Amadeus Basin Farmout Process Update
Brisbane, Nov 9, 2020 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (C9J:FRA) (CNPTF:OTCMKTS) is pleased to announce that the farmout process to fund an Amadeus Basin Exploration Programme has advanced to a final due diligence phase with a preferred bidder under a limited period exclusivity arrangement.
Background
The farmout process, initiated in January 2020, has attracted sustained interest from local and international industry participants, notwithstanding the impacts of intervening COVID-19 restrictions and oil & gas market volatility.
A preferred bidder has now been selected to advance to a final due diligence phase under a limited period exclusivity arrangement. The final due diligence phase is scheduled to occur over the coming months, aiming at execution and completion in Q1 CY2021.
The farmout process remains non-binding at this stage and therefore subject to significant transaction risk, including further due diligence and finalising current non-binding indicative commercial terms and documentation.
Given the recently announced (22 October 2020) new gas sales agreement and finance facility extension, Central's planned Mereenie Field development activity and Range Gas Project restart activities (also recently announced on 3 November 2020) are not dependent on the completion or timing of the farmout process.
CEO Comment
"Notwithstanding the challenges we have seen during the year, our farmout process has been very encouraging and demonstrates the quality of our producing assets. Moving into a final due diligence phase is a positive step in that process, but I highlight the next phase continues to carry transaction risk and completing a deal is not assured.
This potential transaction and an associated exploration program in 2021, combined with the restart of the Range Gas Project and the proposed Amadeus to Moomba Gas Pipeline (AMGP), will make 2021 a year to watch," said CEO and MD, Leon Devaney.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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