Takes Decisive Action
Brisbane, Dec 16, 2014 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) ("Company" or "Central") advises following the recent drop in oil prices which has affected oil revenues from the Surprise field, Central has taken decisive action to ensure that the Company will be able to live within its present cash flows. The following actions have been taken:
1. The Company is applying for all necessary permits to operate the Surprise Oil Field remotely from Alice Springs in a concerted effort to reduce the costs of production.
2. The Company has implemented a 40% reduction in its headcount primarily targeting consultants and contractors. To a large extent the employment of Traditional Owners has been exempted.
3. The Company will only incur absolutely necessary expenditures.
4. Directors have agreed to defer 20% of their Director's fees until the next Financial Year.
Since last year, Central has been focussed on its gas operations and this focus remains. Gas revenues are unaffected with domestic gas prices still expected to rise. The Company's Gas Acceleration Programme remains unaffected with sources of funding being actively pursued. The NT Pipeline EOI closed today and the Company remains confident that the interconnect project will be aided by the recent events.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is a well-established, and emerging ASX-listed Australian oil and gas producer. In our short history, Central has grown to become the largest onshore gas producer in the Northern Territory (NT), supplying industrial customers and senior gas distributors in NT and the wider Australian east coast market.
Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in Queensland and the Northern Territory, including some of Australia's largest known onshore conventional gas prospects. Central has also completed an MoU with Australian Gas Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Gas Pipeline to a Final Investment Decision.
We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the Surat Basin, Queensland with 135 PJ (net to Central) of development-pending 2C contingent resource.
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