ctp/ctpo, page-26

Hi everyone,

Oilers are always carry risks with them as we just do not know for sure what is in the ground, but oil shows over an area of 80 mtr including a net oil colum of 6 mtr is an excellent start.

But for those who think this is a company that only has oil as a company maker, read the following snippet:



Assuming the target resource of 635 billion tonnes of coal above 1000m is used as a base case and 25% is mineable at a value of $1/tonne, using open cut and underground mining (long wall mining methods have improved recovery at lower cost) based on issued capital the resultant value is significantly above current market capitalisation for Central.




In short, the coal assets, which have been a sleeper on the Central books, could ultimately be a company maker. One senses, all that would be needed is a small nudge from energy off-takers/buyers and this would change everything. Coal export may not be out of the question but intrinsically some value adding process such as coal gasification and GTL value adding in-situ prior to export might have more potential.

As a comparison, Gina Rhineharts Hancock Coal Pty Ltd, which is spending an estimated $5 billion to develop the Alpha Coal Project in Queensland, has a JORC compliant Measured, Indicated and Inferred resource of 3.9 billion tonnes - a trifle by comparison to Merlin and Centrals 635 billion tonne independent coal resource target. Alpha will also require a new railway at a cost of $2.2 billion to be built to move product to port, whereas Central can access the established rail link to Port Darwin


http://www.proactiveinvestors.com.au/companies/news/7109/is-central-petroleum-the-best-bang-for-buck-oil-play-on-the-asx-7109.html