GTA Signed for EDL Contract
Brisbane, May 9, 2017 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (CPTLF:OTCMKTS) ("Central") has signed a Gas Transportation Agreement with APA Group (ASX:APA) for an initial 12 months to transport the gas under the EDL Contract that was fully executed and delivered to Central on 25 April 2017 and announced on the next trading day, being 26 April 2017. The EDL Contract is conditional upon EDL satisfying the remaining conditions precedent by 31 May 2017.
When and if the EDL Contract becomes unconditional, Central will have committed all of the volumes of gas it may unilaterally sell from production at Mereenie under the interim gas balancing agreement negotiated at the time of the Mereenie acquisition from Santos QNT Pty Limited. The EDL contract was taken into account in the Independent Expert's Report and its potential in the Directors' recommendation of the Macquarie Scheme of Arrangement. Whilst the EDL Contract (once binding) will ensure that the Company is cash flow positive, it will not be sufficient to undertake any of the exploration and appraisal work outlined in the Scheme Booklet.
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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