Too true Grump "oil does not just migrate and disappear" it always finds its way to "oil traps". Santos found one of those traps within the heart of the CTP tenements (the Mereenie oil field) and has been pumping oil from it for the last 10-20 years.
I guess we pay our geologists to interpret the seismic and drill results to allow them to locate prospective oil traps and set drill locations and depth. Johnstone prospect for phase 2 is one of these as is Bejah in the Rawson farmin block, also a prospect for phase 2.
If all the oil from the tenements has flowed to one location there will be a megga lake size pool of oil somewhere between Ayres rock and China.
My guess however is that there are a number of large traps scattered over the CTP temements. The only problem we have is identifying them and putting the drill in the ground in the right place.....That is where the experts come in.....Having JV partners like BG to vet those locations pre drill gives me a good level of comfort.....Not meaning each and every hole will be a success but that they will be within industry best standards on selection and success rate.
If a sh cannot take on the risk of a number of holes in a campaign being "dusters" then invest in "vanilla companies only" (Greek banks mabyee lol) The O&G industry is and will continue to be high risk high upfromt capital investment and high return on success.
CTP Price at posting:
9.1¢ Sentiment: Buy Disclosure: Held
