acquisition of oil & gas assets, page-57

ABC 24 reports domestic gas price pressure ramping up for the eastern seaboard due to market pressures from Japan

Magellan CEO J.T. Wilson Oct 13 letter to SH's

"With respect to onshore Australia, we spent most of fiscal year 2013 in discussions and contract negotiations with potential customers of Dingo gas, resulting in the signing of a long term gas sales contract (the "Dingo GSPA") with Northern Territory Power and Water Corporation ("PWC") for the sale of a substantial portion of Dingo's reserves. Due to these marketing efforts, we booked 29 Bcf of probable reserves as of June 30, 2013, and we expect the majority of these reserves to become proved reserves now that the Dingo GSPA has been signed. Gas sales are expected to commence in early calendar year 2015 once surface facilities and a tie-in pipeline are constructed at Dingo. At that point, Dingo and Palm Valley will both be producing assets with stable, predictable cash flows. Now that production from both of our Amadeus Basin assets has been placed on long-term contracts at attractive prices, we are in the process of assessing whether a monetization of these assets could unlock greater value for our shareholders."

Is it the rabbit that is needed with the commitments CTP has going forward? Well, we would have to have faith RC and team are no doubt smart enough to work it out and think CTP had $12.5 mill in the bank as of 31.12.14
Magellan appear to be selling due to other exploration financial pressures and associated infrastructure costs of pipeline,valving, metering etc for Dingo. Palm Valley already set up and hopefully making money though both will require permanent employment for maintainers and administrative bean counters etc so all in all capital intensive on the cost side.
The logic of it will be an interesting read though gas price pressure will no doubt extend all over Australia so augurs well if the deal is a surety to fill the coffers as it stands from 2015.
All in all on a first see basis looks positive though so much money needed ...ah have faith!