Perth, Dec 19, 2007 AEST (ABN Newswire) - Central Petroleum Limited (ASX: CTP) has established two wholly owned subsidiaries to investigate potential to capitalise on the booming geothermal power generation, carbon trading and agroforestry sectors in central Australia, which complement its core petroleum and exploration and production activities.
The two subsidiaries are Central Green Pty Ltd which will focus on investigation of carbon sink plantings and forestry and Central Geothermal Pty Ltd which will target geothermal potential in central Australia.
Commenting on the new development, Central's Managing Director John Heugh said, "Whilst the various debates over carbon trading and international protocols on greenhouse gas emissions rage, one thing is very clear and that is that a lot of petroleum producers are moving into green project areas. Woodside is a recent prime example of this strategy with their plan to invest $25 million in a joint venture with CO2. He went on to say "There will be no significant move into these areas until we have established production and cash flow but with an eye to the future, these potential activities must be investigated"
The company has identified large areas of central Australia - where it already has over 250,000 square kilometres of exploration acreage - for carbon sink plantings and/or conventional plantings for timber production. Central is working with various government departments and Aboriginal groups to facilitate early proving trials with a longer term view of establishing commercial production while providing employment for local traditional landowners. "We have a social contract as a responsible corporate citizen to not only investigate green project potential but also to attempt to provide meaningful employment for the local Traditional Owners".
In addition, Central plans to capitalise on moves by the Northern Territory government to promulgate geothermal exploration and exploitation regulations, and is currently evaluating various parts of the Northern Territory and South Australia for such activities.
"Although the commercial exploitation of geothermal resources in central Australia would require probably large scale mining development as a potential customer base, the huge geothermal resource opportunities in central Australia would undoubtedly attract large capital investments in this sector, much like the investments we have seen in the petroleum sector," Mr. Heugh said. "We remain firmly committed to our core E&P business however while keeping an eye out for complementary investments in a geographical focus area that we know well."
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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