Funding from the expanded facility will be available for Central's share of up to six well recompletions and two new development wells at the Mereenie field to be completed next year (subject to final Joint Venture approval) with additional production expected to be sold into an attractive east coast gas market.
Details
The new facility consists of two separate tranches of
- Central's capital commitments under agreed development plans and exploration projects are fully-funded from available facilities and expected operating cash flows for the term of the facility; and
- Certain new gas sale agreement thresholds are met.
Access to funds under a tranche will be cancelled unless the tranche has been at least partly utilised by:
- For the first tranche,
- For the second tranche,
Any funds drawn under the expanded facility will be repaid as follows:
- For the first tranche, 50% to repaid by quarterly equal instalments between the date of utilisation and
- For the second tranche, 40% to be repaid by quarterly equal instalments between the date of utilisation and
Central will pay a commitment fee on any undrawn facility funds equal to 40% of the facility interest rate. Other key terms, including interest rate margin and financial covenants will remain unchanged.
Central may elect not to utilise the unused portion of the expanded facility and may repay any drawn funds at any time without penalty.
Central has granted Macquarie a royalty equal to 0.25% of the gross well head value derived from a 35% participating interest in exploration permit 112 (
Comments from the CEO
"This expansion of our existing loan facility provides flexible access to low-cost capital which we can use to accelerate recompletions and new development wells at Mereenie, along with other gas projects to increase gas supply to customers in the
About
Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in
We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the
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