Ann: 09.10.16 CTP to Commence Proceedings Red Sky, page-33

re: Ann: 09.10.16 CTP to Commence Proceedings... Re-reading the first notice again with a much cooler head, it really only appears to say they asked PXA for agreement that rog could come onboard, and that they asked for a response by the 14th. They then postulated that this could impact their drilling schedule... as if....

14th came with no response so CTP goes into board meeting and issues a statement to say they may issue a notice of dispute, to which BG has said they maybe in a position to respond to CTP by Wed 21st. Though what they are responding to is still not clear, i.e. is it a date for a date, or the decision on rog. CTP suggested three courses of action, option 1 is they drill (yipee), option 2. block rog no drilling, option 3. buyout rog's share no drilling.

So i guess my concern is that BG are probably not going to be obstructive but will continue to slow things down every chance the get. Two out of their 3 options CTP presented seem to be in BG's favour not CTP's. So at what point does CTP bite the bullet and acknowledge that this just is not going to happen with BG. The continued delays will continue, share price will diminish making them an even easier target should someone want them. They also run the risk of loosing leases unless they fulfill their commitments to NT and other governments. If you assume they have 5 year leases then you would expect an average of about 20% of leases per year need to be drilled within with some form of minimum spend for the next 12 months.

after 4-6 months or arguing and tricky maneuvering like trying to bring in Rog so they could vote the money out of BG they have failed. They have not been able to move them at all. Maybe going out and drilling a hole or two and finding something will.... My fear is that there are not too many rigs left, it would not take much for BG to lease a couple more of these to totally stuff CTP (i was going to say to stuff CTP's plans but at the moment I'm not really sure that they have a plan anymore).