One may well wonder if RC is sending us all a subtle message,...

One may well wonder if RC is sending us all a subtle message, that CTP is in a position that unless it can raise money to further develop the companies gas fields a cap raise may be the only way to go.

Given the Company’s capital need to fund the further development of the Company’s gas fields, in particular the Stairway Project ahead of the expected completion of Jemena’s Northern Gas Pipeline (“NGP”) in 2018, the Company has not agreed to any fetter on that process as a result of granting due diligence. The NGP will link Central’s gas fields south of Alice Springs to Australia’s main gas demand centres on the eastern seaboard and which are reportedly facing significant shortages. 21 November 2016. "Macquarie allowed non-exclusive Due Diligence"

Of course a party can always get money from outside sources. The question is at what cost. There are bottom feeders out there that will lend money at excessive rates making the whole exercise uneconomical, RC is no mug and I suspect he has several irons in the fire.

It is no secret that RC always wanted to take CTP to a comparable position as QGC, a company I note at the time of being taken over had approximately 1 billion shares on issue. We have approx 450 mil shares on issue. (give or take options etc) and comparable resources, in fact if anyone wants to do significant research it may be that CTP has greater resources than QGC had. (I would be interested to know)

I suspect that what RC is doing with the various announcements, is by implication saying to the market and MacBank et al, we are happy to consider a reasonable takeover offer (friendly or hostile), but we are making sure that the market also knows that you (MB) are interested in buying us all out, and we are going to improve out net asset backed valuation as quickly as possible (See Santos drilling at Mt Kitty) while letting the market aware that our doors are open for any sensible discussions re a takeover.

Origin was selected as Central’s adviser as the party best able to deliver either:

• the Company remaining independent and adequately capitalised; or

(b) a change of control at a consideration greater than the original Macquarie proposal which the Board advised was not in the interests of shareholders. 24 November 2016
CENTRAL APPOINTS DEFENCE ADVISER

MB are no mugs, in fact they do not invest large amounts of money into projects unless they are certain that their money is a) safe and b) going to return an excellent profit.

We seem to forget that we are in bed with Total and they probably have access to just as much money as MB.

Back to the Cap raise, one would think that such a situation would only eventuate at the point in time when CTP requires money urgently to “fund the further development of the Company’s gas fields”

If MB makes a further offer that is not acceptable, then one may think that would remove them from giving us more money, and other lenders have to be approached.

It will come down to a variety of factors all of which are fast aligning. For example

1. The report into regulation to be released before Christmas 2016, which I assume (but cannot guarantee) will give a lift to the CTP share price.

1. The recommendation by Origin (Defence advisor) as to the best course of action for CTP, and what that course of action should be.

1. The results of the Santos survey at Mt Kitty in March 2017

1. The actual laying of pipeline by Jemeena in early to mid 2017.

1. The World economy after 20 January (Trump as President)

1. The urgency of CTP to fund “further development”

Whatever happens, I am satisfied that RC is the best person for the job at hand and that his "business acumen" and desire to succeed will win through.

He is no mug !! and I am sure has a plan.

I am also sure he is more than able to replicate a similar deal as QGC, (Or at least I would like to think so)


We live in interesting times.

The mind boggles, as we wait with bated breath. (Not a baited breath)

CB