I agree that the gas targets close to Alice may bring the earliest cash flows for the company, and have the least risk.
The company told me last week that the extra funds raised in SPP might be used to drill the Waterhouse prospect also this year. Waterhouse is situated right next to the Palm Valley gas field, with its existing infrastructure. I was also told that 'Old Gerty' ( Hunt 2 ) might be used for some of the wells around Alice, as it is in the area, and available at low cost.
I guess we will get a better idea of how good Gore's claims of being 90% accurate are when Johnstone is drilled in a few months time. However I note in an announcement early this year, JH described it as being "one of the most sophisticated geochemical prospecting technologies available in the world today."
CTP Price at posting:
7.7¢ Sentiment: None Disclosure: Held
