Quarterly Activities Report and Appendix 5B
Brisbane, April 30, 2014 AEST (ABN Newswire) - During the Quarter, Central Petroleum Limited (
ASX:CTP) (CPTLF:OTCMKTS) announced that it signed agreements to purchase the material onshore assets of Magellan Petroleum Australia Pty Ltd ("the Magellan assets") consisting primarily of the Palm Valley and Dingo fields for $35 million. The deal closed on 31 March 2014. The consideration paid was $20 million cash and approximately 39.5 million shares in Central.
The cash component was paid out of a loan facility with Macquarie Bank. The loan facility also includes a $30 million tranche for the development of the Dingo field and the construction of a 50km export pipeline to Alice Springs in order to service a gas sale contract with Power and Water Corporation of the Northern Territory. Under the Macquarie Bank facility, Central granted 15 million unlisted options (to Macquarie) with an exercise price of $0.50 and an exercise period of 30 months.
Central will be reporting revenue from the Palm Valley Gas Field effective from 1 April 2014. Planning for the development of the Dingo Field is progressing with production start-up scheduled for 2015. The Company has identified a range of optimisation and market strategies that could materially enhance the profitability of the Palm Valley and Dingo fields.
Over time Central looks forward to playing an important role in inter-connecting Central Australia to the eastern seaboard gas network, possibly through Moomba.
Highlights
- Central acquired the Palm Valley and Dingo Fields from Magellan Petroleum Australia Pty Ltd for $35 million.
- NT Government announced the grant of Production Licence PL6 to Central which includes the Surprise Oil Field.
- The Mt Kitty exploration well has recorded encouraging gas flows.
- Exploration potential of Central's vast acreage portfolio continues to be high-graded.
- $11.4 million cash at Quarter end and prudent fiscal management continuing.
- Mr Tom Wilson appointed as a non-executive independent Director.
- Dr Peter Moore appointed as a non-executive independent Director.
To view the complete quarterly activities report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CTP-676304.pdf
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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