How Good is RC?

How good is RC? Bloody good IMHO.

Why? Let me explain.

Psi provided an answer to my question being:

'I do have a question for you and it relates to the statement on page 5 of the publication titled "CTP: Developing Northern Australia", which states:

"Production Capacity (Gross JV):
* All fields ~ 45 TJ/day
* All facilities ~ 65 TJ/day"'

The answer Psi kindly provided was:

"It means the facilities (gas processing plants etc) are capable of processing 65 TJ/d but the fields themselves are currently only capable of producing 45 TJ/d. So the short answer is CTP is only capable of producing 45 TJ/d gross currently. They need to spend money to increase that."

Now isn't it interesting that the NGP only has spare capacity of 60 TJ/day after Jemena decreased the size of the NGP pipe.

What does this mean for CTP?

In the announcement of the 4 June 2015, it states:

"Conditional on the NEGI pipeline proceeding, Central will pay a NEGI bonus payment of $15 Million and commit to free-carry Santos under a $55 to 75 million Work Program to develop the Mereenie field for production into the NEGI pipeline."

It is my contention that the Work Program in Mereenie will only need to the extent to fill the NGP to its capacity. With the originally proposed 14" pipeline it may have require $55 to $75 million as both facilities and wells would have to have been worked over. With the 12" pipe little or no work will be required for the facilities and only some work, less than originally required, will be needed for the wells. This I presume will save CTP massive amounts of cash.

So how is it that Jemena reduced the capacity of the NGP to the limit of the Mereenie fields facilities? This action has saved CTP millions. Surely, this smaller 12" pipe size came out of negotiations with the CTP management?However it has occurred, this has saved us CTP SH's millions. Great work CTP management and RC.

How much will it cost to rehabilitate the Mereenie wells to get another 15TJ/day? We now that one recently rehabilitated well produced 1.5 TJ/day. How much did this cost? Someone might know the answer so a reasonable estimate would be 10 times that cost.

We should also remember that the NT government has committed to supply excess gas leaving us the 60TJ/day. Interestingly the NT Government chose this amount.

So Jemena is now providing a gas pipe for the NGP that the NT Government can sell its excess gas and we can provide gas at the maximum capacity of the facilities at Mereenie, which will save us a fortune compared to the original 14" proposal. Kind of convenient isn't it? I don't know how this happened but RC and the rest of the CTP management must be able to take credit for it.

Yes we do need funds to rehabilitate some wells but I don't believe it will nearly be as expensive as if we needed to rehabilitate more wells and the facilities as well. Well done RC and the management team!!

I don't believe our cash position is as desperate as some posters have stated. In my opinion hold on and watch RC and his management team pull another rabbit out of the hat. In the mean time just look and be amazed, at how the size of the NGP and the extent of the NT Governments gas sales fits so neatly with the needs of CTP.

Well done RC. You are bloody good.

DYOR

Cheers

Stoops