Central Petroleum Ltd

PV14, the first of two Palm Valley appraisal wells, spudded on 25 July 2026. The two-well campaign should take about 4.5 months, with first gas targeted October 2026. The wells aim to restore plant sales capacity to about 14 TJ/d, with at least 10 PJ over their lives.

drilling spud

CFO Damian Galvin, in the role since August 2019, has given notice of retirement and will stay through a handover period. Central has begun searching for a replacement. No reason beyond retirement is given.

director officer appointment

Central says the first Palm Valley well is expected to spud mid-July 2026. The overlift gas liability was fully repaid on 16 May, adding over $7M a year of cash flow. Otway and Cooper drilling slips to 1H 2027 on rig availability.

production update

Central terminated the conditional sale of its EP112 and EP125 sub-salt permits to Georgina because conditions were not met, and withdrew from EP112 (about $1.7M impairment expected). It keeps its 30% of EP125 (Mt Kitty appraisal well expected 2027).

asset acquisition disposition

Central signs a binding gas deal with the Northern Territory Government for up to 21 PJ (10.5 PJ Central share) to 2034, underwriting two new Palm Valley wells from mid-2026, about $26M net cost. The Mereenie volumes dropped out of the deal. Macquarie loan raised by up to $15M.

material agreement

Partner Horizon says the Power and Water Corporation letter of intent for Mereenie has expired without a replacement deal. The joint venture suspends the two Mereenie infill wells, cutting Horizon's 2026 spending by about USD 5M, and will seek other buyers. Existing supply deal to 2030 is unaffected.

material agreement termination

Central completes the ADZ acquisition: 20% of Otway permit PEP169 and 49% of the Cooper retention leases and PEL677, with ADZ as operator. At least three wells are planned in 18 months, starting with Enterprise North in 2H 2026 (up to 79 Bcf gas in place, ~16 Bcf Central share).

asset acquisition disposition

Central agrees to buy from ADZ Energy a 20% stake in Otway Basin permit PEP169 and 49% of Cooper Basin retention leases and PEL677, widening beyond the Northern Territory. It pays $9.2M on completion, a $3.9M success payment and a 5% Cooper royalty. Three to four wells are planned across 2026 and early 2027.

asset acquisition disposition

The Georgina sale is amended to drop EP82 (Magee/Mahler, 60%), which Central keeps via Helium Australia while withdrawing from the EP82 joint venture with Santos. Other terms unchanged. Central expects a $4.2M impairment charge in FY26.

asset acquisition disposition

Partner Echelon says the Mereenie and Palm Valley joint ventures agreed non-binding terms with Power and Water Corporation for gas sales to end-2034, enabling four new wells (two at each field). It is conditional on final documents and approvals. This advances the open Palm Valley and Mereenie development thread.

material agreement

Central and its Mereenie and Palm Valley partners sign a binding letter of intent with Power and Water Corporation. It starts early works for four new wells (drilling targeted mid-2026) and aims for binding gas deals by 20 Feb 2026 for up to 25.5 PJ (Central share) to end-2034. Terms remain non-binding and conditional.

material agreement

Central agrees, conditionally, to sell its interests in three sub-salt permits (EP82 60%, EP112 45%, EP125 30%) to London-listed Georgina Energy for a 25% stake in Georgina. Georgina must first raise at least £7M. Central intends to distribute the shares to its shareholders.

asset acquisition disposition

Central signs a gas deal with McArthur River Mining for 1.3 PJ (Central share) over 2026-27, firm, take-or-pay, fixed price. Management says all expected firm production over the next two years is now contracted. It continues talks on long-term sales from new wells.

contract award

Central announces its first shareholder return: an on-market buy-back of up to 10% of shares over 12 months from 15 September 2025, about $4M at recent prices. This delivers the long-flagged return strategy. It will also cash-settle some executive share rights.

capital raising announcement

The Arafura gas supply deal (from 1 Jan 2028, up to 4.1 PJ net to Central) lapsed because Arafura did not reach a Nolans FID by 31 March 2025. Central and its Mereenie partners will re-market the firm gas. Resolves the open Arafura FID thread negatively.

material agreement termination

WM30 came online on 26 February at over 4 TJ/d, against about 3 TJ/d expected. Mereenie sales capacity is now about 32 TJ/d (100% JV). Delivered cost was under the $8M (Central share) budget. Resolves the WM30 result thread.

production update

WM30 was air-drilled to 1,620 m and the rig released on 19 February 2025; tie-in is expected early March. WM29 has stabilised at about 5 TJ/d versus 3 TJ/d expected. The programme is forecast to finish under budget.

drilling result

Chair Mick McCormack will leave the board on 30 April 2025, as he flagged at the AGM. Non-executive director Dr Agu Kantsler, with over 45 years in the industry, will become Chair. A planned chair handover.

director officer appointment

WM29 began flowing to sales on 20 January 2025. A test reached about 7 TJ/d (100% JV), double the 3 TJ/d pre-drill expectation, but output is capped at 6 TJ/d by the wellhead skid. Resolves the open WM29 flow-rate thread; WM30 sales are targeted for early March.

well test result

WM29 was air-drilled and completed across the Pacoota-3 sandstones, with tie-in expected late January, earlier than planned because of NT gas shortages. WM30 spudded 16 January 2025. Flow rates not yet reported.

drilling result

Documentation for the extended loan is complete and the facility is now unconditional, with a five-year term to 31 December 2029 and no penalty for early repayment. Resolves the refinancing thread from the 28 October commitment.

debt financing

WM29, the first of two Mereenie development wells, spudded 5 December 2024. The two wells are expected to lift field capacity back above 30 TJ/d (100% JV) and produce at least 25 PJ, with up to 6 TJ/d extra sellable under the NT contract. Starts the drilling flagged since August.

drilling spud

Macquarie has committed to refinance the $22.3M loan to a five-year term ending 31 December 2029, with no early-repayment penalty. Subject to final documents, targeted by 30 November 2024. Removes the 30 September 2025 refinancing deadline and resolves the debt restructure thread.

debt financing

FY2024 statutory profit $12.4M, including a $13.8M gain on the Range sale, versus an $8.0M loss in FY2023. Underlying EBITDAX fell 13% to $13.8M, which the company attributes to Northern Gas Pipeline interruptions. Net cash $0.8M.

annual report

Mereenie JV approved two development wells (West Mereenie 29 and 30), lifting capacity from 27 TJ/d to over 30 TJ/d. Central's 25% share costs about $8M, funded from cash. Drilling is expected to start around end-2024, with gas in the first half of 2025.

drilling scheduled

Central's gas EOI concluded with new firm take-or-pay deals with the NT Government, from 1 Jan 2025 to end 2030: up to 40.5 PJ gross (12 PJ Central share). The Arafura deal is deferred to start 2028 (up to 4.1 PJ net), with conditions now due 31 Dec 2024.

material agreement

Mereenie JV has opened an expression of interest for up to 40 TJ/d, 90 PJ (22.5 PJ net to Central) from mid-2024 to end-2030. It would support a decision to drill multiple wells. Mereenie has sold at full capacity since late April under the as-available PWC deal.

material agreement

Mereenie JV signed an as-available gas deal with Power and Water Corporation for up to 8.6 PJ (2.1 PJ net to Central) to end-2024. Mereenie is still curtailed by 10–15 TJ/d; initial sales are expected to be moderate. This is separate from the PWC deal awaiting ACCC authorisation.

contract award

The Northern Gas Pipeline is expected to stay closed until June 2024, so east coast deliveries are blocked. Mereenie JV sales are cut by about 13.6 TJ/d (3.4 TJ/d net to Central) while the JV tries to re-contract that gas to NT customers. Follows the December-quarter outage.

production update

Central signed a firm, take-or-pay gas supply agreement with Arafura for up to 6.85 PJ (net) from 2026, for up to five years, at a fixed price rising with inflation. It is conditional on Arafura meeting conditions, including a final investment decision, by 30 June 2024.

contract award

Central says its strategic review, begun in August 2022, is complete. Outcomes: the $12.5M Range sale, interest in sub-salt exploration, and expressions of interest in its producing assets, none attractive enough to put to shareholders. It will now focus on cost and production efficiency.

