It's nice to see some new names on the ctp thread, however we must remember that this is still very much a speccie, there are lots of shares, options etc.
The first hole costs about $8m to drill, and finds need to be decent to be commercial, because Blamore and similar drill sites are a long way from infrastructure.
However, if there is a big pool of oil there, then it doesn't matter.
Opes prime will keep the options low for a while, and the heads always attract plenty of sellers too. The shares did hit around 25c late last year, but that was when we thought we might be getting $200m+ of farmin money, but that doesn't seem to be happenning.
This company is still the same as it was for the last two years, so don't get too excited by somebody's recommendation. All they have done is brought more traders and excitement into the stock.
If ctp's ground was seriously good, then the people who really know about good oil prospects would have moved in.
ctp has been spruking for farmins for a long while. Companies like santos, who have acreage next door, were not interested. Cashed up bpt were not interested. All the other Aussie players were not interested. All the majors were not interested.
It was only investment groups that showed an interest, and they never committed.
Don't get me wrong, I'm a fan. But whilst ctp might look good as a short term trade, as an oil company they have very much to prove. And I think it's worth remembering that if lots of 'hype' comes along.
I bought gdn as a good speccie a long while ago at 16c & sold at 55c. I posted my thoughts on the gdn thread & got called lots of names. The sp raced to over $1.20. But it's now 7c. So if ctp does 'go off', enjoy the ride. But perhaps take some profits along the way.
cheers ps. It would be good to know the thoughts from some of the known good oil commentators, like ronsteib, black oil, prawnhead etc.
CTP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
