CTP 0.00% 5.1¢ central petroleum limited

As far as I know no-one has proposed digging it up and selling...

  1. 534 Posts.
    As far as I know no-one has proposed digging it up and selling it: too deep, wrong sort. The choice is between CSG and UCG/CTL. If it's no good for CSG it seems that it may be good for UCG/CTL. But the problem is that if UCG/CTL turns out to be technically and commercially viable for CTP, it will also be so for everyone else in the world with currently useless coal deposits. There is so much coal that the limiting factor would be at what rate and how cheaply the liquids could be produced, not whether the company has 1000 years or 100 years of resources.

    I am hoping that the coals will have significant CSG because that is CTP's most valuable prospective resource by quantity: 70 tcf of gas at a minimum of $100 million per tcf is $7 billion market cap, or over $11/share. Unfortunately, the first well does not seem to have a high CSG content, making it less likely that the rest of the Pedirka basin does. I know CTP has not released final figures yet but the emphasis on UCG/CTL recently suggests that they suspect there may not be as much CSG as first thought.

    Conventional gas, oil and helium are a different matter, and if either one alone works out it could justify a SP in the dollars. However, it would be a serious blow to the SP, not to mention funds for exploration, if the first phase of the drilling campaign does not turn up anything more than the coal.

 
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