other

Central signed a firm, take-or-pay, fixed-price gas supply agreement with Incitec Pivot for 0.87 PJ (net) in 2024. Combined with partners' Palm Valley gas, total supply to Incitec is up to 1.74 PJ.

contract award

Central sold its 50% of the Range Gas Project (Surat Basin) to a Senex Energy subsidiary for A$12.5M, with no conditions and completion expected by end-November. Described as consistent with the strategic review, it is the first disclosed outcome of that review.

asset acquisition disposition

Central extended its South32 gas supply agreement by 12 months, adding 0.36 PJ in 2025 (net to Central). Together with Mereenie partners' gas, total supply to South32 in 2025 is 1.46 PJ, firm take-or-pay, at renegotiated pricing. It is conditional on transport agreements by 30 June 2024.

contract award

Central's subsidiaries terminated the Peak Helium farmout after Peak ignored the statutory demands, and will seek transfer back of 31% in EP82, 10% in EP112 and 6% in EP125. Central's interests return to 60% EP82 (Mahler), 45% EP112 (Dukas) and 30% EP125. The transfers have yet to be completed.

material agreement termination

Peak Helium ignored statutory demands for debts owed to Central subsidiaries, and the operator has paused the three-well sub-salt program pending a joint venture forward plan. This escalates the 30 June default warning; Central says it will consider its options.

joint venture update

Central and its Mereenie partners signed a non-binding 12-month MOU with US firm Twin Bridges to progress a helium recovery unit toward a final investment decision. Twin Bridges would fund and own it, targeting up to 60,000 scf/d, with operating profit split 50/50 with the JV.

material agreement

Central's 2P gas reserves rose 8% before production to 75.0 PJe (1P 62.7) at 30 June 2023, on the PV-12 well at Palm Valley (2P 13.4 PJ) and Dingo remodelling (2P 21.9 PJ). This delivers the reserves booking expected from PV-12. Mereenie unchanged.

resource reserve update

Peak Helium owes Central over $3M overdue under the farmout that completed 31 March, and Central thinks Peak may not fund its farm-in obligations. This puts the three-well sub-salt program at risk. Peak and its financiers want to restructure and prioritise Jacko Bore.

joint venture update

Central estimates its share across the three sub-salt wells at 44.8 bcf helium, 56.7 bcf hydrogen and 272 bcf natural gas. Only Jacko Bore's 2C contingent portion (4.3 bcf helium) is contingent; the rest is undiscovered prospective resource, carrying discovery risk. Peak carries Central up to $4.8M (Jacko Bore) and $5.8M (Mahler).

resource reserve update

The Peak Helium farmout completed on 31 March 2023, resolving the long-delayed condition. Post-farmout interests: EP82 Central 29%, EP112 35%, EP125 24%. Peak free-carries Central for the Mahler and Jacko Bore wells (capped at $20M gross each); drilling is targeted for late 2023 or early 2024.

farm in farm out completion

Half-year to December 2022: revenue $16.7M (down 29%, up 6.7% like-for-like), underlying EBITDAX $5.3M versus $10.0M, statutory net loss $11.2M versus a $30.5M profit last year (which included the asset-sale gain). Net debt $16.8M. PV12 has earned over $3M revenue since 28 November.

half year report

New firm gas deal with South32 (Mt Isa): Central supplies 0.55 PJ over two years from 1 January 2023, take-or-pay, CPI-escalating price. Combined with Mereenie JV partners' gas it totals 2.19 PJ.

material agreement

Palm Valley 12 was tied in and began flowing on 28 November at a stable ~10 TJ/d, about 40% above pre-drill expectations (CEO). Field output is expected to approach the 15 TJ/d plant maximum in mid-December. First production from the rescued well.

production update

Macquarie agreed to expand Central's loan facility by up to $12M in two $6M tranches, to fund Mereenie recompletions and development wells (subject to JV approval). Drawing depends on conditions precedent; Macquarie also gets a 0.25% royalty on Central's 35% of EP112.

debt financing

Palm Valley-12 P1 sidetrack flowed about 11.8 mmscfd in a 187-minute rig test and is being completed as a producer, similar to Palm Valley-13 in 2018. Production rate is only known after tie-in. Rescues the well after the failed deeper lateral; final weekly update.

flow test result

Palm Valley-12 P1 sidetrack flowed gas at about 7 TJ/d in a 47-minute interim test, at 2,598m with about 440m of hole left to drill. The CEO still calls the earlier exploration result disappointing. First P1 flow after the failed P2/P3 lateral.

flow test result

RBC Capital Markets was appointed exclusive adviser for the strategic review of the asset portfolio and possible transactions to crystallise value, announced 24 August. The review is expected to finish by end of October 2022, earlier than the 'several months' first flagged.

other

FY2022 net profit was $21.3M, helped by the $36.6M gain on selling half of the Amadeus fields. Underlying EBITDAX was $16.7M on $42.2M revenue, with an underlying loss after tax of $15.2M. Net debt fell 67% to $10.2M.

annual report

Central signed a one-year firm, fixed-price, take-or-pay gas deal with Shell Energy for 0.91 PJ from 1 January 2025. It is aggregated with Mereenie partners' gas for up to 3.65 PJ total. It becomes binding only once transport agreements are signed. It sells part of Mereenie's uncontracted gas.

contract award

After the failed Palm Valley P2/P3 appraisal, the board will run a strategic review of Central's assets, growth strategies and capital structure, with advisers to be chosen in coming weeks. It is expected to take several months. The Chair cites subdued share price and growth capital constraints.

other

The Palm Valley-12 P2/P3 lateral failed: at 2,431m the well recovered formation water with no significant gas shows, so drilling stops. This ends the revised appraisal target; a P1 sidetrack into the producing formation follows. CEO calls it disappointing.

drilling result

Central and its partners drop the deep 3,560m Palm Valley-12 target, drilling a sidetrack lateral into the P2/P3 unit at 2,061m instead, and defer the Dingo Deep well. Capital shifts to near-term Mereenie or Palm Valley output, funded within the $40m carry. The CEO calls it disappointing but right.

drilling scheduled

Joint venture approvals were given for Santos to begin key activities for three sub-salt wells in 2023: Mahler (chosen over Magee), Dukas and Mt Kitty. Peak Helium will carry Central on Mahler and Mt Kitty (capped $20M gross per well); farmout conditions are progressing.

joint venture update

Central flags Pacoota-3, about 90m below the main producing zone, as a possible extra appraisal target in Palm Valley-12, but wells are $3.1M (gross) over forecast to 30 April. Central's share is carried by NZOG and Cue. The P3 decision may change timing and cost.

drilling scheduled

Central, for the Mereenie JV, set up transport and trading deals to sell non-firm gas (up to 7 TJ/d gross) into east coast spot markets for an initial 2 years. Its first spot sale on 3 May got over $13/GJ ex-field, roughly double its March quarter non-firm average.

material agreement

Central signed a three-year extension of its $32.8M Macquarie facility to 30 September 2025, effective 1 July 2022 on substantially the same terms. Quarterly repayments fall from $2M to $1.125M, with up to $5M extra available. Resolves the pending refinancing before the September 2022 expiry.

debt financing

Palm Valley-12 spudded on 17 April 2022, the deepest well planned in the Amadeus Basin, targeting 123 PJ mean prospective resource (61.5 PJ net to Central, free-carried). Target depth expected early June; a Pacoota sidetrack is the fallback. Dingo-5 follows. This starts the long-awaited exploration program.

drilling spud

Reserves at 31 Dec 2021 are 62.2 PJe (1P), 75.4 PJe (2P) and 92.2 PJe (3P), with Range 2C unchanged at 135.1 PJ. Palm Valley and Dingo 2P rose by 1.7 and 2.3 PJ; Mereenie had a slight cut.

resource reserve update

Central farms out interests in EP82, EP112 and EP125 to Peak Helium, which will fund Central's costs (capped at $20M gross per well) for two sub-salt wells at Mt Kitty and Magee/Mahler. Central's EP112 interest falls from 45% to 35%, with Dukas drilling planned 2023. Resolves the Peak talks.

