I am just using CTP's reserve volumes of Helium, Gas and oil as revenue comparisons.
a) Helium A$100/1000 scf (or $100m/BCF)x 200BCF = A$20B b) Oil (1% of 16,000mmbbl reserve) A$85/bbl x 160 mmbbl= A$13.6B b) Oil (10% of 16,000mmbbl reserve) A$85/bbl x 1600 mmbbl=A$136B c) CSG A$420m/Tcf x 250 Tcf = A$105B
IMO, CTP should move on to oil extraction first because the crude sales to refineries are immediately after extractions. Secondly, if the exploration proves a higher than 10% (1600mmbbl), then the revenue will be more than $136B
CSG will take long time to prove upto 3p then 2p relative to oil. Ontop of this, we need the LNG plant facilities to liquefy. Where do get the facilities? Assume CTP to build one, it will take at least 5 years from Feasibility study to production for shipping.
As for Helium, I have no comment how the gas can be sold. Direct delivery to storage tanks for shipping out?
By comparing the revenues and extraction/production time frames as concern, Oil extraction first is the most effective and direct to the company cash flow.
CTP Price at posting:
17.1¢ Sentiment: LT Buy Disclosure: Held
