Form 10-K: Dingo Gasfield only 18 Bcf NOT 30 Bcf as reported by CTP!

Dingo field was drilled back in about 1980’s. Four wells and only 3 flowed. The fourth was dry and showed the field was smaller than expected and not filled to spill point. From then to now no further drilling was conducted.

Magallen filled a FORM 10-k with the Securities and Exchange Commission in Washington DC for the fiscal year ended 30 June 1996.

In this Form 10-K they said “The Dingo gas field, which is located in the Amadeus Basin in the NTA, has approximately 18 bcf of presently proved and recoverable reserves based on three production gas wells. Sufficient reserves are indicated to fulfill a modest gas contract, however, the initial well flow rates and consequent reserves per well are considered too low to be currently economic, given the high drilling costs of the wells.”

CTP has a signed a 20 year take or pay gas contract for the supply of up to 31 PJ (30BCF) gas with the Power and Water Corporation of the Northern Territory in September 2013 which is expected to commence in early 2015.

According to the seller of the field (Magellan), the size of Dingo field is only 18 Bcf and is not enough gas to fulfill our contracts of 30 Bcf that we need to Suppy. The field is not filled to spill point and as a result we have a big problem that the Company needs to be explain to its shareholders. Where does the rest of the gas (12 Bcf) come from?

No further drilling has been conducted since the first 4 wells were drilled into Dingo 20-30 years ago!

http://www.sec.gov/Archives/edgar/data/61398/000006139802000010/0000061398-02-000010.txt