Thanks O&G.Key take aways for me on this report:Page 2:- Cash...

Thanks O&G.

Key take aways for me on this report:

Page 2:
- Cash balance moving to $50m in 2022

Page 4:
- "The Amadeus Basin is an emerging giant in the Australian gas market"

Page 9:
- "When completed, the AMGP would represent a turning point for CTP, making its gas substantially more competitive and ‘re-rating’ its reserves."
- "This would markedly reduce gas transportation costs, increasing CTP’s competitiveness relative to existing basins as well as prospective basins such as the Beetaloo and McArthur"

I think this should demonstrate CTP has the war chest needed to proceed with the drilling of Amadeus in 21/22.

It also demonstrates the Management strategy for re-rating the reserves and the stock price. Increase production (Mereenie) and future supply (Amadeus) for the AMGP FID (2H 2021).

Back in 2015 Mick McCormack as CEO of APA bidded for the NT Government pipeline tender to Mt Isa. Even though APA lost out to Jemena with the NGP, industry participants were calling for the AMGP.

The South Australian Minister for Mineral Resources and Energy, Tom Koutsantonis, whose state was overlooked as the site for the pipeline to connect to, was scathing of the decision.
https://www.abc.net.au/news/2015-11-17/jemena-wins-negi-gas-pipeline-preferred-bidder-in-nt/6947746

Mick clearly believes the AMGP will make money and is a game changer for CTP. Convincing AGIG on the MOU and then joining as the Chairman of CTP is testimony to this. The ex-CEO of a $10bn pipeline company joining a $100m mkt cap gas company surprised many.

I don't think anyone should be under the illusion the Amadeus drilling will be delayed. Given its importance for the AMGP FID, CTP will be doing this with or without the farm out partner.