The picture truly does start to emerge, if we review or reflect back on comments made on the 16th of December, 2016, The Northern Australian business includes the high-potential onshore exploration venture in the McArthur basin in the Northern Territory as a possible source of gas for the eastern states. However that would require a new pipeline that could transport NT gas south to the Moomba plant in South Australia. Let's not omit the fact that this pipeline that has been publically promoted by Richard Cottee and in which writings from Richard is able to be referenced through a number of publications.
Santos on completion of the sale of the M field to Macquarie Bank was quoted as stating something to th effect of "gas from Santos' Amadeus Basin fields in central Australia could also flow to Moomba, and suggested that such a new line was required in addition to the small-capacity $800 million line being built by Jemena to connect the NT east to the Queensland grid.
It would seem that the best entity to promote such pipeline to Moomba may be those cashed up, Macquarie comes to mind, the building of an Amadeus empire certainly now looks more credible as the pieces start to fall together. If this pipeline was to be built, the key to unlocking or transforming NT gas supplies to greater Australia would only be hampered from the moratorium on exploration of unconventional resources which is to be challenged in due course. Jemena must be feeling left out in the cold, the monopoly they may have once thought may be fading fast into the sun set.
Central Petroleum in their update announcement to shareholders on Maquaries pathetically low take over bid stated that the geological potential of both the McArthur and Amadeus basins offered "multi-tcf [trillion cubic feet] scale". The McArthur shales were "truly analogous to some of the high-performing US shale plays", he said, offering a "fantastic opportunity for east coast supply".
One can be excused in thinking that these references made by Richard Cottee as detailed in the 13th of December update to shareholder be coincidental in nature, but but but on reflection both Exploration head Bill Ovenden (Santos) and Richard Cottee seem significantly zipped at the hip. It does beg the question, how aligned are Santos and Central, is this partnership about to end up in marriage as the world of M&A gathers steam during year 2017.
If we redirect our attention towards Santos and their plans for onshore NT, we know that as recently as the 16th of December, shortly after the sale of the M field to Maquarie Bank, a refocus on growth did not exclude the NT. Santos is currently undertaking exploration activities in the Amadeus basin and capex budget for both the Northern awould quadruple in year 2017.
A close relationship between Santos and Central still look probable, the recent spin off associated with Santos non core assets may provide an opportunity for Quadrant Energy driven by the financial might of Macquarie and Brookfield to merge a number of opportunities which would form an onshore gas hub capable of supplying the East coast with much needed gas for decades to come, it would seem that Central is very much at the heart of this possibility, but will central Petroleum shareholders play a part in realising central's full potential before central is morphed by way of M&A into a leaner and meaner player.
If a left hook scenario does not eventuate during year 2017, I would be very surprised.
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