this is a different article from AFR today. different Journo...

this is a different article from AFR today. different Journo
Extract Only.
What do we think will be the amount of any CR ??
How much does CTP need to do what it needs to? The article says $40m - $50m?

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• chanticleer
• Jul 19 2017 at 11:00 PM
• Updated Jul 19 2017 at 11:00 PM

Central Petroleum looks for funds after spill move defeated

This has left Cottee without the financial backing he needed to extend drilling in central Australia and deliver much-needed gas to the east coast. One of the shareholder groups, called OptionCo, wanted Cottee to go down the same path as Senex Energy, Cooper Energy and Santos and raise equity to fund growth.

When Cottee was selling the merits of the Macquarie deal, he said that was not an option. However, he has now changed his tune and on Wednesday flagged an equity raising in the form of a rights issue to come up with the $40 million to $50 million needed to extend Central's drilling program.

The rationale is that the knowledge that Macquarie was willing to pay a premium for the company and the urgent demand for gas should underpin support for a capital raising. Central is trading at 13¢ per share, well below the 20¢ per share Macquarie had on the table. Raising debt is not an option

Though Wednesday's vote confirms Cottee and the board have the support of two-thirds of the shareholder base, there is still plenty of shareholder angst on the register which is going to make life difficult when it comes to things like voting on remuneration reports. A vote of 75 per cent ( that's not correct !) or more was required to kick out directors but only about 35 per cent of shareholders backed the motion.

The shareholders, called OptionCo, wanted Central to remain as an independent company with a new board that would include stakeholder Stuart Howes, former Labor minister Nick Bolkus and former BP senior executive Colin Goodall. Cottee attacked the credibility of the rebel shareholders, which he says never had an alternative to raise the capital the company needed.

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