Amadeus Asset Sale Completes
Brisbane, Oct 1, 2021 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (C9J:FRA) (CNPTF:OTCMKTS) advises it has today completed the sale of 50% of its interests in its Amadeus Basin producing gas and oil fields to New Zealand Oil & Gas Limited (ASX:NZO) (NSE::NZO) and Cue Energy Resources Limited (ASX:CUE).
Central remains operator of these fields.
Consideration
The transaction had an effective date of 1 July 2020, with completion adjustment for net cash flows generated between the effective date and the completion date (1 October 2021).
Accordingly, Central has received $30 million in cash, net of a working capital adjustment and including reimbursement of $9 million of costs already incurred by Central on activities which are included in the $40 million of future costs to be carried by NZOG and Cue. Of the $40 million in carried costs, a total of $31 million currently remains available to cover Central's share of costs for the completion of the upcoming exploration program, as well as other future development and appraisal activities throughout the permit.
NZOG and Cue have also assumed obligations to supply up to 4 PJ of gas (50% interest acquired at completion) under the existing pre-sale and accumulated 'take-or-pay' balances. Central has previously received cash payments from both the pre-sale and take-or-pay arrangements, with the associated liabilities transferred to NZOG and Cue valued at $20.2 million on Central's books as at the completion date.
Central expects to recognise a book profit of circa $35 million on the transaction which will appear in its FY2022 accounts.
Cash and Debt balances
Central's loan facility balance at 1 October 2021 is $36.8 million (down from $66.8 million) after loan repayments totalling $30 million were made this week. Cash balances after completion and the loan repayments are circa $24 million. Future scheduled loan repayments are $2 million per quarter with the loan Facility Agreement expiring on 30 September 2022. Central is currently considering options to refinance or extend the existing facility at expiry.
Central's Managing Director and CEO, Leon Devaney welcomed NZOG and Cue as new joint venturers in the Amadeus Basin. "I am excited to be working with NZOG and Cue who are aligned with us to extract further value from our fields in the Amadeus Basin", he said. "The injection of new capital through the transaction has already resulted in an increase in field capacity at Mereenie, with the recompletions and two new production wells to be online over the next couple of weeks. With a major two-well exploration drilling program scheduled to commence shortly and conceptual planning already underway for appraisal of the Stairway at Mereenie, we are looking forward to successful results from this new phase of growth in the Amadeus".
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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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