farm in farm out agreement

Ensign Rig 963 is contracted for Palm Valley Deep and Dingo exploration wells, with spud expected first half of February 2022. Range 9 and 10 step-outs are delayed by rain, and Zevon seismic awaits heritage clearances. Mereenie sales capacity is about 35 TJ/d, with reserves update due Q1 2022.

drilling scheduled

Central signs a firm gas deal for up to 3.15 PJ to Power and Water Corporation over four years from 1 January 2022, take-or-pay at a fixed price with CPI escalation. It sells part of the new Mereenie capacity and is expected to lift Central's average gas price.

contract award

Central is in talks with private helium explorer Peak Helium to farm out part of its Amadeus permits including Dukas (EP112); Santos has already farmed down to Peak. Central is considering a budget targeting Dukas drilling in Q1 2023, ahead of the mid-December 2022 permit commitment, which does not depend on any farmout.

joint venture update

Sale of 50% of Central's Amadeus assets to NZOG and Cue completed 1 October 2021. Central received $30M cash, repaid $30M of debt (loan now $36.8M), has about $24M cash, and expects a circa $35M book profit in FY2022. $31M of the $40M carry remains.

asset acquisition disposition

New Zealand Oil & Gas said the last third-party approvals had been received and all conditions to buying 50% of Central's Mereenie, Palm Valley and Dingo interests were satisfied. Completion was set for 1 October 2021.

asset acquisition disposition

WM28 was completed as a dual-zone producer with good flow tests, expected online mid-September. Mereenie wellhead capacity now exceeds 40 TJ/d (100% JV). Stairway flows could help convert 108 PJ of 2C resource (54 PJ net). The WM27 lower-zone sidetrack is cancelled over hole instability.

drilling result

Range pilot gas rate rose to about 50,000 scfd from 35,000 in July, but water production is lower than expected, so dewatering will run beyond the three-month test. Two more step-out wells (Range 9 and 10) are planned for late 2021 or early 2022. FID timing will slip; first gas from 2024 still targeted.

production update

Santos chose not to provide the carry, so it must transfer 15% of EP112 (home of the Dukas prospect) to Central. Central's interest rises from 30% to 45% and Santos falls from 70% to 55%. This resolves the carry election thread.

farm in farm out completion

Range pilot wells began producing gas earlier than expected after pumping started 14 June, reaching about 35,000 scfd after four weeks and still rising. Water rates are lower than expected, implying less water-handling capital. A tender for gas processing infrastructure is underway.

production update

Central agreed to sell 50% of its Mereenie, Palm Valley and Dingo interests to NZOG and Cue for about $85M: $29M cash, a $40M exploration/development carry, and $23M of assumed prepaid gas obligations. $30M repays Macquarie debt; $35-40M profit expected. Completion is expected Q3 2021, subject to conditions including FIRB and NZOG shareholder approval. This resolves the farmout thread.

asset acquisition disposition

Range-6, the first of three Range pilot wells, spudded on 11 April 2021 with a 704m target depth. Testing should start in June, giving about three months of data to support an FID now stated as 2022, versus the earlier end-2021 target.

drilling spud

Central contracts Easternwell Rig 27 to recomplete four Mereenie wells and drill two new ones, aiming to lift capacity from 32 to 45 TJ/d and add at least 40 PJ (20 PJ net). Central's 50% cost is $13.5M from existing cash; first new well spuds in May.

contract award

Santos, operator of EP112 (Santos 70%/Central 30%), needs more time and has given no timing for a Dukas drilling proposal, so the end-2020 decision target was missed. Minimum commitment still requires a well by mid-December 2022. Central shifts its focus to its 100% EP115 prospects, including Zevon.

joint venture update

Central contracts Silver City's Rig 34 to drill three Range appraisal pilot wells, with the first expected to spud in early April 2021. Follows the November restart of the 50:50 Incitec Pivot JV; the 270 PJ 2C resource supports FID targeted end 2021. Gross output could be about 45 TJ/d.

contract award

Wrix Gasteen resigns as a director effective 28 November 2020, so the chair handover to Mick McCormack is brought forward from the planned 1 March 2021. McCormack becomes Chair immediately. Resolves the transition announced three days earlier.

director officer appointment

Chair Wrix Gasteen said at the AGM it would be his last as Chair, and Central announced he would step down on a date given as 1 March 2020 (apparently meaning 2021). Director Mick McCormack was named to take over as Chair.

director officer appointment

The Amadeus Basin farmout, running since January 2020, advances to final due diligence with a preferred bidder under limited exclusivity, aiming to complete in Q1 2021. It remains non-binding with significant transaction risk, and the company says completion is not assured.

farm in farm out agreement

The Range Gas Project, paused since March 2020, restarts with Incitec Pivot (50:50). A 3-well appraisal pilot is targeted for 1H 2021, FID for end 2021, and first gas potentially in 2023. Net 2C resource is 135 PJ to Central.

joint venture update

Central sells 3.5 PJ of gas to Macquarie for 2022-23, prepaid in full in December 2020, to fund four Mereenie well recompletions and two new wells in 2021. The $69.8M Macquarie loan is also extended 12 months to 30 September 2022.

material agreement

FY2020 maiden full-year profit after tax of $5.4M, on record sales of 12.3 PJE (up 14%) and revenue of $65M (up 10%). EBITDAX rose 51% to $33.4M and net debt fell 30% to $46.1M. Confirms the first-profit and reserves points already flagged.

annual report

Central signs a non-binding-style MOU with AGIG and Macquarie Mereenie to progress the 950km Amadeus to Moomba Gas Pipeline (124 TJ/d) towards a final investment decision in 2H 2021, with first gas in Q1 2024. It could cut transport distance to east coast markets; the MOU can be terminated if milestones are missed.

material agreement

Net 2P oil and gas reserves rise 16% (22.5 PJE after production) to 161.2 PJE at 30 June 2020, driven by Mereenie and Palm Valley and the PV13 well. 105 PJ of 2C contingent gas is confirmed; Stairway appraisal and Palm Valley laterals are targeted for 2021, subject to JV approval and farmout.

resource reserve update

Central and Santos agree the Dukas forward plan: drilling targeted for 1H 2022, with a well option decision by year end. Central keeps 30% of EP112; Santos may elect to carry Central's first $3M of well costs in return for 30% of EP82, otherwise Central's EP112 stake rises to 45%. Resolves the JV negotiation.

farm in farm out agreement

Central says Santos JV talks on a Dukas forward plan are taking longer than hoped. The CEO now says a 2021 spud is not achievable, though negotiations are 'well advanced'. This contradicts the earlier 2021 completion target for Dukas-1, suspended at 3,704m.

joint venture update

Covid-19 operational update: cash was $27.2M at 29 February, and 8.5 PJ a year of take-or-pay contracts underpin over $48M of annual revenue. The Range pilot and pre-FID work are paused, so the early-2021 FID target will be delayed. The CY2020 exploration schedule is no longer feasible.

regulatory community update

Half-year to December 2019 shows Central's first net profit, $3.2M versus a $19.1M loss a year earlier. Revenue rose 78% to $35.7M and EBITDAX hit $17.2M, driven by the Northern Gas Pipeline. Repeats the farmout, Range and Macquarie extension points already known.

half year report

Central extends its $72.8M Macquarie facility by 12 months to 30 September 2021 on substantially the same terms, instead of refinancing with a new lender. Repayments rise to $2M a quarter after September 2020; Range FID is now targeted for early 2021.

debt financing

Central appoints Flagstaff Partners to run the farm-out of the CY2020 exploration targets and the Mereenie, Palm Valley, Dingo and Surprise operating assets, to fund the programme. Completion is targeted by mid-2020. Advances the open farmout thread; no deal yet.

farm in farm out agreement

New gas sale agreement with AGL Energy for up to 21.9 PJ over three years from 1 January 2020, replacing the expiring Incitec Pivot contract. Central expects most revenue in the first two years, and the Mereenie JV also agreed a 2.4 PJ overlift return. Resolves the post-2019 contract gap.

