substantial holeder in monitor, page-25

Though I would revive this thread based on some information that I stumbled upon in my archives, what strikes me as being contradictory, is the re-injection of funds into MHL by being a substantial holder but now all starting to make common sense. The following commentary made by JH some time in 2005 was formally and publically communicated when CTP was known as being the old Merlin Petroleum.

The company (now known as CTP) has also pulled out of all of the farm-in deals it had in the Cooper Basin. We spent a lot of money in attempting to list the combined farm-in deals that we had last year in the Pedirka and Cooper basins as Merlin [Petroleum], said Mr Heugh adding they were stymied due to timing issues centred around the farmin deals as well as the London market as a dual listing was attempted. We felt that we could do better and have negotiated a package deal over practically the entire Amadeus Basin, which surrounds the producing Palm Valley and Mereenie fields once Australias biggest onshore mainland reserves.

Subject to the listing of the company, we will be acquiring the whole of the issued shares of two other companies that have the rights over about 85% of the Amadeus Basin, so were picking up a package, subject to listing, of about 80,000 km2 with two appraisal prospects which have been previously drilled and returned gas to surface as well as a large number of other prospects and leads including the Johnstone oil prospect, targeting Pacoota Sandstone with recoverable numbers of 112 MMbbl upside potential .

At this stage we are primarily an exploration company but want to get into production as soon as we can, he stated about the companys current acreage, adding that Central is also open to picking up a producing reserve-based asset by acquisition as well as appraisal and exploration. We would have preferred to have done that before we got to the prospectus stage, but theres a lot of competition out there for producing assets they dont come cheap With the previous board we were restricted in vision for the acquisition of a reserve-based asset in Australia. They felt that it wasnt appropriate for the company to get involved in overseas operations, but now with the board weve got, although focussed on central Australia, we would no longer restrict ourselves to the Australian scenario if an appropriate reserve based asset became available at the right price. Mr Heugh said Central would consider acquiring such an asset anywhere in the world provided the price is right and the sovereign risk is low, listing Australia, Europe, North America and Canada as potential areas of interest.

So re-capping, the JV partnership is now back on course and coincidently the substantial holding ann was made on the same day as the resolution of the JV partnership. The substantial holdings gets JH back into familiar territory and obviously a decision to become a substantial holder in consultation with the big gorilla me thinks. It would not surprise me if at a later date in time CTP extends their holdings into MHL and expand their acreage not only through the Cooper Basin but internationally as well, after all MHL has heavy interests internationally.