goodaye Norsc, yep Petro purchased MPO Qld assets for $42m. they got Mungi field with its 1 or 2 prod licences, plus other permits Timmy and Harcourt and maybe another. I think there is another permit?
the Mungi field was producing gas and sold into Meridian. the flow of MPO gas has virtually stopped.
from memory, when MPO began drilling, they started with verticals, then laterals, then went to multi-laterals. so they drilled maybe 6 laterals from the one vertical. I cannot remember if they fracced them. but the total length of laterals was huge.
I recall that prod initially from these big lateral wells started at maybe 1-2mmscf/d? cannot remember but it was impressive. then they clogged up.
anyway, these wells became clogged with fines. since Petro purchased Mungi, there has been no workovers, so gas flow has virtually ceased.
I remember JB saying she was adamant not to copy MPO drilling.
imho, the Mungi field would be same geology as Meridian.
issue is same for WCL as for Mungi - they just have to find the correct completion technique to get the flows.
Petro won't have any experience at all !
their assets are stranded. WCL is logical buyer. no one else will want the assets. I know WCL looked at MPO assets, but must not had the money, and was not willing to compete with Petro.
remember the Petro acquisition was part of the bigger plan for Petro to buy WCL, combine with WCL, then sell gas to LNG's Fishermans Landing.
for my money, it would make sense for Petro to sell MPO assets into Meridian J/V, and maybe inject cash into J/V and take a % share of J/V.
The Meridian J/V should be worth a lot more now with the GSA, much more than the market is ascribing to it.
just my recollection and views
cheers
WCL Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