contract award

Following its portfolio review, Central sets a $51M CY2020 Amadeus Basin programme: five prospects and two appraisal tests, with 321 PJ best-estimate gas (net) and 24 MMbbl oil. It will seek farminees to fund it, and a Mereenie Stairway test targets 54 PJ of 2C.

drilling scheduled

Chairman Martin Kriewaldt resigns from the board with immediate effect. Director Wrix Gasteen becomes interim chairman while the board looks for a new director and chair. No reason for the resignation is given.

director officer appointment

NSAI certifies 270 PJ of 2C contingent resources (100% JV) at Project Range, above the earlier 150-180 PJ estimate, because the deeper Taroom coals are now expected to contribute. Central's 50% share is 135 PJ; a production pilot is planned for early 2020.

resource reserve update

Dukas-1 will be suspended at 3,704 m because pressures ahead exceed the rig's capability; the Heavitree target is not reached. Central sees gas to surface as evidence of a working petroleum system. A forward plan is expected over the next few months.

drilling result

Range 2 (615 m TD) completes the exploration programme; net coal is about 30 m and permeability meets or beats expectations. The fifth well is cancelled, pilot wells are targeted for early 2020 (subject to approvals), and a first 2C booking is expected within weeks.

drilling result

Range-4, the first slimhole well in the Project Range programme in ATP 2031, spudded 30 June 2019, meeting the June quarter target. The 4-5 well programme should take about 8 weeks; wells will gather coal data and be plugged afterwards.

drilling spud

Palm Valley reserves cut after existing wells underperformed: 2P falls from 42.0 to 27.8 PJ (26.1 PJ at 31 May 2019), with 13.6 PJ reclassified as contingent resource. Central's total 2P drops 8.4% to 154.5 PJ; firm sales obligations are said to be unaffected.

resource reserve update

Damian Galvin, former CFO of Queensland Gas Company and WestSide Corporation, is appointed Chief Financial Officer from 12 August 2019 (possibly earlier). This fills the CFO vacancy flagged in February and supports the planned debt reduction and refinancing.

director officer appointment

Palm Valley 13 was tied in and began flowing to sales on 17 May 2019, initially choked to about 0.5 TJ/d while ramped up over weeks. It is expected to lift field output toward the 15 TJ/d plant capacity, after the PV1 restart failed.

production update

Santos spudded the Dukas-1 exploration well in EP112 on 16 April 2019, targeting about 3,600 m. Central is free-carried and keeps 30% after completion, with Santos holding 70%. This is the Southern Amadeus farm-out well flagged earlier.

drilling spud

NT regulator approved a 12-month suspension, to March 2020, of the Year 1 commitment to drill Ooraminna-3 on RL3 and RL4. Resolves the deferral application; the well is no longer required in 2019.

regulatory community update

Leon Devaney, acting CEO since 31 July 2018 and a former CFO, is appointed permanent CEO and Managing Director from 21 February 2019, after an executive search. This resolves the open CEO question that followed Cottee's departure.

director officer appointment

Incitec Pivot's gas sales agreement started on 3 January 2019 when the Northern Gas Pipeline began commercial operations, giving Central's NT gas its first access to the east coast market. The new Mereenie Field Boost Compressor is also running.

production update

Mereenie upgrade and Palm Valley restart are now in production, with only the new Mereenie compressor still in run testing. Incitec Pivot's gas contract is now expected to start between 29 December 2018 and 10 January 2019, slightly later than the early December expected before. Completes the Gas Acceleration Programme.

production update

Non-executive directors Dr Peter Moore and Dr Sarah Ryan resigned. Together with Tim Woodall's earlier exit, the non-executive board has lost three directors in about six weeks. No reasons are given in the text.

director officer appointment

Independent NSAI estimate as of 30 June 2018: Central's net 2P gas reserves up 37% to 169 PJ, 1P up 65% to 134 PJ, 3P 205 PJ. 2P oil up 154% to 0.97 million barrels. Contingent resource (2C) gas fell 36% to 91.2 PJ. Increase attributed to the Northern Gas Pipeline and PV13.

resource reserve update

Santos completed 1,337 km of seismic and elected Stage 3, drilling the Dukas prospect in EP112 in Q1 2019 to earn 70%, free-carried for Central. Santos stays at 40% in EP82, EP105 and EP106, leaving Central 60%. Dukas could hold multiple TCF if successful.

farm in farm out completion

Palm Valley-13 stopped early at 2,242 m MD versus the 3,471 m plan, after a second test of 12.1 mmscfd and 85 m net pay. Central says further drilling is not justified. Tie-in to production is planned for early 2019. Note: the release misdates the stop as 13 September; a correction followed.

drilling result

Palm Valley-13 found strong gas from 1,888 m, flowing 13.6 mmscfd through a 3.5-inch orifice at 2,020 m MD, with 45 m net pay. No water or fracking needed. Positive early result for the well, with about 1,400 m of drilling planned still.

flow test result

Gas Acceleration Programme cost forecast rises $11.5m, covering Mereenie and Palm Valley facilities and the PV13 well. Ooraminna-3 drilling is deferred to 2019. A $7.5m increased Macquarie debt facility, subject to conditions, would fund the overrun net of savings.

material agreement

FY2018 net loss was $14.1m, improved from $24.7m. Gas sales rose 46% to a record 4,842 TJ and revenue 41% to $34.9m. Cash was $27.2m. Acting CEO Devaney points to the December pipeline start.

half year report

Queensland Surat Basin permit ATP 2031 (77 km2) formally granted to Central's subsidiary, following the March preferred-bidder news. Incitec Pivot funds up to $20m of exploration under the 50:50 JV agreed 25 June.

regulatory community update

Palm Valley-13 spudded on 21 August, a 100% Central well using the Ensign 932 rig. It targets known Pacoota P1 gas at a high angle, planned 46 days to 3,476 m measured depth. It is the second of the three programme wells.

drilling spud

MD/CEO Richard Cottee will leave on 31 January 2019, and CFO Leon Devaney becomes acting CEO. This replaces the earlier plan to extend Cottee's tenure two years, which was announced in June and had details pending.

director officer appointment

Central signed a gas sales agreement to supply Incitec Pivot at least 20 TJ/d from Palm Valley and Mereenie, from NGP start (expected December 2018) to 31 December 2019. A 50:50 Queensland ATP 2031 joint venture was also agreed, with IPL funding up to $20m of drilling.

material agreement

Central promotes Mike Herrington to President – Operations and Chief Development Officer, appoints Ross Evans (ex-Lattice Energy) as Chief Operations Officer and Robin Polson as Chief Commercial Officer. MD Richard Cottee's tenure is to be extended two years, with details still to come.

director officer appointment

West Mereenie-26 spudded on the night of 22 May, about a month later than the 20-21 April expected. It targets Stairway gas, with 36 days planned to reach 2,915 m measured depth including up to 1,481 m horizontal. Central operates with 50%.

drilling spud

Chair Robert Hubbard retires on 14 May 2018, and the board unanimously backs director Martin Kriewaldt as the new Chairman. This resolves the open chair succession thread; Hubbard had flagged he would step down around the end of the financial year.

director officer appointment

Board approved reopening Palm Valley without waiting for Palm Valley-13, after a review found existing wells can produce 15 TJ/d for two years. Central targets 15-20 TJ/d there and total sales of 54 TJ/d by 1 December, up from 17 TJ/d.

production update

The ACCC's final determination authorises Mereenie joint marketing for three years, resolving the open ACCC thread. Central says this lets more Mereenie gas be developed sooner.

regulatory community update

The Mereenie joint venture approved drilling West Mereenie-26 and an immediate $12m plant upgrade, lifting capacity from 25 to 63 TJ/d (58 TJ/d sold). Only one Stairway well will be drilled, with the second well's funds redirected to the larger upgrade.

joint venture update

Central confirms the ACCC's draft approval and interim authorisation of Mereenie joint marketing, ending the long wait. It will seek joint venture approval quickly for the West Mereenie-26 well and a plant upgrade to about 63 TJ/d gross.

regulatory community update

Central was named preferred bidder for a Queensland Government gas permit (PLR201718-1-1), partnering with Incitec Pivot. They are negotiating a 50:50 joint venture, with IPL providing up to $20m for exploration and appraisal. Not yet final.

