Hello and welcome back to the Proactive Studio. I'm Tyler Tully, and today I'm joined by Alexa Energy Managing Director, Neil Young, who's going to talk us through the company's latest operational update on its daydream too well, which is located within its project grantees, where Alexa has finished its testing program. Neil, thanks for joining us. Oh, it's a pleasure. Thank you. Sorry, what can you share about this latest testing program, the stimulated zones, and also the gas flow rates that you produced? So the daydream two program has been an extensive one. We started nearly a year ago with drilling the well before the end of the year. This year we commenced an initial stimulation program in April, finalized that more recently, and with some toing and throwing have now undertaken the final flow test on the well. We've achieved an enormous amount. We have booked a massive resource and we're very, very pleased with what we've done to date. So you delivered gas flow rates in five out of six of the stimulated zones, including it for the first time in two separate deep coal zones. Can you expand and tell us more about this and I guess how significant it is for the company? Yes, so this is an appraisal. Well, its purpose is to gather data as effectively as we can from in as multiple ways as we can. So the coal, for example, have never been flowed before. We announced today that we'd float a second coal after an announcement about a month ago about a first coal. Now the gas in place on these coal is just enormous. If we can even start to get a bit out, that adds enormous confidence to us and our prospective farm and ease, that that is something worth attacking in the future, which we were confident that we will. We also got gathered data on various sandstones, including the Lorelle sandstone, which free flowed and a couple of others. So the more data the better that informs how future wells might be designed and prosecuted. And that is the purpose of an appraisal well. So in this latest announcement, you did report a reduction in the stabilized rate. What were the reasons for this? So our analysis is that probably the macro cause is that our program was interrupted on a couple of occasions for operational reasons when equipment had to go to and from the well, etc. Now we're dealing with deep tight formations. They can be sensitive to interruptions in programs like this. And that's what we think has happened. Now that sort of reaction is common in early stage tight gas plays like this. And indeed, we've seen our neighbor Shell, who's prosecuting a multi-well program, having a problem in his first well, then what appeared to be great success in its second well. And the history in America is that a trial and error process is required in early stages to crack codes and then get ahead with production wells and enhance productivity improvements as you go. And we're still in that early stage. So the flow rate fell that that was a bit disappointing. We think it was due to reservoir reaction to the stop/start nature. And it's certainly not an intrinsic problem with the play. This is not a conventional play where you might drill a target and it comes up water wet. This is an unconventional play. We've proven it's a lot more gas than that we thought. We've proved that that gas can flow. We now need to optimize things rather than be concerned about is the gas there, which would be a conventional problem which we haven't got here. So now you've completed this testing program. What do the results that you've gained actually mean and where do you go from here? So we've always been very public that our view is a play of this magnitude and quality requires a much larger partner to come in with a bigger balance sheet and different sets of skills than we as a junior have. And those parties will be focused on the totality of the considerable amount of data that we've gathered today, not just a final flow rate number, are accelerating plans with them. We'll be prosecuted over coming months and we aim to bring in a partner. Naturally, that will be in their timeframe rather than ours. To take this forward to what it can be and what it can be is a significant producer of gas in a fabulous location to supply Australian and potentially international markets. And before we close this one out, obviously this announcement to market wasn't received as you would probably expect. Why do you think that wasn't? Is there any message that you want to give to investors about their announcement? Yeah, we knew the market was focused on a short term flow rate and we expected ourselves it to be a bit better than the one we announced today. However, we think the market has overreacted to that single data point rather than the totality of what we've achieved. We now own, without further commitment expenditure for up to 15 years of retention, license covering, 1,000 square kilometers, and many TCS of gas resource, which has been proven to flow to surface. So we would say in a word of corporal Jones, don't panic. We've got multiple plans to take things forward from here. We're still highly confident about progressing our next well and having that funded by a farming or other mechanisms that we have successfully procured in the future. So we would say still get on board with us and I suppose the pleasing thing about the share price reaction today is there's been enormous volume. So for every seller there's been a buyer and we hope those buyers will take heart in what we're doing. We'll rebase from here and move forward. Neil, it's always a pleasure. Thanks so much for joining us. - Thanks.
