CTP 0.00% 5.3¢ central petroleum limited

Ann: 11.02.03 Surprise-1 Core Results , page-6

  1. 920 Posts.
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    Preliminary analysis suggests, assuming that the reservoir is wholly within an oil leg, that this zone could produce 970 Bopd using a pump and 420 Bopd on natural flow.
    Fracture stimulation and lateral drilling may considerably enhance deliverability.

    Molopo just sold Spearfish in the Bakken region of Canada/Northern USA which had flow from dozens of wells with fraccing and horizontal wells that is flowing about 1000 barrels of oil a day. The development was sold for about $180 million after spending about $75 million on wells.

    If one well at Surprise can pump close to this amount per day without expensive fraccing and horizontal drilling in the secondary zone imagine what 10 wells could deliver or even 100 wells in the coming years. Surprise 1 could be worth about $180 million when fully developed just from the secondary cored and analyzed section. Early cashflow looks like it may soon be possible. 970 x $100 a barrel x 300 days of pumping a year = $29.1 million in gross revenue. At an expense of about $40 a barrel the net revenue would be about $17.46 million per year to spend on other drilling and development.
 
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