asset acquisition disposition

Central contracted Ensign's mothballed Rig 932 for up to four wells, structured so only two (Palm Valley and Ooraminna) need drilling, with an option for two at Mereenie. Palm Valley goes first if the ACCC is still delayed, with a spud in 6-8 weeks.

contract award

AGM chairman's address: Robert Hubbard intends to retire in the first half of 2018, saying the board should be led by someone not tied to the failed scheme recommendation. One more director is to be added. Funding is secure after the August raising.

agm notice

Dr Sarah Ryan, a Woodside Petroleum director since 2012, joins as a non-executive director. She is the second board addition this week, following Martin Kriewaldt; the chairman will comment on further board changes at the AGM.

director officer appointment

Martin Kriewaldt, a former Suncorp chairman and Oil Search director, joins as an independent non-executive director. This is the first of the board additions the chairman promised after the board challenge, with more changes expected before the AGM.

director officer appointment

Central and Macquarie Mereenie agreed a Mereenie Joint Marketing Agreement, aimed at upgrading reserves in time for the Northern Gas Pipeline. It needs ACCC authorisation first. Macquarie Mereenie agrees to remove the $15m NEGI Bonus payments from Central, reinstated if the agreement ends before 3 June 2018. This follows the June scheme failure.

material agreement

The 5-for-12 entitlement offer at 10c closed with about 61.2% take-up by eligible shareholders, raising about A$11.05m. The roughly 70m-share (about A$7.0m) shortfall goes to the underwriters, Macquarie Capital and Morgans, completing the A$27.2m raising announced 10 August.

capital raising announcement

Central is raising about A$27.2m at 10c a share: a A$9.2m placement plus a 5-for-12 entitlement offer of about A$18.0m, fully underwritten. Proceeds fund a A$25m, four-well horizontal drilling programme. This answers the chairman's call for equity.

capital raising announcement

The Macquarie scheme failed: 67.2% of votes by shares were in favour, short of the 75% needed (68% rounded elsewhere). Central stays independent. The chairman says it needs to raise equity, and a separate board-change meeting is still to come.

business combination

A second supplementary booklet postpones the scheme meeting again, to 29 June, with implementation on 18 July 2017. The expert keeps its range but flags greater risk at the top end because pipeline tariffs are less likely to fall. It still calls the scheme fair and reasonable.

business combination

Court allowed a supplementary Scheme Booklet and postponed the scheme meeting from 5 to 19 June 2017. Implementation moves to 6 July. The independent expert still finds the scheme fair and reasonable, and directors still recommend it.

business combination

The 9.85 PJ, five-year EDL gas supply agreement is now unconditional, with supply expected to start 1 June 2017. This resolves the 31 May condition, so Central can begin supplying Pine Creek.

contract award

Central received a fresh notice from holders of 5.04% seeking a general meeting to replace Hubbard with Goodall, Gasteen with Bolkus and Moore with Howes. Board will take steps to convene the meeting, resolving the earlier validity question.

other

Central received notices from shareholders claiming 5.04% (about 21.8m shares) asking for a meeting to replace chair Hubbard and directors Gasteen and Moore. Board is checking validity. This is a new challenge to the board during the Macquarie scheme vote.

other

The Queensland Supreme Court ordered a scheme meeting for 5 June 2017 on Macquarie MPVD's acquisition. The independent expert found it fair and reasonable. Directors recommend voting in favour; implementation is indicated for 21 June 2017.

business combination

Central signed a 9.85 PJ, five-year fixed-price gas supply agreement with EDL for the Pine Creek Power Station in the Northern Territory, starting by 1 June 2017. It is conditional on transport arrangements by 31 May and was weighed by the board in recommending Macquarie's offer.

contract award

Board unanimously recommends Macquarie MPVD's improved scheme: 20 cents cash per share plus a Contingent Value Note worth zero to 19.6 cents, tied to exploration success. Cash is up 14% on the earlier 17.5c. Vote expected late May, implementation June 2017.

business combination

Total GLNG has chosen not to proceed with Stage 2 of the Southern Georgina Basin farm-in, so Central keeps 100% of the acreage. Exploration suspended since March 2016 will be reassessed. Macquarie due diligence is being finalised and talks continue.

farm in farm out completion

Santos is selling its 50% of Mereenie to a Macquarie subsidiary from 1 January 2017. Central keeps its 50% and stays operator, but Macquarie, already bidding for Central and its financier, becomes its Mereenie joint venture partner.

asset acquisition disposition

Board says Central remains unfunded for the capital needed for the post-2018 gas market, and that funding challenges and recent share price could make it hard to resist an offer at a significant premium. Macquarie is still in due diligence; no proposal is capable of acceptance.

other

Central confirmed Macquarie may run confidential, non-exclusive due diligence on its 17.5 cent proposal, aiming for an improved offer. Macquarie is not bound to bid and gets no break fee. Central cites its capital need for the Stairway Project before the 2018 pipeline.

business combination

Macquarie, already a shareholder and Central's principal financier, made an unsolicited non-binding proposal on 10 November to buy 100% of Central by scheme at 17.5 cents per share. The board judged it not in shareholders' interests but will grant due diligence.

business combination

The 30-day test of the Stairway Sandstone at West Mereenie-15 flowed gas at an average 1.5 TJ/d with low 2.6% nitrogen. Stairway remains within the 182 PJ 2C contingent resources (gross, March 2016 certification); oil output rose 7.5% last month.

well test result

Central signed a gas sales and prepayment deal with Macquarie Bank for 5.2 PJ over three years, with up to 3.5 PJ more optional. Immediate payment funds the $10m Mereenie deferred price and removes its Mereenie production bonus exposure, potentially saving $2.5m to $8.75m.

material agreement

NSAI certified Stage 1 of the Mereenie upgrade: Central's 50% proved reserves up 240% to 62 PJ, proved plus probable up 22% to 75 PJ, and 2C contingent resources up 50% to 91 PJ. This lifts the 280 PJ-era base and follows the August 2015 booking.

resource reserve update

Central said Jemena's Northern Gas Pipeline had reached final investment decision, with gas expected to flow in 2018. It split its Mereenie reserve upgrade into three stages (Stage 1 done for $4m and awaiting certification) and reallocated its exploration team, so the exploration general manager left.

other

Dingo gas has passed the delivery point into Owen Springs Power Station as the customer's tie-in is commissioned, resolving the wait since April 2015 sales start. Take-or-pay has applied since 1 April 2015, so over $2.5m of revenue will be paid in January 2016.

production update

Central issued 9.17m shares to retail holders under the share purchase plan, raising $1.74m. With the $10.5m placement, the total raised is $12.24m. Management says this funds its capital needs to first NGP gas revenue in 2018 and targets a gas sales agreement in Q1 2016.

capital raising announcement

The NT Government selected Jemena to build, own and operate the NEGI pipeline (Tennant Creek to Mt Isa, Northern route), expected to carry gas by 2018. Central says it has reserves for 11 PJ pa firm supply, rising to about 45 TJ/d, resolving the long-awaited NEGI decision.

contract award

Central placed 55,307,843 shares at $0.19 to institutions, raising about $10.5m gross, a 20.7% discount to the 5-day VWAP. A further SPP of up to $10.5m is planned. Funds go to reserves upgrades and the June 2016 Mereenie payment. First equity raise since Oct 2014.

capital raising announcement

Central is negotiating non-binding expressions of interest for about 12 PJ a year for 10 years from FY2018/19, and says this could add over $500m of revenue. It lifts its Mereenie reserve target to 420 PJ from 280 PJ. Gas flow testing starts mid-October. All four NEGI bidders have lodged final bids.

material agreement

The purchase of Santos's 50% of Mereenie completed on 1 September 2015, on the expected date, and Central is now operator. With Palm Valley and Dingo, Central says 230 PJ of gas is available to market for NEGI. It expects the NEGI announcement next quarter.

farm in farm out completion

Central says it learned from media of a Houston district court lawsuit over the Total farm-in negotiated in Perth. It has not been served, says its records show no factual basis for the claim, and denies it. Claimant and amount are not stated in the text.

