CTP 1.96% 5.2¢ central petroleum limited

CTP-IPL Qld acreage

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    IPL reported first half profits yesterday. Ghastly gas costs flattened returns from its Gibson Island Qld plant.

    Today's AFR (paywalled): "Government heat on gas giants not enough: Incitec"

    The juice:

    Incitec’s main strategy to secure gas for Gibson Island beyond 2019 is through a memorandum of understanding with Central Petroleum, which was recently awarded the Queensland acreage that is quarantined for domestic gas customers.

    Incitec is expected to contribute almost $20 million towards appraising the acreage, under a partnership that Ms Johns said could give the company access to gas below market prices.

    ‘‘We are working with Central to do a joint venture that potentially could give it to us on more of a cost basis,’’ she said. ‘‘The geology is amongst the least risky geology, you never say never, but this is fairly certain that there is gas here.’’

    _____________

    Ash here.

    The grant was to CTP alone. From the last CTP Quarterly report:

    "On 1 March 2018 the Honourable Dr Anthony Lynham MP announced that Central’s wholly-owned subsidiary, Central Petroleum Eastern Pty Ltd, was the preferred bidder for Queensland acreage PLR201718-1-1 (ATPA 2031)."

    CTP has a very motivated partner with ready cash wanting the shortest route to commercialisation that is humanly possible. Government is anxious to sustain Gibson Island, a key manufacturing asset destined to close on gas costs, and granted this attractive acreage on good terms. Both want intense exploration to begin immediately.

    This is RC at his finest - using other people's money. Long-term holders will know of the established CTP-IPL relationship. (no, RC doesn't leap buildings with a single bound - he needs a short run-up first)

    Please consider the consequences for the CTP share price.

    Ash
 
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