Purchases Magellan's Australian Onshore Assets for AUD$35 Million
Perth, Feb 19, 2014 AEST (ABN Newswire) - Central Petroleum Ltd (
ASX:CTP) (CPTLF:OTCMKTS) ("Company" or "Central") today announced it has signed an agreement to purchase the material onshore assets of Magellan Petroleum Australia ("MPA") consisting primarily of the Palm Valley and Dingo fields near Alice Springs for $35 million. The consideration will be paid as $20 million cash and approximately 39.5 million shares in Central to MPA. Central will issue the shares and pay $15 million of the $20 million cash on completion. The balance of $5 million is due to be paid on 15th April 2014.
Highlights:
- Palm Valley and Dingo fields purchased for consideration of $20 million and around 39.5 million shares in Central providing the means to shift Central from explorer to multi-field producer in both oil & gas markets
- The $20 million cash component fully funded by loan facility from Macquarie Bank which is serviced by production revenue from the acquired assets
- In addition to existing producing reserves, the acquisition includes significant in-place compression, processing and transportation infrastructure and 6 producible wells
- Development finance for Dingo Field secured and funded by project revenues
The acquisition also includes the significant in-place compression, processing and transportation infrastructure, 4 producing wells at Palm Valley and 2 existing wells ready for production at Dingo Field.
Central Petroleum Managing Director, Richard Cottee said, "The acquisition provides Central with infrastructure and production revenues, and synergies between its Surprise production and Palm Valley production which can also be utilised to support any exploration success in the future. As part of the acquisition Central will be offering employment to employees of MPA".
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is a well-established, and emerging ASX-listed Australian oil and gas producer. In our short history, Central has grown to become the largest onshore gas producer in the Northern Territory (NT), supplying industrial customers and senior gas distributors in NT and the wider Australian east coast market.
Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in Queensland and the Northern Territory, including some of Australia's largest known onshore conventional gas prospects. Central has also completed an MoU with Australian Gas Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Gas Pipeline to a Final Investment Decision.
We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the Surat Basin, Queensland with 135 PJ (net to Central) of development-pending 2C contingent resource.
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