Such a process exists, it's called a cavitation well. They don't use explosives because there would be nowhere for the gas to go but straight up out of the well bore, destroying the casing if not actually sending it shooting out of the hole into a Low Earth Orbit.
A cavitation well works by repeatedly pressuring and depressuring the well, like shaking up a champagne bottle and then opening it. With each cycle, the depressuring causes fluid to rush out of the bore, taking broken pieces of rock with it, which creates a cavity in the reservoir. They use it in CSG wells, I'm not sure how much it's used in conventional wells as coal no doubt is easier to cavitate than harder rock.
will2rob,
Yes you're right, 100bopd is 36,500 per year, which at a $30 margin is over $1M per year, so if it flows for 10 years at that rate it would make a profit. So if you drilled enough wells you could get a commercial field.
Problem is, $1M per year, per well is not exactly going to bring home the bacon for a company which will shortly have about 1.2B shares on the books. That's less than 0.1c per share per well.
So hope that, through frac or whatever, we get 500bopd per well and that JW and Surprise support 10 wells for 10 years. That would give us about 5c per share per year, which at a PE of 8 would give us a SP of 40c.
Other guys here are much more knowledgable about oil economics so if anybody wants to correct me here, jump in. NPV/DCF models are a bit too much effort for me.
Of course then if you add, say, another 10 fields that CTP discovers exploring the Western Amadeus, a price target in dollars rather than cents doesn't actually seem too unreasonable. That's a pretty big 'if' though, for now let's focus on JW and Surprise.
CTP Price at posting:
46.5¢ Sentiment: None Disclosure: Held
