Here's what Altona & CNOOC intend to do down south in the Arky (slides 7 to 11). Note they aren't listed but together bring some financial muscle to the project beside having the blessings of the Sth Austr. govt !!!
Amongst the locals, Linc also have acreage in Arcky & had drilled a couple of wells recently & had reported oil staining in a well targetting browncoal. So that's SA.
Anyway back to CTP, once their current CBM drilling program ends & with the report frm NSA in July, they should have a pretty good idea of,
- the coal resource/reserve - gas potential (in TCF) for the area bound within these wells.
CTP's report frm last Feb for 1.176 TT coal was for the Purni formation extending in SA & QLD & the consultants had used 35m thickness in the calc's. This was b4 the current CBM wells were drilled confirming thicker coal.
Worth noting here is that we are dealing with a smaller area, but a thicker coaly section within this area as is evident frm their reports this far, so they may have hit the sweet spot for a future pilot project. I'd still like to see them drill 1 more well, 18kms east of 93001 to get more confidence with the coal's thickness towards the easter part of the trough. So come on Heughesy, 1 more CBM well pls, sure u can squeeze some cash frm Dizzy & BG!!
RIO's move seems 2b a left-field event. So at this point only JH knows what the future plans are. Well worth monitoring. Hopefully this time nxt week we'll see reports frm both O2 & their last CBM well.
CTP Price at posting:
33.5¢ Sentiment: Buy Disclosure: Not Held
