Too good to be true? Unfeasible? According to Ryder Scotts best estimate that's our recoverable share.
1,883,750,000 barrels of oil recoverable. Multiply by $100 per barrel and divide by approximately 2 billion shares.
0.015 cents current asking price on market.
Am I missing something here?
Okay downside risks and costs I can think of ...
* Water for fraccing. We will need to drill lots of water wells as trucking the water in will be far too expensive. Tried looking for water well approvals on the NT govt website and got 404ed
* Fraccing contamination issues in the Great Artesian Basin. The greens could go nuts and they do have some clout in Canberra these days. On the positive no farmers or anyone else around to consider
* Remote access. To go to full field development would propbably need to seal 300kms of access road...expensive
* Labour shortages. Field is literally in the middle of nowhere.Labour would come at a premium.
* Getting the product to market.
Current options. Build a pipepline 300kms to connect with the Alice to Darwin pipeline for gas sales.
Getting the oil to market would require a pipeline to the Alice and then trucking it to Adelaide overland as is currently done with oil from the Meereenie field...expensive and ineffecient. Or possibly building a pipeline to the hub at Moomba.
For a comparative cost the Alice to Darwin gas pipeline ( 1300kms) was sold on 16/06/2011 to The APA Group ( an infrastructure outfit) for 63 million.
* The oil although there is not commercially recoverable. ...quote from ASX ANN dated 21/11/2011
"MacIntyre-2 was drilled as a high angle pilot hole through the Basal Arthur Creek “Hot Shale” formation and into the Thorntonian carbonate formation. Elevated hydrocarbon shows were recorded throughout the entire Basal Arthur Creek “Hot Shale” formation with sustained and peak levels generally two to three times greater than those seen in the vertical pilot hole at Baldwin-2Hst1. The logging results for MacIntyre-2 are very positive showing approximately 22 metres of true vertical depth (“TVD”) pay with porosities varying between 5 – 11%. Studies completed by two independent petrophysical companies indicate that the Arthur Creek “Hot Shale” zone in MacIntyre-2 may be oil bearing, although natural gas is present as well. A drill stem test (“DST”) was conducted in the high angle pilot hole over a 35 metre interval. Although a significant flow was not expected and did not occur as the formation is an unconventional oil shale, positive results were received as both the shut in pressures and the flow pressures increased throughout the test."
Comments welcome!
BKP Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
