hi all. i know a few well known hotcopperites were at the presentation but thought i'd add my notes in here for them to add to / pick apart.
in no particular order from my notes...
JW1 - there is a pressure recorder in the hole which they expect to have out in approx 2 weeks. - results were a surprise to them all and it seems "the rocks were tighter than the logs were suggesting".
Surprise - 8th Nov is the expected dae for hitting Surprise target zone.
Cash They will have $10-12 million in bank after surprise. They hope to drill 6 wells in 2011 at $5-7 million per drill so will either need big JV or cap raise.
Horizontal Fraccing It is not really cost effective to gear up for only one horizontal fracc, it is viable if there are 4-6 wells to fracc.
SPP There is a "fair expectation" that it will be extended past the current date to allow Surprise news. Pattersons opt out could be taken if the share price dropped below 8.6c for 2 consecutive days, which it has, but they've chosen to stay on.
JV Trident has until Dec 1st (or close to) to put up the cash (close to $3m) or miss out. They would ideally like a large JV for the coal, shale oil and shale gas projects as they are too big for a company the size of CTP. There are talks with 3 x state based chinese companies for the longer term big plays. Only in talk stage at present.
There has been no real dry season around Alice this year which has caused delays to projects.
The plan for moving forward - They need to drill Mount Kitty by Dec 31st 2011. 12-18 months Oil focus 24-36 months Helium 24-36 months looking into mini LNG plants options.
CTP Price at posting:
32.5¢ Sentiment: LT Buy Disclosure: Held
