surprise-1 re-entry h status, page-70

Nice post youwishfood.

Over here in WA the crude from cliffhead (ROC),offshore near Dongarra but piped ashore , has been roaded to the BP refinery at Kwinana (south of Perth)since production started, a distance of 360 kms. And that started out at several thousand BOD and has been going on for years. You always see the trucks on Brand Highway if you travel Perth to Geraldton.


Bru's new oil discovery in the Canning are talking about trucking to Kwinana a distance closer to ours, I think about 1100kms.
ARC the fore runner of BRU pioneered the quick and cheap start up of crude sales by trucking direct to Kwinana over 10 years ago with there Perth basin oil discovery. That field is still trucking as well.

I would be surpsised if we start by sending crude to Darwin as there is no Refinary there and it will need to be stored and loaded on ships for Singapore or wherever, export licences and port authorities and stevedores. I think first up we will cart to the refinary in South Australia as CTP wont have to build storage there as the refinary will take delivery into their faculities. Thus CTP will be able to start production on a shoe string, being only responsible for the storage at the Surprise wellhead, which they have to do to do the extended production testing.

When/if after sucessful testing and the drilling of more horizontals and as production ramps up the best economic results could be a lot different. We could be looking at a pipeline linkup so the oil can be pumped direct to Alice to be loaded on to roadtrains there. This will be important as big trucks require big roads and from Alice there is a hard top road to Darwin or South Australia.

An interesting point is Darwin is close to Singapore, but by the same token sea routes to Adelaide for the importing of crude (or petroleum products) are longer than any other capital in Australia. Maybe the refinary in South Australia pays competitive prices that allow for the extra sea borne costs and trucking to SA is as viable as Darwin. The answer will depend on the number cruching.

I see that given that trucks are available, and the roads from the well head are adequate production (as in the extended testing)should only be weeks rather than months away. The most protracted part will probably be the receit of government approval. Hopefully it is mostly state approvals and not Federal as well. If there is Federal approvals needed then all bets are off in regard to timelines. I'm hopeful of a March kick off with regular roadtrains of crude heading to the refinary in SA.

Great result.

Saltbus

PS. Pity the irony of the company bashing over the tanks was wasted on many.