Post 2 So one of our priorities will be to drill 6 long laterals...

Post 2

So one of our priorities will be to drill 6 long laterals into the Mt Kitty field to get into production as fast as possible selling helium at world market prices ranging from US$100-$200/mcf depending on the product produced for sale, and then further borrow funds for plant and other infrastructure to get gas to market as fast as possible. Next project is to do essentially the same thing and appraise/development drill 6 long laterals into the Ooramina field to sell and supply gas to the East Coast markets (combining the helium from Ooramina with the rich concentration of helium at Mt Kitty to be transported to Darwin by rail and or road). The hydrocarbon content in the Mt Kitty field to provide the energy/Electricity to run our mobile processing plant(s) etc.

Each Mt Kitty well with a flow rate of say 5 million cubic feet of gas a day with 9% helium selling for US$100 per thousand cubic feet can potentially start producing revenues at about US$15 million in year 1 (100% interest in well). The size of the Mt Kitty structure (greater than 200 square kilometres) could easily start with 6 horizontal wells in the first drill program and another up to 6 wells in a follow up Mt Kitty drill program to properly drain the field. Mt Kitty 1 was not targeting fracture systems but flowed up to 500,000 cubic feet a day from a vertical hole. Initial targets will be on the best fracture systems with long laterals. It is quite possible to obtain flow rates much greater than 5 million cubic feet a day with long verticals.

The Ooramina field drilling is next after Mt Kitty and can be accelerated if Santos participates in the Mt Kitty drilling. We will sell gas from both Mt Kitty and Ooramina with the aim to first get the valuable Mt Kitty helium gas to markets to obtain revenues. CTP or CTP/Santos can potentially corner the world helium market as most other helium produced outside the USA comes from unreliable not secure middle East countries and Russia. USA supply of helium is also depleting.

Only Goodness knows the true extent of our relationship with Macquarie at the moment with all the secrecy (not to mention the GGR problem which needs to be fixed) and why Macquarie are really selling our shares capping our share price, AND when we can actually start to drill Mereenie wells under our Joint Venture with Macquarie.