other

Robert Hubbard, a director since 2013 and Deputy Chairman since May 2015, becomes Chairman as Andy Whittle steps down as chair. Whittle stays on the board until the upcoming AGM to assist the transition. This resolves the chairman succession question.

director officer appointment

NSAI certifies Palm Valley and Dingo (100% Central) at 30 June 2015: 28.0 PJ 1P, 56.8 PJ 2P and 52.4 PJ 2C. Central expects the 2C, contingent on markets, to convert to 2P once NEGI is certain, giving about 109.2 PJ 2P.

resource reserve update

Central agrees to buy Santos's 50% of the Mereenie oil and gas field and become operator, for $45m cash ($35m at closing, $10m June 2016). Funded by Macquarie facility lifted to $90m, no equity raise. A further $15m bonus and $55-75m work program apply only if NEGI proceeds.

asset acquisition disposition

Robert Hubbard is appointed Deputy Chairman as part of succession, with Chairman Andy Whittle foreshadowing standing down around the end of the financial year. Richard Cottee's CEO contract is extended 3 years, becoming a direct employee instead of seconded from Freestone.

director officer appointment

Dingo gas project is commissioned with regulatory approvals obtained, ahead of schedule and 10% under budget. Physical gas sales start once the customer's tie-in at Owen Springs Power Station is finished. Capacity is 2.2-2.4 PJ a year. Follows the Magellan assets purchase a year earlier.

production update

After the oil price fall hit Surprise revenue, Central cut headcount by 40%, will spend only on necessary items, and directors will defer 20% of fees. It applies to run Surprise remotely from Alice Springs. Gas operations and the gas growth program are said to be unaffected.

other

Central signed a non-binding heads of agreement to supply up to 15PJ a year of Northern Territory gas to Incitec Pivot, at a confidential starting price. It follows the earlier pipeline talks, but a binding gas sales agreement is still needed, with pipeline tariffs and funding undecided.

material agreement

Central placed 20 million shares at $0.30 to institutions in Australia and Hong Kong, raising $6 million, a 1.7% discount to the 10-day VWAP. DJ Carmichael was lead manager. Funds, with existing cash, are for gas exploration and running costs. Ends the trading suspension.

capital raising announcement

Gaudi-1, the second well in the Southern Georgina unconventional gas program with Total, spudded 14 September 2014. Planned to reach about 2,900m, with the Lower Arthur Creek Formation fully cored. Follows Whiteley-1, which was suspended pending a liner.

drilling spud

Mt Kitty-1 logging is complete and the well is being plugged and suspended. Cores show the Heavitree Quartzite is absent and earlier gas flows came from fractured granite basement. A sidetrack may be drilled later. Gaudi-1 spud is expected within a week; Dingo pipeline construction has begun.

well test result

Court found John Heugh was unfairly dismissed by the board in early 2012, awarding him $1,598,298 including interest, though it also found he seriously breached his contract. Central will consider an appeal with its insurers. Largely resolves the Heugh litigation thread, with a cost to the company.

other

Rig moves to Gaudi-1 to spud mid-September, to finish both wells before the wet season; Whiteley-1 is suspended pending a liner for hole problems. Santos will not proceed to Stage 2 of NW Mereenie. Mt Kitty logging begins 2 September.

drilling progress report

Santos proceeds to Stage 2 of an amended Southern Amadeus JV, funding 1,300km of 2D seismic (about $12m) to lift its interest to 40% in listed permits. Central regains 100% of Ooraminna (RLs 3&4); Pellinor not drilled; WA applications dropped. Santos decision on Mt Kitty and NW Mereenie due around end August.

farm in farm out agreement

Drilling started 20 July 2014 at Whiteley-1 in ATP912, first of the Southern Georgina unconventional gas wells with partner Total. It targets the Lower Arthur Creek Formation; Gaudi-1 is due mid-September. Each well should take about 60 days.

drilling spud

Dingo Pipeline Licence PL30 agreed with the NT Department of Mines and Energy, which on 10 July also approved the Dingo field development and reservoir management plans. Clearing works have started. This clears the pipeline approval flagged as pending for Dingo's first gas.

regulatory community update

Surprise West is producing only 225-250 bopd, below the earlier 524 bopd first-week average and below initial expectations. Southern Georgina's first well is now due mid-to-late July after access delays, and Surprise East is delayed by rig availability. Palm Valley sales run about 100,000 GJ a month.

production update

Central accepted the conditions for Dingo Production Licence 7, converting the field from a retention licence. This is the second production licence in three months. First gas sales to Power and Water are expected in the first quarter of next year, subject to pipeline approval.

regulatory community update

Preliminary gas analyses from Mt Kitty 1 were so inconsistent they may not represent the reservoir. The best sample showed 9% helium, 13% methane and 61% nitrogen, possibly contaminated. Commercial significance cannot be judged; Santos seeks another rig, with results unlikely before end of June.

well test result

Mt Kitty 1 reached 2,295m and flowed gas in four tests (up to 530,000 cfd), with helium up to 5.8% on preliminary analysis. A rig incident halted logging, with no injuries. Central holds 30%; commerciality is too early to judge. Results continue the earlier drilling thread.

well test result

Director Bill Dunmore, on the board since listing, will not seek re-election at this year's AGM. Dr Peter Moore, formerly Woodside's Executive Vice President of Exploration, joins immediately as independent non-executive director, with a six-month overlap. Dunmore's consultancy continues reservoir engineering work.

director officer appointment

Central completes the purchase of Magellan's Palm Valley and Dingo fields near Alice Springs, announced 19 February. Magellan becomes the largest shareholder with about 39.5m shares (about 11.4%), and its nominee J. Thomas Wilson joins the board.

asset acquisition disposition

Surprise West-1 starts producing, flowing about 675 barrels in the first 24 hours without a pump, roughly 70% above the best rate in the earlier extended test. Central expects $50-60/bbl margins, marking its first regular cash flow.

production update

Northern Territory Production Licence #6 for Surprise is granted, the first onshore NT licence since the Native Title Act 1993. This resolves the long-awaited approval thread; the company hopes facilities will be fully operational the week of 10 March 2014.

regulatory community update

Central agrees to buy Magellan's Palm Valley and Dingo gas fields for $35m: $20m cash from a Macquarie loan and ~39.5m shares. Macquarie also gets options and a $30m development facility. Moves Central from explorer to producer; completion is due by 31 March 2014.

asset acquisition disposition

The Central Land Council resolved to enter a Production Agreement for Surprise, subject to approvals, and told governments it has no objection to a Production Licence. This clears the long-awaited hurdle; it would be the first such NT licence in 31 years.

regulatory community update

Total and Central lift Southern Georgina Stage 1 spending from US$60m to US$95m, with the US$190m four-year total unchanged. Central's extra 20% share (US$7m) is deferred, targeted mid-2015. Core wells are planned from April 2014; production tests are possible.

farm in farm out agreement

Surprise budget cut from $13m to $11m, and Surprise West's next stage starts in Q4 2013. Central Land Council conceptual agreement reached on the production agreement. Cash was nearly $15m at end September, so the project can be completed without a farm-out, which is still pursued.

material agreement

Santos spudded the Mt Kitty gas well in EP125 on 13 September, as part of its farm-in obligations to earn 70%. The top hole goes to about 480m; the main hole is planned to about 2,000m in Q1 2014 to the Heavitree formation.

drilling spud

Central proposes a 5-for-1 share consolidation, to be voted on at a general meeting on 27 September 2013. The notice does not seek approval to issue more shares. Options and exercise prices would be adjusted if it passes. Management says it wants longer-term shareholders.

security holder rights change

Central places 100 million shares at $0.10 to raise $10 million, about a 5% premium to the 5-day VWAP, with three institutions taking over 80%. It says this funds Surprise West and Surprise East #1 to production, and expects about $20m free cash flow next year if they perform.

capital raising announcement

Central received a research and development tax incentive refund, which it says funds Surprise West development (up to $5m, payback about nine months). It says it no longer depends on farm-in talks, which it hopes to conclude by September. The refund amount is not stated.

debt financing

Central completes the Santos farm-out for the Simpson, Pellinor and Bejah Blocks in EP97, fully completing the Santos deal over more than 18.7 million acres. This resolves the last open condition from the 4 April partial close.

