Thanks for your input Spec101. I am just trying to encourage us all to think around the problem. I would love to see SE drilled ASAP. Just responding to a few of your points:
You ask why I assume that to Drill Surprise East would cost north of $8 million? My guess would have been $6 million until I looked at some historical costs.
I looked at the QARs to 30 Dec 2011 and 31 March 2012. They show exploration expenditure respectively of $4,122,000 and $9,107,000. Re-entry of Surprise obviously cost $13,229,000. I think the first lick of $4 m was the cost of moblising the rig to site. That is the approximate figure the JH gave me in August 2011 and it is the only bill that we are likely to have paid in that quarter. The rig was mobilised to site on or about 19 Nov.
You suggest that CTP could simply defer drilling the prospect until Santos has drilled NW Mereenie and re-entered Mt Kitty. Yes I agree that would be a good strategy (and hope that is all that we need to do).
I note your oil sales figure of $50 and will use that until we know more.
In respect of your point regarding the infrastructure spend, I was thinking of the production storage tanks etc at Surprise. I agree that any work related to Palm Valley or Dingo would be funded by the Credit facility with Mq Bank.
CTP Price at posting:
38.0¢ Sentiment: Hold Disclosure: Held
