I think you may have things in the wrong order. Do you not...

I think you may have things in the wrong order.
Do you not acknowledge that we can pipe gas into NGP irrespective of what APA do?
If so, we are not reliant on APA. Our agreement is with Jemena. Jemena are the builders of the pipeline. If APA rollover it will only help with our overall margin, our netback. APA are dead. They are fighting a losing battle. We are not reliant on them rolling over.

The impending fracking moratorium precludes anyone else from exploring for unconventional gas in the NT for at least 5 years unless there is federal gov't intervention, as evidenced by the likes of Pangea, Armour Energy and others stopping their exploration programs. There is no one to fill the 21pj of spare capacity for the NGP pipeline apart from CTP. Do you not agree with this?

This is from the CTP half yearly report. Bottom of page 27.

"Under the Sale and Purchase Deed entered into with Santos in June 2015 for the purchase of an interest in the Mereenie oil and gas assets, certain amounts are payable to Santos in the event that Central elects to enter into a Gas Transportation Agreement (“GTA”) with the NEGI (North East Gas Interconnect) project owner within 3 years of execution date."

"The Group, under these circumstances, would be required to make a $15 million lump sum payment to Santos and also sole fund the associated gas development project ($55 million - $75 million)."

So according to these notes CTP is not liable to pay the $15million until a GTA is signed with Jemena before June 2015. You may now understand the reluctance of CTP to announce any GSA's until it is completely happy with the arrangement and costs. So, if we sign in July 2018, we don't pay them a cent. I am being overly cynical with this point of view, however the possibilty is there for that to occur. Irrespective of that, provision has been made for the $15million in the accounts, yet it has not been drawn down. Why drawdown on it and pay interest on it unless you need to? Just by not drawing down on it for another year saves the company $1.5million in interest costs.

The $55 to $75 million is on a needs basis. Do we need another well? Do we need a workover? Do we need do we need further development? These are all unknowables. We may only need to spend $55million because that is all that is required. CTP is the operator of the venture, we call the shots.

I take great comfort in the regard that we have the opportunity to spend such money on a proven gas & oil project that has been operational since the 80's. If you look at company ann's the money that we spend gives us opportunity to prove up 420pj of gas, half of which is ours, and I forget the oil. STO have drilled over a dozen wells in the reserve over the last 3 or 4 years. STO are now pumping out over 1500 bbls a day out of Mereenie, half of it is ours.

If you look closely at the accounts you will notice that our finance costs are more than adequately and comfortably covered. With a full year of revenues still to come from Mereenie, Dingo and Palm Valley or financing needs are really not an issue.

So, in summary, we have 62pj p1. We have a way to market with no competition in sight for at least 5 years. We are more than adequately covered for fianance costs, even on todays revenues. This coming years full revenues should be just under $30 million. Once we get full tote odds with NGP the situation changes exponentially to the upside.

But I'm sure you know all this anyway and are just causing mischief.