farm in farm out completion

The board approves stage one of Surprise West development: about $5m capital, roughly three months' work, payback around nine months. It depends on the Production Licence, expected by end of next quarter. Production is targeted by end of 2013. Surprise East is a later stage.

other

The sale of the coal assets to FRID Energy completes, with $1.8m received. This resolves the conditional agreement announced 3 April 2013 and removes the coal tenement holding costs.

asset acquisition disposition

Central completes the Total farm-out over the three Queensland permits (about 6 million acres). Stage one costs US$60m, with Total funding the first US$48m. The Northern Territory EPA132 part closes only when that permit is granted.

farm in farm out completion

Central is named preferred applicant for a 6,500 sq km Western Australian Amadeus Basin block, held through a subsidiary. It also conditionally agrees to sell its coal assets for $1.8m, completion scheduled May 2013, resolving the open question over non-core coal.

asset acquisition disposition

Central completes the Santos farm-out for most of the 18.7 million acres in the Amadeus and Pedirka Basins. The EP97 parts are deferred until the Rawson share purchase finishes. This follows the 2 October 2012 Santos deal.

farm in farm out completion

Central buys Rawson's remaining 20% EP97 interest for 50 million shares, under 4% of Central. On closing of the Santos farm-out, Central will hold 44% and Santos 56% of the farm-out blocks. A Pellinor well is planned within two years. Subject to government consents.

asset acquisition disposition

Reserve report puts Surprise-1 at 7.48m barrels of oil in place, with 3P recoverable reserves of 2.1m barrels and 600,000 barrels proved. That supports interim development once a production licence is granted. Debt and a partial farm-out are options.

resource reserve update

Andy Whittle is confirmed as Chairman, after acting in the role since Henry Askin retired at the November AGM. Richard Cottee, CEO since July 2012, becomes Managing Director. The company describes this as a new age of stability.

director officer appointment

Queensland Authorities to Prospect 909, 911 and 912 are granted, as expected under the Total deal. Central will transfer part of its interest to Total, starting the US$60m stage one. Further permits and agreements are needed before fieldwork.

regulatory community update

Central says the Surprise test showed stabilised 200-400 bopd without a pump, with water falling to 3.2%. The well is shut in. A first reserve booking is expected early 2013, and a development decision is targeted for Q3 2013, possibly funded by the 303m 16c options.

production update

Total farms into about 6 million acres of the Southern Georgina Basin (EP(A)132, ATP(A)909/911/912). Stage one is US$60m, with US$130m more at Total's election, earning up to 68%. Central operates for four years and keeps 100% of Surprise. Second farm-out after Santos.

farm in farm out agreement

Santos farms into up to 13 Amadeus and Pedirka permit areas (nearly 80,000 sq km), investing $30m initially plus options for $60m and $60m more, to earn up to 70%. Central is free-carried and keeps at least 30% plus 100% of EP115. Subject to permit renewals. First major farm-out after months of talks.

farm in farm out agreement

Central settled all legal proceedings with Petroleum Nominees, a Clive Palmer company. No terms are given in the announcement. This ends the Palmer litigation over the placement and the 22 June meetings.

other

Central applied to the NT regulator for a production licence around Surprise-1, saying test results to date justify it. 3D seismic at Surprise and 2D at Pellinor are fully acquired; 3D processing is 50% done. Advances the field toward development.

regulatory community update

First load of Surprise-1 oil has left for market under a signed 3-month crude sales agreement, matching the test length. The well is performing as expected. Surprise 3D seismic is about 30% complete, with line clearing started at Pellinor in EP-97.

production update

Bruce Elsholz and co-founder Richard Faull resigned as directors on 22 June to make way for Herrington and Gasteen, appointed under the meeting resolutions. Elsholz stays as CFO. Cottee is now Managing Director and CEO. Board reshuffle follows the 22 June vote.

director officer appointment

Oil began flowing from Surprise-1 REH ST1 on the extended production test, with the initial rate set by test protocols. First load of oil is expected to reach market around the end of next week. This is the first flow since the delayed start.

production update

Richard Cottee started as CEO immediately, earlier than planned, to progress commercial negotiations. His continuing role depends on shareholders approving him as director on 22 June. Dalton Hallgren returns to Chief Operating Officer, ending his acting CEO stint.

director officer appointment

Requisition nominees Goodall, Cockcroft and Philis withdrew their consent to act as directors, saying shareholder objectives are met by the Cottee, Gasteen and Herrington appointments. This resolves the second requisition to replace Askin, Faull and Dunmore.

director officer appointment

Richard Cottee, who led Queensland Gas Company to a $5.7bn sale to BG Group, is to become CEO and director, replacing John Heugh, subject to a 22 June 2012 vote. Mike Herrington and Wrix Gasteen are also proposed as directors. Board says farm-outs are a focus.

director officer appointment

Central is investigating a separate listing of its Pedirka Basin coal assets, saying the market gives them little value. The new entity would have its own board and management, with Central keeping an equity interest. Details are to follow.

other

Andrew Whittle, a geologist with 42 years' experience, and CFO Bruce Elsholz were appointed directors from 25 April. The board grows as a requisitioned meeting looms (inference: possibly related).

director officer appointment

Directors accepted the second requisition as valid and will convene a general meeting. The requisitioning holding was corrected to 6.38%. Shareholders will vote on replacing three of four directors, resolving the validity question.

other

A second requisition, from shareholders claiming 6.45%, again seeks to replace Askin, Faull and Dunmore with Cockcroft, Goodall and Philis. Directors are checking its validity. This follows the first requisition being ruled invalid.

other

Central completed an $11m placement of 130m shares at 8.5c, a 6% discount to the 5-day VWAP, to fund Surprise appraisal and support farm-out talks. Placees get one free 12.5c option per two shares, subject to shareholder approval. Follows the 5.5c raisings in February.

capital raising announcement

Central received a requisition from shareholders claiming 10.14% to replace chair Askin and directors Faull and Dunmore with Cockcroft, Goodall and Philis. Heugh, the terminated MD and now a non-executive director, is among the requisitioners. Directors are checking validity. This follows the 28 March warning.

other

Central says it has heard shareholders plan to requisition a meeting to replace chair Henry Askin and directors Richard Faull and William Dunmore with Peter Cockcroft, John Jetter and Colin Goodall. No requisition has been received yet.

other

Central has terminated MD John Heugh's employment; he has sued in the WA Supreme Court and stays a non-executive director. COO Dalton Hallgren becomes Acting CEO. The company will defend the action, a sudden leadership change after the Surprise discovery.

director officer appointment

Central raised $9.9m before costs via the share purchase plan and a 50m-share top-up placement at 5.5c, to fund Surprise appraisal (EPT, 3D seismic, drilling). EPT is planned for April and may run six months or more; an oil sales contract is expected within weeks.

capital raising announcement

RPS Energy says pressure data suggest Surprise-1REH may access 0.5-2 million barrels of oil in place near the well, with no boundaries seen. Final test rate is quoted as about 400 bopd. EPT is now expected in April 2012; a second well may be postponed until 3D seismic and EPT results.

resource reserve update

Surprise-1 Re-entry H flowed light sweet 40 API oil at a maximum sustained 300 bbl/day over four hours, still cleaning up (7.5% drilling fluid cut). This is the first oil flow to surface for the Northern Territory in almost five decades. It resolves the open question of movable oil, though the rate is early and not yet commercial.

flow test result

Log interpretation suggests a possible oil column of up to 17m in the Lower Stairway Sandstone, with permeability up to 420 mD. Central plans a horizontal leg of up to 700m. Movable oil is not yet proven; the plan needs NT Department of Resources approval.

drilling result

Surprise-1 ST1 reached 2,672m in the Pacoota Sandstone. With the core drilled in December 2010, about 20m of continuous fair to good oil shows are reported at the base of the Lower Stairway. These are preliminary well-site observations, not tested flows; logging is still to confirm oil saturation.

drilling progress report

New Surprise-1 plan after input from new COO Hallgren and Exploration Manager Shortt: drill to about 2,770m, log, run 7" casing, then contingently drill to about 3,450m. Horizontal or slanted wells are possible if results justify. This replaces the earlier sidetrack-for-vertical-completion plan.

