Qld acreage development

A detail on the 50:50 venture with IPL of the recently awarded gas-prone acreage near Miles Qld. IPL has very high hopes of early gas to ease its misery over economic gas supply for their Brisbane Urea plant. From their half-year slides 9 May:

"Progressing negotiations with Central Petroleum for interim gas supply to Gibson Island for 2019"

Let me call that supply timetable wish December 2019, a mere 18 months away.

The Qld government gave CTP the rights to the land. IPL is funding activity with $20m. A major requirement: begin work RIGHT NOW, JUST DO IT. This will entail a major mobilisation of resources for permits, survey, drilling, treating and piping to achieve physical gas movement - hence the recent senior appointments.

I don't see this gift and the prospect of early cashflows reflected in CTP's share price - everyone is looking at the Mereenie drilling and recovering from the takeover debacle.

So alongside the reasonable prospect of drilling success at Mereenie, RC will soon announce a significant Qld works program on which CTP enjoys a completely free carry.

CTP is set to levitate.

Ash