BSP own approximately 60% of the company, so they effectively control TNP. I have no real problem with that. If everything goes to plan I suspect the relationship will be beneficial for share holders. A reminder that BSP, Paul Underwood, and the drilling contractors only benefit if the share price goes up so it's in everyones best interest for this to work (note: Paul's remuneration is relatively small based on his expertise and experience so his real pay day will be based on share price growth).
Interesting info from the presentation from yesterday
*The first area is just 3 kms from the city of Hegang - population of ~1 million
*Hegang has an existing and substantial gas pipeline network servicing the market
*The pipeline network is currently undergoing a major capacity upgrade as gas market grows
*There is already a gas fired electricity plant in the lease area (Junde) – using gas from the more shallow coal seams currently being mined.
This demonstrates that the CBM projects in the area work. It's just a matter of TNP proving that the wells will be commercial (not without risk), but if they are we will be re-rated and heavily de-risked in my opinion.
Regards
Doyle
TNP Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
