Australian Shares Sparty's Blog
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Main Forum•Central Petroleum Overview by International Resources Journal
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I have been banging on about CTP for several years so here is another view from a far more reputable source. Central Petroleum takes its massive Australian oil, gas & coal acreage to the TSX
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Sparty, ONE big hurdle seems to be the cost to build a Gas to Liquid Fisher Tropsh plant? Maybe the idea of "building the resource and they will come" will work but I'd love to hear the number (capital) that is needed for energy to actually flow. I have had a cursory look at CTP's site and not seen a number for the cost of the plant that could produce a product that is saleable.
Note: I am not saying that it cannot or will not be done. Just that the cost is not yet stated.
TWO: These tenements are in the true middle of Aust. Many miles of pipelines would need to be laid at huge cost. The value of the site must outweigh the cost to get the product to market and beat other prospects. Are there other prospects that are just as prospective sites that are closer to infrastructure? The Cooper Basin comes to mind with BPT, SXY & DLS all currently cashing in on their share prices. Most of the infrastructure is already there as it is an oil producing region.
Crumms, I have been a bit rough in my reply. Your thoughts?
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"Perth-based Central Petroleum sees GTL as an opportunity to monetise potentially vast fields of undiscovered gas – conventional and CSM – in the Northern Territory’s remote Pedirka, Amadeus and Georgina basins. The company said estimates of undiscovered gas in place were enough to support a GTL plant with capacity of 140,000 barrels per day for 70 years.
Managing director John Heugh said this capacity would be equal to the world’s largest GTL production facility – the Pearl plant being jointly developed by Shell and the Qatar Government at a cost of about $US10 billion.
He said independent studies for Central Petroleum indicated that GTL production would be profitable at levels of greater than $US40 per barrel, based on conventional gas, and $US45/bbl based on CSM." http://www.lincenergy.com/data/media_news_articles/coverage-128.pdf
Also note that LNC are developing small scale (cookie cutter) GTL plants for use with UCG following their success in Chinchilla.
Re remoteness: Trucking liquids to the Adelaide- Darwin rail line, I suspect, would be cost effective. Having said the above it should be noted that Central Petroleum are drilling for oil, LNG and Helium to obtain cash for the next stage. -
CTP's has struck oil... early days but already 300 BOPD flow rate... a new oil province has been born!
Central Petroleum Limited (ASX:CTP) (“Central” or the “Company”) advises that initial flow testing of the Surprise-1 Re-entry H (S1REH) well has resulted in a maximum sustained flow rate via a 24/64” choke of 300 bbls/day with a low water cut. The oil flowed to date is a “light sweet crude” with an API Gravity averaging 40 Degrees. There is no evidence of Hydrogen Sulphide (H2S).
Click image to enlarge.... follow the blue arrow. -
Central Petroleum's managing director John Heugh says it's a first of it's kind.
Flow rate is 380bopd."This is the first horizontal well to produce oil onshore in Australia ever," he says.
"We have a rough idea of the size of the whole structure there."
"It appears to be somewhere in the order of 10 to 15 kilometres of light sweet crude so it's a great result." -
Hi Sparty, Production of Oil has me convinced that CTP will, at the least, be able to turn a profit. CTP's current market capitalisation of 69 million seems far too small for the proven and possible income that they may produce. I'm sold. Cheers for the information.
