Quarterly report acknowledges cost to CTP Dukas redrill. One outcome of Santos option JULY 2021 results 15 % ownership Dukas reverting to CTP. CTP ownership then is 45 % instead of current 30 %.
Currently CTP contributes 30 %, AU$3 million, planned cost Dukas redrill. Santos exercising option JULY 2021 increases CTP ownership to 45 % and Dukas redrill cost CTP to AU$4.5 million.
Dukas geology is complex, engineering uncommon more demanding, Dukas cost may go beyond budget - in that case CTP costs would be AU$4.5 million +.
AGL contract providing almost all CTP gas income ends December 2021. Dukas redrill may begin 1H 2022. AGL has option extending contract. Markets are volatile so income after December 2021 is unpredictable.
Assuming current cash is maintained until Dukas redrill cash will be reduced AU$4.5 million +.
CTP is left with AU$21.4 million to fund all other development. CTP imagines it will farm-out current income producing fields funding development with that cash. At the same time as farm-out cash arrives CTP has to repay additional Macquarie loans consistent with now reduced ownership of producing assets which are security for loans. Net cash available funding new development is projected AU$50 million less proportional amount reflecting reduced production ownership and income - AU$50 million less AU$25 million.
Cash available for development is AU$25 million plus current cash AU$25.9 million - AU$50.9 million. Spend exhausts cash which must be replaced. Capital raises are only source of new cash - they would likely be 2 for 1 @ 8 cps increasing issued shares 300 % from 770 million to 2.3 billion.
Range is planned financed by structured borrowings. If that isn't possible financial situation changes dramatically.
CTP Price at posting:
8.5¢ Sentiment: None Disclosure: Held
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