A picture immeges, page-116

Think about it, a $15m Share-purchase Plan (SPP) in November last year failed miserably and penny dreadful now finds itself sharing ownership of the Meerenie field with its suitor and banker, the mighty Maquarie bank, ouchhhh.

But a failure to secure fundings, a failure to have centrals own investors turn thier back on the SPP and now the involvemen of bank now places Macquarie in a very strong position to close out a deal for Central and realise the potential of a wider play in the gas market. It may be highly disappointing for many of centrals long term, long suffering shareholders who may be clinging onto ridiculous $8 pie in the sky hopes and dreams.

Now, it has been reported that Mr. Central believes there is a more obvious and compelling strategy behind Macquarie’s interest in his company. If for example, the Macquarie consortium comes back for another crack at Tatts it will be a good indication that there’s more to the target than meets the eye. Thinks about it fella's, a gas hub and a new way to trade gas into the market, clever maquarie bank, some would say. But but but, wharer does this leave penny dreadful?

Central Petroleum, owes Macquarie $90m, it is reputed that central requires a further 60m to 80m just to explore and drill. We are now also informed that Macquarie bought the other half of the Meerenie gas field in the Northern Territory field from Santos, giving it equal footing with Central, which bought its half share in the field from Santos in June for $45m.

So does beg the question, if central are in debt of 90m already, still requiring an additional 80m, how will central ever be able to recover from such massive dilution and fiancial commitments. This really places central in a difficult possition, Central after all need to contibute to that massive Santos Energy JV requirement which needs to start soon, time for Mr. Central is running out.

Mr. Central has yet been unable to convince the sophisticated investor to hope onboard the central station train, Mr. Central despite his round the country stand up presntations still stuggles to bring in much needed sophisticated support and money. Macquarie, seems to be the only fish in the sea that has extended assitance to Mr. Central who now finds him self significantly committed to Macquarie, including having provided Macquarie with forward gas sales at goodness knows what bean counter deals that may have taken place.

We know that Mr. Central was quick to point out that Gas Sales Arranments (GSA) where to provide Central with some much needed boost however, procrastenation at government level has placed a wedge into the cog that drives Central hope of securing money from the pipeliners.

Central has a limited market for its gas in Alice Springs and to the NT Gas pipeline. But but but Macquarie
has caught onto Central's potential by the building of the Northern Gas Pipeline. Yet the illusive GSA with jemena remain a distant dream for Mr. Central who stuggles to finf additional funding sources to meet Centrals JV commitments.

Now,not being paranoid or a little cautious, this is Central after all, but Mr. central has been quoted as stating that "spending as little as $60m-$80m could allow the company to multiply that from its existing acreage"

Unformtunately this has sent yet another message loud and clear to the market that central's path to independence be yet again compromised by massive dilution and a snakes and ladders approach for many long term, long suffering share holders.

If we revert back to Macquarie’s plans, we now know that Macquarie’s ambitions are greater than just riding higher prices and new supply spurred by demand for uncontracted gas. Were Macquarie to win control of such a big potential store of uncontracted gas supply, it would give Macquarie the opportunity to establish a trading hub for gas and forward curve for prices that would allow it to establish a derivatives market. The uncontracted supply is important because it leads to the development of a spot market for supply from Central’s reserves, from which a forward price curve can be developed.
====================================================================
If the above holds credibility and the empire building of Macquarie to focus its ambitions on establishing a trading hub for gas and forward curve for prices that would allow it to establish a derivatives market, why would Macquarie stop at purchasing a 50% of nothing from Santos. The ambitions of establshing that hub for gas and forward curve for prices would be significanty compromised for Macquarie

Macquarie is now so over committed in its ambitions and the cat (gas hub/prices) is now out of the bag, it is therfore surprising that the agression to knock minnow central on the head and make off with its prized assests has not taken place with gusto.

Macquarie is clearly in the box seat whilst central sits firmly in the gun sights of Macquarie. At some stage that pleasantries need to stop and Macquarie needs to be seen as flexing its muscles or becomes left stranded with a 50% of nothing and unable to achive its Amadeaus empire ambitions.

It makes sence now for many that the parting of ways with central's prized assests whilst maintaining its less than tier 1 propects be high on the agenda for Macquarie, Santos and Central. Money has been the killer for Mr. Central, evenCentrals own investors have give the SPP a wide berth, but at some stage the sacrafice of the prize needs to be relequished.

One thing is for sure, nothing changes for this little Central Petroleum investor, what a mess this has been since year 2012, this sentiment will gain support should this organisation sell its soul for 28 cents to Macquarie.