santos u win, page-42

CTP has announced its maiden farm-out with international E&P company Santos Ltd (STO).

We believe the deal is highly value accretive at ~$11/acre which is substantially higher than
CTP s previous EV/Acre multiple of $2 and provides a significant endorsement of CTP s
assets.
Furthermore, we believe a second farm-out could be executed in early 4Q 12 which
will provide an additional material catalyst in the near term.

CTP is our top pick in the
Australian shale space and we believe a significant re-rating will occur on the back of the
STO farm-out deal and the next farm-out expected in early 4Q 12.

We therefore maintain our
Speculative Buy recommendation with an increased price target of $0.40/sh (Previously
0.31/sh).

Second farm-out provides substantial, near term upside. CTP expects to finalise its
second farm-out deal in early 4Q 2012. Current guidance is that the second farm-out deal
could be at a significantly higher multiple than today s transaction. This provides a high
impact, near term catalyst. Going forward, CTP plans to retain a material interest of 70% in
its permit areas.