Brisbane-based resources player Central Petroleum has just delivered its maiden profit

A scrappy Brisbane resources minnow, which claims to be the biggest onshore gas producer in the Northern Territory, has just served up its maiden net profit for the half-year to December

Yes, there are a few glimmers of hope in the otherwise bleak reality of an ongoing market bloodbath fuelled by the coronavirus pandemic.

For one such bright spot, look no further than Brisbane-based oil and gas player Central Petroleum.

The scrappy resources minnow, which claims to be the biggest onshore gas producer in the Northern Territory, has just served up a maiden net profit of $3.2 million for the half-year to December.

A modest achievement, perhaps, but it continues a profitable trend that started in the previous half and stands in stark contrast to the $14.5 million loss suffered in the last financial year.

Boss Leon Devaney hailed the result as “a significant milestone’’ for the company, which just a few years ago was rattled by a board shake up brought on by a shareholder revolt.

Pipeline that will supply natural gas.

“It is even more remarkable considering that his time, five years ago, we had virtually no production, no certified reserves and no access to the east coast gas market,’’ Devaney said.

“Our team has worked diligently over a number of years now to deliver these results and we have built a solid foundation for what is an exciting next phase of growth.’’

Central Petroleum is now focused on developing its Range Gas Project in the Surat Basin and aiming to deliver the first gas in 2022.

Powered by a $51 million war chest, exploration and appraisal also continue on the company’s 180,000 sqkm of tenements spread across Queensland and the NT.

Late last year the firm inked a three-year deal to supply gas from one of its NT sites to AGL Energy, a reality made possible by the opening of an $800 million pipeline in early 2019.

These developments go some way to explaining a 78 per cent jump in operating revenue over the half year, from $20 million to $35.7 million. Gas sales volumes shot up 135 per cent and a $72 million finance facility has been extended for another 12 months to September next year.

Despite these positive trends, the share price remains stuck in the doldrums, fluctuating below 20 cents in the past five years after hitting a high above 82 cents in 2012. It closed at just 9.4 cents yesterday.

BOUNCE BACK

Central Petroleum’s current bounce back appears all the more remarkable given the internal strife which gripped the firm just two years ago

It was in mid-2018 that gas industry legend Richard Cottee abruptly quit as MD after six years in the post.

He had a rocky tenure, dealing with a failed attempt at a board spill by rebel shareholders in 2017 and a scuttled $87 million takeover attempt by Macquarie Group.

But Cottee’s sudden and unexplained departure seemed all the more curious since only two months earlier he had vowed to stay on for another two years.

Richard Cottee

One of the company’s biggest shareholders later alleged that Cottee has been marched out the door after clashing with the board, which denied that claim and simply said a change was needed.

But the following months saw three directors quit. Then-chairman Martin Kriewaldt bailed out last September, replaced by the delightfully-named Wrixon Gasteen.

Ironically, Devaney had cut his teeth at Cottee’s Queensland Gas Company before it was gobbled up by BG Group in a $5.7 billion deal in 2008.

Devaney remained at BG before jumping ship to Central Petroleum in 2012 as chief commercial officer. He took over as acting CEO in mid-2018 and got the “acting’’ bit removed early last year.