Past year: ▼ 6%(5.80c – 9.30c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
13 Aug 2019drilling result● NeutralMajor
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.
9 Aug 2019drilling result▲ GoodMajor
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.
6 Aug 2019drilling progress report▼ Bad
Dukas-1 at 3,704 m met formation pressure well above earlier nearby wells, with an inflow of gas of unknown composition. The joint venture may suspend the well and return later. The Heavitree target is not yet reached, expected within a few hundred metres.
31 July 2019drilling result▲ Good
Range 3 (745 m TD) showed permeability better than expectations; Range 2 spudded 30 July. Central says a first 2C resource booking is expected after interpretation. Dukas-1 resumed drilling on 31 July.
23 July 2019drilling progress report▲ Good
Range 5 (710 m TD) preliminary tests show permeability in line with expectations; Range 3 spudded 21 July. At Dukas-1 the stuck liner has been fished out and drilling will continue to total depth in the 9½-inch hole, resolving the earlier delay.
18 July 2019investor presentation● Neutral
Noosa conference presentation: about $100M market cap, net debt $64M at 30 June 2019, 713.4m shares, June quarter sales 3.8 PJE. Reserves restated at 153 PJ 2P after the Palm Valley cut; Dukas-1 and Range drilling continue, with $10M more debt reduction targeted in CY2019.
12 July 2019drilling result▲ Good
Range 4 reached 845 m, intersecting Walloons coals from 285 to 630 m; preliminary tests show encouraging permeability in the deepest, expected-worst well. Range 5 spudded 11 July. Dukas-1 liner problems add four to seven days' delay; full Range interpretation due end of August.
5 July 2019drilling progress report● Neutral
Dukas-1 has drilled to 3,515 m in the Gillen Formation; logging is under way before an intermediate liner is set. The Heavitree target is up to two weeks away, as the Lower Gillen may be thicker than expected.
1 July 2019director officer appointment▲ Good
Dr Julian Fowles, a former senior Oil Search executive with 17 years at Shell, joins the board as a non-executive director from 28 June 2019. This continues the board additions that follow the new management team.
1 July 2019drilling spud▲ GoodMajor
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.
21 June 2019drilling progress report● Neutral
A rig is contracted for a 4-5 well Project Range programme in ATP 2031, first spud expected late June or early July, about 8 weeks. Dukas-1 reached 2,997 m, delayed several days by a top drive repair; the Heavitree target is one to two weeks away.
12 June 2019resource reserve update▼ BadMajor
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.
6 June 2019drilling progress report● Neutral
Dukas-1 has drilled to 2,604 m with surface casing cemented. Low background gas in the Gillen Formation could indicate the salt is an effective regional seal. The Heavitree target is estimated about two weeks away; Central keeps 30% after the free carry.
31 May 2019production update▲ Good
PV13 has been ramped up to 6.3 TJ/d, with Palm Valley now delivering 12.4 TJ/d, roughly doubling field deliverability. The tie-in came in significantly under budget; the rate is capped by the reused PV1 wellhead skid.
17 May 2019director officer appointment▲ GoodMajor
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.
17 May 2019production update▲ GoodMajor
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.
14 May 2019investor presentation● Neutral
Webinar presentation on the March quarter: sales averaged 38.9 TJ/d, unit production cost $2.28/GJE, Mereenie overlift imbalance about 4.6 PJ. Palm Valley under review; PV13 online in May. About $6m of remaining GAP costs; mostly repeats the quarterly report.
7 May 2019other● Neutral
Notice of a shareholder webinar on 14 May 2019 where the CEO will discuss the March quarter report. Administrative; no new information.
16 Apr 2019drilling spud▲ GoodMajor
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.
11 Apr 2019regulatory community update▲ GoodMajor
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.
25 Mar 2019investor presentation● Neutral
Blue Ocean Energy Day presentation. Shows 711.0m shares on issue, net debt $75m, share price about 13c, and sales up 260% in the first two months after the pipeline. Reserves unchanged; mostly repeats known facts.
6 Mar 2019director officer appointment▲ Good
Dr Duncan Lockhart, with over 25 years' exploration experience, is appointed General Manager Exploration from 8 April 2019, reporting to the CEO. Follows the stated plan to strengthen exploration capability; investment is to be selective and funded from internal cash.
26 Feb 2019other● Neutral
New CEO letter: second half aims to show free cash flow can fund growth without new debt or equity. Senior debt refinancing talks begun, targeting Q3 CY2019; Dukas well on track for April; ATP2031 drilling early next quarter; CFO being recruited; Ooraminna-3 deferral applied for.
25 Feb 2019other● Neutral
Publication of the company's Securities Dealing Policy, setting out insider trading rules for directors, staff and associates. Administrative; no new business or financial information.
21 Feb 2019director officer appointment▲ GoodMajor
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.
20 Feb 2019half year report● Neutral
Half-year report to 31 December 2018. Chairman calls 31 December 2018 the pivot from minor gas seller to significant producer, with most sales cash above normal costs going to debt reduction. Interest-bearing liabilities were $86.3m against $10.9m cash (per later presentation).
13 Feb 2019investor presentation● Neutral
Investor presentation: January gas sales in line with forecast, 90% firm contracts. Share price 13.5c, market cap about $95m. Repeats reserves, the Santos Dukas well and ATP 2031 plans (drilling now Q3 FY2019). Estimated transport cost to Ballera about $4.50/GJ.
13 Feb 2019admin correction● Neutral
Re-release of the 13 February presentation, adding a footnote to the reserves table saying the reserves were first reported on 13 November 2018. No change to figures.
5 Feb 2019director officer appointment● Neutral
Richard Cottee has resigned as a director. This follows his earlier-announced departure as MD/CEO, with the permanent CEO search ongoing.
3 Jan 2019production update▲ GoodMajor
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.
