It looks like the engineering costs for Mereenie are higher than anticipated - extra loans from Macquarie and Ooraminna deferred.
New management determined to pump gas down NGP as hard as they can to pay down the loans. Remember CTP also has to supply PWC gas it has already been paid for and unwind the deferred revenue accounting. While cashflow will be tough, the balance sheet implications are strongly positive.
A lot hangs on successfully drilling PV13. A good result - any result - leads to a simple tie-in without pipeline constraint. We will know this month.
God-fearing types should take a knee and beseech the almighty.
The team sounds keen on acquiring extra Qld CSG permits. Gas-hungry IPL is likely to agree on any sensible extension to the exploration agreement, so this bullishness is soundly based.
I think all this is manageable. We likely face short term SP volatility. Go CTP!
Ash
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