4 June 2010drilling progress report● Neutral
CBM93-002 was at 772m, with coal seams individually over 10m thick; TD of 950-1,000m expected by 7 June. Ooraminna 2 spud slips again, now expected by 9 June, as rig equipment is still arriving.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 May 2010drilling progress report● Neutral
CBM93-002 hit top Permian coal at 510m (3m of coal), with casing cemented and coring due to start. Central also notified a coal discovery in CBM107-002 (65m cumulative coal). Ooraminna 2 spud slipped past 31 May to about 4 June after rig components were not loaded out in time.
31 May 2010security holder rights change● Neutral
Notice that 95,947,703 quoted $0.25 options (CTPOA) expire on 30 June 2010, with quotation ceasing 23 June. The shares last traded at $0.074 on 28 May, well below the exercise price. ASX waived individual notices to holders.
25 May 2010regulatory community update▲ Good
Central's wholly owned Merlin Coal applied for three new NT mineral exploration licences covering over 3,000 km2 in the northern Pedirka Basin. It has begun investigating underground coal gasification and coal-to-liquids, citing expressions of interest in its coal targets.
24 May 2010drilling progress report▲ Good
The first components of MB Century Rig #7 and camp reached Alice Springs on 22 May and are being unloaded at the Ooraminna 2 site. The rig is contracted to spud the well (up to 2 TCFG, high estimate) on or before 31 May.
24 May 2010drilling spud● Neutral
Central spudded CBM93-002 in EP 93 on 22 May, expected to take about 25 days, with net coal of about 90m prognosed. It is expected to be the last CSG well of the 2010 programme; more coal stratigraphic tests are being considered later in 2010.
20 May 2010investor presentation● Neutral
Central announces a Boardroom Radio audio broadcast with MD Heugh on 21 May, titled 'Central Returns Further Coal Intersections and Mobilises Rigs for Conventional Program'. The announcement itself contains no new information.
19 May 2010investor presentation● Neutral
Re-release of the 19 May Proactive Investors presentation cover note, apparently because the presentation was missing from the first one. The text carries no new information of its own.
19 May 2010admin correction● Neutral
At ASX's request, Central corrects its 18 May CBM107-002 release. It replaces 'over 600 billion' and 'over 1,000 billion' tonnes with stated ranges: 635-865 billion tonnes (mineral leases) and 1,110-1,385 billion tonnes (petroleum leases), exploration targets only, not a resource.
19 May 2010investor presentation● Neutral
Central releases a Proactive Investors presentation, with the latest 2010 exploration timetable. The cover text carries no figures or dates itself, so nothing further can be stated here.
17 May 2010drilling result▲ GoodMajor
CBM107-002 reached 604m TD with 65m of cumulative coal, including 16m and 20m seams, at a 38 km updip stepout from CBM107-001 (130m of coal). Gas content is untested: desorption tests are pending, and a Netherland Sewell review may take 6-8 weeks after the last well.
14 May 2010contract award▲ GoodMajor
Central signed a drilling contract with Century Energy Services for up to 6 conventional NT wells in 2010. Rig mobilisation starts 17 May, and Ooraminna 2 (EP 82, up to 2 TCFG high estimate) will spud by 31 May, firming up the slipped mid-May target.
4 May 2010drilling progress report▲ Good
CBM107-002 in EP 107 hit coal at 237.6m, 32m shallower than the 270m forecast. Central (70%) says this will almost certainly mean remapping the Permian coal targets in the Pedirka Basin. It follows CBM107-001's 130m of coal.
4 May 2010capital raising announcement▲ Good
Central completes the retail part of its rights issue: $13.65m received, with 182.06m new shares and 36.4m options (16c, expiring 31 March 2014) issued. The roughly 120m-share shortfall (about $9.0m) and about 60m underwriter options follow. Top 20 lists are included.
3 May 2010quarterly activities report● Neutral
March quarter: banked funds fell from $33.16m to $24.97m, with $13.23m of cash calls unpaid by JV partners and c.$1m of rain standby costs. PXA, Red Sky and He Nuclear remain in default, with arbitration and court action. CSG drilling to restart around 2 May, seismic by 15 May.
