3 Oct 2022flow test result▲ Good
NZOG repeats the Palm Valley-12 P1 interim test of about 7 TJ/d, gas only. It says the rate exceeds pre-drill estimates (NZOG's statement). NZOG holds 35% of the joint venture, and drilling continues.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 Oct 2022flow test result▲ Good
Cue repeats Central's result: Palm Valley-12 P1 sidetrack flowed about 7 TJ/d, gas only, in a 47-minute interim test at 2,598m, with about 440m of hole still to drill. Cue holds 15% of the joint venture.
28 Sept 2022other● NeutralMajor
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.
27 Sept 2022drilling progress report▲ Good
Palm Valley-12 P1 sidetrack reached 2,063m on 26 September, about 200m into the P1. Gas is seen throughout the section and flared, but no flow rate has been measured. The first sign of gas after the failed P2/P3 lateral.
27 Sept 2022drilling progress report▲ Good
NZOG repeats Central's update: Palm Valley-12 P1 sidetrack reached 2,063m on 26 September, about 200m into the P1. Gas is being encountered throughout and flared; no flow rate measured yet. Drilling continues laterally for several hundred metres.
21 Sept 2022investor presentation● Neutral
FY2022 results presentation repeats known figures: $42.2M revenue, $16.7M underlying EBITDAX, $21.3M statutory profit, net debt down 67% to $10.2M. Dingo Deep is deferred in favour of near-term production; Northern Gas Pipeline eastbound transport is currently suspended.
20 Sept 2022drilling progress report● Neutral
Palm Valley-12 P1 sidetrack finished the 8.5-inch section at 1,860m by 19 September. The 7-inch liner is being run and cemented before the 6-inch P1 section is drilled. Repeats the previous day's update; no new result.
20 Sept 2022drilling progress report● Neutral
Palm Valley-12 P1 sidetrack finished the 8.5-inch section at 1,860m by 19 September. The 7-inch liner is being run and cemented before drilling the 6-inch P1 section. No gas result yet.
20 Sept 2022investor presentation● Neutral
Notice of an online FY2022 results presentation on 21 September 2022 at 10:00am AEST, with CEO Leon Devaney and CFO Damian Galvin and a Q&A. No new business information.
16 Sept 2022other● Neutral
Appendix 4G governance checklist, lodged with the annual report. It points to where governance disclosures are found. Administrative form with no new business information.
16 Sept 2022annual report● Neutral
Central's 2022 annual report. The Chair calls the lack of exploration success disappointing, but says gas markets have strengthened and the growth strategy remains in progress. Near-term catalysts listed: Palm Valley-12, Mereenie work, three sub-salt wells in 2023/2024, and the Range pilot.
16 Sept 2022annual report● Neutral
Corporate governance statement for the year to 30 June 2022, describing compliance with ASX governance principles. It notes no women in senior management and one on the board. Administrative disclosure with no new business information.
16 Sept 2022annual report● NeutralMajor
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.
15 Sept 2022material agreement▲ Good
NZOG signed a one-year firm, fixed-price, take-or-pay gas deal with Shell Energy from 1 January 2025 for 0.64 PJ from Mereenie. It is aggregated with the joint venture to supply up to 3.65 PJ in total. Central is a 25% Mereenie partner.
15 Sept 2022material agreement▲ Good
Cue signed a one-year firm, fixed-price, take-or-pay gas supply deal with Shell Energy for 0.27 PJ from 1 January 2025. It is aggregated with Mereenie joint venture gas, in which Central holds 25%, to deliver up to 3.65 PJ.
15 Sept 2022contract award▲ GoodMajor
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.
13 Sept 2022drilling progress report● Neutral
Palm Valley-12 P1 sidetrack reached 1,733m on 12 September, having drilled 402m. The build section is expected to finish at 1,860m before a 7-inch liner is set. No new result.
13 Sept 2022drilling progress report● Neutral
NZOG repeats Central's update: the Palm Valley-12 P1 sidetrack was at 1,733m on 12 September, having drilled 402m of the 8.5-inch section. The build section is due to finish at 1,860m.
6 Sept 2022drilling progress report● Neutral
The Palm Valley-12 P1 sidetrack (ST2) began and was at 1,428m on 5 September, having drilled 97m. The P1 is the current producing formation, so success would be tied into existing facilities. Follows the failed P2/P3 lateral.
6 Sept 2022drilling progress report● Neutral
NZOG repeats Central's update: the Palm Valley-12 P1 sidetrack was at 1,428m on 5 September, having drilled 97m. A successful P1 lateral would tie into existing production facilities.
1 Sept 2022other● Neutral
The conditions deadline for Peak Helium's Amadeus Basin farmout was extended from 31 August to 12 October 2022 at Peak's request. Central says conditions are progressing well. The farmout, announced 9 February 2022, is still not complete.
1 Sept 2022director officer appointment● Neutral
Troy Harry, a professional investor and substantial Central shareholder through associated entities, joins the board from 1 September 2022. This comes days after the strategic review announcement and Stuart Baker's departure; the Chair expects his input on the review.
31 Aug 2022director officer appointment● Neutral
Non-executive director Stuart Baker resigned effective 30 August 2022. He joined the board in late 2018 and chaired the Audit and Financial Risk Committee. The announcement gives no reason for leaving.
30 Aug 2022drilling progress report● Neutral
The failed P3 lateral at Palm Valley-12 was plugged and abandoned by 29 August. Preparations continue for a sidetrack into the producing P1 formation, to be tied into existing facilities if successful.
30 Aug 2022drilling progress report● Neutral
NZOG repeats Central's update: the Palm Valley-12 P3 lateral was plugged and abandoned by 29 August. Preparations continue for a sidetrack into the producing P1 formation.
24 Aug 2022other● NeutralMajor
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.
22 Aug 2022drilling result▼ Bad
Cue repeats the joint venture result: Palm Valley-12 hit formation water and no significant gas shows at 2,431m, so the P2/P3 lateral is curtailed. A P1 sidetrack into the currently producing formation is being prepared. Cue holds 15%.
22 Aug 2022drilling result▼ Bad
NZOG repeats the Palm Valley-12 result: formation water and no significant gas shows at 2,431m led the joint venture to stop the P2/P3 lateral. It will be plugged and a P1 sidetrack prepared. NZOG's MD says it is not the outcome they wanted.
22 Aug 2022drilling result▼ BadMajor
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.
16 Aug 2022drilling progress report● Neutral
NZOG repeats Central's update: Palm Valley-12 sidetrack was at 2,301m in the lower P2 on 15 August, having drilled 151m in the week. Completion is still scheduled this month.