Five LNG import terminal proposals progress three different...

Five LNG import terminal proposals progress three different States with Wollongong approved by NSW, AGL Crib Point Victoria delayed with first gas expected second half 2022 - status other three unknown. Santos signed industrial customers Narrabri CSG ( capacity to supply 40 % NSW gas ) with customers and it lobbying NSW to make decision. Several LNG projects progressing in PNG with current government intention to legally mandate access to existing projects infrastructure on commercial terms. Private company Transborder Energy is progressing proposal to deliver LNG from 40 Australian stranded fields with 65 trillion cubic feet gas.

Gas prices cited significant in electricity production costs since eco-warrior / climate change / ant-frac campaigns began coal electricity generation shutting down. Increased retail competition resulted Origin Energy, AGL, Energy Australia losing third of domestic customers to small new service providers and dominance in S.A. Dow Chemicals former CEO Andrew Liveris and advisor to N.T. Govt. on gas industry development says high gas prices are destroying Australian manufacturing. CSR Chair John Gillam says " Gas consumers in Australia now pay as much for gas as our Asian neighbours who have no local gas reserves. " Qenos CEO Stephen Bell says current market offers of $10-$15 gigajoules are uneconomic forcing manufacturing to close. "

AGL Head of Wholesale Markets Richard Wrightson says " There just isn't the availability of gas for the market and thats having consequential impact on price, both near and longer term ; prices are not coming down. " N.T. gas lifted fracking moratorium. Victoria ban on inland explorationa and development continues till July 2020. Very large conventional gas accumulation is known near Melbourne with water suitable without treatment for local agricultural use ( the area has recently been in drought ). Simultaneously network of lawyers specialising in challenging mining and gas projects is getting money from States. NSW gave $400000 2017-2018 with Qld more than $1,000,000.

Immediate impact of these events is providing CTP, geographically remote with very high transportation costs, access to desperate east coast gas customers. $10-$15 gigajoule gas prices give CTP attractive net margins potentially financing substantial company development choices.

CTP risks relate to pipeline capacities, disruptions by eco-warrior / climate change / anti-frac insurgents, failure to find new gas / unlock known gas, tectonic shifts in Govt policies, gas price reductions, impact of increased supplies closer to east coast markets, company strategy errors.

Risk management / future planning may look something like this :

1. systematic follow-up all identified existing development opportunities Mereenie, Palm Valley, Dingo, Ooraminna, Surprise.

2. very high priority seismic all frontier / development prospects prior to and in preparation for urgent invitations to farm-outs.

3. spin-off frontier / undeveloped prospects into new IPO. New entity entitlement distribution to existing shareholders with new capital raised from
new shareholders.

4. initiation of annual 3 cps dividend with first 1.5 cps March 2020 then next 1.5 cps September 2020.

5. systematic alerts to shareholders at time executives make industry speaking commitments.

6. invitation to Professorial Fellow Melbourne University Peter Cook to join Board.

7. contemporaneous access to Board papers by small shareholder with specific role of liaising with holders and Board.

Widely distributed articulation of comprehensive company development proposals would be wisely done well in advance of AGM. Shareholders would then consider, discuss, organise any Board guidance voting AGM necessary.