Form 10-K: Dingo Gasfield only 18 Bcf NOT 30 Bcf as reported by CTP!, page-4

Really we have paid a GIANT sum of money for 11BCF of gas. Only Magellan should be jumping for joy!

The Annual Report of Magallen values the Palm Valley infrastructure at about $370,000. That is all !

We paid way too much and now have all this debt and have to build a pipeline for a tight gasfield which production could die away like Surprise-1. I can see why Magallen wanted to sell it. It is not worth it and even it it was it is too risky an investment with the gas at Dingo being tight.

Why did we pay so much is my question???  That is worth looking into further for sure. It sounds very wrong!

If everything went right CTP are expected to earn 19% IRR from the 2 tiny so called gasfields. That is pathetic. With all the gas in this basin we should be finding our own tight gas and oil fields and not buying them with all the risk attached to them and paying a whopping amount of money for 10BCF of gas.

Go thru the Annual reports of Magellan and see for yourself eg page 65 of the following link

http://content.stockpr.com/magellan...eport/Magellan+2013+Annual+Report+-+FINAL.pdf