From central petroleum20 Feb 2019 10:58
https://wcsecure.weblink.com.au/pdf/CTP/02077599.pdf
Would be nice if our board started thinking like this.
The company results in the Interim Report show the beginnings of this pivot with the sales of commissioning gas to Jemena seen in the increase in sales. The further increase in January, as gas started to flow under the IPL GSA, can be seen in the company’s presentation released to the ASX on 13 February 2019. The presentation can also be viewed on Central Petroleum’s website.
As mentioned at the AGM and apparent in the quarterly report, most of the funds from these sales above normal business expenses is to be applied to scheduled debt reduction which the company took on to complete the work. Your Board took the view that borrowing to fund the projects was a better course than raising funds by issuing shares when the company’s share price was well below the price your Board considered reflected fair value. Management are progressing the necessary work to refinance the debt, now that Central has moved to a more stable income stream.
A number of shareholders have expressed to me their frustration that, despite all this positive news, the share price remains stubbornly locked in its current range. Your Board shares that frustration, as do management, whose long-term incentives depend on improvement in the share price.
A number of theories have been advanced for this, but ultimately it requires the market to recognise just how transformational the pivot has been. One exciting near-term catalyst for share price appreciation is exploration drilling by Santos at the Dukas prospect. This is potentially a massive target, but (as with all exploration) one cannot be assured of success. If it is successful, one would expect a re-rating of the shares in Central
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