CTP DIVIDEND POLICY

CTP after full year NGP business will have disposable income around 7 cps. That allows for all expenses except tax which is not expected to begin at earliest sixth year of production. After first full year of production, elevated Macquarie loan repayments 2019, lower interest costs with refinancing, CTP has capacity to pay dividends. Previous CEO spoke of CTP becoming " a boring annuities " company.

Currently industry expectations are gas prices will increase with lower prices unimaginable in current continuing market dynamics. CTP's future profits will be significantly higher with gas prices rising further. Earnings per share will be higher also.

CTP has extensive tenements to explore in several locations and could spend every cent of income doing that. Existing producing / shut-in assets also require further exploration / development. Executives / Board will argue CTP can create more shareholder value applying all disposable income to exploration / development. That may be true if all exploration were successful ( something may be discovered that is uncommercial ).

CTP may choose to continue involvement in Range Incitec joint value on drilling success there. It may choose to vary its percentage interest. Current disposable income would finance continuing involvement. Should Incitec choose to close Gibson Island it may exit Range involvement. If CTP have first right of purchase it could negotiate favourable manageable terms consistent with its current finances.

Dukas success would raise possibility of area being new field requiring ongoing seismic drilling etc., CTP may choose to maintain current level of ownership. Capital raising would finance ongoing ownership obligations with shareholders motivated by ongoing production income and energised by exponentially enhanced future Dukas field value keen to subscribe.

Alternatively Santos may prefer to move to complete ownership of Dukas field making offer to buy out CTP. Macquarie's interest in owning all of CTP mat be triggered making takeover offer. In either case new capital raising is unnecessary.

Dividend 3 cps ( $21 million ) could be paid leaving second year NGP production ( without allowance for higher gas prices ) around $ 21 million for exploration / production / shut-in asset development etc., Dividends could be paid six monthly, rather than annually, in two 1.5 cps amounts. $21 million spent every year on tenement / asset development is substantial easily manageable with 3 cps dividend. First dividend could be paid September 2020.

CTPSA and other shareholders could develop views about dividends / exploration / asset development relationship / programmes now with view to submitting resolutions for voting to instruct Board at AGM.