Brisbane, Aug 16, 2017 AEST (ABN Newswire) - Central Petroleum Limited (ASX:CTP) (OTCMKTS:CPTLF) (Central) is pleased to offer eligible shareholders the opportunity to participate in a 5 for 12 fully underwritten, traditional non-renounceable entitlement offer of new fully paid ordinary shares in Central (New Shares) at an issue price of $0.10 per New Share, that will raise approximately $18.0 million before costs (Entitlement Offer).

The proceeds of the Entitlement Offer, along with the institutional placement announced on 10 August 2017 to raise approximately $9.2 million before costs (Placement), will provide funds to be used by Central to fund a $25 million drilling programme with the objective of substantially increasing Central's gas reserves in time to have delivery coincide with the Northern Gas Pipeline becoming operational in the second half of calendar year 2018.

The issue price of $0.10 per New Share represents a discount of:

- 12.4% to the theoretical ex-rights issue price (TERP) (see Note below) of $0.114;

- 16.7% to the last traded price of Shares on 9 August 2017 (the day prior to announcement of the Entitlement Offer) of $0.120; and

- 17.2% to the 5 day volume weighted average price at 9 August 2017 (the day prior to announcement of the Entitlement Offer) of $0.121.

The number of New Shares that you are entitled to subscribe for under the Entitlement Offer (Entitlement) is set out in your personalised Entitlement and Acceptance Form that is enclosed with this Information Booklet.

The Entitlement Offer is non-renounceable, which means if you do not take up your Entitlements then they will lapse. A market will not be established and you will not be able to trade your Entitlements.

In the event that Eligible Shareholders do not take up all of their Entitlements in full, a Shortfall Facility will be available to provide an opportunity for those Eligible Shareholders that have taken up their full Entitlements to apply for additional New Shares (Additional Shares). The allocation of any Additional Shares under the Shortfall Facility will be at the discretion of Central and the Joint Lead Managers, and in any event will be subject to a cap as outlined in section 1.3 of this document. Any Shortfall Shares will be issued to the Joint Lead Managers on the terms of the Underwriting Agreement, subject to any sub-underwriting arrangements the Joint Lead Managers have in place.

The Entitlement Offer is fully underwritten by Morgans Corporate Limited and Macquarie Capital (Australia) Limited.

Other information

This Information Booklet contains important information, including:

- instructions on how to apply, detailing how to participate in the Entitlement Offer if you choose to do so, and a timetable of key dates;

- a personalised Entitlement and Acceptance Form which details your Entitlement, to be completed in accordance with the instructions; and

- instructions on how to take up all or part of your Entitlement via BPAY(R).

The Entitlement Offer closes at 5.00pm (AEST) on Thursday 31 August 2017.

Please read in full the details on how to submit your application, which are set out in this Information Booklet. For further information regarding the Entitlement Offer, please contact the Share Registry on 1300 552 270 (within Australia) or +61 3 9415 4000 (outside Australia) between 8.30am to 5.00pm (AEST) Monday to Friday during the offer period.

You should also consult your stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participate in the Entitlement Offer.

Note:

The theoretical ex-rights price of $0.114 is calculated using Central's closing price on 9 August 2017 assuming proceeds from the Entitlement Offer are approximately $18.0 million. TERP is the theoretical price at which shares should trade immediately after the ex-date for the Entitlement Offer assuming 100% take-up of the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which shares trade immediately after the ex-date for the Offer will depend on many factors and may not be equal to the TERP. The TERP does not include New Shares to be issued under the Placement.

To view the full Entitlement Offer Information Booklet, please visit:
http://abnnewswire.net/lnk/K767VFTR


About Central Petroleum Limited

Central Petroleum LimitedCentral Petroleum Limited (ASX:CTP) (OTCMKTS:CPTLF) is an oil and gas explorer and producer listed on the Australian Securities Exchange focused on supplying the domestic gas market. Central is advancing several separate projects across what is regarded as the biggest package of proven and prospective oil and gas acreage across central Australia. This spread of assets gives Central multiple options for growth and development. 88% of this land being gas prone has led to the Company's focus on becoming a major domestic gas producer.

 


Contact

Central Petroleum Limited
T: +61-7-3181-3800
F: +61-7-3181-3855
E: info@centralpetroleum.com.au
WWW: www.centralpetroleum.com.au

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T: +61-2-8234-0100
M: +61-409-911-189



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