Spokesperson Maki Petkovski, a former Central shareholder who now heads up Petsec Energy's Middle Eastern business, told Energy News that despite protestations from the Central board about a lack of support, there is interest in backing the troubled Amadeus Basin player because it can play a major role in the east coast gas markets.

 

"We have signed a memorandum of understanding with a Sydney-based securities company. They have asked not to disclose their name unless the New Direction Team takes control of the company," he told Energy News.

 

"It is a higher level company, not small. They can help raise this $100 million in two tranches, and it will be sourced from offshore.

 

"There are two parties offshore that are interested, one from the US and one from Asia. We have actually got a third party that has a vested interest and would be interested in getting involved with Central."

 

The US fund is actively involved in the gas space, and targets distressed companies with good assets.

 

"They are not fearful of putting the boxing gloves on and taking on the likes of Macquarie," Petkovski said.

 

"They want an experienced leadership team with a plan, and that is where we come in."

 

The other group is a capital rich by "shy" Asian fund looking to invest in stable, resource-based economies, which would be more of a silent partner.

 

"All three parties do not want to be embroiled in what's going on with Central, but they are happy to say they'll invest if there is a change of leadership with New Direction, because they do not see any industry experience with OptionCo or any clear plan." 

 

If shareholders tomorrow reject the scheme of arrangement with Macquarie, and the certainty of a 20 cent per share cash offer, it will be game on for Central with three parties vying for control: New Direction Team, OptionCo and the incumbent board.

 

Only Petkovski's group claims to have a line of sight on funding, but that is a lot to take on faith.

 

 

If the money doesn't come through, assuming New Directions is successful at helping blocking the scheme of arrangement and then seizing control of the company from the incumbent board or OptionCo, which has called a spill meeting on July 19, Petkovski said there were other options.

 

"Plan A is the funding, and we have three groups who are keen," he said, admitting the group has no mandate, and cannot guarantee the funds will eventuate.

 

"We are not here to upset Macquarie, because each of us have other roles and we are not here to act as a spoiler or be aggressive. 

 

"We would like to work with Macquarie to do a handover, and if they wish to withdraw their bid we would be more than happy to replace it with the parties we are speaking so." 

 

He said the three groups have "no interest" in working with Central managing director Richard Cottee and the current board. 

 

"The Plan B scenario is different," he said.

 

It would likely involve securing equity on an international market, because the Australian financial pool is simply too small. 

 

Plan C is less ideal, but would involve taking high equity positons in Central's acreage and farming it out.

 

It's something Central has look at before, and done with companies such as Santos and Total, but Petkovski said the timing had always defeated Central, although with oil now settling in the mid-$40/bbl, he believed it would be possible to bring in a larger partner.

 

"Contrary to what people say, if you can't make money at $40/bbl oil you are not trying hard enough," he said.

 

"We also have a different landscape with the shortage of gas supplies in the eastern seaboard, something we have seen coming for the past 12-18 months, but which is really starting to hurt.

 

"That should encourage interest in Central, which should be at the front of the pack.

 

"It has a large, wonderful and broad portfolio and gas production, although obviously a little government support would be required, such as deregulating pipelines."

 

Petkovski also admitted that while some shareholders may have some concerns around the potential return of founder John Heugh to the board, but he was involved in the team to help provide a degree of continuity, and to provide some insight into the assets, but he had no designs on a day-to-day management role.

 

Petkovski said none of the New Direction Team aside from Heugh, but they are all former shareholders who are impressed by the potential story and concerned by Macquarie's low-ball offer. 

 

Central shares were steady at 15c this morning.