Drilling Campaign, page-4

Drilling Summary from the webinar

I have all the rig details if anyone wants them.



In fairness to RC he was pretty forthcoming at the last webinar.
I have laboriously typed out the webinar recitation and it is well worth reading.
It is of particular interest now we are about to start drilling and I have taken the liberty of highlighting the main points in red & black.
I expect that CTP will issue bulletins as they proceed.


Done…

• The Mereenie Drilling is also subject to the ACCC decision… Mereenie itself, WM26 and WM 25 are in the stairway formation.

• Looks like it (Drilling) will happen pretty close to these dates…

• The spud date is 6 to 8 weeks since we announced so that becomes somewhere between the ides of March (15 March) and Easter Sunday (1^st April).

How long will the drilling take?

Cut & Paste from webinar....

• The Mereenie wells will take somewhere around about 35 to 40 days each and Ooraminna will be somewhere about 18 days or thereabouts because it is a plain vertical… so we are pretty confident it is going to be 90 to 120 days before we get the full suite of results.

• Clearly the sequencing of the wells if ACCC approval comes in on time we will do WM26 or the Mereenie well first then Palm Valley and then Ooraminna so we move the rigs furthest from Alice Springs and then close to Alice springs and then the other side of Alice Springs and that follows the commercialisation regime because Mereenie is the one we commercialise first with the upgrade if the ACCC comes through.

• We have done a lot of fracture modelling and so we have a high of confidence that our modelling is correct and that’s what we are applying what’s called the rotary lie detector on our model to see whether we are absolutely right.

• The chances of there being no gas at Mereenie are fairly remote obviously on there being no problems with the drilling touchwood.

My Comments

• Put simply the rig move and rig up look like they will proceed basically as planned & start drilling at Mereenie.

• I have already factored moderate success of the drilling campaign into my models.

• Don’t panic if there they encounter problems with one or more of the usual suspects when drilling… this is quite normal.

• Initial results can be encouraging but it is best to wait for extended tests.

• I am particularly interested in the scope of works that is needed on the Mereenie Surface facilities and am curious to know whether this is going to be paid for by the MAC 50% share say $10M to match CTP’s $10M for drilling.

• I consider the saving of approx. $1 on pipeline regulation to be a good guess and have used this in my model.

Best Regards

OGP