CTP 3.92% 5.3¢ central petroleum limited

Always good to see that people are honest enough to indicate...

  1. 303 Posts.
    Always good to see that people are honest enough to indicate their dissatisfaction by way of communication their disappointment, it also provides an indication as to who may be the long term shareholders and hence, voices to be listened to.

    However, disappointment can quickly turn into optimism, the commencement of the Georgina Basin being one such example where long awaited progress can apply a boost to progress and the share price.

    With progress comes expenditure of funds, meaning progress and optimism can also quickly be dampened. Te question related to funding has always been a contemporaneous issue, do you dilute through Capital Raising or dilute by means of asset fame out or joint venture arrangements.

    CTP has by all accounts been cautious in raising cash by institution grade investment, the 10 million was to be used for the additional drilling into the immediate location of our existing oil well, this did not happen However, I believe that raising cash through investment grade institutions or non investment grade opportunities be the least desirable.

    If the investment grade investment injection is not a likely scenario, the dilution by farm out or joint venture arrangements may therefore taken the hierarchy of planning.

    With the above said, CTP are cash carried for their Dingo onshore gas project through a revolving loan arrangement. The Georgina Basin will need approximately $18 million which includes the additional exploration cost commitments as announced by the organization recently.

    Oil revenue from Surprise and being in decline, gas revenue from Palm Valley and project resource costs being recuperated from Total may not cover the total dollar ($) value needed by CTP. I therefore tend to believe pragmatically that dilution will come by way of onshore asset.

    The key to breaking free of constraint shackles may be by way of the amended joint venture arrangement currently being discussed between CTP and Santos. Will a cash injection form part of these new arrangements should they materialize.

    In the mean time, let’s hope that progress turns into joy, disappointments of late needs to be kicked out of the field and give way to positive news and results.
 
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Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
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