Hi aabbaadd,Not sure I follow the $1.9m but the period of...

Hi aabbaadd,

Not sure I follow the $1.9m but the period of significant investment on capex is pretty much over after this quarter and we should finally start seeing some chunky net cashflows in each quarter. Given Leon's comments in the presentation you kindly shared, 2020 and beyond only looks better with implied firmer gas pricing and longer contracts. We are highly leveraged to gas price given the high transport costs...so if could secure ex-field pricing with $1 -$2 GJ increase, it translates to $2m - $4m cashflow per quarter.....or $8m to $16m p.a. Not bad when our projected net debt paydown this year is $20m.

CTPs share in Mereenie is definitely small relative to other fields, especially CSG fields in Surat, Bowen etc. However, they are relatively high cost producers. We are a low cost conventional producer with higher transport but still are more competitive overall. In terms of my chart, the bubble size reflects how long the Company can produce 2P reserves for at current production rates. CTPs bubble shrinks from 30 years of producible reserves to 10 years given the increased flow rates (i.e. 5 to 15 PJ p.a.). I need to update the chart to include additional companies, but what it shows is obvious - that the Company valuation increases with reserves and/or flow rates. To me, CTP looks to be the outlier here now we are producing significant volumes.....for a decent period of time. Longer contracts of 3 - 5 years should help with any perceived risk.

Re: Comparison to COE. What the chart basically says is we will producing around 1/2 the volumes of COE, with a similar life of 10 years....however the market is only valuing CTP at 1/4 the EV. There are other factors at play such as transport costs, field opex etc...but all will be revealed after a period of steady production how we really size up. I think we will look quite good.