santos u win, page-30

"i am not so certain it is a great deal though.."

CTP needs lots of money to maintain those tenements. There are three choices: give them up, raise money from the market, or use OPM.

To say we are giving away 70% is incorrect. Without money, those tenements will be lost. Now, we have rescued 30% of the value, completely eliminate the risk, and have both expertise and funding to explore those tenements.

Even if money could be raised from the market, CTP has just too much land and not enough expertise, equipment and infrastructure to convert the potential to cash flow.

Moreover, CTP may need to drill 20 production wells in the Surprise area (watch this space). A lot of resources and energy will be directed to this area. CTP cannot fight on too many fronts. Sometimes, one has to give in order to receive.