Those deals are good news for small tier CSG explorers. Some other names come to mind (ESG, WCL, MPO, BUL etc) that will benefit from this game of big fish vs small fish. The benefit that CTP has is the acreage. Sure most of their coal is thicker & deeper then the modelled depth of 1250m, but that shouldnt b a hindrance for future development. The main thing is those first couple of wells drilled, have proved that the resource is there & is much thicker & bigger, in an area where not many thought of venturing out to drill (apart frm Santos's Merrinee/Palm Valley & Dingo fields none of which taps this coal).
So the question CTP will face is how to develop this resource into a fruitful venture, they will need lots of cash & expertise which I see as possible only with a bigger player. JH has the drive & acreage but he needs more then that.
I was inclined to think, that Shell would act first as they have a GTL or CTL plant in Bintung (malaysia), however looks like BG have taken the box office seat for the time being.
As for the SP, once again positive results frm future drilling program will create a frenzy & excitement in CTP & hopefully, the right sort of publicity will do them the good.
In the meantime enjoy the rest of 2008 & of course the cricket this summer, as not much happens till after the 5th of Jan in the finance sector.
Hoping for a better start to 2009
cheers
CTP Price at posting:
8.1¢ Sentiment: Buy Disclosure: Held
