i think the rerating has occured because the 'massive potential' has moved from the realms of 'possible' to 'very probable'. it is a far more solid basis on which to rate the company.
the independent report has stated it's estimate if anything is conservative.
john has previously stated his long term aim of constructing a gas to liquids plant, so it will not be piped anywhere. Such a plant will cost a great deal of money, however to a major this would not be a concern since the returns would more than justify such an expenditure.
obviously bg is interested, and i am sure there are others looking. after all ctp 'probably' has the largest coal reserves in australia, and the competition would be starting to take notice.
look at the fierce bidding wars over pes, the takeover of qgc and sunshine and conocophilip's recdnt interest in origin. significant rerating there! and little ole ctp is 'probably' larger than any of them in terms of reserves.
jh has outlined a very aggressive cbm drilling campaign for this year and he seems confident he will procure the necessary funding for ctp's share of the expenses.
by the end of the year we may well have a jorc for at least part of ctp's exploration permits, and 12c a share will be a distant memory. hence the rerating. all imho of course.
cheers
CTP Price at posting:
11.5¢ Sentiment: LT Buy Disclosure: Held
