The market has plainly missed the upside.
It doesn’t share Cottee’s optimism on the upside for Central Petroleum, or the gas reserves he clearly believes are there for the taking in the Territory.
Macquarie has lent the company close to $90 million, owns 2.5 per cent of its equity and has also acquired some of his forward gas contracts.
It clearly shares Cottee’s view that the company is undervalued, it’s just right now Cottee isn’t about to jump into bed with Macquarie.
He tends to like to run the show for at least a while.
Macquarie is engaged in some due diligence, while Central Petroleum has naturally enough rejected the first advance in the hope of getting another bidder to the table, or at the very least some competition.
CTP Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
