Ann: Presentation - Sale and Investment in the Amadeus Basin, page-3

So we sold 78Pj of producing gas for $A29m cash + $A40m drilling carry and 4.9pj gas debt.

CTP are selling 78PJ for $85m= @$1.1/GJ even if it was all cash received now.

But the gas is currently flowing, so the purchasers will get the benefit from day 1 and CTP will not get the benefit of $A40m drilling carry, for 6 + 9 months post completion when the wells which are scheduled to start in.
In addition, the purchasers are picking up an obligation to supply 4.9PJ which they report as $A23m ie CTP have attributed a $A4.30 gj.value to this obligation, even though the gas doesn't need to be delivered now...must be extra special gas.

Remember CTP produce about 2.5PJ per quarter prior to the farm down and thus about 1.25Pj/quarter post the deal ie bugger alll and the company will not be able to pay off the rest of the Macquarie debt unless it finds more gas.

Is it sensible to spend cash to try and replace 78PJ, when you are selling the gas you have at $1.1/gj ?

Ah but they get to book a $A40m profit. !....which as we all know is notional and reflects the cheap purchase price x years ago.

This is a terrible deal for CTP.The purchasers have taken the best assets, the pre salt stuff is just a geologists pipe dream and puff to put in the presentation.They should have just had a capital raising and slashed management costs which are excessive, both compared to other $A70m companies and to other no growth O+G companies.

I will certainly vote against this and all other resolutions in order to spill the board.