Responses to comments / additional ideas.RE INVESTING...

Responses to comments / additional ideas.

RE INVESTING COMPOUNDING

Nature of exploration is spending with view to identifying commercially viable resources. Success rate for " wildcat " drills is probably about 5 %.
Drill success is followed by further seismic drill spend proving field - this is not re-investing for compounding gain - the nature of this is same for
existing production facilities spend. Application of notion of compounding is misplaced here.

CAPITAL MANAGEMENT

Owners / shareholders are risking their capital in this company. They do so anticipating higher financial reward than from other investment choices.
Dividends are potential part of reward scenario.

Accumulating money beyond what is necessary for continued established operations is unjustifiable bad capital management i.e. mismanagement,
attracting predators - that was basis of Ron Brierly's highly successful takeovers business venture taking over inefficient company's transferring their wealth to him.

Share buy-backs benefit short-term traders / executives / Boards with options / shares remuneration contracts. This is clear conflict of interest and the idea of it is obfuscation of the conflict.

WAIT FOR HIGHER GAS PRICES / EXTRA PROFITS

Industry expectations are gas prices will go higher. New GSA's will be written at higher prices producing higher profits. Gas dependent industries have closed recently and others continue at risk of failing due high gas prices. " Demand destruction " is active now. Six LNG import terminals are being organised, following Qld voters decimating Labor Party in last weeks Federal election QLd State government has been shocked into expediting Departmental decision outcome for Adani Carmichael mine approval, Santos is now insisting on similar action by NSW government for its Gunnedah CSG project, ( Gunnedah is capable of supplying 40 % of NSW gas needs at prices below import prices ), Victorian government exploration and development ban conventional gas ends next month allowing re-commencement of work on very big onshore discovery near Melbourne.

When and how will complex competitive market dynamics be resolved establishing new sable prices ? Time for waiting for dividends is past.

EXECUTIVE BOARD AMBITIONS

Executives / Boards have existing legal obligations to do their best at all times in all matters for company owners / shareholders.

Professional / technical staff career development trajectories can be built using owners / shareholders resources without delivering material benefits to owners / shareholders. Owners / shareholders minimise these risks by giving timely clear detailed guidelines to Boards about business development and money spend.

Owners / shareholders who don't articulate their expectations clearly to Boards expose their wealth to excessive professional exploitation.

SPIN OFF

At some point in company evolutionary change / growth consideration of splitting established production business from frontier exploration activities is consideration. It may be organisationally efficient and simplifying to hive off activities into separate entities. Company size may be factor in identifying appropriate timing of this. It may be something long-term holders interested in recurring dividends and short-term traders wanting clean company structure and identity both want. Outcome of Dukas wildcat will clarify and prioritise this matter.

OWNER SHAREHOLDER ORGANISATION

2017 S.O.A. experience demonstrated formal legalistic bureaucratic effort intensive way of owners / shareholders engaging influencing directing Board. It demonstrated in immediate practical ways acting out conflict of interests and vulnerability of owner / shareholders. It was hugely frustrating unsatisfying and chaotic. Ultimately it led to change of Chair, CEO, Board members, and anger.

CTP has around 8000 owners / shareholders. Much more rational pro-active potentially productive way for owners / shareholders to prepare for
company development / possible corporate action is to recognise common interests, co-operate developing guidelines for Board direction, communicating agreed programme for actioning to and by Board prior to AGM.

Without major resource discoveries and or small accretive asset acquisitions ( both probably most effectively negotiated by new capital raisings )
dividend policy previously outlined here ( simultaneous exploration / existing production assets / shut-in asset development, 3 cps dividend, with first half yearly dividend 1.5 cps paid Sept 2020 ) are reaffirmed.

In absence of alternative articulated persuasive company development scenarios by ongoing owner / shareholders ( not short-term traders ) this remains my view.