the week ahead, page-41

Other points of note from BPT quarterly re Western Flank:

• “Pleasingly, our Western Flank 2P oil reserves increased by 14 MMbbl, net of production, as our oil fields continue to produce at higher than forecast rates and we look to apply horizontal drilling techniques to extract additional oil volumes. Our 2P reserves life has increased from 7 years at the end of FY17 to 11 years at the end of FY18.”
• “Beach and Senex reached agreement to transfer the remaining free-carry commitment on the joint venture’s unconventional gas project to the Senex operated Cooper Basin Western Flank oil assets. Please refer to the Subsequent Events section of the quarterly report for the period ended 31 March 2018, for further information”

Given that Beach state that the Western Flank fields continue to produce at higher than forecast rates, and explicitly mention the agreement in relation to SXY’s Western Flank assets, we could see some of the $43M free-carry funds coming our way soon. Add this to Atlas (and hopefully the next phase of drilling on WSGP) and FY19 could be exciting – we just await confirmation from SXY about our capex spend for this financial year (how many wells, where and when).