2 May 2017farm in farm out completion● Neutral
Santos exercised its option, granted in the 2015 Mereenie deal, to take 50% and operatorship of EP(A)111 and EP(A)124 in the Southern Amadeus Basin. Central keeps 50% of these application areas.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
2 May 2017other● Neutral
Release of the court-approved Scheme Booklet, including Ernst & Young's independent expert's report, for the 5 June meeting. The board recommends voting in favour absent a superior proposal. Mailing to shareholders is on 5 May.
28 Apr 2017business combination▲ GoodMajor
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.
27 Apr 2017quarterly activities report● Neutral
March 2017 quarter: cash $7.8m. Board backs Macquarie's 20c plus CVN scheme, with the meeting in early June. Total's exit refunds $550,000 of bonds but frees Central of $2m spend. Focus shifts to Northern Territory markets after the reform group excluded the pipelines.
26 Apr 2017contract award▲ GoodMajor
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.
10 Mar 2017business combination▲ GoodMajor
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.
8 Mar 2017half year report● Neutral
Half-year to 31 December 2016 report, repeating known points: Santos sold Mereenie 50% to Macquarie for $52m, the Macquarie proposal talks continue, Stairway testing continues, and Total is withdrawing from Stage 2. Central says capital to develop reserves is imperative.
27 Feb 2017farm in farm out completion▼ BadMajor
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.
27 Jan 2017quarterly activities report● Neutral
December 2016 quarter: cash $5.9m, about $2m above forecast. Central plans to accelerate the Stairway project, a potential 120 PJ of gross incremental reserves. Santos sold its Mereenie 50% to Macquarie for $52m. Macquarie due diligence and GRR litigation continue.
20 Dec 2016asset acquisition disposition● NeutralMajor
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.
13 Dec 2016other● NeutralMajor
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.
13 Dec 2016other● Neutral
Re-release of the 13 December market update with a video link added. Same content: Central remains unfunded for development, Macquarie is still in due diligence, and no proposal is capable of acceptance.
30 Nov 2016joint venture update▲ Good
Santos began acquiring over 1,000km of 2D seismic in the Southern Amadeus Basin, part of its 1,300km Stage 2 farm-out commitment (about $12m), due to finish by end of March 2017. Completing it lets Santos lift its interest from 25% to 40% in EPs 82, 105 and 112.
24 Nov 2016material agreement● Neutral
Central hired Origin Securities as defence adviser on Macquarie's scheme proposal and due diligence. The aim is either to stay independent and adequately capitalised, or to achieve a change of control above Macquarie's 17.5 cent proposal.
21 Nov 2016business combination● NeutralMajor
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.
21 Nov 2016regulatory community update● Neutral
Central has started Queensland Supreme Court proceedings against GRR, seeking declarations that no agreement for the claimed fees was signed. Alternatively, it says its then Exploration Manager had no authority to sign. This counters GRR's Texas action.
16 Nov 2016regulatory community update● Neutral
Central has lodged an appeal against the Texas court's order rejecting its objection to jurisdiction in the GRR commission case. This continues the dispute reported on 4 November.
14 Nov 2016business combination● NeutralMajor
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.
9 Nov 2016investor presentation● Neutral
AGM presentation by the Managing Director, repeating the October briefing deck: pipeline progress, 207 PJ 2P and 234 PJ 2C reserves, 175 PJ uncontracted gas and about 60 TJ/d unsold capacity. No new information.
9 Nov 2016agm notice● Neutral
Chairman's AGM address: FY16 revenue rose 120% to $22.64m with positive EBITDAX, and the board is now four after Tom Wilson's July exit, with a search for another director. He says the Texas ruling only decides jurisdiction, and Central will defend the GRR claim.
4 Nov 2016regulatory community update▼ Bad
A Texas judge ruled Texas has jurisdiction over a commission claim by Nevada company GRR relating to a Queensland farm-in. Central first learned of the case through the press and is considering how to defend. The claim amount is not stated.
31 Oct 2016quarterly activities report● Neutral
September 2016 quarter: cash fell to $7.2m from $15.1m, after a final $3.3m Santos payment closing the Mereenie free-carry. Stairway testing continues at 2.6% nitrogen. Restructuring cost about $700,000, with annual savings of nearly $700,000. An estimated $4.6m take-or-pay payment is due in January.
24 Oct 2016investor presentation● Neutral
October 2016 shareholder briefing deck repeating known points: the Northern Gas Pipeline (622km, 90 TJ/d, about $800m), about 60 TJ/d capacity unsold, 207 PJ 2P and 234 PJ 2C reserves, and 175 PJ uncontracted gas. No new results.
17 Oct 2016price query● Neutral
Responding to an ASX price query after the shares rose from $0.12 to a high of $0.145, Central said it knows of no undisclosed information. It pointed to publicity about Dr Vertigan's review of pipeline regulation, reporting to COAG in December.
13 Oct 2016other● Neutral
Notice of open shareholder briefings by Managing Director Richard Cottee in Melbourne (24 Oct), Sydney (27 Oct) and Perth (31 Oct) 2016. Administrative only, with no new company information.
7 Oct 2016annual report● Neutral
Appendix 4G governance checklist for the year to 30 June 2016, lodged with the annual report. It carries no new business information.
21 Sept 2016annual report▲ Good
2016 annual report. The chairman notes positive underlying EBITDAX for the first time in the company's history, plus Mereenie operations transferred to Central and Dingo brought on. He says challenges remain before Central can enter the east coast market. Full financials are not visible in the text provided.
20 Sept 2016investor presentation● Neutral
September 2016 roadshow deck repeating the pipeline, reserves (207 PJ 2P, 234 PJ 2C) and 175 PJ uncontracted gas messages. It adds a share price of $0.10 (19 Sept), market cap about $45m, and says the NT government change does not affect Central.
15 Sept 2016investor presentation● Neutral
SEAAOC conference presentation on selling NT gas to the east coast via the Northern Gas Pipeline. It repeats known facts: 175 PJ uncontracted gas, possible rise past 300 PJ via the Stairway, and about 60 TJ/d of pipeline capacity unsold. No new results.
2 Sept 2016regulatory community update● Neutral
Managing Director Richard Cottee argues the COAG review of gas pipeline regulation is key to supplying the east coast from 2018. He says Central has 175 PJ uncontracted gas available, with possibly 125 PJ more from the Stairway if field pricing is right. No new transaction.