3 May 2010drilling spud▲ Good
Central restarts its flood-delayed CSG programme, spudding CBM107-002 in EP 107 on 30 April. It targets coal about 31 km northwest and updip of CBM107-001, which hit 130m of coal, roughly triple the forecast. Central holds 70%.
29 Apr 2010capital raising announcement▲ GoodMajor
Central's rights issue raised $22.7m at 7.5c, with shareholders taking up 59% (178.5m shares). Underwriter Patersons will place the roughly $9.03m shortfall. Central says this funds Phase One and at least three conventional wells in 2010, despite JV disputes.
What it means for a shareholder
179m new shares at about A$0.1272 to raise about A$22.7m. That's 23% dilution: every existing holder's slice gets 23% smaller. If you held A$1,000 of shares (7,863 at the issue price), your slice goes from 0.0013% to 0.001% of the company. To keep it you'd need 2,318 more shares - about A$295 at the issue price.
Create a free account to see this worked out for your own holding.
23 Apr 2010investor presentation● Neutral
Central announces a Finance News Network interview with MD Heugh on helium prospects, repeating the key points of the 19 April helium report, including $420m capex and NPV of $111m-$556m. No new information.
20 Apr 2010investor presentation● Neutral
In a radio interview transcript, MD Heugh discusses the helium report and says Magee 2 should drill around August/September 2010. He expects CBM107-002 to spud by the following weekend and Ooraminna 2 equipment on site by 7 May. Largely repeats known plans.
19 Apr 2010other▲ GoodMajor
Central releases a consultants' report saying low-volume helium extraction could be commercial if enough gas is found: about $420m capex for a 20m cubic feet/day plant, NPV $111m-$556m at 8%. Magee 2 is conditionally planned for 2010. Depends on discovery.
16 Apr 2010investor presentation● Neutral
Central releases a conditional drilling and seismic timetable as part of a rights issue style presentation. The cover text gives no timetable details itself, so no dates or figures can be stated here. Programme is subject to weather, funding and access.
15 Apr 2010drilling progress report▲ Good
Central says a road inspection at Johnstone Hill in EP 115 found up to $500,000 of savings, as light rain settled the ground and many kilometres of new road are unnecessary. Water well drilling for EP 115 wells is expected within a week.
12 Apr 2010investor presentation● Neutral
In an interview transcript, MD Heugh says three of four JV participants, including BG Group, are in default on cash calls, with some matters in arbitration and one before a court. He says the rights issue funds the drilling regardless. Ooraminna 2 spud is still targeted for 1 May.
7 Apr 2010investor presentation● Neutral
Central announces a Boardroom Radio audio broadcast with MD John Heugh on 9 April 2010 titled 'Central Directions'. The announcement itself contains no new information.
7 Apr 2010drilling progress report● Neutral
CSG drilling, halted by heavy rain, is expected to resume by 16 April with CBM107-002, about 30 km updip of CBM107-001. Road clearing continues. MB Century Rig 7 passed the first phase of pre-spud inspection, and Ooraminna 2 is still targeted to spud 1 May.
6 Apr 2010admin correction● Neutral
At ASX's request, Central corrects the rights issue timetable: deferred settlement trading starts 16 April, not 23 April. The offer still closes 22 April. The release also describes the raise as about $22.7m.
30 Mar 2010investor presentation● Neutral
Central releases an updated shareholder presentation for the rights issue. The text shown is a cover note and disclaimers; the presentation content is not shown, so no new facts can be stated.
26 Mar 2010drilling result▲ Good
Oil has been formally identified in a sample from 714.9m in CBM93-003 in the Pedirka Basin, which had earlier shown only trace oil. Central says it is not commercial but improves oil prospects, and it plans conditional oil drilling later in 2010. CSG drilling should resume within two weeks.
24 Mar 2010investor presentation● Neutral
Central announces a Boardroom Radio audio broadcast with MD John Heugh on the rights issue, 24 March 2010. The announcement itself contains no new information.
23 Mar 2010drilling progress report● Neutral
Access road and drilling pad for Ooraminna 2 are done or due to be finished by 23 March. CSG well CBM107-002 is delayed further by flooding; road repairs on the Binns Track are under way and an access update may follow within a week.