CTP successfully marketed $27 million Capital Raise 2018 funding drilling 2 wells Mereenie, a well Palm Valley, and well Ooraminna.
WM26 was drilled, second well has not been drilled, Palm Valley 13 was drilled, Ooraminna 3 is postponed till Match 2020.
Mineralised natural fractures WM26 preventing gas flow disappointed undermining investor confidence in new gas strategy. Share price dropped
and dropped again more recently after disappointing PV13 result.
Investor posts at time of WM26 drill outcome were that WM26 was " duster ". Multiple posts subsequently reinforced that idea.
CTP have not declared WM26 duster, have said well data is being analyzed, have not said what analysis is being done or where, nor what potential
solutions for WM26 re-drill may be available.
Prior to drilling WM26 it was said " initial production is expected to exceed 5 MMcfd with total recoverable volume of 7 to 10 Bcf depending on
economic cut-off rate and operating philosophy. "
5 MMcfd / 10 Bcf is about 10 % increase in 2C reserves / at first quarter gas sales delivery rate 1 years production / extending field life from 10 years to 11 / at net gas price to CTP AU$ 5.14 about $55 million disposable income.
Value unrealised WM26 is substantial, lifts income substantially, and increase value of company substantially.
Mineralised natural fractures are common and regularly addressed in USA. Santos has been fracking Australia for 45 years in South Australia with
development of local knowledge and expertise. Delay in analyzing, developing new drill plan, re-drilling, releasing gas and value WM26 is puzzling.
Abass Hazin ( 2018 ) writes " ...process of horizontal fracking requires understanding of reservoir engineering, fluid mechanics, rock mechanics, materials science, and chemistry."
Alexandre Laurov ( 2016 ) writes "...fractures are in great variety...morphology, roughness, permeability, connectivity, and deformability...variety of
fracture properties makes it difficult to predict how particles will behave ...whether they will build and seal and where...this inherent complexity is
exacerbated by poor facture characterization.."
Azra N. Tutum ( 2018 ) writes "....created combined natural fracture-hydraulic fracture network is complex...resulting in misleading production
forecasting..."
CONTINUED PART 2
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