to add it to the hydraulic fracture sequence, if gas prone but lower permeability.
SGL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
