The purpose behind CTL's plan is to tap the un-mineable coal, too risky to mine deeper seams, hence the logic of either set up a UCG or a CBM pilot plant.
Re: the current well, its targeting the coals which are towards the shallower edge of the shelf. The beauty about this is CTP have covered a lot of ground by spending a lot of money on the seismics & site selection, the latest preso just re-iterates this & the coal has a strong signature on the seismic, so yes its there in their tenement, with varying degree of depth.
As for interested parties, hmm one can stick a finger in the air & u r bound to have "Contact", the sector is so hot that anyone with loads of money wants a piece of it.
Especially with the LNC-Xinwen $1.5b deal on Friday, the game gets even better for CTP & they r bound to attract the bigger players soon.
Reason behind this is they r aiming for plant that will produce 140,000 bpd of CTL. In recent times, SASOL in Sth Africa have a plant that produces 160,000 bpd. So this will b a huge first for CTP & for Australia. To get to this capacity, they need to drill 560 wells first.
No dobnt that there r intersting times ahead for CTP. At current price of 16c i'd say they look like a bargain price. Just compare this to LNC they were 0.75c, 6 months back, now its $4.35, with analysts putting a price of $5.35 (b4 friday's deal).
Wait & watch this one by Xmas.
cheers
CTP Price at posting:
14.8¢ Sentiment: Buy Disclosure: Held
