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 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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