Great to see new coverage from breakaway.
http://centralpetroleum.com.au/wp-content/uploads/2019/08/Breakaway-Analyst-Report-20190822.pdfKey points:Central Petroleum is just entering a period of sustained positive cash flow as the strategy, started in 2014, delivers, with the connection of the Amadeus Gas Field to the Australian East Coast gas markets.
That cash flow should drive value adding exploration, and the recent share price move on the announcement of Project Range 2C Resources (up 13%) is evidence that the market will reward success, and a successful Dukas could add the same again.
Base Case Net Present Value is A$0.34/sh: o 50% of Project Range at A$0.18/sh o The existing Amadeus Field production is forecast to generate 1.2cps worth 16‐20cps on peer PERs o Santos and Woodside on PER 16.5‐17.4x yield of 2.3‐3.6%.
Upside drivers include exploration success, higher average selling prices as the IPL contract ends in December 2019, and Dingo moving from minimum to maximum gas sales. Positive operating cash flowand debt refinancing should further derisk company.
Haven't had a chance to read right through but looks good
