Interim Financial Report
Brisbane, Mar 8, 2017 AEST (ABN Newswire) - The Directors present their report on the consolidated entity consisting of Central Petroleum Limited (
ASX:CTP) (CPTLF:OTCMKTS) and the entities it controlled at the end of, or during, the half-year ended 31 December 2016.
Principal Activity
The principal continuing activity of the consolidated entity ("the Group") during the period was the exploration, development and production of hydrocarbons.
Highlights for the half-year reporting period and up to the date of this report
- The Council of Australian Governments ("COAG") Energy Council met on 19 August 2016 with Ministers agreeing on a package of measures designed to deliver better functioning and competitive energy markets. As a result, a Gas Market Reform Group led by Dr Michael Vertigan AC was formed to implement the gas reform package.
- The Vertigan Report was adopted by the Council of Australian Governments' Energy Ministers on 14 December 2016 foreshadowing a basic structural reform of pipeline tariffs and services.
- Testing of the Stairway Sandstone at Mereenie from the previously drilled West Mereenie-15 continues free flowing gas at sustainable rates with a low nitrogen content of 2.6%. Additional recompletion opportunities have been identified.
- "Free Carry" obligations under the Mereenie Acquisition were concluded during the period with a final payment of $3.3 million to Santos to account for the under spend.
- On 10 November 2016, the Company received an unsolicited, indicative and non-binding proposal from Macquarie to acquire 100% of the issued capital of Central by way of a Scheme of Arrangement at 17.5 cents per share. The Board of Directors subsequently determined the proposal was not in the best interests of shareholders, however granted Macquarie confidential due diligence and discussions are continuing.
- Santos Limited sold its 50% interest in the Mereenie Oil and Gas Field (including the Mereenie to Alice Springs Pipeline) to Macquarie Mereenie Pty Ltd, a subsidiary of Macquarie, for $52 million. Central remains Operator of the Mereenie Field.
To view the full report, please visit:
http://abnnewswire.net/lnk/HDN65ZAF
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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