Here's the way I read the CTP/Total JV announcement in relation...

Here's the way I read the CTP/Total JV announcement in relation to funding commitments.

1. The 3 phase exploration program runs over 4 years

2. The JV (Total 80% + CTP 20%) share the costs of this exploration program on an 80:20 basis:

Phase 1: Total pays first $48M then CTP has to kick in $12M

Phase 2 and 3: Total pays $104 and CTP pays $26M (unlike Phase 1, no information on the order of the JV partners meeting these expenditure commitments is provided)

So CTP is covered, expenditure-wise, for the first $48M of the expenses it incurs in proving up those leases (that includes salaries and on-costs as well as 2D, 3D seismic, drilling costs etc etc i.e. ANYTHING we spend in relation to exploration on those leases - including pro-rated Cottee, Hallgren, Ambrose salaries etc)

3. By the end of phase 3, (in 4 years time) Total has earned 68% of the rights in the leases and CTP retains 32%

Now Cottee has said (refer call yesterday) that he expects the conversion of the March 2014 CTPO Options to deliver a $48M cash injection to the company ... that's about 17 months into the 4 year JV and probably towards the end of Phase 1 - which is when we need to stump up out first $12M ... that leaves $36M to cover the balance of CTPs commitment to the JV (i.e. $26M) and the $10M spare to commit to other initiatives.

We're looking good .... no doubt about it .... all we need to do is make some discoveries in those blocks on Total's account!!