AGM is coming up, SP is dismally low, communication from the company is dreadfully inadequate. If I were the MD in that position, I'd want to do a CR in friendly hands simply to protect myself from disgruntled shareholders at the AGM. Least of which Magellan, despite the sweet deal they managed in offloading Dingo to some poor suckers, can't be too happy about losing millions of dollars as CTP promises to market fail to materialise.
Any way time for some optimism. STO's Mt Kitty results are *actually* encouraging, once you get over the initial disappointment of the reservoir being totally different to what was expected. Fractured granite reservoir is not bad news, big oil fields in vietnam and venezuela are hosted by granite. The key to unlocking the Amadeus requires the exploitation of natural (or induced) fractures due to the tight nature of the basin, so I think "extensive fracturing" of the granite basement is great news. STO shooting more seismic, doing revised resource estimates, it's all good news just not exciting to the market due to the obvious lack of immediate cashflow. Plugged and suspended makes sense, it's hard for a major to justify drilling a ST straight away when all of a sudden you don't understand the geology anymore, need to do some homework first. A minor like CTP might risk it if they had the money, but STO has no incentive to do so. I'm looking forward to hearing more about the Mt Kitty appraisal. Surely CTP must employ geologists who can write technical notes, I have no idea why the brokers aren't leaning on management for an updated - and frank - geological appraisal of CTP's dynamic portfolio.
CTP Price at posting:
33.5¢ Sentiment: None Disclosure: Held
