I understand that MEL have only explored a small percentage of the tenements they hold in the Clarence Morton Basin, and have 3P CSG reserves of about 1.5 tcf; so there is the potential for a resource of tens of tcf. Interestingly, the share price has more than doubled as a result of a conventional gas discovery which is probably around 82bcf. My impression is that the market is a little jaded with companies increasing their CSG reserves in recent months, when not much has actually happened with the proposed LNG to CSG projects. But conventional gas on dry land seems to have a big impact, and there haven't been too many of those discoveries in Australia in recent years. That's why I'm a bit ho-hum about the CTP CSG wells, but keen on the conventional gas, oil and helium.
(I also hold MEL, and have done very nicely out of it in the past week, but CTP is the stock that will allow me to retire.)
CTP Price at posting:
15.2¢ Sentiment: LT Buy Disclosure: Held
