Macquarie Wealth Management said the average gas flow of 12.3 million cubic feet per day over a five-hour period exceeded its expectations of a 5-10mmcf/d stabilised rate.

The low 2% carbon dioxide content means the find already met pipeline specifications, according to the broker.

"While AWE has not provided a net-to-gross ratio, initial logging data highlighted very high gas shows across the entire 39m Kingia section with only 10m of this flow tested," Macquarie said.

The existing 17 terajoule per day Dongara-based plant will be used to deliver early production from the Senecio-2 and first two Waitsia wells via low-cost flowlines.

The recent flow test result reduced the number of wells Macquarie previously considered necessary for full-field development, which AWE previously flagged as delivering up to 100 TJ/d of gross production which could equate to a resource life of around 8 years.

"A wider development would likely require 15-20 development wells and an expansion of gas processing (although the low impurities could keep required processing to a minimum)," the broker said in its AWE outperform-rated report.

"Tighter intervals across the shallower Dongara/Wagina sands and High Cliff Sandstone will likely be developed at a later stage."

Macquarie also discussed the unknowns facing the next leg of the drilling campaign with the Waitsia-1 well spud due in late May (3km east of Senecio-3) and an appraisal well due in the second half.

The broker said given the wide 65 billion cubic feet (P90) to 170bcf (P10) resource range estimate, there appeared to be a large degree of uncertainty over the southern extent of the resource.

Macquarie said AWE was one of its preferred mid cap exposures and had a 12-month price target of $2.20 for the stock - issued when it was $1.31 on Monday.