potentially 12 billion barrels of oil not 2, page-47

Interesting comparison...

Today's announcement saw a rise in market cap for CPT of some $13.5m...not including the options dilution because the majority are exercisable at 25 and 30c.

If we want to use fully diluted numbers however, then based on a fully diluted register of 390m shares, we saw a jump in market cap close to $21m.

With the added dilution however comes about $34m in cash...so one might argue in using the fully diluted equation, that although todays rise saw the maket cap rise some $21m, given the effective cash backing increase due to options conversion of some $34m, the underlying market cap actually went backwards by $13m today.

lol...such are the vagaries of market cap vaues at that line in the sand when options become live and current in the value mix.

Most would agree however, that CTP's market cap rose somewhere between $13 and $21m today!

Fair to say, given the nature of the announcement...and previous UOIIP announcements from the company...that the market is now building in a premium on the potential of the areas being targeted given the near term activity expected...namely, planned drilling campaigns.

An interesting comparison may be found in NDO perhaps, who recently announced the following...

"Nido Identifies 11.6 Billion Barrels Oil-in-place Potential"...in relation to their Palawan ground.

This particular announcement saw a run on the stock commence...which is still ongoing...which to date has seen a rise in their market cap to the tune of some $290m???

Clearly they have other stuff under way also adding value (Galoc)...and of course oil continues to rise which would have impacted...but the market was happily valuing Galoc (and everything else), at close to $350m the day prior...but on the day they announced the Palwan targets statement, in effect an UOIIP (undiscovered oil in initial place) similar to that released by CTP today, of "12 Billion Barrels", their market cap rose some $150m...ON THAT DAY...and they held onto it!

Fully diluted, this would equate to some 38c added to CTP's share price!

Added!

Unlike the Palawan, CTP's ground is onshore meaning it is not only cheaper to explore, but likely cheap enough they can retain their exposure an afford to do it themselves, without the need to farm down to the extent NDO will have to.

On this basis, one might argue this announcement is worth more in a vlue sense than Nido's?

Anyway, hard to say exactly what the market might do with this...and whether those supporting CTP at a corporate level will recognise an opportunity here to push their price up permanently...or simple see it as an excuse to profit.

Time will tell?

Expensive drilling campaign coming up and whilst they have plenty of cash, a raising at much higher numbers would be still likely be attractive to the company?

Should be an interesting week next week, especially given the apparent clean out of loose stock today, for what in relative terms, ammounts to a fairly cheap on-market effort.

Chees!