drilling scheduled

Central signs the Hunt Rig 3 contract for up to three wells: the Surprise-1 re-entry, Madigan or Simpson East, and Mt Kitty. It turns the 17 October letter of intent into a contract. Re-entry is planned for the first week of November, with testing by about mid December.

contract award

Central issues a letter of intent for Hunt Rig 3 for up to three wells and drops talks with Australian Drilling Services. Mobilising from 24 October, Surprise-1 sidetrack re-entry in early November, testing done about early December. Contract not yet signed; rig shortage blamed for delay.

contract award

Traditional Owner agreements are signed for Queensland permit applications ATPs 909, 911 and 912, about 3.5 million acres in the southern Georgina Basin. Grant is expected within several months. Central conditionally plans seismic and up to three horizontal wells in 2012.

regulatory community update

Central completes a placement of 91.0 million shares at 5.5 cents, raising about $5.0m via Patersons, for its drilling strategy and working capital. A Share Purchase Plan underwritten for $5.5m is planned. Price is well below the 8.6c placement of September 2010.

capital raising announcement

At Central's request, CTP shares and CTPO options are suspended from 13 September 2011 pending an announcement of a material capital raising, for up to two trading days (to 15 September). Size and price are not yet disclosed; it follows the failed SPP and ACBO termination.

capital raising announcement

An interim independent valuation by Mulready Consulting puts the upstream value of Central's risked Amadeus and Southern Georgina unconventional resources at $412m, and a possible GTL plant at $5bn if about 5 TCF of gas is found. Early-stage; Surprise re-entry is now late September.

resource reserve update

Central mandates Canaccord Genuity and Cormark Securities as financial advisers for a proposed TSXV listing in Q4 2011 to Q1 2012. Surprise-ST1 re-entry is now 'contingent', mid to late September. A 12-18 month programme includes Mt Kitty-1 and Madigan-1. Listing is not yet done.

capital raising announcement

Central signs a Letter of Intent with Australian Drilling Services to contract Rig 6 for up to three wells from mid-September 2011: Surprise-1 re-entry, then Madigan (4 bn bbl P50) and Mt Kitty (2 TCFG P50). Contract is not final; conditions remain, including rates and terms.

drilling scheduled

Central signs an exclusive Deed of Cooperation with Allied Resource Partners to seek funding and technology partners for underground coal gasification and gas-to-liquids projects in the Pedirka Basin. Stage 1 targets 60,000 bpd at about $7.5bn, needing an undrilled 4 bn tonne resource. Early-stage, with no funding committed.

material agreement

Central has terminated its November 2007 bond subscription agreement with ACBO, which it had drawn on to fund exploration. It cites its cash flow outlook, need for significant funding and ability to raise funds. This closes the ACBO bond facility, a funding source.

material agreement termination

Central says it is conditionally planning a Toronto Stock Exchange listing to seek North American partners and capital, citing growing Canadian holders and what it calls an undervalued share price. No commitments yet. Funding follows the failed SPP.

other

Technical note interprets Devonian reef and platform oil plays in the Pedirka Basin with 6 billion barrels best-estimate undiscovered oil in place, mostly in EP 97 (Central 80%, Rawson 20%). In-house and undrilled. Central says it has farm-in interest from majors and state-owned firms.

resource reserve update

Independent DSWPET report puts mean prospective recoverable resources in Central's Southern Georgina applications at 5 billion barrels of oil and 33 TCF gas, over 6 million net acres. Subject to permit grants. Completes the assessment pending since February, alongside the Amadeus estimate.

resource reserve update

Central and Great Southern Gas agreed to end their farmout and joint operating agreements, with GSG leaving EPA 130 for an undisclosed settlement sum. Merlin regains GSG's 45%, so Central now holds EPA 130 fully, and the GSG partnership ends.

farm in farm out completion

An independent assessment by DSWPET and MBA Petroleum Consultants put mean unrisked prospective recoverable resources in Central's 100%-owned Amadeus Basin acreage at about 26 TCF of gas and 1 billion barrels of oil. Central said much more seismic, drilling and testing would be needed to confirm them.

resource reserve update

Preliminary core analysis from Surprise-1 shows permeability averaging 295 mD in one zone and porosity of 5-8%, which RPS Energy-backed estimates suggest could flow about 970 bopd pumped or 420 bopd naturally. This is unproven until the well is re-entered and logged.

drilling result

The share purchase plan, which closed 14 January 2011, drew minimal applications, so it will not be extended and all money will be returned. It resolves the SPP extended twice and no longer underwritten; the $6.45m placement is not mentioned.

capital raising announcement

Trident missed its payment deadline, extended to 20 December, so the farmout was terminated and it withdrew from EP 115. Central's subsidiary Frontier regains 100% of the permit, ending the 10% earn-in arrangement set up in August 2010.

material agreement termination

After the rig incident damaged the monkey board beyond repair, Central will plug and suspend Surprise-1, demobilise, and terminate the drilling contractor, citing wet-season risk. Drilling is meant to resume in first half 2011; flow tests of live oil zones failed when a tool stuck.

drilling result

Central says new seismic suggests a possible Devonian carbonate reef oil play in the Pedirka Basin, including the Pellinor Reef in EP 97. Erec and Lucan leads are put at over about 5 billion barrels at high estimate. It is a preliminary interpretation needing more seismic and drilling.

regulatory community update

Central extends its share purchase plan closing date from 3 November to 6 December 2010, so shareholders can see Surprise-1 results first. Patersons advised the underwriting of the first $12.9m no longer applies, so that minimum is no longer guaranteed.

capital raising announcement

Surprise-1 spudded on 11 October in EP 115 (Central 90%, Trident 10%), targeting 50 million barrels of oil in place at about 3,000m, with a 29% chance of success. Drilling should take about 30 days. Management called Johnstone-1 flow rates disappointing.

drilling spud

Johnstone West-1 did not produce oil to surface on flow test despite excellent oil shows and positive logs. The well is suspended; future horizontal drilling is possible after 3D seismic. This contradicts the expected oil flow. The rig moves to Surprise-1.

well test result

Johnstone West-1 flow testing is delayed because a bridge plug did not seat correctly; testing is expected early next week. Netherland Sewell concluded the Pedirka coals did not generate economic thermogenic methane, resolving the CSG question; a four-well coal drilling programme is planned within a month.

drilling progress report

Central raised $19.35m at 8.6c per share, an 18% discount to the 10.5c close: a $6.45m placement of 75m shares plus an underwritten share purchase plan of at least $12.9m. Funds go to about 300km2 of 3D seismic and appraisal at Johnstone and Surprise.

capital raising announcement

Preliminary logs at Johnstone West-1 show a 128m hydrocarbon column, including 14.1m net potential oil pay in the Stairway Sandstone (11% porosity, over 33 mD). Central will stop drilling and flow test, with initial testing expected by about 2 October. Oil flow is anticipated, not yet proven.

well test result

Central exercised its rig option to drill Surprise-1, about 8km south-southeast of Johnstone West-1, once JW-1 finishes. Surprise-1 has a high estimate of 50 MMbbl and a fully risked mean of 6 MMbbl. This confirms the earlier conditional plan.

drilling scheduled

Johnstone West 1 found further oil shows at 1,469-1,475m: up to 90% fluorescence, visible live oil at the shakers, fair to good porosity. Shows now span 88m (1,387-1,475m) with no water leg seen. An 18m core is being cut; testing is still needed.

drilling result

Johnstone West 1 found significant oil shows over 22m (1,387-1,409m), with up to 40% fluorescence, in sandstone likely of low porosity. Central says it suggests an active oil kitchen and raises the chance of drilling Surprise 1. Drilling continues; it is not yet a discovery.

drilling result

Central shifts the 2010 programme toward oil for short-term cash flow. Magee 2 (800 BCFG, 15 BCF helium) is deferred, partly because Oil and Gas Exploration (formerly He Nuclear) owes about $1m in cash calls. Surprise 1 pad is being built, and shale studies are commissioned.

drilling scheduled