north perth basin, page-2

This is my take on it.

The US oil leases are important for TTE as they will generate near term income.

Having good highly prospective ground and existing producing assets will have a snowball effect - the more income generated the more we can explore and produce from our leases. The snowball is gaining momentum.

A strong cashflow will enable TTE to avoid having to farmout too much of DR11 down the line, when they decide to make it a commercial play. It will also avoid having to dilute the share base or have a CR.

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This is a copy/paste of something I posted earlier;

The total depth of Titans Well "Warradarge #1" is some 1500m and is targeting the Early/Middle Jurassic formations of Cadda and Cattamarra Coal Measures (CCM).

The CCM has had oil discoveries in other parts of the basin.

The shallowest depth of NWE's well "Arrowsmith-2" is some 2639m, in the Early Triassic formation of the Kockatea; much deeper than the depth of Titans proposed well.

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TTE have given this information (thanks to VoM) :

"The Department of Mines and Energy issues several different types of permits. In the case of DR11, the type of permit is a Drilling Reservation. The nature of this permit is that on expiry it reverts to Government ownership. However, the drilling reservation includes provision for Titan Energy Ltd to apply for additional rights in the event that it is able to recover sufficient hydrocarbons to surface during a drill stem test with laboratory test confirmation"

from TTE's announcing spudding DR11 :

"Titan Energy aims to collect formation cutting samples and utilise modern downhole data acquisition tools during the drilling programme to assist in fully assessing the conventional and unconventional hydrocarbon potential within this section of DR11."