Danger period till the end of March 2017.
There can be little doubt that a seismic change is occurring in the Gas industry.
Gas revolution
A quiet revolution one may say, noiseless but potentially smelly.
Clearly without sufficient exploration Australia will have to import gas, a situation that is beyond belief given that Australia has some the World’s greatest gas reserves, and exports gas to the World
Santos has announced that it will be concentrating on Gas in the future, this refocussing on Gas must assist CTP.
Who will be part of this obvious conglomerate that McB is trying to set up. Will they succeed?
Economic consequences
Lose gas sales and jobs will be shed and business will close, never to reopen.
Pricing has been a significant problem since Australia became subject to World parity pricing and we in Australia are now paying more for our gas that we sell to other countries.
Jemeena pipeline is committed
The Jemeena pipeline is committed and will according to RC be definitely built as the cost of construction are less than the liquidated damages for not completing the contract.
Seismic study Mt Kitty
Santos will release the results of the seismic study over Mt Kitty in about mid-March.
Predator in the wings
If one was a fly on the wall, of lest say McB, one may well think that someone would be looking at all the variables and calculating when to make a move.
End of March 2017 (perhaps April)
I suspect that some predator will be looking at the most favorable time to make another offer, in my humble opinion I would think that to be no later than April 2017. The planets are all aligning and they will not want a re-rating of the SP, simply because it will cost them more.
So I suspect that the next 4 months are the most important for CTP and other gas companies.
I strongly urge all shareholders to join the CTPSA so that we may stand as a united front, the more people who join and stand united the higher any potential price has to be. http://ctpshareholders.org/
United we stand, divided we fall.
Merry Christmas to one and all, may Mercury the God of Trade, Profit, Merchants and Traveller’s smile upon your humble home.
May the Blue Bird of Happiness sing sweet songs to your family or crap on your car as the case may be.
CB
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